1. Structure of the Code Don Thomson, Task Force Chair IESBA Meeting
New York, USA
June /July 1, 2015

2. Background Enhance understandability Improve usability
Facilitate compliance and enforcement
Improve usability
Facilitate adoption, effective implementation and consistent application
Draft Restructured Code has been reviewed to take account of comments from last Board
Editor has reviewed the Draft Restructured Code

3. Objectives
To:
Update IESBA members on significant enhancements to the Draft Restructured Code
Obtain input on the Preface
Discuss proposed adjustments to the Draft Restructured Code following advance comments from IESBA members

4. Consultation Post-IESBA April 2015 additional input consistent with CP
SMPC
Forum of Firms
National Standard Setters
IAASB liaison regarding responsibility

5. Overview of changes since April 2015
“Core requirements” replaced by a single requirement in each section to apply the conceptual framework (CF)
Increased prominence of requirement to apply CF
Each page header has reminder to apply CF
“Related application material” has been renamed “guidance”
“R” and “G” to distinguish requirements and guidance
“Terms Used” paragraphs incorporated within “Scope”
Preface is being developed

6. Matters for Board Attention
Task Force is keeping a list of such matters
“Half Requirements”
Statements which are not phrased as “shall” statements
Currently in guidance sections of Draft Restructured Code
Should they be retained in guidance?
If so, should additional guidance be provided to facilitate the exercise of professional judgment?

7. Advance input received
Advance input helpful; TF has and will consider it
Clarity and other wordsmithing offline
Areas of the extant Code that are not robust flagged
Glossary to be addressed in the next tranche
Mapping supplemented by concordance
Projects in progress (e.g. NOCLAR) not reflected in draft

8. Preface Chance to fundamentally enhance user experience Components
Preface, How to use this Code, Structure and Application
Explain PAIB, PAPP and Audit
Link independence to objectivity
Clarify status of guidance

9. Draft Restructured Code – Input Highlights
(2-B) Linking Public Interest to Fundamental Principles
(2-B) Fundamental Principles and Conceptual Framework
(2-D) Flow of materials
(2-D) Emphasizing the Conceptual Framework
(2-F) Firm and Network Firm

10. Forward timeline (tentative)
2015-September – CAG / IESBA – draft ED 1 tranches I and II
2015 – October – Forum of Firms – draft ED 1 tranches I and II
2015 – December – IESBA – approve ED 1 tranches I and II
2016 – June – IESBA – approve ED 2
2017 – early in the year – finalize and issue new Code
2018 – January – Code effective
– Launch Electronic Code phase II