IFAC SMP Committee
IFAC SMP Permanent Task Force
Meeting
Summary
São Paulo, Brazil, January 23-24, 2008
Contact: Paul
Thompson
Chennai,
India, (paulthompson@ifac.org)
January 10-11, 2007
Chennai,
India,
10-11,
This meeting
summary
of January
the IFAC
Small2007
and Medium Practices
(SMP) Committee has been prepared for information purposes only.
India,
January
10-11,
2007
Decisions Chennai,
reported are
tentative
and
reflect
only the current status of
discussions on projects which might change after further deliberation
Chennai,
India, January 10-11, 2007
by the SMP
Committee.
StrategicChennai,
and Operational
Review
India, January
10-11, 2007
At its meeting in São Paulo, the committee, using feedback received
Chennai,
India,
10-11,2007
2007held in Malta together
from delegates
at the
IFACJanuary
SMP Forum
with other input, discussed the possible content of the SMP
Chennai,
India,
10-11,Plan
2007for the Years 2009Committee’s
Strategic
andJanuary
Operational
2012 in conformance with the corresponding IFAC plan.
Chennai, India, January 10-11, 2007
Input to IAASB Standard Setting
Chennai,
India,
January 10-11,
2007
The committee
agreed
to continue
to devote
a large proportion of its
time and resources to providing input to the International Auditing
Chennai,
India, Board’s
January (IAASB)
10-11, 2007
and Assurance
Standards
standard-setting process
with the goal of ensuring that issues of importance to SMPs and
India, entities
January(SME)
10-11, are
2007
small- andChennai,
medium-sized
reflected in their
standards. During 2008, the emphasis will be on continuing to
Chennai,
January
10-11,
2007 the clarity of its
provide input
to theIndia,
IAASB’s
project
to improve
international standards.
Chennai, India, January 10-11, 2007
The committee’s November 2007 response to the IAASB’s
consultation
paper, India,
Proposed
Strategy
for2007
2009-2011 called for
Chennai,
January
10-11,
greater priority to be placed on addressing the needs of SMEs.
Chennai,Standard
India, January
10-11, 2007
Input to IESBA
Setting
The committee
agreed
to continue
monitoring
Chennai,
India,
January 10-11,
2007the revision to the
independence sections of the Code of Ethics for Professional
Accountants
and to India,
support
the International
Ethics Standards Board
Chennai,
January
10-11, 2007
for Accountants (IESBA) in the development of guidance to help
SMPs implement these revised provisions.
Chennai, India, January 10-11, 2007
Input to IASB Standard Setting
Chennai, India, January 10-11, 2007
The committee discussed what next steps it might take in the area of
SME financial reporting, including how it might assist with
Chennai, India, January 10-11, 2007
implementation of the International Financial Reporting Standard for
Small- and Medium-sized Entities (IFRS for SMEs). The final
Chennai, India, January 10-11, 2007
standard is expected to be issued by the International Accounting
Chennai, India, January 10-11, 2007
Chennai, India, January 10-11, 2007
Chennai, India, January 10-11, 2007
Standards Board (IASB) in early 2009. The SMP Committee led the
drafting of the IFAC comment letter on the exposure draft submitted
in November 20071. The letter, while highly supportive of this
project, encouraged the IASB to simplify its proposals.
Micro-Entity Research Project
In early January 2008, the SMP Committee published an information
paper entitled Micro-Entity Financial Reporting: Some Empirical
Evidence on the Perspectives of Preparers and Users2. This paper
investigates whether the proposed IFRS for SMEs will prove suitable
for micro-entities. It comprises interviews and surveys of users and
preparers of micro-entity reports in five countries. At its next
meeting, the committee will consider the need to do further work in
this area.
ISA Guide
In mid-December 2007, the committee launched an implementation
guide to assist SMPs and other practitioners in delivering high quality
audits of SMEs. Developed by the Canadian Institute of Chartered
Accountants, the Guide to Using ISAs in the Audit of Small- and
Medium-sized Entities3 is designed to support SMPs and other
practitioners in applying International Standards on Auditing (ISAs)
to audits of SMEs.
Quality Control Guide
During its meeting, the committee received presentations from three
short-listed potential suppliers for the development of an
implementation guide, Quality Control Guide for SMPs. The guide is
intended to help SMPs understand and implement International
Standard on Quality Control (ISQC) 1, Quality Control for Firms that
Perform Audits and Reviews of Financial Statements, and Other
Assurance and Related Services. The committee decided to award the
contract to the Certified General Accountants Association of Canada.
The intention is to issue the guide around the time the redrafted ISQC
1 is finalized in the final quarter of 2008.
Practice Management Guide
The committee was informed that three proposals had been received
in response to the Request for Proposal to commission the
development of a Practice Management Guide. The guide will seek
to improve the operational efficiency of SMPs and make them more
1
See http://web.ifac.org/download/Comment_Letter_on_Proposed_IFRS_for_SMEs.pdf
2
See http://www.ifac.org/MediaCenter/?q=node/view/537
3
See http://www.ifac.org/Store/Details.tmpl?SID=1197644225547443
2
responsive to the needs of their clients. A decision as to the
successful supplier will be made at the next meeting.
Information Sharing
The committee discussed how to develop IFACnet
(www.ifacnet.com), the global, multilingual accountancy search
engine developed by IFAC and its member bodies, so as to best serve
SMPs. In the coming months, the websites of some non-member
body organizations with information of interest to SMPs were
expected to join IFACnet. Meantime, the resources section of the
International Center for SMPs continues to be expanded
(www.ifac.org/smp).
Outreach and Collaboration
On the eve of its meeting in São Paulo, the SMP Committee Senior
Technical Manager and two committee members presented at a
practitioners’ seminar on ISAs, which was organized by the Instituto
dos Auditores Independentes do Brasil and the Conselho Federal de
Contabilidade. .
Next Meeting
The next meeting of the SMP Committee will take place on June 1020, 2008 in New York City, USA.
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