FY15_EY Services Brochure

2014

A better business worldHow EY can help you get there

ContentsAbout EY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Our vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Our lines of business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Advisory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Assurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Transaction Advisory Services . . . . . . . . . . . . . . . . . . . . . . 19

Our investment in diversity, quality and values . . . . . . . . 21

Contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

1 A better business world: how EY can help you get there

The member firms of the global EY organization are separate legal entities that help companies in businesses across a range of industries — from emerging growth companies to global powerhouses — deal with a broad range of business issues. Our people around the globe pursue the highest levels of integrity, quality and professionalism to provide clients with a broad array of services relating to audit, advisory, tax and transactions.

Ernst & Young LLP has 5,200 professionals based in 13 offices across the West Region — 440 of whom are partners — who provide audit, tax, advisory and transaction advisory services to a range of industries, including power and utilities, industrial products, consumer products, media and entertainment, the public sector, oil and gas, manufacturing, real estate, technology, financial services, life sciences, health care, hospitality and telecommunications.

EY is a global leader in advisory, assurance, tax and

transactions services. Our 190,000 people are united by our

shared values, which inspire our people worldwide and guide

them to do the right thing, and our commitment to quality,

which is embedded in who we are and everything we do.

About EY

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A global organization: we are 190,000 people based in 728 offices in 150 countries, organized in 28 Regions and four AreasOur investment in this globally integrated organization was designed with one thing in mind — to better serve our clients

Benefits of EY’s global reach

• Access to the best resources, knowledge and insights, including leading practices and lessons learned worldwide

• Adoption of consistent processes across all markets

• Efficient coordination of global activities and communications

• Seamless and effective integration with appropriate enabling functions and business units

• Accountability

• Improved accuracy

• Economies of scale

• Consistent methodology applied globally by our professionals in all geographies:

• Globally consistent and seamless services delivered by local delivery teams

• Specific local conditions or regulations known and shared with you by local delivery team

• No language barriers as a result of local resources

• Improved project risk management

• Dedicated EY services teams available in all major geographies

• Regional client service professionals with delivery team in each of the core markets:

• Knowledge of market challenges and local regulatory landscape

• Relationships to local teams

• Ability to provide insights and support to local teams

• Clear accountability and reporting structures

• Consistent communication globally

• Country and engagement- specific insights

Americas

Japan

Asia-Pacific

Europe, Middle East,

India and Africa (EMEIA)

EY member firm presence

3 How EY can help you build a better working world

EY is committed to doing its part in building a better working world .The world is changing and will continue to do so. We are seeing huge developments in globalization, demographics, technology, regulation and the competitive landscape.

At EY, we understand the challenges this can present, but more so, we see an opportunity to help the world work better. That is precisely the purpose that the people of EY are committed to.

We believe, and research shows, the power of purpose can drive greater success for our people, our clients and our communities. At EY, we understand our obligation to look beyond our self-interest and engage with the world.

The insights and quality services we deliver help build trust and confidence in the capital markets and in economies throughout the world. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In doing so, we play a critical role in building a better working world for our people, our clients and our communities.

We’re committed to helping change the world so that:

• Trust increases

• Capital markets are strong

• Investors make informed decisions

• Businesses grow sustainably

• Employment rises

• Consumers spend

• Governments invest in their citizens

• Talent is developed

• Collaboration is encouraged

The increased globalization over the past generation has meant painful changes for some, yet has brought great opportunity to many more. EY leaders and professionals have been speaking with preeminent thinkers about how the world is changing and where we see our place in it. From this, we have created what we call Vision 2020, plans that define our purpose and strategy for the years ahead. To achieve Vision 2020, we will be making some changes while maintaining our unwavering commitment to quality. We believe these improvements will transform our organization as we aim to set the pace for how the profession should serve our clients and the public interest with greater relevancy, transparency and professionalism.

Our vision

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In the West, we:

• Contribute to the critical functioning of the world’s capital markets, providing accurate, timely and transparent information

• Assist our clients to improve and grow, leading to higher living standards and more opportunities for growing local economies

• Help entrepreneurs, who are key to economic health, bring their products and ideas to market through Entrepreneur Of The YearTM and a series of services

• Are an incubator when it comes to developing leaders who have successful careers at EY and go on to other roles in industry, government and academia

• Give back to the local communities in which we live and serve through individual and collective initiatives

A shared agendaWe realize we won’t achieve our purpose alone.

But by better understanding your world, we are most effectively able to tailor our insights and investments to meet your needs. Then we are best positioned to focus on the shared agenda and how we can move forward together, toward a brighter future.

What does building a better working world mean to you? We start with what matters the most to you:

• The world of your business, your clients, your career, your community, your family

• The things that affect you and the things you affect

• One step at a time

• One insight at a time

• Because when business works better, the world works better

What’s new at EYEffective July 1, several important changes have taken place:

• Mark Weinberger is EY’s new Chairman and CEO.

• We have formally shortened our brand name to EY, providing consistency and ease of use around the world.

• We have redesigned our logo, reflecting our new brand name in the design.

• We have embraced a new purpose and tagline: Building a better working world.

• This answers “why” we do what we do.

• While several important changes are taking place, our unwavering commitment to quality remains.

