accountancy in the uk

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United Kingdom - Accountancy 0183 - 0415 - 2009

Datamonitor. This profile is a licensed product and is not to be photocopied Page 1

INDUSTRY PROFILE

Accountancy in

the United Kingdom

Reference Code: 0183-0415

Publication Date: September 2010


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EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Market value

The United Kingdom accountancy market shrank by 1.8% in 2009 to reach a value of $14,175.8 million.

Market value forecast

In 2014, the United Kingdom accountancy market is forecast to have a value of $17,447.7 million, an

increase of 23.1% since 2009.

Market segmentation I

Audit is the largest segment of the accountancy market in the United Kingdom, accounting for 48.3% of

the market's total value.

Market segmentation II

The United Kingdom accounts for 14.7% of the European accountancy market value.

Market rivalry

Buyers can vary in size but includ many medium and large businesses, which strengthens buyer power

considerably. The "big four" accountancy firms are established in this market, alongside some second-tier

and smaller players. The complex accounting and auditing needs of the most lucrative clients weaken

buyer power. IT and skilled employees are important inputs in this market, and supplier power is boosted.

Moderate market growth encourages market entry and tends to weaken rivalry to some degree, despite

the difficulty of competing with the largest players.


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CONTENTS



TABLE OF CONTENTS

EXECUTIVE SUMMARY 2

MARKET OVERVIEW 7

Market definition 7

Research highlights 8

Market analysis 9

MARKET VALUE 10

MARKET SEGMENTATION I 11

MARKET SEGMENTATION II 12

FIVE FORCES ANALYSIS 13

Summary 13

Buyer power 14

Supplier power 15

New entrants 16

Substitutes 18

Rivalry 19

LEADING COMPANIES 20

Deloitte Touche Tohmatsu 20

Ernst & Young International 22

KPMG International 24

PricewaterhouseCoopers 25

MARKET FORECASTS 27

Market value forecast 27

MACROECONOMIC INDICATORS 28

APPENDIX 30

Methodology 30

Industry associations 31

Related Datamonitor research 32

Disclaimer 33


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CONTENTS



ABOUT DATAMONITOR 34

Premium Reports 34

Summary Reports 34

Datamonitor consulting 34


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CONTENTS



LIST OF TABLES

Table 1: United Kingdom accountancy market value: $ million, 200509 10

Table 2: United Kingdom accountancy market segmentation I:% share, by value, 2009 11

Table 3: United Kingdom accountancy market segmentation II: % share, by value, 2009 12

Table 4: Deloitte Touche Tohmatsu: key facts 20

Table 5: Ernst & Young International: key facts 22

Table 6: KPMG International: key facts 24

Table 7: PricewaterhouseCoopers: key facts 25

Table 8: United Kingdom accountancy market value forecast: $ million, 200914 27

Table 9: United Kingdom size of population (million), 200509 28

Table 10:

United Kingdom gdp (constant 2000 prices, $ billion), 200509 28

Table 11: United Kingdom gdp (current prices, $ billion), 200509 28

Table 12: United Kingdom inflation, 200509 29

Table 13: United Kingdom consumer price index (absolute), 200509 29

Table 14: United Kingdom exchange rate, 200509 29


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CONTENTS



LIST OF FIGURES

Figure 1: United Kingdom accountancy market value: $ million, 200509 10

Figure 2: United Kingdom accountancy market segmentation I:% share, by value, 2009 11

Figure 3: United Kingdom accountancy market segmentation II: % share, by value, 2009 12

Figure 4: Forces driving competition in the accountancy market in the United Kingdom, 2009 13

Figure 5: Drivers of buyer power in the accountancy market in the United Kingdom, 2009 14

Figure 6: Drivers of supplier power in the accountancy market in the United Kingdom, 2009 15

Figure 7: Factors influencing the likelihood of new entrants in the accountancy market in the

United Kingdom, 2009 16

Figure 8: Factors influencing the threat of substitutes in the accountancy market in the United

Kingdom, 2009 18

Figure 9:

Drivers of degree of rivalry in the accountancy market in the United Kingdom, 2009 19

Figure 10: United Kingdom accountancy market value forecast: $ million, 200914 27


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MARKET OVERVIEW



MARKET OVERVIEW

Market definition

The accountancy market consists of revenues generated by firms engaged in designing, preparing andauditing accounting records. Income from tax, auditing, and advisory service provision is included. For

Japan, the market covers certified public accountant firms only. Any currency conversions used in the

creation of this report have been calculated using constant 2009 annual average exchange rates.

