August 29, 2008
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In This Issue:
News from IFAC
- IFAC Hosts 2008 SMP Forum in Nigeria
- IFAC Provides Input to the IFRS for SMEs
- Share Your Thoughts on How to Use or Improve IFAC's Guide to Using ISAs
- CICA, ICAA Provide Examples of How to Use IFAC ISA Guide
- SMP Committee Contributes to Development of IAASB Standards
- Committee Also Focuses on Ethics Standards
- IFAC Selects CPA Australia to Develop Practice Management Guide
- Join the Discussion on Micro-Entity Financial Reporting
- IFAC Enhances Information Sharing for SMPs
More News from Around the Globe
- ACCA Releases New Study on Regulatory Impact on SMEs
- AICPA Announces Succession Planning Resource Center
- CICA Releases Guide to ISAs
- Belgian Institute Supports SME Audits
- AICPA Launches IFRS Website
- A Small Business Act for Europe
- Australian Board Issues Guidance on Review Engagements
- Share SMP eNews with Your Colleagues
1. IFAC Hosts 2008 SMP Forum in Nigeria
The SMP Committee will host the 2008 IFAC Small and Medium Practices (SMP) Forum on Monday, October 13, in Abuja, Nigeria. This event is being co-hosted by the Institute of Chartered Accountants of Nigeria and the Associate of Accountancy Bodies in West Africa with support from the Association of Chartered Certified Accountants (ACCA) and CGA-Canada.
Register for the event (free) by September 26. For the brochure and information on how to attend, refer to the "Of Special Interest" section on the IFAC home page (http://www.ifac.org) or the resources section of the International Center for SMPs at http://www.ifac.org/SMP/index.php#Resources.
2. IFAC Provides Input to the IFRS for SMEs
The International Accounting Standards Board (IASB) expects to issue the final International Financial Reporting Standard for Small- and Medium-sized Entities (IFRS for SMEs), recently renamed IFRS for Private Entities, in early 2009. The SMP Committee welcomes IASB consideration of further simplifications to the proposed standard suggested by the committee and supports the International Accounting Standards Committee Foundation's initiative to develop "train the trainer" materials to support its implementation. To view the exposure draft or for a project update, please visit "IASB Projects" in the "Current Projects" section of the IASB website (http://www.iasb.org).
3. Share Your Thoughts on How to Use or Improve IFAC's Guide to Using ISAs
Since its release in December 2007, demand has been strong for IFAC's Guide to Using ISAs in the Audit of Small- and Medium-sized Entities (ISA Guide), designed to assist SMPs and other practitioners in effectively and efficiently implementing and applying International Standards on Auditing (ISAs) to the audit of small and medium entities (SMEs). It provides a detailed analysis of all ISAs issued as of December 31, 2006, and their requirements in the context of an SME audit, along with an in-depth case study based on a typical SME. An improved version of the Guide is planned for late 2009 and the committee is keen to receive your views on how to make it a more useful tool for practitioners.
Share your thoughts and experiences on how to use or improve this Guide by participating in the public discussion forum at http://web.ifac.org/forum/SMP/1. For instance, can the case study be improved? Is the Guide best used as an in-house training instrument, or as a reference manual? Any and all feedback is welcomed.
The current Guide can be accessed and downloaded free-of-charge from the IFAC publications section at http://www.ifac.org/store. A CD-ROM of the ISA Guide is also available upon request.
4. CICA, ICAA Provide Examples of How to Use IFAC ISA Guide
Based on the high demand for IFAC's implementation guide, ISA Guide, the Canadian Institute of Chartered Accountants (CICA) has developed the first toolkit of forms and checklists specifically designed to support the ISA Guide. To order these please visit CICA's website at www.knotia.ca/store/iagforms.
In addition, in June, the Institute of Chartered Accountants in Australia (ICAA) released Australian Audit Manual, an Australian version of the ISA Guide conforming to Australian Auditing Standards. ICAA also offers a toolkit, adapted from the CICA toolkit, as well as training. For more information, please visit http://www.charteredaccountants.com.au/A121542159.
5. SMP Committee Contributes to Development of IAASB Standards
To help ensure that issues important to SMPs and SMEs are reflected in its standards, the SMP Committee continues to provide input to the International Auditing and Assurance Standards Board (IAASB). The committee supports the IAASB's Strategy and Work Program, 2009-2011 which, among other things, addresses SME and SMP issues, such as alternative assurance services for SMEs. For additional information, please refer to the IAASB press release of July 14.
6. Committee Also Focuses on Ethics Standards
The SMP Committee also continues to monitor the revision of the independence sections of the IFAC Code of Ethics for Professional Accountants and to support the International Ethics Standards Board for Accountants (IESBA) in developing guidance to help SMPs implement the revised provisions.
Provide your comments on the exposure draft (ED) of the proposed redrafted code by October 15, via email to edcomments@ifac.org. The ED is viewable at http://www.ifac.org/eds. For more information, please read the IESBA press release of July 15.
7. IFAC Selects CPA Australia to Develop Practice Management Guide
The SMP Committee awarded the contract to develop a new guide, Guide to Practice Management for Use by Small- and Medium-sized Practices (PM Guide), to CPA Australia. Intended to help SMPs operate and manage their practices proficiently and respond to the needs of their clients, the publication is planned for the final quarter of 2009. Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (http://www.cndcec.it) and CGA-Canada (http://www.cga-canada.org) have agreed to provide some of the funding for its development.
