International Federation of Accountants

Small and Medium Practices Committee

Sylvie Voghel, Chair, SMP Committee IESBA Meeting New York, USA February 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

Importance of SMEs and SMPs

Challenging Times

• Slump in demand • Access to finance • Managing costs • Competition • Tighter and more complex regulation • G-20

Importance of SMEs and SMPs

Role of SMPs

• Uniquely placed to help SMEs • SMPs are small businesses • Help SMEs perform better and comply with regulation • Business support services • Special role in SME financing

SMP Committee’s Support for SMEs and SMPs

General

• Building the capacity of SMPs to support SMEs • Helping member bodies to help their SMPs • Started out around 5 years ago • 18 members • Formal procedures, project teams etc. • Annual SMP Forum

SMP Committee’s Support for SMEs and SMPs

Strategy

• 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 Committee’s Support for SMEs and SMPs

Standard Setting - IAASB

•

IFAC’s Support for a Single Set of Auditing Standards

• Clarified ISAs • Communications & implementation support • ISA implementation monitoring • Impact analysis • Revision of review & compilation standards

SMP Committee’s Support for SMEs and SMPs

Standard Setting – IESBA

• Revised & redrafted

Code of Ethics for Professional Accountants

• Section 290 Independence • Similar general concerns to those for ISAs • Implementation

SMP Committee’s Support for SMEs and SMPs

Standard Setting – IESBA

• Strategy review • Committee response to ED – Challenges to adoption – Monitor implementation and consider need to eliminate requirements – Additional implementation support materials – Work together

SMP Committee’s Support for SMEs and SMPs

Standard Setting – IASB

• IFRS for SMEs • Global reaction highly positive • IASC Foundation training materials • Regional training workshops • Seeking membership on SME Implementation Group

Practical Support

Guidance

• High quality and free to download guides –

Guide to Using ISAs in the Audits of SMEs

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Guide to Quality Control for SMPs

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Guide to Practice Management for SMPs

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The Role of SMPs in Providing Business Support Services to SMEs

Practical Support

International Center for SMPs

• See http://www.ifac.org/SMP/ • Publications • IFACnet portal • SMP eNews • Links to other resources (IFAC and other) • Discussion board • Annual SMP Forums

SMP Review

SMP Review

• How can IFAC best support SMPs & SMEs • Draft recommendations being discussed at IFAC Chief Executives’ Strategy Forum • SMP representation – in fact and appearance

Conclusion

Conclusion

• More scope for us to work together • Mutual interest in promoting ethical behavior and convergence • Ken will present at our meeting on March 11

International Federation of Accountants

QUESTIONS

www.ifac.org