Brexit: Implications for financial reporting - new report

Shortly before the triggering of Article 50 I wrote a blog calling on financial reporting policymakers to start a conversation about the implications of Brexit for financial reporting.  However, whilst Brexit remains at the forefront of political debate in the UK, the impact from a financial reporting perspective has still to receive sufficient attention.

I also said that ICAEW’s Financial Reporting Faculty would be starting work on a report setting out suggested answers to some key questions that policymakers will face in the coming months and years.

I’m pleased to announce that the report, Brexit: Implications for financial reporting, has now been published.  It sets out the faculty’s current thinking on some of the key issues the UK will face post-Brexit. In particular it comments on: 

  • The use of IFRS by UK listed companies and the future scope of IFRS reporting in the UK.
  • How the UK, as a major user of IFRS, can continue to exercise a level of influence in international accounting that fits in with its position as a global financial centre.
  • The options available to the UK for IFRS adoption as an IFRS jurisdiction outside of the EU.
  • The possible features of a new national mechanism for the endorsement of future IFRS standards and changes to existing standards.
  • The potential for longer term changes beyond IFRS reporting, in particular regarding relevant company law and the use of technology in corporate reporting.

 The report sets out 16 policy recommendations aimed at policymakers and their constituents, which are offered both as a basis for conversations about the impact of Brexit on UK reporting and as an illustration of the challenges that similar national economies face in using international standards.   

I'd welcome your comments on these recommendations. In the same way that Theresa May’s recent speech in Florence was aimed at unblocking Brexit negotiations, I hope that the publication of our report will kick start a wider debate within the financial reporting community.  As they say, it’s good to talk!