1 / 13

SMPs Adapting to the Economic Turbulence and Laying Foundations for Sustainable Growth

Presented by : Albert Au, Hong Kong Institute of CPAs Venue: IFAC SMP Forum, Beijing Date: 28 October 2009. SMPs Adapting to the Economic Turbulence and Laying Foundations for Sustainable Growth. Summary. Impact of the economic crisis On the Hong Kong economy On SMPs in Hong Kong

kineta
Download Presentation

SMPs Adapting to the Economic Turbulence and Laying Foundations for Sustainable Growth

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Presented by : Albert Au, Hong Kong Institute of CPAs Venue: IFAC SMP Forum, Beijing Date: 28 October 2009 SMPs Adapting to the Economic Turbulenceand Laying Foundations for Sustainable Growth

  2. Summary • Impact of the economic crisis • On the Hong Kong economy • On SMPs in Hong Kong • SMPs: adapting to the economic crisis and laying the foundations for sustainable growth • HKICPA’s response to the economic crisis

  3. Impact of the Economic Crisison the Hong Kong economy • Started about 3 months’ later than in the USA/Europe • Less impact in Hong Kong, but still very significant • Benefit of the economic stimulus measures of the mainland • Some positive signs of recovery: • Rising residential property market and prices • Hang Seng index positive: - 30 September 2009: 20,955 - 27 October 2008: 11,016 - 30 September 2008: 18,016

  4. Impact of the Economic Crisison the Hong Kong economy • But the real economy is not recovering • Exports fell 13.9% from August 2008 to August 2009 • Seasonally adjusted unemployment rate in Hong Kong • June – August 2008 3.2% • June – August 2009 5.4% • The worst has not yet been seen

  5. Impact of the Economic Crisison Hong Kong SMPs A delayed impact on SMPs which will last for another year at least • Reduction in clients’ business activity • Pressure on fees • Decreased staff turnover • General uncertainty

  6. SMPs Adapting to the Economic Turbulence How should SMPs adapt? • By getting closer to clients • Deliver greater value to clients • Raised awareness of professional issues • Sound practice management • Essential to maintain professional integrity • Sound practice management

  7. SMPs Adapting to the Economic Turbulence Deliver greater value to clients • Develop and offer • new, value added services • specialist services • Better service delivery

  8. SMPs Adapting to the Economic Turbulence Raised awareness of professional issues • Know your clients and your clients’ businesses better • Responding to the heightened risk of fraud in clients’ businesses • Appropriate assessment of clients’ businesses as going concerns • Maintaining professional standards in the face of downward fee pressure

  9. SMPs Adapting to the Economic Turbulence Sound practice management • A well defined business strategy • Controlling costs • Ensuring sufficient liquidity • Improving efficiency • Speed of work, billing, payment by clients • Actively managing the risks

  10. Laying the Foundations for Sustainable Growth Sustainable SMP growth • Adapting to the challenges will also lay the foundations for sustainable growth • Leadership in charting the way forward

  11. HKICPA’s response to the economic crisis Primary focus: providing professional technical support • Events and correspondence focusing on key topics of heightened relevance in the crisis • Challenges in auditing fair value estimates • The auditor’s responsibilities to consider fraud • Going concern / liquidity risk considerations • Accountants’ reports on solicitors’ accounts • E-correspondence to all members explaining the reasons and rationale for the amendments to IAS 39 and HKFRS7.

  12. HKICPA’s response to the economic crisis Primary focus: providing professional technical support • Financial reporting and auditing alerts • SMP/SME resource centre on HKICPA website • Promotion of new areas of work for members (eg HKID Capital Investment Entrant Scheme) • Investment initiatives to enhance technical training and support

  13. Thank you Albert Au Member, IFAC SMP Committee

More Related