For the purposes of this report, Europe consists of Western Europe and Eastern Europe.

Western Europe comprises Belgium, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain,

Sweden, and the United Kingdom.

Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.


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MARKET OVERVIEW



Research highlights

The UK accountancy market had total revenue of $14,175.8 million in 2009, representing a compound

annual growth rate (CAGR) of 2.7% for the period spanning 2005-2009.

The audit segment was the market's most lucrative in 2009, with total revenue of $6,847.2 million,

equivalent to 48.3% of the market's overall value.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 4.2% for the five-

year period 2009-2014, which is expected to drive the market to a value of $17,447.7 million by the end of

2014.


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MARKET OVERVIEW



Market analysis

The UK accountancy market fell into decline in 2009, but the market is expected to return to growth and

accelerate throughout the forecast period.

The UK accountancy market had total revenue of $14,175.8 million in 2009, representing a compound

annual growth rate (CAGR) of 2.7% for the period spanning 2005-2009. In comparison, the French and

German markets grew with CAGRs of 1.8%, over the same period, to reach respective values of

$14,972.4 million and $9,241.2 million in 2009.

The audit segment was the market's most lucrative in 2009, with total revenue of $6,847.2 million,

equivalent to 48.3% of the market's overall value. The tax segment contributed revenue of $4,707.4

million in 2009, equating to 33.2% of the market's aggregate value.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 4.2% for the five-

year period 2009-2014, which is expected to drive the market to a value of $17,447.7 million by the end of

2014. Comparatively, the French and German markets will grow with CAGRs of 1.7% and 0.6%respectively, over the same period, to reach respective values of $16,261.5 million and $9,542.7 million in

2014.


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MARKET VALUE



MARKET VALUE

The United Kingdom accountancy market shrank by 1.8% in 2009 to reach a value of $14,175.8 million.

The compound annual growth rate of the market in the period 200509 was 2.7%.

Table 1: United Kingdom accountancy market value: $ million, 200509

Year $ million million million % Growth

2005 12,732.2 8,168.9 9,156.6

2006 13,290.7 8,527.2 9,558.3 4.4%

2007 13,850.7 8,886.5 9,961.0 4.2%

2008 14,432.5 9,259.7 10,379.4 4.2%

2009 14,175.8 9,095.1 10,194.8 (1.8%)

CAGR: 200509 2.7%

Source: Datamonitor D A T A M O N I T O R

Figure 1: United Kingdom accountancy market value: $ million, 200509



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MARKET SEGMENTATION I



MARKET SEGMENTATION I

Audit is the largest segment of the accountancy market in the United Kingdom, accounting for 48.3% of

the market's total value.

The tax segment accounts for a further 33.2% of the market.

Table 2: United Kingdom accountancy market segmentation I:% share, by value, 2009

Category % Share

Audit 48.3%

Tax 33.2%

Advisory 18.5%

Total 100%


Figure 2: United Kingdom accountancy market segmentation I:% share, by value, 2009



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MARKET SEGMENTATION II



MARKET SEGMENTATION II

The United Kingdom accounts for 14.7% of the European accountancy market value.

France accounts for a further 15.6% of the European market.

Table 3: United Kingdom accountancy market segmentation II: % share, by value, 2009

Category % Share

France 15.6%

United Kingdom 14.7%

Germany 9.6%

Spain 8.5%

Italy 6.1%

Rest of Europe 45.5%

Total 100%


Figure 3: United Kingdom accountancy market segmentation II: % share, by value, 2009



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FIVE FORCES ANALYSIS




The accountancy market will be analyzed taking accountancy firms as players. The key buyers will be

taken as companies and individual consumers, and providers of software, information technology and

office equipment as the key suppliers.

