Distinguished guests, ladies and gentlemen, friends and colleagues, good afternoon. Before I begin I would just like to say what a pleasure it is for me to be asked by FEE and AMA (Mediterranean Association of Auditors) to present the activities and views of the IFAC Small and Medium Practices (SMP) Committee today. For the benefit of those not familiar with the SMP Committee a few words of introduction.

The SMP Committee started life as a Working Group of the IFAC Board in 2000. Under the chairmanship of my countryman Angelo Casas it quickly progressed to being a task force, then a permanent task force, and, in January of this year, a full standing committee of IFAC. On its promotion to being a committee, Sylvie Voghel took over the reins. Our vital statistics read as follows: 18 members from 17 countries, 6 from the EU; a full time technical manager; an annual forum; and an ambitious and expanding work program centered on inputting to standard-setting - accounting, education, ethics, but most especially audit - and providing practical support to SMPs.

Earlier this month, over 130 people from 35 countries attended the International Federation of Accountants' (IFAC's) first global forum focused entirely on small- and medium-sized entities (SMEs) and small and medium accounting practices (SMPs). Co-hosted by the Hong Kong Institute of Certified Public Accountants and the Confederation of Asian and Pacific Accountants, the forum provided an opportunity for national and regional accountancy organizations, representatives of SMEs and SMPs, and international standard setters, among others, to discuss the challenges and opportunities facing SMEs and SMPs and programs and initiatives that could best support them.

Participants identified two significant challenges facing SMEs and SMPs: SMEs need financial reporting standards that are appropriate for their users' needs and reduce the associated cost of compliance; and, in an increasingly globalized economy, SMPs should continue to explore new ways to support the growth and accountability of SMEs.

"Small- and medium-sized enterprises drive economic growth, foster innovation and provide employment in developed and developing countries around the world. IFAC fully recognizes this role and is committed to supporting them at an international level," emphasizes IFAC President Graham Ward. "The outcomes of the forum will be considered at the IFAC Board meeting in September so that we can proceed with acting on the recommendations that were presented."

IFAC SMP Committee Chair Sylvie Voghel, who also chaired the forum, outlined IFAC's approach to supporting SMPs. "The SMP Committee is taking a two-pronged approach to helping SMEs and SMPs converge and comply with international auditing and accounting standards. On the one hand, we are helping to shape the form and content of those standards and on the other, we are dedicated to providing practical assistance to SMPs and SMEs that have to use them."

Current projects include publishing an International Standards on Auditing Guide for SMEs and developing a web-based knowledge resource for SMPs. Additionally, IFAC regularly responds to exposure drafts of international standard setters where an SMP or SME focus is needed. For more information about IFAC initiatives to support SMPs and SMEs, visit its website at www.ifac.org. All presentations made at the SMP Forum are also available from the IFAC website through the SMP Committee home page.

IFAC is the worldwide 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's current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, sets international standards on ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high-quality performance by professional accountants in business.

I am delighted to be here and to have the privilege to speak to you today and I am heartened by the warm welcome that Ann, my wife, and I have received. There is no question that the accountancy profession has a unique, critical and practical role to play in building stronger and more stable economies around the globe. In order to carry out this role fully, however, we need to continue to enhance confidence in our profession and to build public trust. Investor confidence and public trust empowers our profession. Without it, the credibility of the information we produce, indeed the future of our profession itself, is put at risk. Wherever we work we cannot afford to take this risk.

I am delighted to be here and to have the privilege to speak to you today and I am heartened by the warm welcome that Ann, my wife, and I have received. There is no question that the accountancy profession has a unique, critical and practical role to play in building stronger and more stable economies around the globe. In order to carry out this role fully, however, we need to continue to enhance confidence in our profession and to build public trust. Investor confidence and public trust empowers our profession. Without it, the credibility of the information we produce, indeed the future of our profession itself, is put at risk. Wherever we work we cannot afford to take this risk.

