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Brexit resources

Under the European Union (Withdrawal) Act 2018, the UK ceased to be a member of the EU on 31 January 2020 ('exit day'). Under the withdrawal agreement, enacted in UK law by the European Union (Withdrawal Agreement) Act 2020 (WAA 2020), there is an implementation period (IP), which ends on 'IP completion day', defined as 31 December 2020 at 11.00 p.m. UK time.

UK reporting continues to be subject to the EU legislative framework until IP completion day. This means that:

  • existing company law relating to accounts and audit continues to apply;
  • companies that are required or choose to adopt IFRS Standards must use IFRS Standards 'as endorsed for use in the European Union', meaning that new or revised Standards cannot be adopted before EU-endorsement; and
  • the FRC remains a competent authority of an EU Member State, tasked with monitoring and supervising compliance with ESMA’s common enforcement priorities, which therefore remain relevant for UK company reporting.

For financial years commencing on or after IP completion day, a new UK adoption mechanism for IFRS Standards will be established. IFRS Standards as adopted by the UK will start from the extant IFRS Standards as adopted by the EU, but there may be later changes and/or differences in the timing of endorsement. UK incorporated entities with securities admitted to trading elsewhere in the EEA may need to confirm they have followed both frameworks.

For financial years commencing on or after IP completion day, changes to Companies Act requirements to reflect the fact that the UK is no longer subject to EU law will take effect. The general principle is that these changes will maintain existing requirements and exemptions in most cases. However, there will be some changes of substance.  For example, exemptions which rely on being part of a group headed by an EEA parent will be available only to entities with a UK parent.  Although the various regulations making these changes still refer to 'exit day' (as they were enacted in contemplation of an exit without a transitional agreement), Schedule 5 to WAA 2020 states that this should be read as IP completion day.

Whilst most of the necessary amendments to legislation have been made, there may be some further changes during the implementation period and it is possible that further changes may result from any agreements reached between the UK and the EU, either as part of a future trade agreement or as a result of equivalence decisions taken under UK and EU law.

This page includes all of our resources on the financial reporting implications of Brexit.  It includes links to:

Related resources

FRC publishes its plan and budget for 2020/21

24 Mar 2020

The Financial Reporting Council (FRC) has published its plan and budget for 2020/21.

FRC and BEIS publish revised Brexit accounting and audit letters

14 Feb 2020

The Financial Reporting Council (FRC) and the Department for Business, Energy and Industrial Strategy (BEIS) have jointly published revised letters for auditors and accountants with information regarding auditing, accounting and corporate reporting standards during the transition period following the UK’s exit from the EU on 31 January 2020.

FRC publishes its draft plan and budget for 2020/21

12 Feb 2020

The Financial Reporting Council (FRC) has published its draft plan and budget for 2020/21. Comments are requested by 28 February 2020.

FRC announces thematic reviews for 2020/2021

16 Dec 2019

The Financial Reporting Council (FRC) has announced the corporate reporting and audit quality thematic reviews that it will undertake in 2020/21.

Accounting Roundup - Closing Out 2019

10 Dec 2019

Closing Out 2019 discusses the significant corporate reporting issues relevant to 31 December 2019 annual reports, covering areas of regulatory focus identified in the FRC’s Annual Review of Corporate Reporting 2018/2019 and the ESMA’s common enforcement priorities for issuers in the European Union, together with other developments in reporting standards and areas of investor interest.

Governance in brief — FRC issues advice on annual reports for 2019/20 reporting season

14 Nov 2019

The FRC has issued its Annual Review of Corporate Reporting and annual open letter to finance directors and audit committee chairs covering its perspectives on key developments and areas of focus for 2019/20 annual reports. The report sets out the FRC’s “expectations for corporate reporting to improve trust in business”, emphasising the annual report is a vehicle of trust and stewardship.