Summary

Figure 4: Forces driving competition in the accountancy market in the United Kingdom, 2009


Buyers can vary in size but includ many medium and large businesses, which strengthens buyer power

considerably. The "big four" accountancy firms are established in this market, alongside some second-tier

and smaller players. The complex accounting and auditing needs of the most lucrative clients weaken

buyer power. IT and skilled employees are important inputs in this market, and supplier power is boosted.

Moderate market growth encourages market entry and tends to weaken rivalry to some degree, despite

the difficulty of competing with the largest players.


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Buyer power

Figure 5: Drivers of buyer power in the accountancy market in the United Kingdom, 2009


Buyers can vary in size but include many medium and large businesses, which strengthens buyer power

considerably. For businesses, the service is a necessity (for example, most companies will be legally

required to engage independent auditors), while it is less so for most private individuals. Four majorplayers dominate the accountancy market: PriceWaterhouseCoopers, KPMG, Deloitte Touche Tohmatsu,

and Ernst & Young. For example, 99 of the FTSE 100 companies (all listed on the London Stock

Exchange) are audited by these "big four" accountancy firms. There is limited choice of players for the

largest corporate clients, as they will tend to need accountants that can offer a wide range of

competencies. A multinational client will need guidance on the tax regimes in all the countries it operates

in, for example. Also, to maintain investor confidence, a corporation needs to engage an accountancy firm

with a high reputation for probity, which may tend to favor the more well-known majors; and it may be

advantageous to retain one accountancy firm, which has a deep understanding of the client the national

economy are particularly restricted in their choice of auditor. While auditors in the UK are appointed

annually, there is a strong tendency for buyers to avoid switching from existing accountancy firms. Buyerpower is strengthened by the fact that accountants as such can rarely integrate forwards into their clients'

businesses, while clients can carry out some accounting functions in-house. Overall, buyer power is

moderate.


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Supplier power

Figure 6: Drivers of supplier power in the accountancy market in the United Kingdom, 2009


Suppliers in the accountancy market consist of specialized accountancy software publishers. These

provide computer software that records and processes accounting transactions. This is a necessity for

most accounting firms, and varies in its cost and complexity. Furthermore, large accountancy firms needmore specialized technology, and therefore rely on a limited range of suppliers to provide this. However,

the wide range of low end and high end products on offer, such as ERP software, weakens supplier

power. Other suppliers to accountancy firms will include manufacturers of PCs and office equipment.

Accountancy firms require a reliable ICT infrastructure in place and therefore often commit to one

suppliers product as they do not want to spend the money training staff on new software, again putting

suppliers in a strong position through high switching costs. It is also vital for players in this market to

recruit and retain highly skilled employees. Changing the labor supply (that is, experiencing staff turnover)

incurs switching costs. This is not just the one-off expenditure needed to recruit replacements, but also

the amount spent on training and development of staff, which is not recovered when an employee moves

on, and may in fact benefit a competitor that takes on the same person. Overall, supplier power ismoderate.


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New entrants

Figure 7: Factors influencing the likelihood of new entrants in the accountancy market in the

United Kingdom, 2009


The UK accountancy market may be entered by an individual accountant establishing his/her own

practice. For such a low-key entry, there is relatively little capital outlay or proprietary knowledge involved.However, entering the high end of the market (e.g. auditing the FTSE 100 companies) is considered

difficult, due to the dominance of the "big four" incumbents. The leading companies have strong brand

reputations. Competing for the largest clients is difficult except for the major accountancy firms, which can

offer an appropriate range of expertise. Such competencies may not always constitute "proprietary

knowledge" in the strict sense, since information on tax laws, accounting principles, industry practices, etc

are usually in the public domain, but may have a function akin to intellectual property for the major

accountancy firms, especially since the replication of such competencies can be costly, and constitutes a

barrier to market entry: companies will need to be aware of and abide by industry practices in the UK. The

UK Generally Accepted Accounting Principles (UK GAAP) are the overall body of regulation establishing

how company accounts must be prepared in the United Kingdom. This includes not only accountingstandards, but also UK company law. Companies also may come under investigation by the Accountancy

and Actuarial Discipline Board (AADB). For example, in 2010 Ernst & Young were under investigation for

the auditing of the investment bank Lehman Brothers accounts in 2007.


