1. IFAC’s Support for SMEs and SMPs
Sylvie Voghel, Chair, Small and Medium Practices Committee
AGN World Congress
Chicago, USA
October 19, 2009

2. Importance of SMEs and SMPs IFAC’s Support for SMEs and SMPs
Agenda
Agenda
IFAC
Importance of SMEs and SMPs
IFAC’s Support for SMEs and SMPs
Standard Setting
Practical Support
IFAC’s Review of Support for SMPs

3. IFAC
Mission
“To serve the public interest, IFAC will continue to strengthen the worldwide accountancy profession and contribute to the development of strong international economies by establishing and promoting adherence to high-quality professional standards, furthering the international convergence of such standards and speaking out on public interest issues where the profession's expertise is most relevant.”

4. Setting high quality standards
IFAC
Strategic Objectives
Setting high quality standards
Assisting in adoption and implementation of standards
Enhancing the relevance of the profession
Speaking out on behalf of the global accountancy profession

5. 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 2008:
“The most important issue facing the profession in 2009 is addressing the needs of SMEs and SMPs”

6. Importance of SMEs and SMPs
Challenging Times
Slump in demand
Access to finance
Managing costs
Competition
Tighter and more complex regulation
IFAC is encouraging G-20 to consider SMEs -

7. Importance of SMEs and SMPs
Role of SMPs
Uniquely placed to help SMEs
Allies of SMEs, sharing same challenges
Help SMEs perform better and comply with regulation
Business support services
Special role in SME financing
IFAC/The Banker SME Lending Survey –

8. IFAC’s Support for SMEs and SMPs
General
Building the capacity of SMPs to support SMEs
Helping member bodies to help their SMPs

9. IFAC’s Support for SMEs and SMPs
IFAC SMP Committee
18 members
Help to shape form and content of international standards
Provide practical support
Build capacity to implement standards
Help to manage proficiently
Help to remain relevant

10. Special considerations for smaller entities/practices
Standard Setting
IAASB
Clarified ISAs
Applying ISAs Proportionately with the Size and Complexity of an Entity
Special considerations for smaller entities/practices
Clarity ISA implementation monitoring
Impact analysis
Revision of review & compilation standards

11. Revised & redrafted Code of Ethics for Professional Accountants
Standard Setting
IESBA
Revised & redrafted Code of Ethics for Professional Accountants
Major changes to independence requirements
Significant impact on SMEs and SMPs
Need for implementation monitoring and impact analysis

12. IFRS for Small- and Medium-sized Entities
Standard Setting
IASB
IFRS for Small- and Medium-sized Entities
For non-publicly accountable entities
Significant simplification from full IFRS
40+ countries announced are or will use it
EC consulting on how it might be used
Private entities in US can use it
IFRS for SMEs train the trainer materials

13. High quality and free to download guides
Practical Support
Guidance
High quality and free to download guides
Guide to Using ISAs in the Audits of SMEs
Guide to Quality Control for Use by SMPs
Guide to Practice Management for Use by SMPs (2010)
The Role of SMPs in Providing Business Support Services to SMEs (2010)

14. International Center for SMPs
Practical Support
International Center for SMPs
See
Publications
IFACnet portal
SMP eNews
Relevant links
Discussion board

15. IAASB Clarity Center http://web.ifac.org/clarity-center/index
Practical Support
IAASB and IESBA
IAASB Clarity Center
ISAs in word, FAQs, ISA modules (AV)
IESBA adoption & implementation materials
Overview, articles, comparisons
Presentations on independence rules
Modules and Guide for SMPs may follow

16. Translations database http://www.ifac.org/Translations/database.php
Practical Support
Other
Translations database
Global Financial Crisis resource center

17. IFAC’s Review of Support for SMPs
IFAC Review of Support for SMPs
How IFAC can best support SMPs
Ultimate objective to help SMEs
Survey revealed support to do more especially, representation & practical support
Consultation just completed
Recommendations on what to do and how to do it to IFAC Board in February 2010

18. Sign-up for IFAC and SMP eNews at http://web.ifac.org/enews/subscribe
For More Information
For More Information
Follow the links given
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