Thank-you Mr. Chairman and good morning ladies and gentlemen.
Before I start I would just like to say what a privilege and a pleasure it is for me to be able to participate on this panel. I wish to share with you today some of the significant points that IFAC is likely to make in its comment letter to the IASB. While the letter is still a draft many points have already crystallized during the process of its development. And I will outline some of the key findings from a micro-entity financial reporting research project.
Let me frame my comments with some observations. In the recent past, issues impacting small- and medium-sized entities (SMEs) and small-and medium-sized practices (SMPs) have rose to the top of the agenda - of the regulators, professional accountancy bodies, standard setters, and IFAC. The EU simplification initiative is testimony to this - as is the IASB's project to develop an SME accounting standard. It seems the main spur for this emphasis on SME/SMP is concern over regulatory overload, overload that is stifling the ability of small business to innovate, grow and compete. This regulation, including standards of accounting, auditing, and ethics, was often tailored to suit large business. It's no surprise it is ill fitting for small business. The standards sometimes lack relevance to SME/SMP. And SME/SMP often lack the capacity to efficiently implement and comply with them.