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The UK government is currently considering the introduction of proportionate liability for auditors. When

the new legislation is implemented, it should make the UK market more attractive to new entrants, by

reducing the risks for auditing firms. (Belgium, Germany, and three other European countries already

have capped liability for auditors.) Overall, there is a strong likelihood of new entrants.


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Substitutes

Figure 8: Factors influencing the threat of substitutes in the accountancy market in the United

Kingdom, 2009


While there are no obvious substitutes for the functions offered by accountants, specialized accountancy

firms do face the threat of substitutes. For private individuals, "DIY" accounting is often a possibility. Thissubstitute avoids costs in terms of fees paid to a third-party accountant, but may incur other costs, such

as the time absorbed by the process, and the greater possibility of mistakes being made. There may also

be switching costs, such as the need to purchase appropriate software. In a similar way, corporate clients

can carry out many accounting processes in-house. However, for companies with complex business

operations, perhaps covering several tax- and reporting jurisdictions, the costs of maintaining a suitably

skilled in-house team will rise. Also, the important function of auditing cannot by its nature be performed

in-house. Overall, the threat of substitutes is weak.


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Rivalry

Figure 9: Drivers of degree of rivalry in the accountancy market in the United Kingdom, 2009


The "big four" players have a strong presence in the UK, particularly in the large public corporation

auditing market, a very concentrated market segment. However, there are also many smaller firms, which

increases rivalry. This is enhanced by the fact that many players are very similar to each other. Even forlarge players that have diversified beyond accountancy into areas such as corporate advisory services,

accountancy is quite central to the business of most players in the market. Further, although accountancy

firms have few specialized physical assets to dispose of, their staff will tend to have specialized skills.

Exiting the accountancy market would therefore incur costs: IT systems could be re-deployed in another

business area, but laying off a large staff and recruiting a new one with different skills is not a trivial

exercise. Growth has been better than in markets such as France and Italy, although comparable to that

of Spain. Stronger growth tends to reduce rivalry between market players. Overall, rivalry in the UK

market is assessed as strong.


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LEADING COMPANIES



LEADING COMPANIES

Deloitte Touche Tohmatsu

Table 4: Deloitte Touche Tohmatsu: key facts

Head office: 1633 Broadway, New York, New York 10019 6754, USA

Telephone: 1 212 489 1600

Fax: 1 212 489 1687

Website: www.deloitte.com

Financial year-end: May

Source: company website D A T A M O N I T O R

Deloitte Touche Tohmatsu is an organization of member firms around the world, providing a broad range

of professional services including audit, tax, consulting and financial advisory services. The company

operates in nearly 150 countries through 70 member firms. The company serves national and middle

market enterprises, public institutions, privately owned companies and public sector organizations. It

provides its services to all major sectors including aviation and transport services; consumer business,

energy and resources, financial services, life sciences and health care, manufacturing, public sector and

technology, and media and telecommunications. The separate units of the company are Deloitte &

Touche; the US accounting arm; and Deloitte Consulting.

Deloitte's services can be categorized into four broad functional areas: audit, consulting, tax and advisory

services.

Deloitte's audit services segment offers audit technology, addresses new regulatory requirements,

incorporates multiple generally accepted accounting principles (GAAP) compliance, and facilitates the

auditor's understanding of business processes, controls, and risks. Its core competencies encompass risk

management, capital markets, control assurance, internal audit, regulatory consulting, and security and

privacy services.

The consulting services of the company range from strategy formulation to technology implementation. It

also offers industry and functional business performance knowledge. The company has consulting

alliances with leading companies such as 3M Company, BEA Systems, HP, IBM, Oracle Corporation,SAP, Siemens Medical Solutions USA and Sun Microsystems.


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LEADING COMPANIES



The company's tax services include corporate tax, indirect tax, international assignment services,

international tax, mergers and acquisitions (M&A) transaction services, research and development

credits, tax technology solutions and transfer pricing. The company's Global Backbone is locally

delivered, centrally coordinated global tax compliance and reporting service scalable to meet each client's

specific needs.

The advisory services are composed of four global service lines: corporate finance advisory, dispute

consulting/forensic services, reorganization services, M&A transaction services, and valuation services.

