An exposure draft proposes the standardization of the code, requiring IFAC member body compliance. The revisions expand guidance for all individual accountants addressing integrity, objectivity, professional competence, confidentiality, and professional behavior. Clearer identification of threats and safeguards are set out for professional accountants in public practice in the areas of second opinions, fees and remuneration, and custody of client assets.

The revised code also provides new and in-depth guidance for professional accountants in business by addressing issues such as potential conflicts, preparing and reporting information, financial interests, inducements, and disclosing of information. The exposure draft extends the principles-based approach, consistent with that used in Section 8 on Independence issued in November 2001, to the entire code, addressing accountants both in practice and in business.

"It provides a conceptual framework to assist professional accountants in identifying, evaluating and responding to threats to compliance with fundamental principles," said Marilyn Pendergast, chair of the IFAC's Ethics Committee. "We believe that this threats-and-safeguards approach better serves the public interest than a rules-based approach which cannot provide for all circumstances."

Because these proposals call for significant changes for member bodies and individual accountants, the exposure period has been extended to 120 days. Comments are requested by November 30, 2003. They may be submitted to Edcomments@ifac.org