8. Join the Discussion on Micro-Entity Financial Reporting
Sound reporting for micro-entities is vital to innovation and economic growth. The IASB is working on an IFRS for Private Entities that it believes is suitable for micro-entities. However, there is some concern that it may not be suitable for such entities. The SMP Committee would like to hear your views on this. Join the public discussion on its SME/SMP Discussion Board.
Also view IFAC's own research published by its SMP Committee in January of this year, Micro-Entity Financial Reporting: Some Empirical Evidence on the Perspectives of Preparers and Users, which provides some insights regarding the debate.
9. IFAC Enhances Information Sharing for SMPs
IFACnet (http://www.ifacnet.com), the global, multilingual accountancy search engine developed and supported by IFAC and more than 30 of its member bodies, continues to be enhanced for SMPs. The presentation of search results has been improved and the websites of some non-member body organizations with information of interest to SMPs are now being incorporated.
In addition, the resources section of the International Center for SMPs (http://www.ifac.org/smp) continues to be expanded; it now features an improved collection of relevant links (see http://www.ifac.org/SMP/relevant_links.php) and a public SMP/SME discussion board (see http://web.ifac.org/forum/SMP/1).
10. ACCA Releases New Study on Regulatory Impact on SMEs
A new research study released by the ACCA investigates the challenges in meeting regulatory obligations faced by SMEs in Australia. The study explores the essential role accountants and organizations play in assisting SMEs in complying with and managing applicable regulations. The study included a survey of 250 SMEs and 130 accounting practitioner firms. For further information, see the April 2008 issue of the ACCA newsletter Research Matters.
ACCA and The Institute of Chartered Accountants in England and Wales have also issued advice on how SMEs can weather the credit crisis; see http://www.accaglobal.com/allnews/global/2008/NEWSQ1/News/3068177 and http://www.icaew.com/index.cfm?route=158352 respectively.
11. AICPA Announces Succession Planning Resource Center
The American Institute of Certified Public Accountants (AICPA) has launched a Succession Planning Resource Center on its website to help small- and medium-sized firms contend with one of the most critical issues affecting their future: succession planning. For additional information, please visit its website at http://pcps.aicpa.org/Resources/Succession+Planning/, or read the announcement.
12. CICA Releases Guide to ISAs
CICA has released The CICA's Guide to ISAs in Canada, designed to assist accountancy professionals in preparing for Canada's transition to ISAs developed by the IAASB. The guide compares Canadian Generally Accepted Auditing Standards with the new Canadian Auditing Standards. For additional information, visit its website on ISAs at http://www.cica.ca/4/1/0/8/8/index1.shtml.
13. Belgian Institute Supports SME Audits
The Belgian Auditors' Institute held a press conference that, while supporting the concept of simplification and removal of unnecessary red tape and regulation, defended the value of audits strenuously and described the proposed relaxation of audit requirements by the European Commission as a significant step backwards in the drive towards European harmonization. The Institute cited a university study to support its argument (http://www.ibr-ire.be/fra/nieuws_pers.aspx?id=3525). Information on the EC's attempt to move towards better regulation by simplifying the regulatory environment for European business and citizens may be found at http://ec.europa.eu/enterprise/regulation/better_regulation/simplification.htm.
14. AICPA Launches IFRS Website
The AICPA launched a new website to provide members and financial professionals with the latest information regarding IFRSs, http://www.ifrs.com, including information to prepare professional accountants in using IFRSs. The site also features multimedia content (such as informational videos, including one featuring IFAC's Deputy President at http://www.ifrs.com/video.html), explanatory material about IFRSs, training programs, and links to resources.
In a June 17 press release, AICPA President and CEO called for a clear and realistic timeframe for the US accounting profession to adopt IFRSs. To learn more, visit http://www.aicpa.org.
15. A Small Business Act for Europe
SMEs that employ 250 people or less provide most jobs in the European Union. Often these SMEs face enormous bureaucratic hurdles and obstacles. Hence, to help European SMEs grow and create jobs the EC has unveiled the Small Business Act for Europe (SBA), based on ten guiding principles and proposes policy actions to be undertaken by both the Commission and Member States. For information on SBA, please visit http://ec.europa.eu/enterprise/entrepreneurship/sba_en.htm.
16. Australian Board Issues Guidance on Review Engagements
The Auditing and Assurance Standards Board has issued Explanatory Guide to Review Engagements, which provides information on the use of its standards to auditors and assurance practitioners undertaking review engagements. These standards are based on those issued by the IAASB. To read more about the guide, please visit http://www.auasb.gov.au.
17. Share SMP eNews with Your Colleagues
The SMP Committee issues regular eNews updates to keep you current on its activities and recent publications. Please forward this eNews to any interested colleagues and advise them that they can subscribe to receive the next issue of SMP eNews directly into their inbox by following these simple steps:
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For more information about the items mentioned above or other information about the IFAC, please contact pr@ifac.org or visit the multilingual International Center for SMPs at http://www.ifac.org/smp.
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 157 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. Through its independent standard-setting boards, IFAC sets ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business those working in small and medium practices.