Session 1 Global & Regional Trends and Development Impacting SMPs SAFA-IFAC Regional SMP Forum...
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Transcript of Session 1 Global & Regional Trends and Development Impacting SMPs SAFA-IFAC Regional SMP Forum...
Session 1 Global & Regional Trends
and Development Impacting SMPs
SAFA-IFAC Regional SMP Forum
Jagath Perera (CA Sri Lanka)10th October 2014
Hotel Le-Meridien, New Delhi
3
• Sri Lanka Accounting Standards 2014 BV is in line with IFRS 2014 BV.
• Statement of Recommended best practice• Merger Accounting for Common Control Combinations • Not-for-Profit Organisations
• Statement of Alternate Practice (SoATs) are effective in in Sri Lanka
• Right-to-use of Land on Lease• Revaluation option for SMEs
• SLFRS for SMEs
• SLFRS for Smaller Enterprises (ED)
IFRS Convergence and Sri Lanka
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• 2009 Edition of the IFAC Hand Book • 36 clarified ISAs including SLSQC 1
• 2012 Edition of the IFAC Hand Book
• Additions adopted
• 2013 Edition of the IFAC Hand Book • To be adopted
ISAs and Sri Lanka
Challenges Faced by SME’s
• Pressure to lower prices of products and services
• Compliance with regulation
• Competition
• Lack of Demand for their products and services
• Rising costs
• Economic uncertainty
• Attracting and retaining staff
• Difficulties accessing finance
•
Challenges Faced by SMP’s
• Keeping up with new regulations and standards
• Attracting and retaining clients
• Pressure to lower fees
• Attracting and retaining staff
• Ability to adapt to changing client needs
• Competition
• Rising costs
• Work-life balance
• Keeping up with new technology
•
Characteristics of SMPs in Sri Lanka
• Traditional – mainly to audit and tax
• No formal management structure & small
• Concentrated in Western Province of Sri Lanka
• More reliance on manual processes
• Less access to resources and tools
• Happy to work within the comfort zone
Meeting the Challenges
• Leveraging technology (Improving efficiency)
• More Awareness among SMPs
• Enhance the range of services
• Learning and development
•
• Training – Audit tool kit is developed and Conducted awareness session– TTT Completed– Training in Progress
• Best Practice Guidelines – Developing checklists, industry analysis, LOB guidelines
• New Members in Practice – Orientation programmes
• Networking Events – Events for experienced members in practice
Capacity Building
• Practice Management Guidelines
• Quality Assurance Guidelines
• Guidance on New Opportunities
• Reduce Harmful Competition
• Enhancing Support Services
Continuity of Practice
• Technical Teams - Bridging the resource gaps- Emerging services
• Positioning of the Members in Practice
• Additional Support for the Members in Practice within Regions
Creating Synergy
SMP Firm in 2020 • Equipped for new challenges– HR, Technology
• Less Dependence on assurance
• Specialized services to SMEs
• Geared up to face regulatory pressure
Conclusion
• Need to explore new opportunities to encourage SMPs to move away from comfort zone
• Enhance the market knowledge of value of audit • Assist to minimize the regulatory burden • Centralize training to keep up with new
developments • Require assistance of professional body due to
limited in-house resources
CSR Coordinator
● To be responsible for updating CSR checklist ● To coordinate with the CSR panel of markers and ensure timeliness and
quality of delivery● To report to the Committee the CSR results giving the necessary justificationsCG Coordinator
● To be responsible for updating CG checklist ● To coordinate with the CG panel of markers and ensure timeliness and quality
of delivery● To report to the Committee the CG results giving the necessary justifications
MC Coordinator
● To be responsible for updating MC checklist ● To coordinate with the MC panel of markers and ensure timeliness and quality
of delivery● To report to the Committee the MC results giving the necessary justifications
Key Responsibilities – CSR, CG and MC Coordinator
Thank You