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3

4

5

Assurance

Adv

isory Tax


Our lines of business

Risk services

• Business process controls auditing

• Controls and process remediation

• Information systems security, controls and governance

• Real estate asset planning

• IT risk

• Program risk management

• Enterprise risk management

• Contract risk services

Performance improvement services

• Strategy

• Finance

• Customer

• Supply chain

• Business intelligence

• Data analytics

Performance technology services

• IT transformation

• Enterprise intelligence

• Enabling technologies

• Technology risk and security

Fraud investigation and dispute services

• Investigations

• Litigation and arbitration

• Government contracts

• Insurance claims

• Compliance

• Forensic technology

• Vendor and joint venture contract compliance

• Compliance with terms of and accounting for co-promotion, co-marketing, co-licensing and research and development agreements

• Revenue, cost and selling expense analyses

External audit services

• Audit of financial statements, statutory accounts, pension funds and internal controls

Performance improvement

services

Performance technology

services

Climate change and

sustainability services

Financial accounting advisory services

Clientrelationships

Fraud investigation and dispute

services

Risk services

External audit

services

Financial accounting advisory services

• Accounting change and assistance

• IFRS conversions and support

• IPO readiness

• Accounting support for due diligence and transaction services

• Accounting control and process support

Climate change and sustainability services

• Governance, risk management and strategic direction advisory

• Program management

• Supply-chain advisory

• Regulation and tax efficiency

• Financial and non-financial measurement and reporting

• Finance and transactions

• Clean technologies and solutions focused on climate change and sustainability

Adv

isory

Assurance

Tax

TAS

Assurance

Adv

isory Tax

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Human capital services

• Assignment services

• Expatriate tax compliance and advisory

• Global employment tax services

• Global business immigration services

• International social security

• Remuneration and benefits

• HR advisory

Capital transformation services

• Operational transaction services

• Restructuring

• Working capital

• Transaction real estate

• Valuation and business modeling

• Commercial advisory services

• M&A advisory and capital and debt advisory

Transaction support services

• Transaction diligence, planning, structuring, execution, negotiation and close

• Strategy planning and opportunity assessment

• Divestiture advisory

Transaction tax services

• Tax structuring

• Tax-free spins

• Federal, state and international tax risk analyses

• Customs, duties, VAT and other indirect tax assessments

• Evaluation of significant tax exposures

• Identification of post-transaction tax reduction options

Capital transformation

services

Business tax services

Clientrelationships

Transaction supportservices


International tax services

Indirect tax services


Human capital

services

International tax services

• Transfer pricing

• Tax-Effective Supply Chain Management

• Cross-border corporate income tax advisory

Indirect tax services

• Credits and incentives

• Sales and use tax

• Property tax

• Customs and international trade advisory

• VAT advisory and compliance


• Third-party acquisitions, divestitures and restructuring (see below for additional services under TAS Transaction tax services)

Business tax services

• US income tax compliance

• Global compliance and reporting

• Business tax advisory

• Tax accounting and risk advisory services

• Tax policy controversy

• Quantitative services

• Tax performance advisory

• Personal tax services

Adv

isory

Assurance

Tax

TAS


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Advisory

Who we areAdvising with a new perspective — an approach that makes a difference

The business world has changed dramatically and permanently — and the ground continues to shift under the feet of today’s executives. Outside forces that used to be intermittent are here to stay. Capital moving west to east, customers communicating with you and each other — globally, unexpected innovation, increasing regulation, a rising need for security and greater demand for transparency. And, of course, digitization and the proliferation of data.

These forces are making companies think about and organize their business performance efforts in more proactive and structured ways.

How we workWe help drive your business performance .

We help clients find ways to respond to these forces that will help them assess and protect their businesses, grow revenues and optimize processes. And we do this through a sharp focus on leadership, alignment, execution and adoption.

Organizations need to find new ways to innovate — and do it quickly .

Performance improvementHow do you deliver year-on-year growth?

Against a backdrop of change, markets continue to expect sustained, year-on-year growth. To reach its potential, your organization must continuously improve its performance — and sustain that improvement. We have professionals who can help you meet these challenges.

We can help you deliver measurable and sustainable improvement in the performance of your business by focusing on the areas of strategy, finance, customers and supply chain.

Strategy performance improvement services In an effort not only to survive but to thrive in today’s challenging marketplace, companies across industry sectors worldwide are constantly faced with difficult strategic decisions. EY can assist you in addressing these strategic challenges and embedding proven approaches in your organization to achieve and sustain targeted results.

Specifically, we can help you to:

• Challenge conventional wisdom with breakthrough innovation strategies to drive growth, differentiation and customer intimacy, whether with new products and services, business models and/or digital assets

• Determine where to play, invest and win organically with products and services, global market expansion, customers and channels, applying corporate and strategic business-unit strategy

• Execute strategy to exceed short-term and long-term goals and fund investments for growth with the optimal operating model, enterprise transformation, benefits realization, enterprise profit improvement and/or post-merger integration/synergies optimization

FinanceVolatility, a more competitive landscape and changing consumer behaviors are fundamentally changing how organizations go to market. The business has had to evolve, shifting its priorities to meet an altered market landscape. Finance needs to do the same if it expects to keep its seat at the table.

Drawing on our experience and a multidisciplinary approach, we can help you with:

• Transforming your finance operating model

• Designing and managing outsourcing, offshoring and shared service center arrangements

• Sharpening your performance management framework


• Designing and implementing financial systems

• Conceiving and implementing enterprise cost management systems

CustomersCustomers continue to keep a careful watch on their money and what they purchase with it. To remain competitive, your organization needs to attract, retain and grow its most valuable customer relationships.

Our teams of professionals can work with you to:

• Develop and deploy your market and customer strategy

• Develop and help implement insightful customer analytics that allow you to understand and anticipate customer needs

• Develop pricing, promotion, channel and product strategies that improve your margin and increase your profits

• Improve customer service management

• Improve marketing and sales performance

• Streamline and accelerate your collections processes

Supply chainYou’ve done a lot to squeeze as much cost from your supply chain as you can. Yet, to meet shareholder demands, finance executives are constantly expecting you to improve the performance of your supply chain to deliver reduced cost, increased revenue and enhanced shareholder and customer value.

