The International Ethics Standards Board for Accountants (IESBA) has revised the Code of Ethics for Professional Accountants by updating the definition of a network firm.  
 
Network firms are required to be independent of an audit client of another firm within the network. The revised definition not only looks at how the networks operate but also how they are presented to third parties. 
 
The revised definition would classify firms as network firms if the firms belong to a larger structure that is aimed at cooperation and is clearly aimed at profit or cost sharing, or shares common ownership, control or management, common quality control policies or procedures, common business strategy, the use of a common brand name or a significant part of professional resources.  
 
This revised definition is effective for assurance reports dated on or after December 31, 2008.  
 
It is anticipated that the Accounting Professional and Ethical Standards Board (APESB) will consider consequential amendments to the current Australian Code APES 110 Code of Ethics for Professional Accountants in time for the 31 December 2008 application date. It is understood that any changes to the Australian Code will be the subject of an exposure draft on which submissions can be made. 
 
For more information: 

• IFAC website: Code of Ethics for Professional Accountants Section 290 (Revised) 
  
• The Institute: Members’ Handbook: Code of Ethics for Professional accountants