Background and methodology to financial information

1 Grant Thornton
1.1 Grant Thornton refers to Grant Thornton International Ltd, which is a not-for-profit, non practising, international umbrella membership entity organised as a private company limited by guarantee not having a share capital incorporated in England and Wales. Services are delivered independently by the Grant Thornton member firms.

2 Firms
2.1 The results reported in this financial report are for member firms only, as Grant Thornton believes this reflects more clearly the breadth and strength of international accounting organisations.

3 Fee income
3.1 Fee income represents the aggregate fee income of the individual member firms.
3.2 All member firms have reported to a single year-end date (30 September) for consistency and comparability.
3.3 Member firms reported fee income net of local sales taxes.
3.4 Fee income is reported inclusive of rechargeable expenses.
3.5 Some member firms underwent mergers with other firms during the year, with the resultant firm remaining a member firm within Grant Thornton. In these cases, the fee income for all parties to the mergers has been included for the full year.
3.6 Certain member firms terminated their membership agreements with Grant Thornton during the year. In these cases no fee income has been included in the aggregated fee income for the year.

4 Exchange rate
4.1 Fee income reported by member firms was translated into US dollars using the average inter-bank exchange rate over the 12 months to the year-end date.

5 Member firm offices
5.1 An office is defined as a single building or collection of buildings in a close geographic area that is treated as a separate administrative entity.
5.2 Office numbers are reported as at 30 September.

6 Member firm partners
6.1 A partner is a proprietor, direct or indirect shareholder, equity or non-equity partner, principal, or any individual who assumes the risks and benefits of member firm ownership, or who is otherwise held out by the member firm to be the equivalent of any of the above.

7 Member firm personnel numbers
7.1 Member firm personnel numbers refer to both partners and staff.
7.2 Member firm personnel numbers are reported as at 30 September.

8 Service line performance
8.1 The service line performance represents the core activities of the member firms of the Grant Thornton International organisation and is defined as follows:

• assurance and accountancy
• tax
• specialist advisory services, including, but not limited to, business risk services, forensic and investigation services, recovery and reorganisation and transaction advisory services.

8.2 The other activities of the member firms of the Grant Thornton organisation include:

• accounting and software training
• company formation, secretarial and administration
• legal services IT software licensing
• human resources consulting.

9 Legacy service line performance
9.1 ”Other business advice and consulting services” are included here as part of Specialist Advisory Services activity. In the 2008 Transparency Report, these activities were reported under “Other” and excluded from Specialist Advisory Services.