We can help with your strategy through your execution to:

• Provide insight into the health of supply chains by using a robust set of data analytics

• Transform global supply chains through a cross-disciplinary approach spanning operations, tax and risk

• Review, improve and assess the risk of procurement functions to realize long-term, sustainable benefits

• Improve supply chains and infrastructure in emerging markets as a powerful catalyst to secure new market share and drive revenue growth

• Integrate environmental, sustainable and low-carbon aspects into end-to-end supply chains

• Provide sector-specific supply chain insights with our experienced industry supply chain professionals

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RiskFrom increased regulatory scrutiny to the financial crisis, recent events have fundamentally shifted how organizations think about risk.

Many organizations have invested heavily in personnel, processes and technology to better manage their risk. But these investments often do not address the more strategic business risk areas.

To successfully turn risk into results, you need to become more effective at managing scarce resources, making better decisions and reducing your organization’s exposure to negative events.

Whether we’re assisting a business with internal audit, internal controls or an enterprise-wide issue, we start by helping organizations answer some key questions, such as:

1. What are your key risks and how are they being managed?

2. Do you have overlapping risk functions or gaps in coverage?

3. Have you optimized the use of technology?

We can then help you drive better business performance and:

• Enhance your risk strategy

• Embed risk management

• Improve risk management functions

• Improve controls and processes

• Enhance communication to achieve stakeholder confidence

Performance technology New, disruptive technologies — from cloud computing to big data and analytics to mobility and social media — are fundamentally changing how organizations sell products and services, interact with their customers, innovate and compete. We can help you use these disruptive technologies to drive business performance. We do this by focusing on technology transformation, enterprise intelligence, enabling technologies and technology risk and security.

IT transformationFrom where you are now to where you want to be, we can help you to:

• Develop an IT strategy that aligns IT objectives with those of the business

• Create an architecture design to align business and technology models

• Implement sourcing approaches to improve flexibility and efficiency

• Improve the performance of end-to-end processes and infrastructure

• Introduce horizon technologies that change business and IT models

Enterprise intelligenceWith enterprise intelligence, we can create a whole picture of your organization’s landscape. We can help you to:

• Develop an information strategy to manage the information needed to execute business strategy

• Develop risk and performance analytics to analyze process and business performance, identify opportunities for improvement and manage risk

• Use business intelligence to build repeatable solutions that can predict business performance

• Employ enterprise performance management to integrate strategic execution, planning and reporting

Enabling technologiesBy implementing enabling technologies, we can help you to:

• Implement business architecture prototyping and visioning

• Use ERP and optimization to extract value from existing investments

• Initiate a finance transformation that focuses on regulation, efficiency and risk

• Undertake a supply chain transformation that focuses on improvements in procurement and operations planning

Technology risk and securityDrawing on our in-depth technical and IT-related risk management knowledge, we can help you to:

• Assess and manage security programs

• Use governance, risk and control technology to design and implement controls

• Manage program risk

• Provide independent internal and external IT assurance for management and service organizations

Other key areas of focusUnderpinning our performance improvement capabilities are our strengths and skills in day-to-day operations, management and strategic decision-making. These skills are concentrated in the three supporting areas of:

• Strategic direction

• People and organizational change

• Program management


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Assurance Assurance professionals provide confidence about the validity of financial statements, business-critical information or processes to companies, investors and regulators. Assurance skills are not limited to audit or finance. Assurance professionals also help clients make informed decisions about monitoring and reporting on environmental policies, governance and management systems and fraud investigation.

Accounting Compliance and Reporting (ACR)Accounting Compliance and Reporting (ACR) services are designed to assist the client (or more specifically, its entities in countries around the world) with the preparation of statutory financial statements or other financial information prepared according to the local financial reporting framework (statutory reporting). In many cases, the client also requests EY’s support to create the accounting information that is the basis for statutory reporting (supporting the financial statement close process) as an ancillary service. In this way, our ACR practice helps multinational companies that seek to use an outside provider in order to report their financial performance in multiple jurisdictions.

ACR services are delivered by Assurance professionals to Channel 2 clients. These services can be part of multi-country, Global Compliance and Reporting (GCR) services that are delivered in joint cooperation with our Business Tax Compliance practice when we provide compliance services on a worldwide basis.

The four primary categories of ACR services include:

• Supporting the financial statement close process: assisting with the preparation of the final trial balance (from which statutory financial statements or other financial information may be prepared, including the information needed for the tax compliance work), starting with either the entity’s underlying accounting records or a preliminary trial balance

• Statutory reporting: assisting with the preparation of statutory financial statements or other financial information, which may comprise a complete set of financial statements or, as required, less comprehensive financial information based on local requirements (for example, a balance sheet and income statement with notes, but excluding the other statements that comprise a complete set of financial statements). Our statutory reporting service may also include assisting with the preparation of a group reporting package in accordance with the local financial reporting framework

• Bookkeeping: assisting with maintaining the accounting records for the entity in the local or group financial reporting framework (e.g., IFRS).

Bookkeeping is typically not delivered as a stand-alone service. Rather, it is generally delivered as an ancillary service as part of a larger engagement with the core services of supporting the financial statement close process or statutory reporting. The bookkeeping service does not include having authority over the client’s bank accounts or client funds

• Payroll accounting and operations: administering the payroll processes, including the preparation of a payroll register or calculations of amounts to be used in the preparation of the payroll register, but excludes control over client funds. This service includes related withholding tax and Social Security form preparation and filing

To be clear, ACR is not the same as conducting a statutory audit. Rather, ACR services help clients to prepare financial statements used in the audit process.

