IFAC SMP Committee
IFAC SMP Permanent Task Force
Meeting
Summary
St. Julians, Malta, November 1-2, 2007
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
The IFAC Small and Medium Practices (SMP) Forum 2007 took
Chennai,
10-11,is2007
place on October
30.India,
This January
annual event
used to help with
formulation of the committee’s strategy and work plan. The
January
10-11, 2007
committeeChennai,
agreed toIndia,
consider
the feedback
received at the Malta
event when it sets about revising its Strategic and Operational Plan
1 January 10-11, 2007
Chennai,
India,
for the years
2007-2010
at its next meeting.
Input to IAASB
Setting
Chennai, Standard
India, January
10-11, 2007
The committee agreed to continue to devote a large proportion of its
Chennai, to
India,
January
10-11,
2007
time and resources
providing
input
to the
International Auditing
and Assurance Standards Board’s (IAASB) standard-setting process
Chennai,
India, that
January
2007issues are reflected in
with the goal
of ensuring
SMP10-11,
and SME
its standards. In 2008, the emphasis will be on continuing to input to
Chennai,
Januarythe
10-11,
2007
the IAASB’s
projectIndia,
to improve
clarity
of its standards. The
committee also agreed to respond to the IAASB’s Consultation
Chennai,
India, January
10-11, 2007
Paper, Proposed
Strategy
for 2009-2011.
Input to IESBA
Setting
Chennai,Standard
India, January
10-11, 2007
The committee agreed to continue monitoring the revision to the
Chennai,
India,
January
2007
independence
sections
of the
Code10-11,
of Ethics
for Professional
Accountants and encourage the IESBA to focus on implementation
January
10-11, 2007
assistanceChennai,
as part ofIndia,
its future
plans.
Input to IASB
Standard
Setting
Chennai,
India, January
10-11, 2007
The committee viewed the latest draft IFAC comment letter on the
JanuaryFinancial
10-11, 2007
ED of the Chennai,
proposed India,
International
Reporting Standard for
Small- and Medium-sized Entities (IFRS for SMEs) issued by the
Chennai,
India, Standards
January 10-11,
International
Accounting
Board2007
(IASB). The committee
has been charged with leading the drafting of the IFAC response. The
Chennai, India, January 10-11, 2007
1
The currentChennai,
plan can be
viewed
at
India,
January
10-11, 2007
http://www.ifac.org/SMP/files/SMPC_Strategic_and_Operational_Plan_20072010.pdf
Chennai, India, January 10-11, 2007
Chennai, India, January 10-11, 2007
Chennai, India, January 10-11, 2007
committee is highly supportive of this project and is assisting the
IASB with research and consultation including helping with the
planned IASB field tests.
Micro-Entity Research Project
At its meeting, the SMP Committee approved for publication an
Information Paper entitled Micro-Entity Financial Reporting: Some
Empirical Evidence on the Perspectives of Preparers and Users. This
paper summarizes some research into whether the proposed IFRS for
SMEs will meet the needs of users and preparers of financial reports
of micro-entities. It comprises interviews and surveys of users and
preparers of micro-entity reports in five countries. The research
findings have also been used in the IFAC response to the IFRS for
SMEs ED.
ISA Guide
The committee approved for publication guidance to assist SMPs and
other practitioners in delivering high quality audits of small and
medium entities (SMEs). The new implementation guidance, Guide
to Using ISAs in the Audit of Small- and Medium-sized Entities, is in
the production stages and will be available in the coming few weeks.
It has been reviewed by a global advisory panel, IFAC staff, and
volunteers from the SMP Committee. The guide, developed by the
Canadian Institute of Chartered Accountants (CICA) on IFAC’s
behalf, 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 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
(CGA-Canada). The intention is to issue the guide before the end 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
2
responsive to the needs of their clients. It was agreed to analyze the
proposals in the coming few months.
IFACnet
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.
Outreach and Collaboration
The committee held its annual one day SMP Forum on October 30 at
St. Julians, Malta. Over 120 delegates from some 37 countries
participated.
Next Meeting
The next meeting of the SMP Committee will take place on January
23-24, 2008 in Sao Paulo, Brazil.
3