![]() ![]() Changes in tax legislation, such as the introduction of an income tax in the United States in 1913, were critical for the growth of accounting as a profession. A number of leading firms were established at this time, including Deloitte in 1845 and Price Water-house. The system devised by Deloitte solved this problem and was instrumental in the passage in 1844 of the Joint Stock Banking Act in England, which required firms to provide balance sheets and income statements. For example, some imagined that as the cost of replacement of locomotives rose, then the value of a firm ’s assets rose by the same amount, ignoring depreciation. In those days, as companies grew, due to their size and complexity, new problems were presented over how to depreciate fixed capital. For example, Deloitte, Haskins and Sells traces its history back to the mid-1800s in England, when William Welch Deloitte devised the double entry accounting system to help the Great Western Railway to deal with its large capital stock. But the genealogy of Deloitte & Touche looks much like a large family tree stretching back over 100 years to the rise of the multinational corporation and its need for standardized accounting procedures.Įach of the two predecessor firms to Deloitte & Touche has a long history of growth. For the last half century, however, eight firms had dominated public accounting these firms were dubbed the “Big Eight ” by Fortune magazine. The 1989 merger between Touche Ross and Deloitte, Haskins, and Sells was thought by many industry experts to be an unlikely match, despite the fact that the accounting industry is one with a long history of mergers and acquisitions -over the years more and more partners have become concentrated in a shrinking number of firms. The Tohmatsu name comes from Tohmatsu Avoiki & Sanwa, Japan ’s largest audit firm, which was part of Touche Ross at the time of the merger in 1989. A private partnership, Deloitte & Touche is also part of Deloitte Touche Tohmatsu International, a global leader in professional managerial consulting services with 56,000 professionals in 108 countries. The two firms were roughly the same size before the merger the newly combined Deloitte & Touche could boast of revenues of nearly five billion dollars, with clients such as General Motors, Procter & Gamble, Nabisco, Sears Roebuck and Company, and other Fortune 500 companies.ĭeloitte & Touche provides professional services including accounting, auditing and tax services, and management consulting through 15,300 professionals in more than 100 U.S. The firm of Deloitte & Touche was created as a result of the 1989 merger between two of what were then the “Big Eight ” accounting firms -the firm of Touche Ross and the firm of Deloitte, Haskins, and Sells. SICs: 8721 Accounting, Auditing & Bookkeeping 8742 Management Consulting Servicesĭeloitte & Touche is the fourth largest public accounting firm in the world, one of the prestigious Big Six accounting firms that dominate public accounting. Private Wholly Owned Subsidiary of Deloitte Touche Tohmatsu International ![]()
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