Watch the International Ethics Standards Board for Accountants’ webinar supporting the rollout of its International Code of Ethics for Professional Accountants (including International Independence Standards).
The International Ethics Standards Board for Accountants (IESBA) today released for public comment Exposure Draft, Proposed Revisions to Part 4B of the Code to Reflect Terms and Concepts Used in ISAE 3000 (Revised). Part 4B of the revised and restructured International Code of Ethics for Professional Accountants (including International Independence Standards) comprises the independence standards for assurance engagements other than audit and review engagements, as defined in the Code.
The proposed revision fulfills a pre-commitment the IESBA announced in its proposed Strategy and Work Plan, 2019-2023 to review Part 4B of the Code for any changes needed to make the provisions in that Part consistent with the revised assurance terms and concepts in the International Auditing and Assurance Standards Board’s International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information.
The proposals in the Exposure Draft include:
The proposals were developed in close cooperation with representatives of the IAASB, as part of the coordination program of the two standard-setting boards.
Comments on the Exposure Draft are requested by June 26, 2019 from all stakeholders.
About the IESBA
The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA serves the public interest by setting ethics standards, including auditor independence requirements, which seek to raise the bar for ethical conduct and practice for all professional accountants through a robust globally operable International Code of Ethics for Professional Accountants (including International Independence Standards).
The IESBA believes a single set of high-quality ethics standards enhances the quality and consistency of services provided by professional accountants, thus contributing to public trust and confidence in the accountancy profession. The IESBA sets its standards in the public interest with advice from the IESBA Consultative Advisory Group (CAG) and under the oversight of the Public Interest Oversight Board (PIOB).
About IFAC
IFAC is the global 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 is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.
This exposure draft seeks views from practitioners and other stakeholders in relation to proposed revisions to Part 4B of the revised and restructured International Code of Ethics for Professional Accountants (including International Independence Standards) to reflect terms and concepts used in International Standard on Assurance Engagements 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information.
The proposals in the Exposure Draft include:
00:10 - Introduction: Diane Jules, IESBA Deputy Technical Director
00:54 - Highlights & Key Developments: Stavros Thomadakis, IESBA Chairman
03:24 - Role & Mindset: Richard Fleck, IESBA Deputy Chair
05:17 - Non-Assurance Services: Richard Fleck, IESBA Deputy Chair
08:06 - Fees: Ian McPhee, IESBA Member
10:35 - Alignment of Part 4B with ISAE 3000: Liesbet Haustermans, IESBA Member
14:05 - Technology: Patricia Mulvaney, IESBA Member
18:06 - eCode: Brian Friedrich, eCode Working Group Chair
19:44 - Final thoughts: Stavros Thomadakis, IESBA Chairman
21:16 - Closing Remarks: Diane Jules, IESBA Deputy Technical Director
The IPSASB held its first meeting of 2019 from March 12-15, 2019 in Washington, D.C., USA.
The IPSASB unanimously approved the Consultation Paper (CP), Measurement, which will be published in April 2019, and will be open for comment until September 30, 2019. The Consultation Paper includes an illustrative Exposure Draft (ED) which indicates the IPSASB’s current thinking on the scope and format of an IPSAS on Measurement. A full ED will be issued in due course.
Please register on the IPSASB website to ensure that you receive updates when this document and others are published: https://www.ifac.org/user/register
The IPSASB reopened discussions on the Heritage project. The IPSASB considered the background to the project and the issues that had been raised by respondents to the 2017 Consultation Paper, Financial Reporting for Heritage. The project will focus on recognition, with measurement issues being considered in the complementary project on Measurement.
The IPSASB adopted the working title Revenue from Performance Obligations, for the ED and tentatively approved it. The IPSASB clarified that the scope applies to binding arrangements with purchasers that include performance obligations. The IPSASB instructed staff to consider the approach to transactions where the collectability of consideration is not probable. Staff will continue work on non-authoritative illustrative examples to ensure that these are suitable for the public sector.