Climate Change and Sustainability Services (CCaSS)Climate change and sustainability are core business issues opening up opportunities to increase revenue and lower costs — but they also bring new risks. Along with Advisory, Tax and TAS, Climate Change and Sustainability Services (CCaSS) helps clients to identify how sustainability can drive competitive advantage, increase operational efficiency and lower risk. No matter where a company is on its sustainability journey, CCaSS is ready to provide the right advisory, pre-assurance and assurance services. At EY, CCaSS consists of a network of 700+ professionals from Assurance, Tax, Advisory and TAS who bring multidisciplinary skills and deep experience in engineering, supply chain, law, environment, health and safety, and other technical areas. CCaSS has been active in independent environmental assurance since 1992 and central to the development of independent assurance standards and reporting practices both in terms of the methodologies used and the standards applied. CCaSS provides the following services:

Services overview• GHG assurance*

• Sustainability report assurance*

• Sustainability reporting advisory

• Pre-assurance

• Carbon footprinting

• Benchmarking

• Maturity diagnostic

• Environment, health and safety *Requires independence


External AuditIn Assurance, our audit reports on the fairness with which the audited financial statements present, in all material respects, financial position, results of operations and cash flows in conformity with the applicable financial reporting framework. Audited financial statements are typically used by third parties such as the investing public, regulators and financial institutions. The objective of an audit of financial statements is to enable the auditor to express an opinion as to whether the financial statements present fairly, in all material respects, the company’s financial position and the results of its operations and cash flows in accordance with generally accepted accounting principles (GAAP).

Regulators and standard-setters on the accounting and auditing profession are the Financial Accounting Standards Board (FASB), Governmental Accounting Standards Board (GASB), Securities and Exchange Commission (SEC), Public Company Accounting Oversight Board (PCAOB) and the American Institute of Certified Public Accountants (AICPA).

Financial Accounting Advisory Services (FAAS)EY’s Financial Accounting Advisory Services (FAAS) professionals translate complex accounting and financial reporting issues into practical solutions that our clients can use to successfully operate in today’s global economy. By serving as trusted business advisors, FAAS professionals assist clients that are experiencing change that impacts financial reporting and the finance function. These changes are often driven by regulatory reform, transactions or internal transformational activities and lead to complex accounting and reporting challenges. The role of the FAAS professional is to identify these changes, help our clients understand the issues, evaluate their options and effect sustainable change by coordinating technical and advisory resources from across EY. While FAAS serves as an advisory extension of Assurance, primarily assisting Channel 2 clients, FAAS professionals are also available to assist audit teams. FAAS can help provide insights to our audit clients to help them understand the effect of strategic initiatives, such as conversations, accounting change/policy review, transactions and commodities markets, on their finance and accounting function.

Fraud Investigation & Dispute Services (FIDS)FIDS professionals investigate alleged misconduct, measure the financial implications of disputes and help organizations find ways to manage risk. Our FIDS professionals include trained fraud examiners, forensic accountants and electronic data analysts. They investigate unusual financial activity, perform electronic evidence discovery and review financial reports. Their knowledge comes from a range

of experience dealing with matters of accounting malpractice, anticorruption and regulatory compliance.

FIDS focuses primarily on these core services:

• Fraud and investigations

• Dispute services

• Forensic technology and discovery services

• Anti-fraud services

• Corporate compliance

• Insurance claims

• Government contract services

FIDS professionals in these core services perform work related to internal investigations, the Foreign Corrupt Practices Act, accounting restatements, electronic evidence, complex insurance claims and expert witness testimony. They interact with companies’ general counsel, chief compliance officers, risk managers, treasurers, CFOs and outside counsel at law firms. FIDS services are provided primarily to Channel 2 clients although some services are permitted for Channel 1 clients as well.

Professional Practice group (PPG)The Professional Practice group (PPG) consists of the National Accounting and SEC Matters groups, Region-based Professional Practice, Financial Services Industry (FSI) Professional Practice, Auditing and Assurance Standards and Methodology, and Quality and Regulatory Matters (collectively, Professional Practice). The Vice Chair of Professional Practice leads this group of partners and other professionals.

National Accounting group• Provides guidance on accounting, reporting and other

technical issues to our personnel, the entities we audit and other stakeholders

• Provides timely thought leadership by communicating practical and forward-looking implementation guidance on new and continuing accounting issues

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• Provides input to the FASB, the FASB’s Emerging Issues Task Force, the International Accounting Standards Board, the AICPA, the GASB and the SEC on their projects

• Actively seeks input from the entities we audit so that we thoroughly understand the underlying business issues

• Issues numerous internal and external publications on accounting and other technical matters

SEC Matters group• Monitors the SEC’s activities and maintains our knowledge

base on how the SEC staff interprets the federal securities laws and related SEC rules and regulations

• Advises audit teams, company personnel and others on the latest developments in SEC rulemaking, emphasizing practical implementation guidance

• Provides assistance to Region-based Professional Practice and National Accounting with a company’s pre-filing submissions to the SEC staff and responses to SEC staff comment letters

• Provides interpretive guidance on the SEC’s rules and regulations and the SEC staff’s interpretations

• Maintains our guidance on consents, comfort letters and communications with underwriters and prepares training courses on applying SEC rules

Region-based Professional Practice group• Provides guidance on accounting, reporting and other

technical issues to our regional personnel, the entities we audit and other stakeholders

• Addresses risk management matters, including engagement acceptance and continuance, restatements, whistleblower letters, SEC filings and comment letter responses, reportable disagreements and conflict-of-interest resolution

• Concurs with the Regional Assurance Managing Partner’s assignment of partners on public company and higher- risk audits

• Provides the Regional Assurance Managing Partner with input related to audit quality for every audit partner’s annual performance evaluation

