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    Mar 01, 2010

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    SMP eNews

    In This Issue:

    Features:
    IFAC and Member Bodies Expand Practical Resources for SMPs
    1) SMP Committee Progresses on Practical Support Documents
    2) International Center for SMPs Continues to Improve
    3) Speeches and Presentations from IFAC SMP Forum 2009 Now Available
    4) Member Bodies and Regional Organizations Increase Practical Support for SMPs and SMEs
    5) FEE Issues SME Sustainability Policy Statements

    IFAC News
    6) IAASB Staff Issues Q&As to Raise Awareness of XBRL
    7) IFAC Global Leadership Survey Highlights SME/SMP Issues

    Other SMP News from Around the World
    8) IASC Foundation Launches First Two Sets of Training Modules
    9) Other Developments in Private Company Reporting
    10) APB Issues Revised Guidance on Smaller Entity Audit Documentation
    11) FEE SME/SMP Congress Scheduled for Venice in April

    Features:
    IFAC and Member Bodies Expand Practical Resources for SMPs

    1) SMP Committee Progresses on Practical Support Documents

    Four SMP Committee publications are planned for release in 2010.These projects are:

    • An updated Guide to Using International Standards on Auditing in the Audits of Small- and Medium-sized Entities (ISA Guide) in Q3 2010. The updated ISA Guide will feature many improvements and conform to the newly clarified ISAs. Designed to help practitioners efficiently apply ISAs to audits of SMEs, the updated ISA Guide will comprise two volumes: Volume 1 will describe the basic concepts of a risk-based audit in conformance with ISAs; and Volume 2 will set out the practical guidance for the audit of SMEs.
    • A new Guide to Practice Management for Small- and Medium-sized Practices (PM Guide) is expected in Q2 2010. Under development by CPA Australia, the PM Guide is intended to help SMPs operate proficiently and profitably as well as enhance their responsiveness to the needs of their clients. The PM Guide will include practical guidance, case studies, and checklists capable of being tailored to suit the needs of a particular practice or jurisdiction.
    • An updated Guide to Quality Control for Small- and Medium-sized Practices (QC Guide) is scheduled for issue in Q3 2010. Designed to help SMPs understand and efficiently apply International Standard on Quality Control 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements, the updated QC Guide will conform to the revised and redrafted Code of Ethics for Professional Accountants and include other enhancements.
    • An information paper, the Role of SMPs in Providing Business Support to SMEs, is expected to be released in Q2 2010. The paper will provide some insights into how SMPs can better provide business support to SME clients.

    All SMP Committee documents can be accessed at 'Publications' at www.ifac.org/SMP/index.php#Resources.

    2) International Center for SMPs Continues to Improve

    The online International Center for Small and Medium Practices (the Center) continues to expand, in particular the set of links to free resources of member bodies and others that are designed to help SMPs apply international standards, manage their practices, offer business advice, and assist them and their SME clients cope with the economic slowdown.
     
    These revised links can be found at www.ifac.org/SMP/relevant_links.php.

    3) Speeches and Presentations from IFAC SMP Forum 2009 Now Available

    The Small and Medium Practices (SMP) Committee held is fourth annual IFAC SMP Forum in Beijing in October 2009. Over 200 delegates from more than 40 countries--the largest gathering in the event's history--attended the event, which was co-hosted by the Chinese Institute of Certified Public Accountants and the Confederation of Asian and Pacific Accountants.
     
    The Forum's program covered recent international developments, the work of the IFAC SMP Committee, as well as panel discussions on such topics as "Adapting to the Economic Turbulence and Laying Foundations for Sustainable Growth"; "Ensuring International Standards are Relevant to SMP/SMEs"; and "The Role of SMPs in Providing Business Support to SMEs."

    The press release, speeches and presentations from this event are now available in the Center under 'Conferences' at http://www.ifac.org/smp/index.php#Resources. These will be supplemented with streaming videos in the coming weeks funded by the Consiglio Nazionale dei Dottori Commercialisti e Degli Esperti Contabili.