I am delighted to be here and to have the privilege to speak to you today and I am heartened by the warm welcome that Ann, my wife, and I have received. There is no question that the accountancy profession has a unique, critical and practical role to play in building stronger and more stable economies around the globe. In order to carry out this role fully, however, we need to continue to enhance confidence in our profession and to build public trust. Investor confidence and public trust empowers our profession. Without it, the credibility of the information we produce, indeed the future of our profession itself, is put at risk. Wherever we work we cannot afford to take this risk.

Good morning ladies and gentlemen. I am delighted to be with you here in Hong Kong today to discuss the International Federation of Accountants’ commitment to small- and medium-sized accounting practices (SMPs) and to small and medium entities (SMEs). It is a commitment which our entire organization, including the officers, board, other committees and staff, take very seriously indeed and one which we believe will lead to meaningful, practical and unprecedented international support.

Convergence or equivalence and mutual recognition...? A single set of standards or differential standards for the SMEs...? Although there may be other relevant technical debates, such as the scope and applicability of the use of current market values, these two questions pose possibly the greatest challenges in issuing high-quality international professional standards. These two questions are also interrelated.

The position adopted with respect to SMEs affects the overall process of convergence. Here, I would like to emphasize what I consider a key point: convergence gives standards an authority and credibility that cannot be equaled by any other set of standards, be the issuer a national or regional organization. Even if a globally accepted set of standards does not include the "best possible" standards, assuming it is possible to define and identify the "best possible" standards, if the standards included are high-quality and accepted globally, they will have a force and an authority that would more than compensate for the cost of not adopting "the best". And, most importantly, they would still contribute substantially to enhancing the performance of accountants worldwide.

I am delighted to be here in Malta and to have the privilege to speak to you this evening. I especially want to thank Mario Galea, President of the Malta Institute of Accountants, and MIA Secretary General Noel Zerafa for their kind invitation. I also want to thank you. Each and every one of you who is a member of the Malta Institute of Accountants plays a vital role in our global profession.

Thank you for your commitment to quality and to serving the public interest. Malta is a beautiful island at the crossroads of the world. A bridge between Southern Europe and North Africa and between Western Europe and the Middle East, by virtue of your location alone, you are truly at the center of the marketplace.

While seas or oceans may separate your country from others, your challenges and opportunities are similar to those of other countries - large and small - on other continents all around the world - to provide an economically sound and stable environment that ensures a good quality of life for your citizens.

The International Federation of Accountants (IFAC) is committed to this same goal. Our mission is to serve the public interest by establishing and promoting adherence to high-quality professional standards as an underpinning to developing strong international economies.

The International Federation of Accountants' (IFAC's) Professional Accountants in Business (PAIB) Committee has released a new information paper that provides guidance on developing a business plan for small and medium entities (SMEs), including how to develop a corporate values statement and manage business risks. The principles and practices in the paper, entitled Business Planning Guide: Practical Application for SMEs, were designed primarily, but not exclusively, for management operating in SMEs and for the small- and medium-sized accounting practices (SMPs) that service them. It was prepared in collaboration with the Malaysian Institute of Accountants (MIA).

"The publication provides comprehensive guidance to assist SMEs and their SMP advisors in the business planning processes and features critical success factors to help them effectively manage their technological, human and financial resources. We would like to thank the MIA for their contribution to the development of the document," states PAIB Committee Chair Bill Connell.

The paper describes how the business plan may serve as a performance tool on an ongoing basis and support a business in obtaining external funding. It also includes a checklist and a practical example of the structure of a business plan. The information paper can be downloaded from the IFAC online bookstore at http://www.ifac.org/store.

IFAC is the worldwide 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's current membership consists of over 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, sets international standards on ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high-quality performance by professional accountants in business.

The Professional Accountants in Business Committee identified a practical business planning guide as a very useful tool for management, principally but not exclusively, operating in the small and medium entities (SMEs) area of the market. This information paper provides practical guidance that will help SMEs to understand their own business and industry, enabling them to better evaluate the business potentials and their associated risks. It will also be useful to small and medium-sized practitioners that are providing professional accounting services to SMEs.