IESBA Staff Q&A - Revisions to the Definitions of Listed Entity and Public Interest Entity in the Code

This publication is an update to the IESBA Staff's Questions and Answers (Q&As) publication, originally published in March 2023, on the revisions to the definitions of listed entity and public interest entity (PIE) in the IESBA Code of Ethics.

This update includes a new Q&A 16 to address the scenario where a jurisdiction has no PIE definition or excluded one or more of the mandatory categories in the IESBA PIE definition. In addition, Q&A 20 has been updated following the finalization of Track 1 of IAASB’s PIE project and the IAASB’s agreement to update ISA 700 (Revised) so that the auditor’s report can be used as a mechanism for firms to comply with the transparency requirement set out in the IESBA PIE revisions.

The IESBA and the IAASB coordinated closely throughout the development of the IESBA’s revised PIE definition and Track 1 of the IAASB’s PIE project. This high level of coordination has been ongoing as the IAASB works towards finalizing Track 2 of its PIE project. Such coordination is critical to ensure the interoperability of both Boards’ standards.

The Q&A publication is designed to highlight, illustrate or explain aspects of the PIE revisions in the Code and is intended to complement the Basis for Conclusions for the final pronouncement. It aims to assist national standards setters, professional accountancy organizations, and firms in adopting and/or implementing the PIE revisions.

The PIE revisions are effective for audits of financial statements for periods beginning on or after December 15, 2024. Read the revisions here.