FSI Professional Practice group• Supplements our other Professional Practice resources,

given the unique environment and regulatory structure in which the financial services industry operates

• Consults with audit teams on technical accounting, reporting and regulatory financial services industry issues

• Provides guidance on current and emerging technical and regulatory issues

• Develops and leads training programs related to the financial services industry

Auditing and Assurance Standards and Methodology group• Formulates and communicates our policies and guidance

on audit and other attest services and determines that they reflect the professional requirements established by the PCAOB, the AICPA’s Auditing Standards Board and other bodies

• Develops audit methodologies, forms and templates to help our engagement teams deliver consistent, quality attest services

• Oversees the development and delivery of training programs for our audit professionals

Quality and Regulatory Matters group• Leads our internal Audit Quality Review program and

interacts with the PCAOB and the peer review firm on their inspections

• Evaluates practice monitoring and inspection findings to determine whether we need to change our policies, processes or procedures


Business tax servicesBusiness tax services are designed to meet your business tax compliance and advisory needs, wherever in the world you’re located. Approximately 14,000 of EY’s tax professionals draw on their diverse perspectives and skills to provide you with seamless global planning, financial accounting and tax compliance, along with effective relationships with the tax authorities.

Our holistic approach helps you assess, improve and monitor your tax function’s processes, controls and risk management. Our talented people, consistent global methodologies and unwavering commitment to quality service give you all you need to build the strong compliance and reporting foundations and sustainable tax strategies that help your business achieve its ambitions.

• Global compliance and reporting

• Global services

• US income tax compliance

• Accounting compliance and reporting

• Annuity tax accounting calculations

• Business tax advisory

• Tax accounting and risk advisory services

• Tax accounting advisory

• Tax accounting services for audit clients

• Tax policy and controversy

• Quantitative services

• Research and development incentives

• Domestic cash tax advisory

• Information reporting and withholding

• Tax performance advisory

• Personal tax services

• Personal tax advisory

• Personal tax compliance

Indirect tax servicesIndirect taxes affect the supply chain and the financial system. Our network of indirect tax professionals combines technical knowledge with industry understanding and access to technologically advanced tools and methodologies. We identify risk areas and sustainable planning opportunities for indirect taxes throughout the tax life cycle, helping you meet your compliance obligations and your business goals around the world.

• Credits and incentives

• Sales and use tax

• Property tax

• Value added tax (VAT) and customs

• Customs and international trade advisory

• VAT/goods and services tax (GST)/sales tax advisory

• VAT/GST/sales tax compliance

We can support full or partial VAT compliance outsourcing, help identify the right partial exemption method and review accounting systems. Our customs and international trade teams help you manage customs declarations, audit and review product classifications and evaluate import/export documentation. We can give you the perspective and support you need to manage indirect taxes effectively.

International tax servicesOur international tax professionals assist clients with cross-border tax structuring, planning, reporting and risk management. We work with you to build proactive and truly integrated global tax strategies that address tax risks and achieve sustainable growth.

Our integrated global network of international tax professionals can help you manage your business tax burden by uncovering opportunities, managing global tax risks and meeting cross-border reporting obligations.

We also maintain a network of “tax desks” that provide deep knowledge of tax-specific issues. This network consists of senior tax professionals around the world who have in-depth knowledge of tax laws, regulations and ways of doing business in their areas. Through the combination of local professionals and our tax desk network, we can provide real-time advice to our clients on the tax ramifications of business decisions, as well as develop tax planning strategies that are responsive to your immediate needs.

Our market-leading Foreign Tax Desk network — teams of highly experienced professionals from multiple countries — has revolutionized the way we provide international tax services to our clients.

• Transfer pricing

• Transfer pricing advisory

• Transfer pricing documentation

• Tax-Effective Supply Chain Management (TESCM)

• Tax structuring, planning and compliance around cross-border business transformations

• Cross-border corporate income tax advisory

Tax

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Top insights on the tax life cycle• The tax life cycle consists of four stages — planning,

accounting, compliance and controversy — with client needs at the center.

• It is an account-centric framework for engagement planning and for conducting client discussions about tax.

• It is not a new product or something that we sell to clients. The tax life cycle provides a holistic model of the client’s tax affairs. It recognizes that planning, accounting, compliance and controversy are not separate issues; they are all interconnected. It helps us provide quality service by linking all of the four elements each time we talk to the client.

• The stages of the tax life cycle are not sequential; there is no defined start or end point, and the different stages may come in any order (e.g., compliance may lead directly to planning). Through its different stages, it addresses tax in the context of the whole business while bringing our specialist services to bear.

• The tax life cycle presents opportunities to grow services by leveraging existing relationships (e.g., by extending an engagement or by connecting to other specialist areas).

• It improves the quality of our client service because it allows us to consider all the relevant aspects (e.g., when talking about planning, by carrying the discussion on to the compliance consequences and the impact on the tax provision).

• The tax life cycle is a simple concept that resonates with clients. We are already using this approach around the world and it is bringing success.

• It is based on the power of “asking one more question” about the tax life cycle when we have tax discussions at any level with our clients.

• It’s how our clients are telling us they want to be served.

The tax life cycle

Policy

Controversy Accounting

Compliance

Planning

Management

Board and executive governance

Extern

al re

gula

tionBusiness alignment

Corporate and income taxes Employer taxes

International cross-border taxes Personal taxes

Transaction taxes Indirect taxes

Transaction tax servicesEvery transaction has tax implications, whether it’s an acquisition, disposal, carve-out, refinancing, restructuring or initial public offering. Understanding and planning for these implications can mitigate transaction risk, enhance opportunity and provide crucial negotiation insights.