FRC publishes findings on the quality of corporate reporting in 2018/2019

30 Oct 2019

The Financial Reporting Council (FRC) has published its Annual Review of Corporate Reporting 2018/2019, which provides the FRC's assessment of corporate reporting in the UK based on evidence from a variety of sources, including the work of the FRC's own Corporate Reporting Review (CRR) team.

FRAB minutes for April and June 2019 meetings released

28 Oct 2019

The minutes of the Financial Reporting Advisory Board’s (FRAB’s) meeting of 4 April 2019 and 13 June 2019 have been made available on the HM Treasury website

FRC publishes letter to Audit Committee Chairs and Finance Directors on the UK's exit from the EU

27 Sep 2019

The Financial Reporting Council (FRC) has published a letter to Audit Committee Chairs and Finance Directors setting out some of the actions companies should consider in advance of the UK’s exit.

FRC plan and budget highlights key areas of focus for 2019/20

23 May 2019

The Financial Reporting Council (FRC) has published its Plan and Budget for 2019/20, which sets out its priorities for 2019/20.

Government approves the International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019

28 Mar 2019

The International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 (SI 2019/685) have been approved by the government.

Need to know — Accounting, auditing and corporate governance – legal and regulatory changes arising from a “No Deal” Brexit

06 Mar 2019

This Need to know discusses the accounting, auditing and corporate governance – legal and regulatory changes arising from a “No Deal” Brexit.

Government approves the Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019

28 Feb 2019

The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (SI 2019/177) have been approved by the government.

FRC and BEIS publish ‘no deal’ Brexit accounting and audit letters

22 Feb 2019

The Financial Reporting Council (FRC) and the Department for Business, Energy and Industrial Strategy (BEIS) have published letters for auditors and accountants to share information in case there is no deal for leaving the EU by 29 March 2019.

Government approves the Accounts and Reports (Amendment) (EU Exit) Regulations 2019

15 Feb 2019

The Accounts and Reports (Amendment) (EU Exit) Regulations 2019 (SI 2019/145) have been approved by the government.

Governance in brief — Brexit and viability disclosures - a timely reminder

05 Feb 2019

This Governance in brief examines the responsibilities of directors regarding risk and viability reporting, the importance of directors understanding the potential impact of Brexit through internal scenario planning, and how the board can ensure that shareholders and other stakeholders receive unambiguous disclosure through the annual report.

Accounting Roundup - Closing Out 2018

13 Dec 2018

Closing out 2018 discusses the significant corporate reporting issues relevant to 31 December 2018 annual reports, covering areas of regulatory focus identified in the FRC’s Annual Review of Corporate Reporting 2017/2018, the ESMA’s common enforcement priorities for issuers in the European Union together with developments in reporting standards and areas of investor interest.

Governance in brief — FRC issues advice on annual reports for the 2018/19 reporting season

06 Dec 2018

The Financial Reporting Council (FRC) has issued its Annual Review of Corporate Reporting and annual letter to finance directors and audit committee chairs covering its perspective on key developments for 2018/19 annual reports.

FRC publishes year-end advice to preparers in advance of the 2018/19 reporting season

25 Oct 2018

The Financial Reporting Council (FRC) has published a letter to Audit Committee Chairs and Finance Directors, in advance of the 2018/19 reporting season, highlighting changes to reporting requirements and key matters which should be considered in the preparation of forthcoming annual reports and accounts.

FRC publishes findings on the quality of corporate reporting in 2017/2018

24 Oct 2018

The Financial Reporting Council (FRC) has published its Annual Review of Corporate Governance and Reporting 2017/2018, which provides the FRC's assessment of corporate reporting in the UK based on evidence from a variety of sources, including the work of the FRC's own Corporate Reporting Review (CRR) team. The report also includes information on the level of compliance with the provisions of the UK Corporate Governance Code (“the Code”) as well as the quality of explanations and reporting provided by companies in their governance statements and committee reports.

Correction list for hyphenation

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