Restructured Code – Effective Date Don Thomson Structure Task Force Chair IESBA Meeting Livingstone, Zambia December 4-8, 2017

The Restructured Code

Board signaled proposed effective date in Jan 2017 IESBA Update Effective Date – Recap Planned release of restructured Code on IESBA website Apr 2018, subject to PIOB approval Board signaled proposed effective date in Jan 2017 IESBA Update With exception of revised LA provisions, Parts 1, 2, 3 and 4B to be effective on Jun 15, 2019 Part 4A to be effective for audits of financial statements for periods ≥ Jun 15, 2019

Feedback on Structure ED-2 and Safeguards ED-2 Have one effective date (Jun 15, 2019) for restructured Code and other associated pronouncements (i.e., LA and NOCLAR) Modify effective date for Part 4-B to: effective for periods ≥ Dec 15, 2019 (for assurance engagements covering periods); or as of Dec 15, 2019 (for assurance engagements at point in time) Concern about pace, volume and complexity of changes to Code Stakeholders (e.g., NSS, firms, MBs) will need more time Some jurisdictions (e.g., France and Japan) will have challenges to translate

Consideration of Inducements Revisions Jan 2017 IESBA Update progress report: Envisaged that Inducements ED would be approved Mar 2017 However, Inducements ED approved Jun 2017; released Sept 8 with comments due by Dec 8 Approval of inducements revisions now anticipated by Jun 2018; release Oct 2018

Recap of September 2017 IESBA Discussions Structure Phase 2 - Summary of ED Comments, Issues and Task Force Proposals Agenda Item 2-A Recap of September 2017 IESBA Discussions Feedback on Structure and Safeguards Phase 2 EDs noted Board considered pros and cons of updated proposal for effective date: Parts 1, 2 and 3 effective Dec. 15, 2019 Part 4A effective for audits of financial statements for periods ≥ December 15, 2019 Part 4B, assurance engagements covering a period: effective for periods beginning ≥ Dec 15, 2019; otherwise: as of Dec 15, 2019

Subsequent Planning Committee Reflection Structure Phase 2 - Summary of ED Comments, Issues and Task Force Proposals Agenda Item 2-A Subsequent Planning Committee Reflection Acknowledged stakeholder concerns re need for sufficient lead time for implementation

Subsequent Planning Committee Reflection Structure Phase 2 - Summary of ED Comments, Issues and Task Force Proposals Agenda Item 2-A Subsequent Planning Committee Reflection However: Important substantive improvements from Safeguards and Part C Regulatory expectations re public interest in firms’ implementation at earliest Full text of final restructured Code available on IESBA website end of Jan 2018, pending PIOB approval, so already ~18 months to June 2019 Inducements provisions relatively brief, so 8 months implementation lead time not unreasonable Effective date effectively “guideline” in many jurisdictions due to need for national due process for adoption

Planning Committee View Structure Phase 2 - Summary of ED Comments, Issues and Task Force Proposals Agenda Item 2-A Planning Committee View With the exception of revised LA provisions: Parts 1, 2 and 3 effective as of Jun 15, 2019 Part 4A effective for audits of financial statements for periods ≥ Jun 15, 2019 Part 4B, assurance engagements covering periods: effective for periods ≥ Jun 15, 2019; otherwise: as of Jun 15, 2019

Planning Committee View Structure Phase 2 - Summary of ED Comments, Issues and Task Force Proposals Agenda Item 2-A Planning Committee View For revised LA provisions: In extant S290, effective for audits of financial statements for periods ≥ Dec 15, 2018 In extant S291, assurance engagements covering periods: effective for periods ≥ Dec 15, 2018; otherwise: as of Dec 15, 2018 Effective date for revised LA provisions not overridden by effective date of restructured Code

Matter for IESBA Consideration Board asked to agree effective date for restructured Code and revised LA provisions