Our transaction tax professionals help you navigate the tax implications of your transaction. We assemble integrated global teams to work with you from due diligence through post-deal implementation. We can suggest structuring alternatives to balance investor sensitivities, promote exit readiness and raise opportunities for improved returns.

• Third-party acquisitions, divestitures and restructuring

• Cross-border and domestic corporate deal advisory

• Private equity deal advisory

• Restructuring tax services

Human capitalPeople make the difference between success and failure. As your organization grows, getting the right people in the right place when you need them is what gives you a competitive advantage. You not only need to make your people more mobile, you need to make mobility attractive to them — and aligned with your business strategy.

Global organizations need to comply with a complex system of country-specific regulations. Our global mobility teams advise many of the world’s largest global employers, as well as those just venturing into their first foreign country. We know that your top talent is a precious resource, so our performance and reward professionals help you design compensation programs and equity incentives that really engage your key people. And we can help build cost optimization programs to improve your business performance. We help you meet your executive tax compliance obligations, stay on top of regulatory change, manage your global talent effectively and improve your strategic alignment. Let us help your organization achieve its potential by turning complexity into a competitive advantage.

• Assignment services

• Expatriate tax compliance and advisory

• Global employment tax services

• Global business immigration services

• International social security

• Remuneration and benefits

• HR advisory

National TaxWith unparalleled qualifications and experience, our National Tax practice, headquartered in Washington, D.C., has the largest national tax department among the Big Four with more than 1,400 people and it includes some of the country’s top tax practitioners. Our professionals have unique experience and have held positions at the U.S. Department of the Treasury and the Internal Revenue Service and served on the staffs of congressional tax-writing committees and top law firms. In addition, Washington Council Ernst & Young (WCEY) is the firm’s lobbying arm, which assists clients and monitors key tax legislation on Capitol Hill.

Many former government officials and economists are part of National Tax, including:

• Assistant Secretary, Tax Policy

• Deputy Assistant Secretary, Tax Policy

• Deputy Assistant Secretary, Tax Analysis

• Director, Tax Analysis

• JCT economist

• IRS officials

• IRS chief counsel attorneys

• Lobbyists

EY also has 13 specific Tax Industry Networks, aligning experienced professionals in these industry sectors to discuss current industry issues and share experiences.


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Foreign Tax DesksEY introduced the Foreign Tax Desk Program more than 20 years ago to give multinationals the real-time advice they need on tax issues, wherever their operations are based. With more than 250 tax professionals, including income tax and state and local tax professionals, the scope of our Foreign Tax Desk global network is truly leading-class among international tax accounting and consulting firms. This long-standing professional exchange program has revolutionized the way in which international businesses receive international tax advice by gaining immediate access to EY’s global network, innovation, knowledge and implementation capabilities in real time.

After serving a rotation in the United States, many EY tax leaders return to their home countries to lead their tax practices. The global perspective and knowledge gained from this experience enhances their ability to generate new tax planning ideas for our clients. We are committed to utilizing the knowledge of our Foreign Tax Desk Program, which will enable us to provide more thorough tax compliance and reporting and more relevant, responsive and collaborative tax planning than our competition.

State Tax DesksSimilar to the Foreign Tax Desk system, we have a State Tax Desk Network. A senior member of EY’s State and Local Tax practice is designated in each state to resolve state-specific tax inquiries that arise among our clients. The State Tax Desk representatives are chosen for their extensive knowledge and experience in their particular states’ technical issues and understanding of the states’ positions on those issues. In addition, the State Tax Desk representatives have deep understanding of the practical workings of their states’ respective departments of tax. As a result, the State Tax Desks provide state-specific technical insight and minimize the amount of additional research required on most state and local tax issues.

Equally important, the State Tax Desk representatives provide invaluable “grass roots” knowledge of and experience with their states, have a strong working knowledge of the internal policies and informal procedures in their states and often maintain strong relationships with department of tax personnel. Our State Tax Desk Network may assist us in addressing issues related to clients’ filing requirements, return presentation, controversy matters and planning opportunities.

Pres

erving Optimizing

Investing Raising

The Capital Agenda

• Stress and distress — e.g., liquidity issues and turnaround plans

• Customer and supplier analysis

• Preserving tax assets and minimizing costs

• Refinancing or restructuring debt, equity and other obligations

• Dealing with stakeholder relationships and pressure

• Dispute resolution

• Optimizing asset portfolio

• Delivering synergies and effective integration

• Improving working capital and releasing cash

• Optimizing capital structure

• Optimizing tax and corporate structure

• Fund-raising (equity and debt): IPO readiness, rights issues, PE, private placement and capital market

• Optimizing funding structures

• Asset divestments

• Infrastructure projects

• Cost- and tax-efficient structures

• Acquisitions and alliances

• Planning and structuring transactions to optimize stakeholder return

• Focused due diligence to mitigate risk and drive value

• Asset valuations

• Cost- and tax-efficient structures


Transaction Advisory ServicesHow organizations manage their capital today will define their competitive position tomorrowEY’s Transaction Advisory Services professionals work with clients to help them make better and more informed decisions about how they strategically manage capital and transactions in a changing world. Today, transactions are global and involve managing opportunities, risks and complexities in multiple jurisdictions.

Our Transaction Advisory Services professionals bring together a unique combination of skills, insight and experience to deliver tailored advice attuned to your needs — helping you drive competitive advantage and increased shareholder returns through improved decision-making across all aspects of your capital agenda.

Our Capital Agenda framework can help

companies consider their issues and challenges

and, more importantly, understand their options

so that they can make more informed strategic

capital decisions. We work with our clients to

evaluate these opportunities, make transactions

more efficient and help them achieve

their strategic goals.