The corporate finance advisory unit provides M&A advice to corporate clients, private equity/venture

capital firms, entrepreneurs and governments. It has 90 partners and more than 900 employees. Its main

services include acquisitions and disposals; capital raising-private equity or capital markets; valuations;

strategic and general corporate advice; and business modeling. The dispute consulting/forensic services

range from litigation consulting provided locally and globally to forensic investigations encompassing

fraud and accounting investigations. The reorganization services include lender solutions, restructuring

services, corporate exit management and insolvency services. M&A transaction services provide tax,accounting and advisory services in business combinations to buyers or sellers. Valuation services

provide business valuation, intangible asset valuation, tangible asset advisory services, transaction

advisory, and capital allocation.

The company's Deloitte's Value Initiative has developed tools such as Deloitte's Enterprise Value Map

(EVM), ValueAnalytics, ValuePrint and Project Portfolio Management. Deloitte's Enterprise Value Map

(EVM) identifies business activities and illustrates how each should be aligned to four primary value

drivers: revenue growth, operating margin, asset efficiency, and expectations. ValueAnalytics enables the

financial analyses of key value drivers. ValuePrint is a business case development tool. The Project

Portfolio Management tool assesses individual projects' effectiveness and contribution to value.

The company's local office is located at 2 New Street Square, London EC4A 3BZ, UNITED KINGDOM

Tel.: 44 20 7936 3000 Fax: 44 20 7583 1198

Key Metrics

The company recorded revenues of $26.1 billion during the financial year ended May 2009, a decrease of

4.7% from 2008.


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LEADING COMPANIES



Ernst & Young International

Table 5: Ernst & Young International: key facts

Head office: 5 Times Square, New York City, New York 10036, USA

Telephone: 1 212 773 3000

Fax: 1 212 773 6350

Website: www.ey.com

Financial year-end: June


Ernst & Young International (Ernst & Young) is a global firm that provides a range of services, such as

accounting and auditing, tax advisory, tax reporting and operations, technology and security risk, humancapital, business risk, and transaction advisory services. Ernst & Young also provides legal services in

some countries.

Globally, Ernst & Young focuses on the 13 major industry groups: asset management, automotive,

banking and capital markets, biotechnology, consumer products, insurance, media and entertainment, oil

and gas, pharmaceuticals, real estate (includes construction, hospitality and leisure), technology,

telecommunications and utilities.

Ernst & Young's service lines primarily consist of assurance and advisory business services, taxation, and

transaction advisory services.

The company's assurance and advisory business services encompass three services: assurance, which

includes independent audit of companies financial statements and other attestation services; risk

advisory services, which include advisory services for risk management; and finance and performance

management services, which provides advisory services on finance function strategy, organization design

and development, and operational effectiveness.

Taxation covers personal, corporate and indirect tax and consulting services. The division's services

include tax compliance assistance and review, tax compliance outsourcing, tax advisory services, and tax

department performance improvement.

Transaction advisory services encompass services in relation to mergers and acquisitions, divestitures,

strategic finance, corporate restructuring, business modeling, working capital management, and valuation.


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LEADING COMPANIES



In addition to these services, Ernst & Young also offers assistance in protecting clients' IT assets from

viruses, attacks, and internal security threats, as well as providing assistance with capital markets advice,

tax-effective supply chain planning, compensation design, M&A planning and post-merger integration

services, and legal advisory services.

Key Metrics

The company recorded revenues of $21.4 billion during the financial year ended June 2009, a decrease

of 6.8% over 2008.


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LEADING COMPANIES



KPMG International

Table 6: KPMG International: key facts

Head office: Burgemeester Rijnderslaan 10-20, Amstelveen 1185 MC, NLD

Telephone: 31 20 656 7890

Fax: 31 20 656 7700

Website: www.kpmg.com

Financial year-end: September


KPMG International (KPMG) is a global network of professional services firm providing audit, advisory,

and tax services. The company has operations in 148 countries and more than 113,000 professionalsworking in member firms around the world.

KPMG is a Swiss cooperative that operates as an umbrella organization for its member firms. It has

organized its structure into three operating regions: Europe, Middle East, and Africa; the Americas; and

Asia-Pacific.