In the context of public sector-specific transactions, the IPSASB confirmed that legislation and reductions in future funding are the two enforcement mechanisms to be included in the ED, Revenue from Performance Obligations. The IPSASB also noted that enforceability in a binding arrangement is a two-way relationship. In a revenue context, enforcement mechanisms relate to the purchaser’s ability to enforce the fulfilment of performance obligations by the resource recipient. The IPSASB instructed staff to consider alternative terms for ‘distinct’ in articulating the concepts of ‘distinct goods and services’ and ‘distinct promises’ for performance obligations.
The IPSASB considered the scope of the draft ED, Grants, Contributions and Other Transfers. The IPSASB tentatively agreed to adopt a narrower scope for the project, excluding commercial transactions. Staff were instructed to develop definitions for the transactions within this revised scope, and to consider the accounting treatment of contracts that are described as grants. Recognition, measurement and presentation requirements will be developed in parallel with the two Revenue EDs highlighted above.
The IPSASB further considered its approach in light of the response to ED 64, Leases. The IPSASB directed the Leases Task Force to firstly assess the rationale for departing from the lessor accounting requirements in IFRS 16, Leases. The IPSASB will not consider the approach to concessionary leases until decisions have been made on lessor accounting. The Task Force will make recommendations to the IPSASB for consideration at the June 2019 meeting.
The IPSASB reviewed the IPSAS-IFRS Alignment Dashboard, which reflects the extent of alignment with current International Financial Reporting Standards and identifies pronouncements that are public sector specific. The IPSASB directed some minor presentational changes.
The IPSASB published its Strategy and Work Plan 2019-2023 in late February. At a time of increasing momentum for IPSAS adoption and implementation globally, the Strategy and Work Plan 2019-2023 sets out the Board's work intentions and priorities for the next five years.
The next meeting of the IPSASB will be in Toronto, Canada from June 18-21, 2019. The IPSASB Consultative Advisory Group will meet on June 17, 2019 Toronto, Canada. For more information, or to register as an observer, visit the IPSASB website (www.ipsasb.org).
Highlights from the IPSASB March 2019 meeting in Washington DC.
Türkiye
Ibrahim Murat Caglar became a member of the IFAC Professional Accountants in Business (PAIB) Advisory Group in January 2019. He was nominated by the Union of Chambers of Certified Public Accountants Turkey (TURMOB).
Mr. Caglar is CFO at Sanovel Ilac Sanayi ve Ticaret A.S. Founded in 1983 Sanovel is leading generics pharma company in its own segment in Turkey. He oversees the Accounting, Reporting, Finance, Cost Accounting, Supply Chain, API Purchase, and Event Management departments.
Caglar drives financial strategy and manages overall financial operations, aligning with business goals.
Before joining Sanovel, Caglar worked as Internal Audit Coordinator at Koc Holding A.S. Founded in 1926, the company is Turkey's largest industrial conglomerate and is the only company in the country to enter the Fortune Global 500 list. He is responsible for preparing and implementing a risk-based audit plan to assess, report on, and make suggestions for improving the company's key operational and finance activities and internal controls. Prior to his role at Koc Holding A.S., Mr. Caglar was manager in assurance services at PricewaterHouseCoopers.
After serving various volunteer leadership roles and board memberships, Mr. Caglar was appointed as chairman of the Institute of Internal Auditors (Turkey) in March 2018, where he was responsible for corporate governance of the institute. The institute is ranked in the top three not-for-profit organizations for its high corporate governance rating.
Mr. Caglar is a member of Turkish Marine Environment Protection Association, Turkish Family Health Planning Foundation and Geyve Foundation. Geyve foundation supports excavation works in ancient Greek sites in Turkey in collaboration with New York University Institute of Fine Arts. Mr. Caglar was also worked as advisory board member at Istanbul University in 2019. He
He holds a Bachelor of Arts in Economics from Bilkent University, Ankara. Mr. Caglar became a member of Chambers of Certified Public Accountants Turkey in 2002. He is a Certified Public Accountant (CPA), Certified Fraud Examiner (CFE), Certified Independent Auditor. He has a certification in Risk Management Assurance (CRMA).