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Transaction Advisory Services overviewOur 10,000 professionals around the world can help you make better and more informed decisions about how to manage capital and transactions strategically in a changing world through services that include:

Divestiture advisory services

• Portfolio and business unit valuation assessment

• Pre-sale financial diligence from a buyer’s view

• Offering memorandum financial information preparation

• Transaction model development• Data-room support• Assessment of tax structures• Form 10 filing and pro forma

consideration assistance• Operational separation assistance• Financial reporting assistance

M&A advisory

• Mergers and acquisitions • Disposals • Management buyouts• Buy-ins, fund-raisings • Initial public offerings • Takeovers • Strategic reviews

Capital and debt advisory*

• Assistance with raising debt and equity• Capital structure assessment and

advisory• Identification and assistance with

implementation of financing alternatives

Transaction tax

• Tax structuring• Federal, state and international tax risk

analyses• Customs, duties, VAT and other indirect

tax assessments• Evaluation of significant tax exposures• Identification of post-transaction tax

reduction options

Operational transaction services

• Integration • Assessments of carve-out/stand-alone

costs and risks• Synergy assessment and delivery • Day-one readiness assessment

and 100-day planning • Operational due diligence • Operational restructuring

Restructuring*

• Advice on liquidity management process• Assessment of business plan and

strategic alternatives• Advice on alternate debt and

equity structures• Advice on pre-bankruptcy and

divestiture planning• Evaluation of tax implications

Valuation and business modeling

• Financial reporting valuations (pre-deal and post-deal), purchase price allocation, goodwill and asset impairment, employee stock options, common stock and preferred stock, contingent consideration

• Tax reporting valuations — legal entity restructuring, NOL usage, interest expense apportionment, cost segregation, property tax

• Complex securities valuations — derivatives, loan portfolios, structured products (MBS, ABS, CDO, ARS)

• Business modeling — analyze and build models for deal structuring, decision analytics, divestiture and restructuring

• Fairness opinions**

Transaction support

• Assessment of sustainable earnings and free cash flow

• Analysis of key revenue and cost drivers• Analysis of commitment and

contingencies and debt-like items• Critique of forecast• Identification of balance sheet exposures• Input on closing deal structure• Evaluation of Sarbanes-Oxley Section

404 readiness assessments• Assessment of operating working

capital needs• GAAP and cash accounting differences• Employee benefits diligence• Review and commentary on SPAs

Working capital

• Release value trapped in current capital accounts (receivables, payables, inventories)

• Advise on process improvements to attain sustainable adjustments in working capital investment

• Evaluate Sarbanes-Oxley Section 404 readiness assessments

Transaction real estate

• Market analysis, location assessment, lease reviews

• Equity, commercial mortgage, NPL, M&A due diligence

Commercial advisory services

• Analysis of strategic assessments• Corporate strategy assessment• Business portfolio review• Assessment of key customers

and suppliers• Commercial diligence

*Where required by applicable law, certain services are provided by EY member firms that are licensed broker-dealers in their jurisdictions and, in the US, by Ernst & Young Capital Advisors, LLC, a licensed broker-dealer and member of FINRA, and an affiliate of Ernst & Young LLP.

**Fairness opinions are issued by Ernst & Young Investment Advisors LLP. Ernst & Young Investment Advisors LLP is a registered investment advisor and an affiliate of Ernst & Young LLP.


Focus on diversityBackgroundOur strategic sourcing team developed our supplier diversity initiative in 2004 in conjunction with the Office of Minority Recruiting. This initiative promotes an inclusive business environment with the goal of providing diverse businesses the opportunity to become suppliers to EY firms as contractors, subcontractors and vendors of products and services.

Our supplier diversity initiative identifies, develops and utilizes diverse businesses that can enhance our competitive advantage and provide innovative and cost-effective products and services for us and our clients.

LeadershipIn 2008, we developed an Executive Advisory Board consisting of senior management within our largest business functional areas. The board is led and chaired by the organization’s Americas Vice Chair and CFO, who confirms that the initiative’s policies and strategies are integrated and consistent with our overall business strategy.

The board oversees the initiative’s strategic direction, as well as the development of diverse businesses’ procurement policies and related processes. The members’ duties and responsibilities include, but are not limited to:

• Establishing goals, measurement and accountability for diverse suppliers’ expenditures within identified business units

• Serving as champions of supplier diversity in their functional areas

• Identifying best practices in diverse-supplier sourcing

• Promoting the supplier diversity initiative internally and externally

• Providing support and communication to EY member firm partners and staff regarding the utilization of diverse suppliers

• Counseling and discussing subcontracting opportunities with representatives of their business units and diverse businesses

Our investment in diversity, quality and values

ResponsiveInsightful

Connected

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Procurement processesOur procurement policy includes the supplier diversity policy. It outlines the importance of inclusion and resources available to assist with the identification of viable suppliers in our procurement process.

Our national procurement office has six sourcing modules that incorporate supplier diversity in each step. The supplier diversity team tracks the utilization of diverse suppliers in RFIs, RFQs and RFPs.

Certification requirementsErnst & Young LLP requires third-party certification by the National Minority Supplier Development Council (NMSDC), Women’s Business Enterprise National Council (WBENC), National Gay and Lesbian Chamber of Commerce (NGLCC), Small Business Administration (SBA) and some city and state certifications based on client requirements. Our preferred certifications are NMSDC, WBENC and NGLCC.

Outreach to diverse suppliersOur supplier diversity team attends several outreach events throughout the year to identify qualified suppliers. We are a national participating member of the NMSDC, WBENC and NGLCC. Throughout the year, staff participates in business opportunity fairs, as well as our own internal trade shows throughout the country.

