SOCPA Adopts Amendments on Public Interest Entities Definition

SOCPA has adopted the amendments made by the International Ethics Standards Board for Accountants (IESBA) concerning the definition of Public Interest Entities (PIEs) in the International Code of Ethics for Professional Accountants.
These changes are part of a broader project by the International Federation of Accountants (IFAC) to provide more clarity to concepts such as "Public Interest Entities", "Entities of Significant Public Interest", and "Listed Entities" on a recognized market. The goal is to update the definitions and explanations to align with developments in financial markets and tools, ensuring a consistent understanding of these concepts within international standards. These amendments make the PIEs concepts in the International Code more consistent with the definitions and explanations provided in international auditing standards, promoting a consistent understanding of entities subject to different ethical requirements due to their nature as PIEs.
Given that these amendments allow local regulatory bodies to define appropriate classifications for PIEs, SOCPA's Committee for Professional Ethics decided to adopt the definition in paragraph (400/17) (as per the amended Code) with a partial amendment to read as follows:
"A firm shall treat an entity as a public interest entity when it falls within any of the following categories:
1) A publicly traded entity;
2) An entity one of whose main functions is to take deposits from the public;
 3) An entity one of whose main functions is to provide insurance to the public; or
4) An entity specified as such by law, regulation or professional standards to meet the purpose described in 400.10 or required by legislation to be audited under the same independence requirements applicable to a listed entity."