The company operates through three business divisions: audit, advisory, and tax.

KPMG's audit division provides independent auditing services to companies. The company provides

resources and technological tools necessary to support internal controls. KPMG has established the Audit

Committee Institute (ACI) to provide resources to audit committee members and help them keep pace

with evolving business issues related to governance, audit issues, accounting, and financial reporting.

KPMG's advisory professional services provide advice and assistance to enable companies,

intermediaries, and public sector bodies to mitigate risk and improve performance. It provides risk and

financial advisory services to clients, which helps them create strategies for the longer term.

KPMG's tax services offer services related to tax compliance and managing tax risks. KPMG's tax input is

delivered through a number of global service lines. These include: business tax, international corporate

tax and indirect tax. These services assist clients in fulfilling compliance responsibilities, planning

opportunities, and communicating between markets and regulators.

Key Metrics

The company recorded revenues of $20.1 billion during the financial year ended September 2009, a

decrease of 11.4% from 2008.


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LEADING COMPANIES



PricewaterhouseCoopers

Table 7: PricewaterhouseCoopers: key facts

Head office: 300 Madison Avenue, 24th Floor, New York, New York 10017United States of America

Telephone: 1 646 471 4000

Fax: 1 646 394 1301

Website: www.pwcglobal.com

Financial year-end: June


PricewaterhouseCoopers (PwC) is one of the world's largest professional services firms. PwC is anaccountancy firm that provides services in three lines of business: assurance (including financial and

regulatory reporting), tax, and advisory. PwC is one of accounting's Big Four, along with Deloitte Touche

Tohmatsu, Ernst & Young, and KPMG. The company has operations in 150 countries spanning Europe,

North America and the Caribbean, Asia, Australia and Pacific Islands, the Middle East and Africa, and

South and Central America.

The company's member firms offer services under six divisions: audit and assurance, crisis management,

tax, transactions, human resources, and performance improvement.

The audit and assurance division provides services in financial accounting issues related to matters such

as valuations, pensions and share plans, listings, IFRS conversions, and corporate treasury and company

secretarial functions. This division offers solutions related to Sarbanes Oxley and international financial

reporting standards (IFRS).

Under the crisis management division, PwC offers services related to business recovery, disputes and

investigations. The company's recovery services range from turnaround and restructuring plans to exit

strategies.

Through the tax division, PwC assists businesses, individuals and organizations with tax strategy,

planning, and compliance, whilst also delivering a range of business advisory services. The company

develops comprehensive integrated solutions by combining industry insight with the technical skills of

financial and tax specialists, economists, lawyers and other in-house experts. The company has 23,000

tax professionals in over 140 countries.

The transaction division offers services related to a range of financial transactions such as mergers and

acquisitions, corporate finance, and valuation and strategy.


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LEADING COMPANIES



The human resource services division offers services across three core disciplines: international

assignments, reward and HR management. The PwC network is one of the world's largest HR advisory

organizations with more than 6,000 professionals in over 100 countries. The HR management includes

Saratoga, one of the leaders in human capital measurement, benchmarking and strategic application of

human capital information.

The performance improvement division focuses on financial effectiveness, IT effectiveness and

governance, risk and compliance business operations of companies.

Key Metrics

The company recorded revenues of $26.2 billion during the financial year ended June 2009 a decrease of

7% from 2008.


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MARKET FORECASTS



MARKET FORECASTS

Market value forecast

In 2014, the United Kingdom accountancy market is forecast to have a value of $17,447.7 million, anincrease of 23.1% since 2009.

The compound annual growth rate of the market in the period 200914 is predicted to be 4.2%.

