IESBA Staff Issues Alert Highlighting Key Ethics and Independence Considerations for Professional Accountants in Relation to the Military Conflict in Ukraine

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The Staff of the International Ethics Standards Board for Accountants (IESBA) released the Staff Alert, The Ukraine Conflict: Key Ethics and Independence Considerations. The publication draws the attention of professional accountants in business (PAIBs) and professional accountants in public practice (PAPPs), including firms, to a number of important provisions in the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) with which they must comply in carrying out their work as they navigate the unprecedented challenges and risks arising from the Russia-Ukraine war.

Among other matters, the Staff Alert highlights the ethical implications arising from the wide-ranging economic sanctions many jurisdictions have imposed on Russia and certain Russian entities and individuals as well as Belarus, and the related ethical responsibilities of PAIBs and PAPPs under the Code. It also highlights:

Key ethics considerations for PAIBs in relation to the preparation and presentation of information, especially as regards accounting for and disclosing the impact of the Ukraine conflict on their employing organizations’ business; and

Key ethics considerations for PAPPs in relation to client and engagement acceptance, and in the context of audits of financial statements, key independence considerations relating to overdue fees and the Code’s prohibition against assuming management responsibility.