Final Pronouncement: Revisions to the Definitions of Listed Entity and Public Interest Entity in the Code

12 May 2022
Accounting
South African Accounting Academy

The revised provisions include an expanded definition of “public interest entity” (PIE) in the Code by specifying a broader list of PIE categories, including a new category “publicly traded entity” to replace the category “listed entity.”

The revised provisions also recognize the essential role local bodies responsible for the adoption of the Code play in delineating the specific entities that should be scoped in as PIEs in their jurisdictions, encouraging them to properly refine the PIE categories in the expanded definition and adding any other categories relevant to their environments.

Further, the revisions introduce a transparency requirement for firms to publicly disclose the application of independence requirements for PIEs where they have done so.

The revised PIE definition and related provisions become effective for audits of financial statements for periods beginning on or 15 December 2024. Early adoption is permitted and encouraged.

Click here to download the Final Pronouncement:

https://www.ifac.org/system/files/publications/files/IESBA-Final-Pronouncement_Listed-Entity-and-Public-Interest-Entity.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

Auditors and accountants have to adhere to the IESBA Code of Conduct.
This publication contains the final pronouncement of revisions to the Definitions of Listed Entity and Public Interest Entity (PIE) in the Code.

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