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

2. The Restructured Code

3. 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

4. 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, (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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

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