Deloitte Touche Global Revenue Up in Fiscal 2015 [WSJ]
$35.2 billion. This growth can be interpreted a couple of different ways:
Revenues for fiscal 2015, which ended May 31, rose 7.6% in local-currency terms, as Deloitte prefers to measure its growth. The two growth figures were significantly different in the latest year because of the strength of the U.S. dollar, Deloitte said.
The 2.9% growth in U.S. dollars was slower than the 5.7% growth the firm posted in the previous year, though the 7.6% local-currency growth was above the previous year’s 6.5%.
Global CEO Punit Renjen classifies that as "tremendous growth, higher than what we did last year," which is correct, "as Deloitte prefers to measure its growth," but not so correct in how real companies report their results, which is in one currency after accounting for things like, say, "the strength of the U.S. dollar."
Also worth noting is that Deloitte's consulting business increased 7.2% in USD (10.3% in local currency) and assurance decreased 3.5% USD (increase of 2.9% local). Consulting revenues consist of 34.7% of Deloitte's business, compared to 27.8% for audit. Renjen also told the Journal, "audit is central to who were are and will remain central to who we are, period," presumably with a straight face. That's kinda like saying light bulbs are central to General Electric and will remain central to General Electric. Sure, you can make that claim and how you made a name for yourself, but no one believes for a second that it's still your biggest priority.
PwC to Offer Perk: Student Loan Aid [WSJ]
Starting next July, PwC will pay $1,200 a year towards employees' student loans for a maximum of six years. It is intende for associates and senior associates and will be paid "directly toward certified student loans" according to the Michael Fenlon, the firm's global talent leader. Analysis of government data has found that 2015 college graduates will have an average student loan debt load of $35,000.
Tesco's Yearlong Accounting Scandal Began With Tipster E-Mail [Bloomberg]
Britain isn't compensating whistleblowers yet as they're still skeptical whether or not the tips lead to better information:
“Financial incentives could encourage whistle-blowing,” said Michael Burd, a London employment lawyer. “But I do question whether the arrangements in the U.S., where the amounts can be eye-watering, making people wealthy beyond anyone’s wildest dreams, are necessary or indeed desirable.”
This is an odd quote (the story if full of them). There are countless stories of whistleblowers' lives being ruined because of retaliation. Many of them are out of work for years as a result of whistleblowing. To suggest that financial incentives aren't necessary or desirable, at least without further explanation, seems a bit naive.
SEC Frets Over Split in Revenue Recognition Adoption Efforts [CW]
“The mere hope to achieve the promise of a single standard will not be sufficient.”
PCAOB inspections a win for China [China Accounting Blog/Paul Gillis]
Paul Gillis notes a study that found improved "audit quality on all of their clients" of non-U.S. audit firms inspected by the PCAOB. He concludes:
The point here is that the credibility of the financial statements depends in part on the credibility of the auditor, and the presence of a PCAOB inspections increases the credibility of the auditor. That has benefits in the ability to raise capital.
Curbs Don’t Stop Tax-Driven Mergers [WSJ]
Since Treasury placed tougher rules around inversions, there have been 6 deals compared to 9 in year previous.