APESB releases revisions to standards

Key Points

  • APES 330 has been revised, with revisions to be operative from 1 April 2012
  • The relationships that an insolvency practitioner must consider have been expanded to include those between the insolvent entity and firms in the same network as the practitioner's firm
  • APES 210 has also been revised with minor amendments to definitions and references to APES 110.

APES 330

The Accounting Professional and Ethical Standards Board (APESB) has revised APES 330 Insolvency Services, its standard for practitioners providing insolvency services.  The new APES is operative from 1 April 2012 with early application permitted. It replaces its predecessor of the same name issued in September 2009. 
 
Principally the revised standard expands the relationships that an insolvency practitioner must consider in assessing their independence to include those between the insolvent entity and firms in the same network as the practitioner’s firm. Independence considerations are also identified in relation to where the practitioner has a controlling interest in a business in the same market as the insolvent entity, and where the practitioner’s firm has merged, or the practitioner has moved firms in the two years prior to the appointment to the insolvent entity. Other amendments deal with pre-appointment advice, the matters to be covered in the Declaration of Independence, Relevant Relationships and Indemnities, and the use of contingent fees in some limited circumstances.

This revision followed the release in June 2011 of an exposure draft of the proposed changes.
 

APES 210

 
Also released is a revision of APES 210 Conformity with Auditing and Assurance Standards. Consequent on its annual review of this standard, the APESB has updated the definitions of 'Firm' and 'Auditing and Assurance Standards' in line with how these terms are defined in other APES standards, and has updated a cross-reference to the independence provisions of APES 110 Code of Ethics for Professional Accountants, following the revision of the Code that issued in December 2010.

Both standards will be added to the Members Handbook at the next update.

Article last updated 1 December 2011