Presentation given by Nicky van Hille, The Moss Group, during the International Federation of Accountants (IFAC) integrated reporting seminar, A Fundamental Shift in Corporate Reporting, November 14, 2012.
Integrated Reporting for SMEs and the Role of SMPs
Integrated Reporting for SMEs and the role of SMPs IFAC Annual Seminar – Cape Town 14 November 2012 The Confidential 2011 Propriety andreserved MOSS Group | | All rights Confidential 1
SMEs will soon be pushed to produce integratedreports• Adherence to King III good governance principles• Stakeholder requirements: – Customers – particularly listed corporates – Financial institutions Many SMEs, like listed corporates, will probably do so grudgingly. The MOSS Group | Propriety and Confidential 2
However, there is significant opportunity awaitingSMEs who adopt an integrated way of thinking Performance Inextricably linked Gover- nance ↓ Informed decisions Risk ↓ manage- ment Better performance Sustain- Strategy ability The MOSS Group | Propriety and Confidential 3
The process of developing an integrated report candeliver great value to SMEs Opportunities • Mitigate risk and reduce cost • Differentiate products and services • Create or enter new markets • Influence industry standards / norms The MOSS Group | Propriety and Confidential 4
However, the SME mindset doesn’t always lend itselfto integrated thinking and strategisingEntrepreneurial style:• Action-oriented• Constantly readjusting: – Nimble and flexible – BUT often reactive• High risk / high reward with shorter timeframes• Limited funds: – Limited long-term investments• Lean organisations: – Limited time and human resource The MOSS Group | Propriety and Confidential 5
This presents a fantastic opportunity for small and medium practice accounting firmsSupport needed by SMEs: Opportunities for SMPs:• “Big picture” thinking • New business opportunity:• Longer-term views – Additional revenue streams• Risk understanding – Additional capability• Integrated reporting process • Already recognised for ability knowledge with numbers: – Add support on non-financial• Non-financial metrics metrics • More deeply entrenched relationships SMPs should be skilling themselves up to take advantage of this opportunity. The MOSS Group | Propriety and Confidential 6