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IESBA Proposed Revisions to the Code Pertaining to the Offering and Accepting of Inducements [ED]

Com­ment pe­riod ends:

Com­ments on the Ex­po­sure Draft are due by December 8, 2017

Last up­dated:

September 2017

Overview

On September 8, 2017, the International Ethics Standards Board for Accountants (IESBA) released for public comment the Exposure Draft, "Proposed Revisions to the Code Pertaining to the Offering and Accepting of Inducements." The proposals strengthen the Code of Ethics for Professional Accountants (the Code) by clarifying the appropriate boundaries for the offering and accepting of inducements, and by prohibiting any inducements with intent to improperly influence behavior.

The proposed revisions, amongst other matters:

  • Clarify the description of the term “inducement” and provide additional examples of inducements.
  • Emphasize professional accountants’ responsibilities to comply with relevant laws and regulations relating to bribery and corruption when offering or being offered inducements.
  • Prohibit the offering and accepting of inducements by professional accountants that are made with intent to improperly influence the behavior of the recipients.
  • Clarify how the conceptual framework set out in Section 120 should be applied to identify, evaluate and address threats to compliance with the fundamental principles created by the offering and accepting of inducements.
  • Provide additional guidance on the offering and accepting of inducements by immediate or close family members.
  • Align the provisions relating to inducements for PAPPs (Part 3 of the restructured Code) with the enhanced provisions for PAIBs (Part 2 of the restructured Code).

Of note, any changes made to the IESBA Code of Ethics as a result of this Exposure Draft will be reflected in changes to Rule 204 which sets out the relevant Canadian profession’s standards for independence and ethics. In accordance with undertakings between the Canadian professional bodies and IESBA, Rule 204 is maintained in alignment with the IESBA Code of Ethics.

For fur­ther de­tails see the press re­lease and the project page on the IESBA’s web­site.

 

Other developments

September 2017

On September 8, 2017, the International Ethics Standards Board for Accountants (IESBA) released for public comment the Exposure Draft, "Proposed Revisions to the Code Pertaining to the Offering and Accepting of Inducements." Comments on the Exposure Draft are due by December 8, 2017.

 

Related discussions

Offering and Accepting of Inducements – IESBA

Jun 19, 2017

  • At its meet­ing on June 19-21, 2017, the IESBA approved for exposure proposed Section 250, Gifts, Hospitality and Other Inducements together with proposed conforming amendments to (a) Section 340, Gifts, Hospitality and Other Inducements, and (b) independence standards in Sections 420 and 906 of the restructured Code addressing gifts and hospitality.

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