IESBA Technical Advisor for Vania Borgerth and Tomoyo Imura
Japan
Masahiro Yamada is Partner of PricewaterhouseCoopers Arata LLC based in Tokyo, and has been responsible for independence matters since July 2016. Mr. Yamada has been auditing a number of multi-national clients since he became a CPA in 1987.
Mr. Yamada is a member of the Japanese Institute of Certificed Public Accountants and has served as a member of the Ethics Committee of the JICPA since 2016. Mr. Yamada has a bachelor fo commerce from Keio University in Tokyo.
IESBA Technical Advisor for Sanjiv Chaudhary
India
CA. Kemisha Soni, second term Central Council Member, has been nominated by ICAI as Technical Advisor to CA. Sanjiv Chaudhary. She is a fellow member of ICAI, Law Graduate and also holds a Diploma in Information Systems Audit. Prior to that she has served as an Observer – IESBA for 2017-18. She has also represented ICAI on Committee on Professional Ethics and Independence and SMP Committee of SAFA.
Owing to her vast experience, professional expertise and sharp acumen, she has served as a Director to the Boards of Madhya Pradesh Stock Exchange and Shubhalaxmi Mahila Co- operative Bank Ltd, Indore. She also served as Regional Arbitrator at the prestigious Bombay Stock Exchange and National Stock Exchange.
Besides holding the Chair at Board of Studies of ICAI, she currently is a Vice Chairperson of the Ethical Standard Board, Convenor of Women Members Empowerment Group and a member of a wide spectrum of committees.
A big thanks to all respondents to our proposed Strategy and Work Plan 2019-2023. Your feedback was discussed at our December 2018 meeting and informed the revisions made to the SWP. The revised SWP was approved in December and will be released in April 2019, subject to the Public Interest Oversight Board’s confirmation that due process has been followed.
Hard to believe, but less than 6 months to go before the revised and restructured Code becomes effective!
To support its roll-out, we’re holding two global 90 minute webinars suitable for any professional using, enforcing, teaching or engaging with the Code.
Additionally, learn more about the IESBA’s revised and restructured Code; and the importance of having an Ethics Code for professional accountants and earn yourself CPE credits!
For more and latest support materials, continue to check our dedicated webpage.
We congratulate the International Auditing and Assurance Standards Board (IAASB) for issuing proposed Quality Management standards!
The proposed standards reinforce the need for firms to comply with the fundamental principles of ethics and independence requirements. They will make a meaningful contribution to enhanced audit quality.
We encourage all our stakeholders to provide their input to the IAASB’s exposure draft, which asks important questions about ethics and independence matters. The link below will take you to the IAASB’s consultation page. Make your voice heard!
The IESBA’s proposed eCode will be a major new way of engaging with the Code of Ethics. At our last meeting the IESBA received a preview of its potential to provide users with a great experience that will also facilitate consistent application and enforcement.
We anticipate launching the e-Code’s first phase by June 2019, coinciding with the revised and restructured Code’s effective date.
The IESBA® approved Terms of Reference for its Technology Working Group. As part of a multi-phased approach, the Working Group will engage widely with its stakeholders to gather activity information, including in relation to artificial intelligence, robotic process automation, data analytics and big data.
We’re looking forward to the Working Group’s update at our next meeting in March 2019.
On November 8, 2018, our Chair, Dr. Stavros Thomadakis, gave a keynote address in Sydney at the Accounting Professional & Ethical Standards Board (APESB) dinner. Celebrating great news that the Restructured International Code of Ethics has been incorporated into Aussie ethical standards, Stavros shared his thoughts about the Code’s essentials, its global positioning, and the challenges and opportunities faced by both standard setters and Code users.
Read the minutes and working papers for all our IESBA meetings. They’re a great information source about project progress and how we support and protect the public interest.
The IESBA’s multi-stakeholder Consultative Advisory Group (CAG) meets a week before the board to provide strategic input on our meeting agenda materials, as well as our projects and initiatives more broadly. You can also read all the CAG’s minutes and working papers.