Accounting in the UK in case of a "no deal" Brexit
Feb 21, 2019
On February 21, 2019, the UK Financial Reporting Council (FRC) and the UK Department for Business, Energy and Industrial Strategy (BEIS) published letters for auditors and accountants to share information in case there is no deal for leaving the EU by Friday, March 29, 2019.
Regarding endorsement of International Accounting Standards, the letter refers to the recently drafted Statutory Instrument The International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 (IAS SI). The SI gives power to the Secretary of State to endorse new or amended standards and also power to delegate this responsibility. The intention is to delegate these functions to a newly-formed independent UK endorsement body. This body will be operational during 2019 once the appropriate infrastructure and staff are in place.
In regards to existing EU-adopted IAS, the letter notes that at the point of exit, the Withdrawal Act brings into UK law IASs already endorsed by the EU, to provide continuity.
The following information is available on the UK Government website: