Transcript Structure of the Code Don Thomson IESBA March 2013 New York, USA Page 1

Structure of the Code
Don Thomson
IESBA March 2013
New York, USA
Page 1
Structure of the Code
Background
• February 2012: How to improve structure of Code to raise
the visibility of its requirements and prohibitions, and
clarify who is responsible for meeting them.
• June 2012: An example of a possible reformatting
approach. Additional clarity steps should be considered.
• December 2012: Briefly discussed aspects of this initiative
and supported establishment of the Working Group.
Page 2
Structure of the Code
Proposed Terms of Reference
• Limited to brief agreed in February 2012, visibility and
responsibility, or extended to clarity and understandability?
• Propose: Scope of initiative should address broader
matters of clarity and usability.
• Changes to enhance clarity and usability may impact
interpretations.
• Consider whether any changes would be better handled
by separate projects.
Page 3
Structure of the Code
Proposed Terms of Reference: Approach
• “The Working Group will focus in particular on drafting
conventions, format, structure, and delivery media taking
into account impediments identified by stakeholders. It will
develop and validate findings and recommendations
based on research and communication with stakeholders.”
Page 4
Structure of the Code
Research Plan
•
•
•
•
•
•
•
Member Bodies, in conjunction with CAP
Regulators
IESBA CAG
NSS liaison group
Firms
IFAC SMP Committee
IFAC PAIB Committee
Page 5
Structure of the Code
Key Elements - Short Term
• Drafting Conventions: e.g. drafting conventions to
encourage the use of plain English and to discourage long
and complex sentences.
• Reformatting: e.g. visibility of the requirements and
prohibitions in the Code.
• Responsibility: e.g. who should bear responsibility for
complying with the requirements and prohibitions in the
Code.
Page 6
Structure of the Code
Key Elements - Longer Term
• Restructuring: e.g. incorporating Part C within Part A.
• Packaging: e.g. separating the Code into distinct booklets.
• “Clarity” project: e.g. a project similar to IAASB or
complementary materials.
• Delivery Media: e.g. electronic Code.
Page 7
Structure of the Code
Proposed Timeline
• September 2013: A status report.
• December 2013: A preliminary report on the findings of the
research.
• March 2014 A final report and recommendations of short
term and longer term elements, and draft consultation
paper on the longer term elements.
• June 2014: Final draft of the consultation paper on the
longer term elements for approval.
Page 8
Structure of the Code
Questions for IESBA
IESBA members are asked to comment on:
• Proposed Terms of Reference.
• Research plan.
• Key elements.
• Any other key elements.
• Timeline.
Page 9