VRL: Accounting Firms Show Positive Signs of Recovery

• New world accounting survey reports that there has been a marked improvement in the performance of firms globally since 2009
• Deloitte supersedes PwC as the world’s largest professional services network for the first time

LONDON--(BUSINESS WIRE)--International Accounting Bulletin (IAB) the leading publication for the global accounting industry, today announced the results of its Annual World Survey involving extensive research into 40 leading accounting firms. Arvind Hickman, Editor of IAB, comments:

“This year’s survey shows definite improvement, with only four networks failing to grow revenue, which is a complete turnaround in fortunes from last year. Revenue growth for networks increased 2 percent; however the revenue growth of associations contracted 2 percent.”

“This year’s survey shows definite improvement, with only four networks failing to grow revenue, which is a complete turnaround in fortunes from last year. Revenue growth for networks increased 2 percent; however the revenue growth of associations contracted 2 percent.

Recruitment has remained stable and is expected to improve slightly from 2010. There has also been a shift in the Big Four, with Deloitte narrowly superseding PwC for the first time with just $9 million separating the two. PKF is the fastest growing network in the top ten and BDO has held its position as the leading mid-tier firm with a strong 5 percent growth.

Globally, the strongest growth regions are China (20 percent), India (14 percent) and Brazil (11 percent) and there is evidence of high investment in these areas. However the US, Russia and Australia have had the most challenging trading conditions, evidenced by widespread contractions in revenue.”

The World Survey also looked into hot topics in accounting, such as litigation, and found that despite the headline grabbers, such as Ernst & Young and Lehman Brothers, it has actually been much quieter for firms in 2010.

The report found that fee pressure is still widespread, but easing, and this has hit the audit sector hardest. However, revenues from audits have actually increased for most networks, with PwC taking the lead and Deloitte following.

Tax was the strongest performer, buoyed by a strong demand in transfer pricing work and international tax advice and PwC led the way in this sector too. The mid-tier are starting to make more noise in the sustainability services market, which continues to grow, but corporate finance, IPO services and transaction support remain flat.

International Accounting Bulletin is published by VRL Financial News. For more information on VRL Financial News please go to http://www.vrl-financial-news.com.