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Unformatted text preview: ploying organization. 300.9 An example of a circumstance that creates a self-review threat for a professional accountant in
business is determining the appropriate accounting treatment for a business combination after
performing the feasibility study that supported the acquisition decision. 300.10 When furthering the legitimate goals and objectives of their employing organizations,
professional accountants in business may promote the organization’s position, provided any
statements made are neither false nor misleading. Such actions generally would not create an
advocacy threat. 300.11 Examples of circumstances that may create familiarity threats for a professional accountant in
• • Long association with business contacts influencing business decisions. •
300.12 Being responsible for the employing organization’s financial reporting when an immediate
or close family member employed by the entity makes decisions that affect the entity’s
financial reporting. Accepting a gift or preferential treatment, unless the value is trivial and inconsequential. Examples of circumstances that may create intimidation threats for a professional accountant in
• 300.13 Threat of dismissal or replacement of the professional accountant in business or a close or
immediate family member over a disagreement about the application of an accounting
principle or the way in which
financial information is to be reported.
A dominant personality attempting to influence the decision making process, for example
with regard to the awarding of contracts or the application of an accounting principle. Safeguards that may eliminate or reduce threats to an acceptable level fall into two broad
categories: 236 (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 regulation are detailed in
paragraph 100.14 of Part A of this Code.
300.14 Safeguards in the work environment include:
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- Spring '14