Revised Code of Ethics in the Phils - 2010

This includes evaluating the significance of the

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: nt to which the professional accountant in business is working with others, relative seniority in the business, and the level of supervision and review applied to the work. The significance of the threat shall be evaluated and safeguards applied when necessary to eliminate the threat or reduce it to an acceptable level. Examples of such safeguards include: • Obtaining additional advice or training. • Ensuring that there is adequate time available for performing the relevant duties. • Obtaining assistance from someone with the necessary expertise. • Consulting, where appropriate, with: o o Independent experts; or o 330.4 Superiors within the employing organization; A relevant professional body. When threats cannot be eliminated or reduced to an acceptable level, professional accountants in business shall determine whether to refuse to perform the duties in question. If the professional accountant in business determines that refusal is appropriate, the reasons for doing so shall be clearly communicated. 240 SECTION 340 Financial Interests 340.1 Professional accountants in business may have financial interests, or may know of financial interests of immediate or close family members, that, in certain circumstances, may create threats to compliance with the fundamental principles. For example, self-interest threats to objectivity or confidentiality may be created through the existence of the motive and opportunity to manipulate price sensitive information in order to gain financially. Examples of circumstances that may create self-interest threats include situations where the professional accountant in business or an immediate or close family member: • • Is eligible for a profit related bonus and the value of that bonus could be directly affected by decisions made by the professional accountant in business; • Holds, directly or indirectly, share options in the employing organization, the value of which could be directly affected by decisions made by the professional accountant in business; • Holds, directly or indirectly, share options in the employing organization which are, or will soon be, eligible for conversion; or • 340.2 Holds a direct or indirect...
View Full Document

This document was uploaded on 04/03/2014.

Ask a homework question - tutors are online