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

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

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.”

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

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”

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 - http://www.ifac.org/financial-crisis/

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 – http://www.ifac.org/smp

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

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

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

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

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 http://www.iasb.org/IFRS+for+SMEs/IFRS+for+SMEs.htm

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)

International Center for SMPs Practical Support International Center for SMPs See http://www.ifac.org/SMP/ Publications IFACnet portal SMP eNews Relevant links Discussion board

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

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

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

Sign-up for IFAC and SMP eNews at http://web.ifac.org/enews/subscribe For More Information For More Information Follow the links given Sign-up for IFAC and SMP eNews at http://web.ifac.org/enews/subscribe For an electronic copy of this presentation email paulthompson@ifac.org