Table 8: United Kingdom accountancy market value forecast: $ million, 200914

Year $ million million million % Growth

2009 14,175.8 9,095.1 10,194.8 (1.8%)

2010 14,527.0 9,320.4 10,447.4 2.5%

2011 15,108.0 9,693.1 10,865.2 4.0%

2012 15,786.2 10,128.3 11,352.9 4.5%

2013 16,574.0 10,633.7 11,919.5 5.0%

2014 17,447.7 11,194.3 12,547.8 5.3%

CAGR: 200914 4.2%


Figure 10: United Kingdom accountancy market value forecast: $ million, 200914



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MACROECONOMIC INDICATORS




Table 9: United Kingdom size of population (million), 200509

Year Population (million) % Growth

2005 60.4 0.3%

2006 60.6 0.3%

2007 60.8 0.3%

2008 60.9 0.3%

2009 61.1 0.3%


Table 10: United Kingdom gdp (constant 2000 prices, $ billion), 200509

Year Constant 2000 Prices, $ billion % Growth

2005 1,672.0 2.0%

2006 1,719.6 2.8%

2007 1,767.6 2.8%

2008 1,777.2 0.5%

2009 1,689.8 (4.9%)


Table 11: United Kingdom gdp (current prices, $ billion), 200509

Year Current Prices, $ billion % Growth

2005 2,262.8 4.2%

2006 2,430.7 7.4%

2007 2,830.7 16.5%

2008 2,737.4 (3.3%)

2009 2,252.0 (17.7%)



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Table 12: United Kingdom inflation, 200509

Year Inflation Rate (%)

2005 2.8%2006 3.2%

2007 4.3%

2008 3.7%

2009 2.2%


Table 13: United Kingdom consumer price index (absolute), 200509

Year Consumer Price Index (2000 =100)

% Growth

2005 112.7 2.8%

2006 116.3 3.2%

2007 121.3 4.3%

2008 125.8 3.7%

2009 128.6 2.2%


Table 14: United Kingdom exchange rate, 200509

Year Exchange rate ($/) Exchange rate (/)

2005 0.5500 0.6837

2006 0.5435 0.6820

2007 0.4999 0.6840

2008 0.5449 0.7973

2009 0.6416 0.8921



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APPENDIX



APPENDIX

Methodology

Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated,analyzed, cross-checked and presented in a consistent and accessible style.

Review of in-house databases Created using 250,000+ industry interviews and consumer surveys

and supported by analysis from industry experts using highly complex modeling & forecasting tools,

Datamonitors in-house databases provide the foundation for all related industry profiles

Preparatory research We also maintain extensive in-house databases of news, analyst

commentary, company profiles and macroeconomic & demographic information, which enable our

researchers to build an accurate market overview

Definitions Market definitions are standardized to allow comparison from country to country. The

parameters of each definition are carefully reviewed at the start of the research process to ensure they

match the requirements of both the market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest

industry events and trends

Datamonitor aggregates and analyzes a number of secondary information sources, including:

- National/Governmental statistics

- International data (official international sources)

- National and International trade associations

- Broker and analyst reports

- Company Annual Reports

- Business information libraries and databases

Modeling & forecasting tools Datamonitor has developed powerful tools that allow quantitative

and qualitative data to be combined with related macroeconomic and demographic drivers to create

market models and forecasts, which can then be refined according to specific competitive, regulatory

and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and

up-to-date


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APPENDIX



Industry associations

Institute of Chartered Accountants in England and Wales

Chartered Accountants' Hall, One Moorgate Place, London EC2R 6EA

Tel.: 44 20 7920 8100Fax: 44 20 7920 0547

http://www.icaew.co.uk/

Institute of Chartered Accountants of Scotland

CA House, 21 Haymarket Yards, Edinburgh EH12 5BH, UK

Tel.: 44 131 347 0100

Fax: 44 0131 347 0105

http://www.icas.org.uk

European Accounting AssociationPlace de Brouckre Plein 31, 1000 Brussels, Belgium

Tel.: 32 2 226 6660

Fax: 32 2 512 1929

http://www.eaa-online.org

Fdration des Experts-Comptables Europens

Avenue d'Auderghem, 22-28/8, B-1040 Brussels, Belgium

Tel.: 32 2 285 4085

Fax: 32 2 231 1112

http://www.fee.be

Association of Chartered Accountants

2 Central Quay, 89 Hydepark Street, Glasgow G3 8BW, United Kingdom

Tel.: 44 141 534 4810

Fax: 44 141 534 4141

http://www.acca.co.uk


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APPENDIX



Related Datamonitor research

Industry Profile

Accountancy in Belgium

Accountancy in Italy

Accountancy in Netherlands

Accountancy in Spain


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APPENDIX



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