Final Pronouncement: Revisions to the Code Pertaining to the Offering and Accepting of Inducements

This standard sets out a comprehensive framework that covers all forms of inducement and is applicable to both professional accountants in business and professional accountants in public practice in situations involving the offering or accepting of an inducement.

The standard sets out clear expectations for all professional accountants to understand and comply with laws and regulations that prohibit the offering or accepting of inducements in certain circumstances, such as those related to bribery and corruption.  It also requires the application of an intent test where inducements are not specifically prohibited by law or regulation, and the application of the conceptual framework in all other circumstances. Enhanced guidance is provided to assist professional accountants in navigating the different situations.

The revised provisions comprise the last component of the revised and restructured Code of Ethics for Professional Accountants (including Independence Standards).