Sunday News Roundup 22.06.05: Global accounting seismic changes, CPA reports, M&A and more
Wrapping up the odds and ends from the past week in Canadian accounting news
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TORONTO, June 5, 2022 – The most interesting news in the accounting profession this past week were seismic stories about global accounting firms that may ripple through Canada. For example, in the ongoing story about a potential split of EY’s audit and consulting businesses, Australia’s Financial Review reported on the tough decision facing many partners in Which side of an EY break-up do you want to be on?
The Financial Review also pointed out that the potential split is at odds with recent trends in the profession’s branding and marketing of accounting professionals as business advisors (i.e., consultants). As any Canadian accountant knows, this is just as true in Canada, where accountants “master change” and are “charting the course” because they are no longer “boring” number-crunchers.
Finally, Going Concern reported that Kelly Grier, EY US chair and managing partner and Americas managing partner since July 2018, will not pursue a second four-year term. As Going Concern notes, the timing coincides with a potential EY split.
Meanwhile, British audit regulators finally unveiled long-awaited reforms this past week, as reported by the Wall Street Journal. Critics argued the reforms would lead to a rise in economic crimes. And, while the UK government said the reforms would prevent another Carillion, not everyone agreed. Finally, lost in all the news of audit reform was the announcement by KPMG UK that it would “scale back audit clients to boost standards.”
But don’t worry about the bad boy of the UK Big Four — apparently its clients will be paying 20% more in audit fees for the pleasure, according to Sky News.
Economic reports from CPA Canada
CPA Canada released two economic reports this week. The Housing Headache study finds that half of Canadians who do not currently own a home believe it is unlikely that they will ever be able to purchase one. And CPA Canada teamed up with the International Federation of Accountants to publish a report (research data from PwC) on the sustainable debt market called Navigating the sustainable debt market: Enhancing credibility in an evolving market.
Accounting firm mergers and acquisitions
Homegrown national accounting firm MNP continues to build its presence in the province of Québec after last year’s huge acquisition of Deloitte’s firms in La belle province. This week it acquired Jean Luc Quenneville CPA inc., based in Laval, and its team of five accounting professionals, which will join 40 team members from MNP's Saint-Laurent office at MNP's new Laval location later this summer.
And two Toronto firms, Segal LLP and GCSE LLP, have joined forces as Segal GCSE LLP. Dan Natale, Segal managing partner, will serve as managing partner of the new organization. Segal GCSE LLP will maintain its two current locations in Toronto, with plans to move into a shared office later in 2022.
Sun Life Slumps as IFRS 17 Makes a Bigger-Than-Expected Hit (Bloomberg Tax)
N.B. takes biggest jump in personal insolvencies in March (CBC)
Why Intuit’s CEO believes inclusivity benefits the world and the company’s bottom line (Fortune)
Finance committee approves minor change to budget bill’s luxury tax, rejects more substantial changes (Globe and Mail)
Should Canada slap a new tax on oil & gas industry profits? (Yahoo Finance)
By Canadian Accountant staff. Top illustration: iStock image amended.