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Learn about the International Federation of Accountants' (IFAC) role in supporting small and medium-sized enterprises (SMEs) through innovative, flexible, and marketing-oriented practices. Discover the challenges faced by SMEs and how IFAC provides tools, guidance, and collaboration opportunities to help them remain competitive in a changing global landscape.
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International Federation of Accountants IFAC’s Role in Strengthening SMPs Bob Bunting, IFAC Deputy President IFAC SMP Forum October 13, 2008
SMP INFLUENCE Percentage of Small and Medium Businesses by Region 99% 99.7% 97% 75% 95% 97%
CHALLENGES Challenges to SMEs • Access to capital • Ability to meet rising costs • More stringent compliance requirements • National and global competition
CHARACTERISTICS Key Attributes of SMPs • Innovative • Flexible • Resourceful • Marketing-oriented
SMP ROLE Primary Role of SMPs Contribute to the performance and sustainability of SMEs and other entities
CHALLENGES SMP Challenges • Relevance and cost-benefit of international standards • Capacity to comply with these standards • Ability to remain competitive
CHALLENGES Relevance and Cost Effectiveness of Standards • SMP Committee provides direct input into standard setting process • Members of the committee serve on IAASB project task forces • IAASB standards include “Consideration Specific to Smaller Entities”
CHALLENGES Capacity to Comply with Standards • Guide to Using ISAs in the Audit of Small- and Medium-sized Entities • Guide to Quality Control for Use by Small and Medium-sized Practices • Updated Standard on Review Engagements ISRE 2400, Engagements to review Financial Statements • Commenting on IASB’s IFRS for Private Entities
IFAC SUPPoRT Competitive Tools • New practice management guide • Business Planning Guide: Practical Application for SMEs • Governance support
BRANDING SMP Branding • Focus on quality first • Promote strengths, i.e., flexibility • Look for niche markets • Promote resilience
COLLABORATION Collaborating for the Future • Share • Resources • Expertise • Successes