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 SMEs account for majority of private sector employment and GDPSMEs account for majority of private sector employment and GDP Essential for job creation, social cohesion, innovation and growthEssential for job creation, social cohesion, innovation and growth IFAC Global Leadership Survey 2009:IFAC Global Leadership Survey 2009: –Addressing needs of SMPs and SMEs 2 nd most important issue –Avoid over-burdensome regulation of SMEs General

Importance of SMEs and SMPs Slump in demandSlump in demand Access to financeAccess to finance Managing costsManaging costs CompetitionCompetition Tighter and more complex regulationTighter and more complex regulation G-20G-20 Challenging Times

Importance of SMEs and SMPs Uniquely placed to help SMEsUniquely placed to help SMEs SMPs are small businessesSMPs are small businesses Help SMEs perform better and comply with regulationHelp SMEs perform better and comply with regulation Business support servicesBusiness support services Special role in SME financingSpecial role in SME financing Role of SMPs

SMP Committee’s Support for SMEs and SMPs Building the capacity of SMPs to support SMEsBuilding the capacity of SMPs to support SMEs Helping member bodies to help their SMPsHelping member bodies to help their SMPs 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

SMP Committee’s Support for SMEs and SMPs Help to shape form and content of international standardsHelp to shape form and content of international standards Provide practical supportProvide practical support –Help to efficiently implement standards –Help to manage better –Help to remain relevant Strategy

SMP Committee’s Support for SMEs and SMPs IFAC’s Support for a Single Set of Auditing StandardsIFAC’s Support for a Single Set of Auditing Standards Clarified ISAsClarified ISAs Communications & implementation supportCommunications & implementation support ISA implementation monitoringISA implementation monitoring Impact analysisImpact analysis Revision of review & compilation standardsRevision of review & compilation standards Standard Setting - IAASB

SMP Committee’s Support for SMEs and SMPs Revised & redrafted Code of Ethics for Professional AccountantsRevised & redrafted Code of Ethics for Professional Accountants Section 290 IndependenceSection 290 Independence Similar general concerns to those for ISAsSimilar general concerns to those for ISAs ImplementationImplementation Standard Setting – IESBA

SMP Committee’s Support for SMEs and SMPs Strategy reviewStrategy review Committee response to EDCommittee response to ED –Challenges to adoption –Monitor implementation and consider need to eliminate requirements –Additional implementation support materials –Work together Standard Setting – IESBA

SMP Committee’s Support for SMEs and SMPs IFRS for SMEsIFRS for SMEs Global reaction highly positiveGlobal reaction highly positive IASC Foundation training materialsIASC Foundation training materials Regional training workshopsRegional training workshops Seeking membership on SME Implementation GroupSeeking membership on SME Implementation Group Standard Setting – IASB

Practical 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 Quality Control for SMPs –Guide to Practice Management for SMPs –The Role of SMPs in Providing Business Support Services to SMEs Guidance

Practical Support See PublicationsPublications IFACnet portalIFACnet 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

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

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

QUESTIONS International Federation of Accountants