John Fowler, Big4.com
July 13, 2010
Singaporean and Asian newspapers and websites are reporting that Ernst & Young will combine its Far East and Oceania areas into an integrated Asia-Pacific region.
Currently, Far East consists of
ASEAN – Cambodia, Guam (including Saipan and Micronesia), Malaysia (including Mongolia), Philippines, Singapore (including Brunei), Sri Lanka (including Maldives), Thailand, Vietnam (including Laos)
Greater China – China (including Hong Kong, and Macau), Taiwan, Financial Services
And Oceania consists of
Australia – Australia, New Zealand, Fiji
So this combined region will extend from Thailand in the West to Indonesia in the East and China in the North to New Zealand in the South. (But we’ll miss Far East and Oceania monikers – they are just so quaint!)
India, Pakistan and the Middle East are part of the firm’s EMEIA (Europe, Middle East, India, Africa) region. E&Y reports Japan independently as its own region. Americas include North and South America and the Caribbean. Thus, Ernst & Young’s Asia Pacific region will still be missing two large countries India and Japan, so still not fully representative of the entire region.
Ernst & Young already recast their presentation of revenues in 2009, adopting a combined rather than consolidated method of reporting, saying, “In line with our globalization efforts to harmonize policies across member fi rms, revenues for 2009 and
2008 related to member firm billings to other member firms have been eliminated from the financial information presented here. This financial information represents combined not consolidated revenues, and includes expenses billed to clients.” This made a large change in the level of the 2008 revenues.
With this change, there will be one more recast of financials, and we’ll see if they restate numbers for current and prior years when they report financial results later this year.
According to E&Y’s Executive Chairman for Singapore, Ong Yew Huat, the integration of operations in the various Asia-Pacific countries will provide projected cost savings of US$20 million in the medium term. Mr. Ong will be the chief operating officer of the newly-formed Asia Pacific area.
There is also a mention in an article by Julie Quek in channelnewsasia.com, that, “Ernst & Young plans to integrate its services globally starting this July and it expects to derive cost savings amounting to US$100 million from the move, of which US$20 million will come from Asia Pacific.” http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1066512/1/.html
There is surprisingly no mention of this regional or any global integration on the Ernst & Young global website on the Singaporean website; so we’ll just go with the reported news at present, and hope there is an official clarification soon.
Check out the E&Y organization as of July 2009 http://www.ey.com/Publication/vwLUAssets/EY_organization_5_Areas/$FILE/EY%20organization%205%20Areas.pdf
Ernst and Young, Oceania, Far East, Asia Pacific, integration, Singapore, regions