FINANCIAL RESULTS BDO Seidman revenue down
BDO Seidman has reported revenue of $620 million in the year to 30 June 2009, a decline of 6 percent on last year’s results. The US firm noted that its tax service line had grown 6 percent but assurance (-9 percent) and consulting (-15 percent) declined.
“After several years of strong revenue growth, BDO Seidman – like most businesses – was negatively impacted by the protracted economic recession in fiscal 2009,” BDO Seidman chief executive Jack Weisbaum said. “Fortunately, the firm’s billable hours remained comparable to the previous fiscal year. As we continue to work with our clients in helping them through this difficult time, we believe we are well positioned for a return to revenue growth as the economy recovers.”
MERGERS AND ACQUISITIONS Canadian BDO member acquires
BDO Dunwoody has acquired Canadian firms Hudson in Calgary and McMane Dunkel Kingston and Stranz (MDKS) in Waterloo. Hudson was established in 1973, has 10 partners and was a former member of Nexia International. BDO’s presence in Calgary has increased to 150 staff, including 18 partners.
MDKS added four partners and 29 employees to the firm’s Waterloo presence, which now stands at 90 staff and ten partners. BDO Waterloo region managing partner Jim Harper said the MDKS addition would significantly increase its tax, IT solutions and health care practices. BDO Dunwoody is the sixth-highest fee earning firm in Canada according to International Accounting Bulletin data.
OVERSIGHT Grant Thornton US comes under PCAOB microscope
Deficiencies in testing asset values and fair value have been highlighted by the US Public Company Accounting Oversight Board (PCAOB) in its annual inspection of Grant Thornton US. The deficiencies in its testing of assets held by the issuers’ pension plans were noted in five audits. In four audits, the firm failed to test the existence and valuation of assets held in the issuer’s defined-benefit pension plans. In another audit the watchdog said the firm failed to test the valuation of real estate and hedge fund investments and a guaranteed investment held by the issuer’s defined-benefit pension plan. The watchdog inspected 17 of the firm’s 51 offices. Grant Thornton said the findings did not impact on its conclusions or previously issued reports.