    4) Member Bodies and Regional Organizations Increase Practical Support for SMPs and SMEs
     
    AICPA
     
    The American Institute of Certified Public Accountants (AICPA) has created a special poster that American CPAs can download for free to promote their credentials. The poster, which displays the hallmark values of CPAs and offer the message "It All Adds Up," was also produced in thumbnail size for use on stationery, PowerPoint slides, business cards and more. Click here to access the poster.

    CICA
     
    The Canadian Institute of Chartered Accountants (CICA) is offering personalized brochures to promote professional services. A marketing tool for sole practitioners and small-and-medium-sized firms, the CA client development brochures are designed to help CAs build awareness about the services that they provide and reinforce their position as leaders in decision making.

    IBRACON

    IBRACON, or Instituto dos Auditores Independentes do Brasil, has established a new Working Group, the GT Small and Medium Sized Practices (FPMP), coordinated by Counsellor Ricardo Rodil. According to Rodil, who is also a member of the IFAC SMP Committee, the initiative will include assisting SMPs with the implementation of International Standards on Auditing (ISAs) a permanent forum to ensure that the views of SMPs are heard and promote research on SMPs.

    More information on the Working Group is available at www.ibracon.com.br/noticias/destaque.asp?identificador=3608.

    ICAEW
     
    The Institute of Chartered Accountants in England and Wales (ICAEW) has developed a set of resources to help SMEs manage and succeed in the next 12 months. See From survival to sustainability.

    5) FEE Issues SME Sustainability Policy Statements

    The Fédération des Experts comptables Européens (FEE) has issued three policy statements addressing the subject of sustainability and SMEs. Within these statements, the FEE argues that accountants have a role and a responsibility in helping small enterprises achieve long-term prosperity. The organization also calls on the professional practice community to enhance sustainable thinking in small enterprises by developing and promoting sustainable services and products for their small business.

    IFAC News

    6) IAASB Staff Issues Q&As to Raise Awareness of XBRL

    The staff of the International Auditing and Assurance Standards Board (IAASB) has developed a new question-and-answer publication that is designed to raise awareness about how XBRL-tagged data is prepared and how it may affect financial reporting.

    Entitled XBRL: The Emerging Landscape, the publication explains that the IAASB's current International Standards on Auditing (ISAs) were not developed with XBRL in mind and, accordingly, do not require auditors to perform procedures on XBRL-tagged data as part of a financial statement audit. It clarifies how XBRL may lead to a demand for various types of assurance and related services engagements, and describes the scope of the IAASB's planned consultations to determine whether to develop a new international pronouncement addressing XBRL.

    To download the document, see the IAASB section of IFAC's Publications and Resources site: web.ifac.org/publications.  

    7) IFAC Global Leadership Survey Highlights SME/SMP Issues

    IFAC has released the revised results of its Third Annual Global Leadership Survey which polled the presidents and chief executive officers of its member bodies and associates, regional organizations, and accountancy groupings. IFAC is pleased to issue the results of the global survey, reflecting responses received by 112 presidents and chief executives from member bodies, associates, and regional accountancy organizations and groupings.

    The survey indicated that IFAC members are strong advocates for small and midsize businesses, as well as for the adoption of international standards issued by IFAC's independent standard-setting boards and the IASB. The survey also underscored that great strides have been made in the area of corporate governance.

    SME and SMP issues featured prominently throughout the report. Respondents believed that, of all IFAC's initiatives during the last year, the most important to the accountancy profession was the IFAC recommendation to the G-20 that regulation or re-regulation in financial policies should not place unreasonable burdens on SMEs. While respondents felt that "addressing the needs of SMEs and SMPs" was the second most important issue for the accountancy profession right now, they expect it to become the most important in the coming years.

    The full results of the IFAC 2009 Global Leadership Survey can be accessed here.

