International Federation of Accountants

Small and Medium Practices Committee Small and Medium Practices Committee

Paul ThompsonPaul Thompson

Senior Technical Manager, SMP CommitteeSenior Technical Manager, SMP Committee

IAASB MeetingIAASB Meeting

New York, USANew York, USA

March 18, 2010March 18, 2010

Importance of SMEs and SMPsImportance of SMEs and SMPs

• SMEs account for majority of private sector SMEs account for majority of private sector employment and GDP employment and GDP

• Essential for job creation, social cohesion, Essential for job creation, social cohesion, innovation and growthinnovation and growth

• IFAC Global Leadership Survey 2009IFAC Global Leadership Survey 2009– Addressing needs of SMPs and SMEs 2Addressing needs of SMPs and SMEs 2ndnd most most

important issueimportant issue– Avoid over-burdensome regulation of SMEsAvoid over-burdensome regulation of SMEs

• Health of SME sector is public interest priority Health of SME sector is public interest priority

General

Importance of SMEs and SMPsImportance of SMEs and SMPs

• Confronted with unprecedented challenges Confronted with unprecedented challenges (operational, regulatory, market)(operational, regulatory, market)

• Can help SMEs perform & conformCan help SMEs perform & conform• Business support services (SME finance)Business support services (SME finance)

SMPs

GeneralGeneral

• Started out around 5 years agoStarted out around 5 years ago• 18 members18 members• Formal procedures, project teams etc. Formal procedures, project teams etc. • Annual SMP ForumAnnual SMP Forum

General

StrategyStrategy

• Helping member bodies to help their SMPsHelping member bodies to help their SMPs• Building capacity of SMPs to support SMEsBuilding capacity of SMPs to support SMEs• HHelp to shape form and content of elp to shape form and content of

international standards international standards • Provide practical supportProvide practical support

– Help to efficiently implement standardsHelp to efficiently implement standards– Help to manage betterHelp to manage better– Help to remain relevantHelp to remain relevant

Strategy

SMP ReviewSMP Review

• How IFAC can best support SMPs (& SMEs)How IFAC can best support SMPs (& SMEs)• RecommendationsRecommendations

– Strategic Strategic – RepresentationRepresentation– Policy-making and regulationPolicy-making and regulation– Voice, visibility and communicationsVoice, visibility and communications– Practical SupportPractical Support– Post-implementation review Post-implementation review

SMP Review

Standard SettingStandard Setting

• IFAC’s Support for a Single Set of Auditing IFAC’s Support for a Single Set of Auditing StandardsStandards

• Clarified ISAs Clarified ISAs • Key projectsKey projects

– Implementation support & NSS guidanceImplementation support & NSS guidance– ISA implementation monitoringISA implementation monitoring– ISAE 3000ISAE 3000– Revision of review & compilation standardsRevision of review & compilation standards

IAASB

Standard SettingStandard Setting

• Strategic reviewStrategic review

– Timely input (consultation plan, survey & Timely input (consultation plan, survey & consultation paper)consultation paper)

– SME/SMP input to process (non-response bias)SME/SMP input to process (non-response bias)

IAASB

Standard SettingStandard Setting

• IESBAIESBA– New New Code of EthicsCode of Ethics– SMP/SME implementation challengesSMP/SME implementation challenges– Input to strategy reviewInput to strategy review

• IASBIASB– IFRS for SMEsIFRS for SMEs– IASC Foundation training materialsIASC Foundation training materials– SME Implementation GroupSME Implementation Group

Other

Practical SupportPractical Support

• High quality and free to download guidesHigh quality and free to download guides–Guide to Using ISAs in the Audits of SMEs Guide to Using ISAs in the Audits of SMEs –Guide to Quality Control for SMPsGuide to Quality Control for SMPs–Guide to Practice Management for SMPsGuide to Practice Management for SMPs–The Role of SMPs in Providing Business The Role of SMPs in Providing Business

Support Services to SMEsSupport Services to SMEs

Guidance

Practical Support Practical Support

• See See www.ifac.org/smpwww.ifac.org/smp• Publications Publications • IFACnet portal IFACnet portal • SMP eNewsSMP eNews• Links to other resources (IFAC and other) Links to other resources (IFAC and other) • Discussion boardDiscussion board• Annual SMP ForumsAnnual SMP Forums

International Center for SMPs

ConclusionConclusion

• High degree of staff and volunteer High degree of staff and volunteer interactioninteraction

• Even more scope for us to work togetherEven more scope for us to work together• Mutual interest in promoting convergence Mutual interest in promoting convergence

and high quality practicesand high quality practices

Conclusion

QUESTIONS

International Federationof Accountants

www.ifac.org