EY is committed to achieving supplier diversity goals with our clients. Personnel work with each supplier diversity team to understand its objectives and requirements and to establish clear and achievable goals for this agreement. We will participate in supplier diversity activities that your company deems necessary to fulfill this agreement, and we believe our commitment will build a successful prime supplier relationship.

Mitchell & Titus, EY’s minority business enterprise member firmIn 2006, Mitchell & Titus LLP (M&T), the largest minority-controlled accounting firm in the US, joined Ernst & Young Global Limited as a member firm.

M&T maintains its brand name and is headquartered in New York City with offices in Baltimore, Chicago, Philadelphia, Newark, New Jersey and Washington D.C. The firm is a minority business enterprise and is registered with several nationally recognized supplier diversity councils, including the National Minority Supplier Development Council.

M&T and Ernst & Young LLP team in the market to provide assurance, tax and advisory services that address the quality objectives and the procurement goals of our clients. M&T’s membership in EY has proven to be a strong sourcing solution for our clients since our teams can offer a “diversity differentiator” to service provision within our industry. This unique arrangement of M&T and Ernst & Young LLP offers the best of both worlds. Unlike traditional prime-subcontractor arrangements with minority firms, EY and M&T leverage

common methodology platforms, learning curricula, quality standards and technology. The impact is effective, efficient, quality service for clients, and the teaming is transparent to clients.

Exceptional client serviceEY’s purpose is building a better working world. One way we do this is by helping our clients seize opportunities in the evolving economy to realize sustainable economic growth. We can achieve this only if we consistently provide each client with exceptional client service delivered through the highest- performing teams.

Exceptional client service means our people are the most connected, responsive and insightful professionals in the marketplace. This creates a distinctive client experience that makes EY the professional services firm of choice for our clients, stakeholders and communities.

• Connected means bringing all of EY to our clients with the right people in the right locations, building trust and enriching relationships

• Responsive means the desire and commitment of every person in EY to be proactive, visible and timely for each client

• Insightful means sharing EY experiences and a point of view tailored to each client, thereby bringing new ideas and advanced thinking


QualityQuality is central to our strategy and to the promise we make to our clients — to deliver seamless, consistent, high-quality service worldwide. Our aim is for our work to meet your needs and deliver to you the level of service quality you expect. By “service quality,” we mean meeting stakeholder needs and delivering a superior client experience. What this means to you is that we will define with you not only your precise needs, but also how we can deliver our services to create a superior experience for you and thereby lay the foundation for a solid and continuing relationship.

Assessment of Service QualityWe are committed to continuous service improvement, and we will work with you to develop and improve our services by listening to and acting upon your feedback. One way we track this is through our Assessment of Service Quality (ASQ) process.

Our ASQ process is designed to assess and improve service and relationship quality. Through this process, we identify service-quality opportunities and challenges, and co-develop a follow-up action plan with you to facilitate issue resolution and confirm that our services meet or exceed your expectations. During the ASQ process, company management will be asked to provide feedback on the quality of our service.

Expectations of Service Quality (ESQ)

1What are your expectations of EY?

Client and global client-service partner/

account team

Dashes represent an annual service cycle

How well were your expectations met and how can EY improve on meeting expectations going forward?

How well have we helped you achieve your business objectives?

Service Quality Confirmation (SQC)

3 Assessment of Service Quality (ASQ)

2

24

There are three components to the ASQ process.

• Expectations of Service Quality (ESQ) — provides an opportunity for the account team to understand the client’s expectations and agree on what exceptional client service looks like. It sets the stage for service delivery and provides a benchmark for future conversations. The benefits of this step are: a high probability of consistently delivering on what is important to our clients; fewer surprises (because expectations are aligned); and a stronger relationship (because both parties share a vision of a successful future).

• Assessment of Service Quality (ASQ) — performed by an objective EY interviewer. The ASQ starts at the point where ESQ discussion ends — with your expectations. Clients are asked to assess EY’s performance relative to expectations. Based on our performance, each client is asked to provide a point of view on how we can increase our relevance to the client (i.e., how do we go from good to great?). Our ASQ system is a 14-question survey we use to measure our client’s perceptions of our firm’s quality

and effectiveness and is performed by a partner outside of the engagement team. In addition, we regularly conduct personal interviews with senior management. These interviews involve discussions during which key service criteria will be identified and for which satisfaction metrics will be assigned at the conclusion of service delivery.

• Service Quality Confirmation (SQC) — performed by the global client service partner (GCSP). This will be a discussion between the GCSP and the client to communicate and validate our understanding of the impact delivered. It is based on aggregate ASQ and other feedback from client executives. Your feedback allows us to refocus our efforts, as necessary, on issues such as the composition of our team, our understanding of your industry, our ability to resolve your needs and our progress in transferring knowledge to you and your team. Together, we will develop action steps for enhancing our processes and improving our relationships for the future.


Contacts

Kay MatthewsVice-Chair and West Region Managing Partner+1 408 947 [email protected]

David JolleyManaging Partner, West Markets+1 408 947 [email protected]

Leslie BlairManaging Partner, West Advisory Services+1 213 977 [email protected]

Mike BertolinoManaging Partner, West Tax Services+1 213 977 [email protected]

Todd MoodyManaging Partner, West Transaction Advisory Services+1 213 977 [email protected]

Mark BorowskiManaging Partner, West Assurance Services+1 213 977 [email protected]

26

Notes


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EY | Assurance | Tax | Transactions | Advisory

About EY EY is a global leader in assurance, tax, transaction and advisory services. The insightsv and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited operating in the US.

© 2014 Ernst & Young LLP. All Rights Reserved.

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Documents

FY15_EY Services Brochure