Presentation by Sylvia Tsen, Director, Quality and Member Relations, IFAC at the Central and South East Europe Regional Forum for Professional Accountancy Organizations co-hosted with the World Bank in Vienna on June 1, 2012.

1. Building Capacity to Add Value to
Business Enterprises
Sylvia Tsen,
Director, Quality and Member Relations,
IFAC
PAO Regional Forum on Building
Competence and Striving for Excellence
Vienna, Austria
June 1, 2012
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2. Competitiveness
Definition (BusinessDictionary.com):
Ability of a firm or nation to offer products and service
that meet the quality standards of local or global markets
at prices that are competitive and provide adequate
returns on the resources consumed in producing it
Businesses need to be competitive to be sustainable and
contribute to economic development
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3. IFAC Quick Poll: Challenges Facing SMEs
• SME Top Concerns
– Difficulties accessing finance; and
– Regulatory burden
• Growing information needs of SMEs
– Regulatory demands extending outside financial compliance
– Advice (business, personal, regulatory compliance)
• SMEs lack in-house expertise
– Prefer to ‘go it alone’ but often need assistance
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4. New Information and Services
Business Development:
Strategic business planning, budgets and projections,
sustainable business practice, virtual CFO, etc.
Business Advisory:
Business structuring, valuations, equipment financing, Revenue
litigation support, due diligence and business buy/sell, etc. source:
Regulation and Compliance:
2nd
Health and safety regulation, employment reporting,
fastest
sustainability / carbon emission, etc.
growing
Wealth Creation and Preservation:
Succession planning, financial position evaluation, investment
strategy development, asset allocation, pension planning, etc.
Tax consulting:
.
Tax advice and/or representation on tax matters to
revenue authorities, etc.
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5. SMPs: Changing Environment and Challenges to
Traditional Provision of Services
• Shift in regulatory environment
– Fewer statutory audits
• Reluctance of some SMPs to provide advice
– Technical and operational preparedness to deliver new services
• Shift in nature of SME population
– Impact of IT
– Generation differences
• Growth in new services areas impeded by
– Lack of partner time and lack of marketing services and materials
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6. Focus on Opportunities
• Growing competition
– Competent and certified?
• New advisory clients driven primarily by existing client
relationships
– Trust, Competency, Proximity
• What can professional accountancy organizations do to
help?
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7. Examples From Other Jurisdictions
• Singapore Accountancy Hub
– Ranked #1 in Doing Business 2012
– Ministry of Finance initiative promoting accountancy service growth
– Recommendations:
• Establishment of an Accountancy Sector Development Fund
• ICPAS continuing to lead the profession but focus on global
• PAFA endorsement of International Standards
– Specifically IFRS for SMEs
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8. www.ifac.org
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