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Council statement definitions

Definitions relating to the Council Statement on Public Practice regulations.



  • accountancy services

    The preparation of financial records, returns, statements or information; or

    • the provision of consultancy or advice concerning accounting, auditing, insolvency or taxation matters; or
    • the provision of a service that requires a specific licence that the Institute can provide (even if the licence is not obtained from the Institute); or
    • the representation of a client to/before third parties in matters concerning accounting, auditing, insolvency or taxation.


  • client

    A body or person to whom an accountancy service is provided, except if the accountancy service is provided to another entity in the same group.


  • entity

    A sole practice, partnership, limited liability partnership, company, other corporate body or any other entity used to provide accountancy services.


  • group

    A parent undertaking and its subsidiary undertakings where the undertaking is a body corporate, partnership or an unincorporated association.


  • principal

    An individual in sole practice, a person who is a partner (including both salaried and equity partners), a member of a limited liability partnership, a director or a trustee regardless of the role of the member as a principal in that entity or any individual who is held out as being a principal.

  • public practitioner

    An entity which provides accountancy services to clients in anticipation of reward where:

    a substantial part of the activities of that entity is the provision of such services; and

    if the entity is part of a group, a substantial part of the activities of the group is the provision of such services.


  • substantial part

    More than 10% of the total annual turnover of the entity or the group.