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Unformatted text preview: ompensation arrangements offered by theemploying
organization. • Inappropriate personal use of corporate assets. • Concern over employment security. • Commercial pressure from outside the employing organization. 300.9 An example of a circumstance that creates a self-review threat for aprofessional accountant in
business is determining the appropriateaccounting treatment for a business combination after
performing thefeasibility study that supported the acquisition decision. 300.10 When furthering the legitimate goals and objectives of their employingorganizations,
professional accountants in business may promote theorganization’s position, provided any
statements made are neither false normisleading. Such actions generally would not create an
advocacy threat. 300.11 Examples of circumstances that may create familiarity threats for aprofessional accountant in
• • Long association with business contacts influencing business decisions. •
300.12 Being responsible for the employing organization’s financialreporting when an immediate
or close family member employed bythe entity makes decisions that affect the entity’s
financial reporting. Accepting a gift or preferential treatment, unless the value is trivial andinconsequential. Examples of circumstances that may create intimidation threats for aprofessional accountant in
• Threat of dismissal or replacement of the professional accountant inbusiness or a close or
immediate family member over a disagreementabout the application of an accounting
principle or the way in which • financial information is to be reported. 115 • 300.13 A dominant personality attempting to influence the decision makingprocess, for example
with regard to the awarding of contracts or theapplication of an accounting principle. Safeguards that may eliminate or reduce threats to an acceptable level fallinto two broad
(a) Safeguards created by the profession, legislation or regulation; and
(b) Safeguards in the work environment.
Examples of safeguards created by the profession, legislation or regulatio...
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This document was uploaded on 04/03/2014.
- Spring '14