Revised Code of Ethics in the Phils - 2010

3503 the existence and significance of any threats

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Unformatted text preview: financial interest in the employing organization and the value of that financial interest could be directly affected by decisions made by the professional accountant in business; May qualify for share options in the employing organization or performance related bonuses if certain targets are achieved. The significance of any threat shall be evaluated and safeguards applied when necessary to eliminate the threat or reduce it to an acceptable level. In evaluating the significance of any threat, and, when necessary, determining the appropriate safeguards to be applied to eliminate the threat or reduce it to an acceptable level, a professional accountant in business shall evaluate the nature of the financial interest. This includes evaluating the significance of the financial interest and determining whether it is direct or indirect. What constitutes a significant or valuable stake in an organization will vary from individual to individual, depending on personal circumstances. Examples of such safeguards include: • Policies and procedures for a committee independent of management to determine the level or form of remuneration of senior management. • Disclosure of all relevant interests, and of any plans to trade in relevant shares to those charged with the governance of the employing organization, in accordance with any internal policies. • Consultation, where appropriate, with superiors within the employing organization. • Consultation, where appropriate, with those charged with the governance of the employing organization or relevant professional bodies. • Internal and external audit procedures. 241 • 340.3 Up-to-date education on ethical issues and on the legal restrictions and other regulations around potential insider trading. A professional accountant in business shall neither manipulate information nor use confidential information for personal gain. SECTION 350 Inducements Receiving Offers 350.1 A professional accountant in business or an immediate or close family member may be offered an inducement. Inducements may take various forms, including...
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This document was uploaded on 04/03/2014.

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