ISCA Issues EP 100 IG 4 (Revised 2024) Clarification on Public Interest Entities in Singapore

EP 100 establishes ethical requirements for members of the Institute of Singapore Chartered Accountants (ISCA) and is modelled after the International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants (IESBA).

ISCA has issued EP 100 (revised on 8 August 2024) to adopt two IESBA final pronouncements (FPs) with an effective date of 15 December 2024:

• Revisions to the Definitions of Listed Entity and Public Interest Entity in the Code (PIE FP) and revise the SG definition of “public interest entity” (PIE) in the Glossary of EP 100; and
• Technology-related Revisions to the Code (Technology FP).

The PIE FP specifies a broader list of categories of entities as PIEs whose audits should be subject to additional independence requirements to meet stakeholders’ heightened expectations concerning auditor independence when an entity is a PIE.

For purposes of local adaptation of the PIE FP:

• The SG PIE definition was revised to clarify on the entities that would be considered as PIEs in Singapore. The revised SG PIE definition clarifies that a listed business trust (BT) or listed real estate investment trust (REIT) should also be treated as a PIE in Singapore. There is no change to the scope of SG PIE definition for financial institutions (FIs), large charities and large institutions of a public character as defined in the Glossary of EP 100.

• SG provision, paragraph SG410.27A, currently applies to audit clients that are listed entities. The scope of SG410.27A has been revised to include audit clients that are publicly traded entities (PTEs), listed BTs and listed REITs, to be consistent with current practice of firms that audit listed BTs and listed REITs.

EP 100 Implementation Guidance (IG) 4 Clarification on Financial Institutions Considered as Public Interest Entities was first issued on 14 October 2020 to clarify the scope of FIs that would be considered as PIEs in Singapore.

EP 100 IG 4 (Revised 2024) Clarification on Public Interest Entities in Singapore clarifies on entities, including FIs, that would be considered as PIEs in Singapore. Six new FAQs have been added, including guidance on whether the following would be a PTE or another category of PIE in EP 100 (revised on 8 August 2024):

• an entity issuing bonds listed on Singapore Exchange;

• any entity in the process of listing;

• a BT or REIT; and

• a charity.

Please click here for EP 100 IG 4 (Revised 2024).