Question

International Federation of Accountants –IFAC= www.ethicsboard.org: Go to Drop down box Standards of Guidance; then, Code of Ethics

write a one page summary

Answer 1

The international ethics standards board for accountants has released a new international code for professional accountants. This consists of principles based codes and it is restructured to enhance clarity. It makes a clear distinction between requirements and application material. It gives increased prominence on fundamental principles of ethics.

The restructured code is much easier to use , apply and translate. The code includes substantive revision such as clearer and more robust conceptual framework, how a profession can handle threats is included. The important standard is introduced that is on partner rotation which they call as long association standards and NOCLAR standards are also included.

Restructured code is a very important contribution to the ability of professional accountants to act in the public interest and to maintain and increase trust In the accountancy profession. This is important because

• The restructured code facilities adoption and implementation.
• Critical for others to embrace improvements and take action now to its adoption and effective implementation.

Earlier version of the code has already been adopted by more than 120 jurisdictions and by the forum of firms. The restructured code is an excellent platform for change and ‘future- proofing’ in a dynamic and changing world. This is effective from June 2019.