Presentation by Nicky van Hille, Director, The Moss Group, during the International Federation of Accountants’ Council Seminar, A Fundamental Shift in Corporate Reporting.

1. Integrated Reporting for SMEs and the role of SMPs
IFAC Annual Seminar – Cape Town
14 November 2012
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2. SMEs will soon be pushed to produce integrated
reports
• Adherence to King III good governance principles
• Stakeholder requirements:
– Customers – particularly listed corporates
– Financial institutions
Many SMEs, like listed corporates, will probably do so grudgingly.
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3. However, there is significant opportunity awaiting
SMEs who adopt an integrated way of thinking
Performance
Inextricably linked
Gover-
nance
↓
Informed decisions
Risk ↓
manage-
ment
Better performance
Sustain-
Strategy
ability
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4. The process of developing an integrated report can
deliver great value to SMEs
Opportunities
• Mitigate risk and reduce cost
• Differentiate products and services
• Create or enter new markets
• Influence industry standards / norms
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5. However, the SME mindset doesn’t always lend itself
to integrated thinking and strategising
Entrepreneurial style:
• Action-oriented
• Constantly readjusting:
– Nimble and flexible
– BUT often reactive
• High risk / high reward with shorter timeframes
• Limited funds:
– Limited long-term investments
• Lean organisations:
– Limited time and human resource
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6. This presents a fantastic opportunity for small and
medium practice accounting firms
Support needed by SMEs: Opportunities for SMPs:
• “Big picture” thinking • New business opportunity:
• Longer-term views – Additional revenue streams
• Risk understanding – Additional capability
• Integrated reporting process • Already recognised for ability
knowledge with numbers:
– Add support on non-financial
• Non-financial metrics
metrics
• More deeply entrenched
relationships
SMPs should be skilling themselves up to take advantage of this opportunity.
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7. +27 (0) 82 334 6204
+27 (0) 21 701 1371
+27 (0) 86 689 4641
nicky@mossgroup.co.za
www.mossgroup.co.za
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