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Setting the Scene: Global and Regional Trends

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Presentation by Giancarlo Attolini, IFAC SMP Forum, June 2013

Published in: Business, Economy & Finance
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Setting the Scene: Global and Regional Trends

  1. 1. 1Setting the Scene: Global andRegional TrendsGiancarlo AttoliniChair, IFAC SMP CommitteeIFAC Small and Medium Practices ForumKampala, UgandaJune 5, 2013
  2. 2. 2Outline• Annual IFAC SMP Forum• Economic trends– Global and regional SMP Poll results• Summary of challenges and risks• Accountancy trends– Global and regional SMP Poll results• Opportunities for SMEs; Implications for SMPs• IFAC’s activities to address these challenges– About the committee– Guidance and support– Knowledge sharing
  3. 3. 3Annual IFAC SMP Forum• Previous Forums– Hong Kong SAR (2006), Malta (2007), Nigeria (2008), China (2009), Turkey (2011), and Singapore(2012)• Last yr. apx. 200 delegates, 36+ countries, and 40+ member bodies• Objectives– Unite global SMP community– Foster discussion, debate, and sharing of best practices and ideas– Home in on the opportunities and challenges facing SMPs and their SME clients– Identify opportunities for future collaboration• Assists in the SMP Committee’s strategy development
  4. 4. 4Economic Trends—Global• Financial crisis– SMEs, in particular, face ongoing challenges• Lending to SMEs slowed more than to other businesses– SMPs face similar problems as SMEs themselves– Increased fee pressure and changing demand for SMPs’ service• SMP Quick Poll (year-end 2012)—Business Outlook– 33% expect business growth in 2013, up slightly from 2011– Economic uncertainty remains one of top two concerns for SMPs’ SMEclients
  5. 5. 5Economic Trends—Regional• What about Africa?– Continued growth; In Uganda, 6-7% growth annually over past 15 years– Increased interest in business and investment in Africa due to• Communications infrastructure boom• Economic turmoil in other parts of the world• Investment in regulatory change• SMP Quick Poll (year-end 2012 )—Africa/Middle East– Business outlook• 44% expect business growth in 2013• Economic uncertainty (18%) and difficulties accessing finance (18%) among topthree concerns for SMPs’ SME clients
  6. 6. 6Challenges and Risks—Global• Lingering effects of financial crisis– Certain regions of world• SMPs may not have the skills they need to keep up withchanging demand/internationalization• Standards/regulation need to be proportionate, stable,and relevant• Competition from unqualified & non-accountants
  7. 7. 7Accountancy Trends• Expanding role of SMP practitioners– Appetite for one-stop shop for professional services– Develop and market new services (e.g., sustainability)– SMP Quick Poll: Advisory/consulting services• Globally 20% cited as fastest growing source of revenue• In Africa, significantly higher (27%) cited this area as fastest growing• SMPs’ Comparative Advantage– Reputation for competency, trust– Valued for geographic proximity and responsiveness– Entrepreneurial, innovative spirit
  8. 8. 8Opportunities for SMEs & SMPs• SMEs are a critical portion of economies globally• Increasing internationalization of SMEs• Increasing demand for non-traditional accounting services• IT developments, such as cloud computing• Stable employment
  9. 9. 9IFAC’s Activities to Address Challenges• SMP Committee formed in January 2006 to representinterests of SMPs• Vision: “The SMP Committee is a valued contributor tohelping IFAC member bodies develop their small- andmedium-sized practices.”• Composition– 18 members including 3 from Africa (Malawi, Kenya, and Nigeria)– Members are nominated by member bodies but are independent– Assurance providers and business advisors
  10. 10. 10Mission and Key Activities• Standards and Guidance• Adoption and Implementation• Development and Quality• Speaking Out
  11. 11. www.ifac.org/SMP

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