1. Review of Part C of the Code
Jim Gaa
IESBA March 2013
New York, USA

2. Section 340: Pressure by Superiors
Review of Part C of the Code
Section 340: Pressure by Superiors
Section 340 (“Financial Interests”) is too narrowly described
includes non-financial pressures
Pressure not limited to reporting
Pressure is from corporate culture, bullying and threats of job loss. Not only personal financial gain
Will address imposing undue pressure on subordinates
Motivations in Section 340 should be expanded

3. Section 320: Preparing and Reporting Information:
Review of Part C of the Code
Section 320: Preparing and Reporting Information:
Currently only a brief mention of the PAIB’s responsibility.
A revised principle-based section: a more positive and fuller statement of the responsibility of PAIBs to prepare and report information that is a faithful representation of economic events and state of affairs, and threats and safeguards.

4. Section 320: Preparing and Reporting Information
Review of Part C of the Code
Section 320: Preparing and Reporting Information
Clarify the intent of the requirement that information be prepared or presented fairly and honestly (in addition to be in accordance with professional standards); and
Guidance relating to earnings management
Guidance on non-GAAP reports (pro forma, budgets, forecasts, etc.)
Need to build on, but not overlap with, the work of financial reporting standard setters.

5. Section 350: Facilitation payments and bribes
Review of Part C of the Code
Section 350: Facilitation payments and bribes
Section 350 is focussed on receiving offers. Increase the emphasis on making offers to align more closely with practical challenges faced by PAIBs.
Consider whether additional guidance that recognizes the diversity of cultures would be helpful to PAIBs working across different cultures and jurisdictions.

6. Application of Part C to all Professional Accountants
Review of Part C of the Code
Application of Part C to all Professional Accountants
Code states that Part C may be relevant to all professional accountants.
New issue, not supported by current Code
Definition of PAIB needs to capture all professional accountants (as employees of “employing organizations”)
Reconsider definition of PAIB and title of Part C.

7. Review of Part C of the Code
Summary
Phase one: sections
300 (Introduction) , 320 (reporting responsibilities), 340 (pressure)
Phase two: section
350 (gifts and inducements)
Other sections
310 – (conflict of interest) new standard has been approved
330 – (acting with sufficient expertise) will be examined; no changes?
360 – (reporting suspected illegal acts) exposure draft comments received