International Federation of Accountants

Small and Medium Practices Committee

Paul Thompson Senior Technical Manager, SMP Committee IAASB Meeting New York, USA March 18, 2010

Importance of SMEs and SMPs

General

• SMEs account for majority of private sector employment and GDP • Essential for job creation, social cohesion, innovation and growth • IFAC Global Leadership Survey 2009 – Addressing needs of SMPs and SMEs 2 nd most important issue – Avoid over-burdensome regulation of SMEs • Health of SME sector is public interest priority

Importance of SMEs and SMPs

SMPs

• Confronted with unprecedented challenges (operational, regulatory, market) • • Can help SMEs perform & conform Business support services (SME finance)

General

• • • • Started out around 5 years ago 18 members Formal procedures, project teams etc. Annual SMP Forum

General

Strategy

Strategy

• • • Helping member bodies to help their SMPs Building capacity of SMPs to support SMEs Help to shape form and content of international standards • Provide practical support – Help to efficiently implement standards – – Help to manage better Help to remain relevant

SMP Review

SMP Review

• How IFAC can best support SMPs (& SMEs) • Recommendations – Strategic –

Representation

– Policy-making and regulation – Voice, visibility and communications –

Practical Support

– Post-implementation review

Standard Setting

IAASB

•

IFAC’s Support for a Single Set of Auditing Standards

• Clarified ISAs • Key projects – Implementation support & NSS guidance – ISA implementation monitoring – ISAE 3000 – Revision of review & compilation standards

Standard Setting

IAASB

• Strategic review – Timely input (consultation plan, survey & consultation paper) – SME/SMP input to process (non-response bias)

Standard Setting

Other

• IESBA – New

Code of Ethics

– SMP/SME implementation challenges – Input to strategy review • IASB –

IFRS for SMEs

– IASC Foundation training materials – SME Implementation Group

Practical Support

Guidance

• High quality and free to download guides –

Guide to Using ISAs in the Audits of SMEs

–

Guide to Quality Control for SMPs

–

Guide to Practice Management for SMPs

–

The Role of SMPs in Providing Business Support Services to SMEs

Practical Support

International Center for SMPs

• See

www.ifac.org/smp

• Publications • IFACnet portal • SMP eNews • Links to other resources (IFAC and other) • Discussion board • Annual SMP Forums

Conclusion

Conclusion

• High degree of staff and volunteer interaction • Even more scope for us to work together • Mutual interest in promoting convergence and high quality practices

International Federation of Accountants

QUESTIONS

www.ifac.org