1. Structure of the Code Phases 1 and 2
Don Thomson, Task Force Chair
IESBA Meeting
New York, USA
December 15, 2015

2. Objectives and Approach
Structure of the Code
Objectives and Approach
Structure Phase 1
Agreement-in-principle on text
Input on basis for agreement-in-principle
Structure Phase 2
Approval of exposure draft
Input on explanatory memorandum

3. Structure of the Code Phase 1 – Agenda Item 3-B Supplement 1
3-B Supplement 1 (Phase 1)
A1 – introductory wording moved from A1
R520.6 – reverted substantially to exposure draft wording
Other changes – editorial and/or discussed on Monday
Changes since Agenda Item 3-B Supplement 1
R510.8 – restored "a" and "b", with "and" between them
Glossary, NOCLAR – PAIB and PAPP – restored parentheses
Any significant matters not already discussed?

4. Structure of the Code Phase 1 – Agenda Item 3-B Supplement 1
3-B supplement 1 (Phase 1)
520.6 mark-up from exposure draft
The firm, a network firm or an audit team member shall not have a close business relationship with an audit client or its management unless anythe financial interest is immaterial and the business relationship is insignificant to the client or its management and the firm, the network firm or the audit team member, as applicable. as the case may be, and the client or its management.

5. Highlights of Changes From ED 1
Structure of the Code Phase 1
Highlights of Changes From ED 1
Unintended changes of meaning
Network firm, necessary adjustments made
Guide to the Code
No longer part of Code; some material moved back to Code
Prominence of the fundamental principles and, in independence sections, need to be independent highlighted
Linkage between independence and objectivity clarified

6. Agreement in Principle Phase 1
Structure of the Code Phase 1
Agreement in Principle Phase 1
All input received has been considered
Any further matters for discussion?
Agreement in principle
Basis for agreement in principle (Agenda Item 3-G)
Any comments on the preliminary draft wording?

7. Structure of the Code Phase 2 – Agenda Item 3-D Supplement 1
3-D Supplement (Phase 2)
Changes – editorial and/or discussed on Monday
All input received has been considered
Any further matters for discussion?
Approval of Phase 2 Exposure Draft

8. Explanatory Memorandum
Structure of the Code Phase 2 – Agenda Item 3-H
Explanatory Memorandum
Page 5 – Background
Page 6 – Key features
Page 8 – Significant matters
Page 10 – Project timetable
Page 11 – Questions
Accompanying Documentation
Staff-prepared compilation/mapping table/IESBA Update 2017

9. Next Steps and Timetable
Structure of the Code
Next Steps and Timetable
Jan 2017: Publish documents
May 2017: ED responses due (120 day exposure)
December 2017: Restructured Code approved
Spring 2018: Anticipated PIOB approval
June : Effective date
Other matters: Electronic Code and implementation