    Other SMP News from Around the World

    8) IASC Foundation Launches First Two Sets of Training Modules and Proposed IFRS Taxonomy

    The International Accounting Standards Committee Foundation (IASC Foundation) has published the two parts of its comprehensive set of training materials for the International Financial Reporting Standard for Small and Medium-Sized Entities (IFRS for SMEs). The free-to-download training material forms part of a range of initiatives undertaken by the IASC Foundation and the International Accounting Standards Board (IASB) to support the widespread adoption of the IFRS for SMEs.

    See www.iasb.org/News/Press+Releases/IFRS+for+SMEs+training+material+launch.htm.

    The IASC Foundation has also published for public comment an exposure draft of the International Financial Reporting Standards (IFRSs) XBRL Taxonomy 2010. The proposed taxonomy is consistent with IFRSs and the IFRS for SMEs. Interested parties are invited to comment on the exposure draft of the IFRS Taxonomy 2010 and accompanying materials by April 22, 2010. The proposed taxonomy and related material can be accessed here. The final version is expected to be released at the end of April 2010.

    9) Other Developments in Private Company Reporting
     
    Global

    At least 35-countries, many developing and emerging economies, have indicated they will either require or permit the use of IFRS for SMEs by 2013. See Accountancy Age.

    Europe

    The European Commission is seeking the views of stakeholders on the IFRS for SMEs by March 12, 2010. Comments will assist DG Internal Market and Services in its ongoing review of the 4th and 7th Company Law Directives (The Accounting Directives). Stakeholders are invited to comment on the questions raised in this Consultation Paper by completing the response document located at the Commission's website at the following:  http://ec.europa.eu/internal_market/consultations/docs/2009/ifrs_for_sme/consultation_IFRS_for_
    SMES_questionnaire_en.doc.

    USA

    A panel created by the AICPA and the Financial Accounting Foundation with support from the National Association of State Boards of Accountancy will explore questions about the future of standard setting for U.S. private companies. Recommendations from the blue-ribbon panel are likely to come in 2010. Read the panel chairman's interview with the Journal of Accountancy. The AICPA is also developing a resource that compares the IFRS for SMEs with corresponding requirements of U.S. generally accepted accounting principles (U.S. GAAP). This resource is available in a Wiki format and you are invited to contribute to its development. To learn more about the resource, view available sections and contribute to its content visit the website.

    10) APB Issues Revised Guidance on Smaller Entity Audit Documentation

    The Auditing Practices Board (APB) of the U.K. Financial Reporting Council (FRC) has updated Practice Note 26 which provides guidance and illustrative examples on how the documentation requirements contained within ISAs (UK and Ireland) can be applied to smaller entity audits.

    Richard Fleck, Chairman of the APB commented that "The APB received strong support from practitioners, training providers and standard setters in other countries for Practice Note 26 when it was first issued in 2007. This has now been updated to reflect the new ISAs (UK and Ireland) that apply to audits of accounting periods ending on or after 15 December 2010. I hope that the timely publication of this update will assist firms with their implementation of the new standards in 2010."

    More about this revised guidance can be found at www.frc.org.uk/apb/publications/pub2193.html.

    11) FEE SME/SMP Congress Scheduled for Venice in April

    The next FEE SME/SMP Congress will be held on 15 and 16 APRIL 2010 in Venice in cooperation with the national Italian institute CNDCEC. The event will start on Thursday afternoon with plenary sessions and that evening participants will have the opportunity to enjoy a Networking Dinner. On Friday the Congress will continue with a series of plenary sessions which focus on practical experience, lessons learnt and the use of tools. Both SMPs and small business owners will share their experiences.

    The Sessions will cover subjects such as EU and international developments, SMEs' expectations from their accountants, auditing standards and guidance, cross-border activities, services beyond auditing. For detailed information including the program and registration details see http://www.fee.be/events/default.asp?id=30.

    For more information about any of the items mentioned above or other information about the SMP Committee, please contact communications@ifac.org.
    About IFAC
    IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 159 members and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. Through its independent standard-setting boards, IFAC sets international ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high-quality performance by professional accountants in business.

     

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