including International Independence Standards

1 International Ethics Standards Board for Accountants Handbook of the International Code of Ethics for Professional Accountants ___including International Independence Standards2018 EditionInternational Federation of Accountants 529 Fifth AvenueNew York, New York 10017 USAThis publication was published by the International Federation of Accountants (IFAC ). Its mission is to serve the public interest by: supporting the development of high-quality International Standards ; promoting the adoption and implementation of these Standards ; building the capacity of professional accountancy organizations; and speaking out on public interest issues. This publication may be downloaded for personal use or purchased from the International Ethics Standards Board for Accountants (IESBA ) website.

2 The International Code of Ethics for Professional AccountantsTM ( including International Independence StandardsTM), Exposure Drafts, Consultation Papers, and other IESBA publications are published by, and copyright of, IESBA and IFAC do not accept responsibility for loss caused to any person who acts or refrains from acting in reliance on the material in this publication, whether such loss is caused by negligence or International Ethics Standards Board for Accountants , International Code of Ethics for Professional AccountantsTM ( including International Independence StandardsTM), International Federation of Accountants , IESBA , IFAC , the IESBA logo, and IFAC logo are trademarks of IFAC, or registered trademarks and service marks of IFAC in the US and other July 2018 by the International Federation of Accountants (IFAC).

3 All rights reserved. Written permission from IFAC is required to reproduce, store or transmit, or to make other similar uses of, this document, save for where the document is being used for individual, non-commercial use only. Contact 978-1-60815-369-5 Published by:HANDBOOK OF THE International CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS ( including International Independence Standards )2018 EDITIONHow This Handbook Is ArrangedThe contents of this Handbook are arranged by section as follows:Introduction to the International Ethics Standards Board for Accountants .. 1 The International Federation of Accountants Role .. 2 Scope of This Handbook .. 3 Changes of Substance from 2016 Edition.

4 4 Guide to the Code .. 6 Table of Contents .. 11 Preface .. 14 Part 1 Complying with the Code, Fundamental Principles and Conceptual Framework .. 15 Part 2 Professional Accountants in Business .. 32 Part 3 Professional Accountants in Public Practice .. 70 International Independence Standards (Parts 4A and 4B) Part 4A Independence for Audit and Review Engagements .. 116 Part 4B Independence for Assurance Engagements Other than Audit and Review Engagements .. 197 Glossary, including Lists of Abbreviations .. 235 Effective Date .. 248 Copyright and TranslationIFAC publishes the IESBA s handbooks, Standards , and other publications and owns the recognizes that it is important that preparers and users of financial statements, auditors and other professional accountants, regulators, national standard setters, IFAC member bodies, lawyers, academia, students, and other interested groups in non-English-speaking countries have access to the Standards in their native language.

5 IFAC therefore encourages and facilitates the reproduction, or translation and reproduction, of its publications. IFAC s policy with regard to translation and reproduction of its copyrighted publications is outlined in Policy for Translating and Reproducing Standards Published by the International Federation of Accountants and Policy for Reproducing, or Translating and Reproducing, Publications of the International Federation of Accountants. Interested parties wishing to reproduce, or translate and reproduce, this handbook should contact for the relevant terms and INTRODUCTION TO THE International ETHICS Standards BOARD FOR ACCOUNTANTS The International Ethics Standards Board for Accountants (IESBA ) is an independent standard-setting body that develops an internationally appropriate International Code of Ethics for Professional AccountantsTM ( including International Independence StandardsTM) (the Code).

6 The objective of the IESBA, as outlined in its Terms of Reference, is to serve the public interest by setting high-quality ethics Standards for professional accountants. The IESBA s long-term objective is convergence of the Code s ethical Standards for professional accountants, including auditor Independence Standards , with those issued by regulators and national standard setters. Convergence to a single set of Standards can enhance the quality and consistency of services provided by professional accountants throughout the world and can improve the efficiency of global capital IESBA consists of 18 board members from around the world, of whom no more than 9 are practitioners and no fewer than 3 are public members (individuals who are expected to reflect, and are seen to reflect, the wider public interest).

7 Members are appointed by the IFAC Board, based on recommendations from the IFAC Nominating Committee and with the approval of the Public Interest Oversight Board (PIOB), which oversees the activities of the standard-setting process of the IESBA includes the involvement of the PIOB and the IESBA s Consultative Advisory Group (CAG), which provides public interest input into the development of the IESBA s Standards and developing its Standards , the IESBA is required to be transparent in its activities, and to adhere to due process as approved by the PIOB. Board meetings, including meetings by teleconference, are open to the public, and agenda papers are available on its visit for more 'S ROLE IN STANDARD SETTINGTHE International FEDERATION OF ACCOUNTANTS ROLEThe International Federation of Accountants (IFAC) serves the public interest by contributing to the development of strong and sustainable organizations, markets, and economies.

8 It advocates for transparency, accountability, and comparability of financial reporting; helps develop the accountancy profession; and communicates the importance and value of accountants to the global financial infrastructure. Founded in 1977, IFAC is currently comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and part of its public interest mandate, IFAC contributes to the development, adoption, and implementation of high-quality International ethics Standards for accountants, primarily through its support of the IESBA. IFAC provides human resources, facilities management, communications support, and funding to this independent standard-setting board, and facilitates the nominations and selection process for board IESBA sets its own agendas and approves its publications in accordance with its due process and without IFAC s involvement.

9 IFAC has no ability to influence the agendas or publications. IFAC publishes the handbooks, Standards , and other publications and owns the IESBA s Independence is safeguarded in a number of ways: formal, independent public interest oversight for standard setting by the PIOB (see for more information), which includes a rigorous due process involving public consultation; a public call for nominations, and formal, independent oversight of the nominations/selection process by the PIOB; full transparency, both in terms of due process for standard setting, as well as public access to agenda materials, meetings, and a published basis for conclusions with each final standard.

10 The involvement of a Consultative Advisory Group and observers in the standardsetting process; and the requirement that IESBA members, as well as nominating/employing organizations, commit to the board s Independence , integrity, and public interest the IFAC website at for further SCOPE OF THIS HANDBOOK2018 EDITIONThis handbook brings together for continuing reference information about the role of IFAC and the official text of the International Code of Ethics for Professional Accountants ( including International Independence Standards ) (the Code) issued by the OF SUBSTANCE FROM 2016 EDITIONThis handbook replaces the 2016 edition of the Handbook of the Code of Ethics for Professional Accountants, as revised by the.