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Brexit publications

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 provides a collection of publications related to the financial reporting implications of Brexit

Related publications

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.

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.

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.

Robert Bruce interviews — Paul George, Executive Director, Corporate Governance and Reporting at the Financial Reporting Council

12 Apr 2018

In a wide-ranging video interview Paul George talks to Robert Bruce about the responses to the recent Corporate Governance Code consultation and areas of challenge in governance generally, what the FRC would like to see more of from strategic reports and information on directors’ responsibilities, what it would like to happen with IFRS post-Brexit, and how the Stewardship Code needs to evolve.

Governance in focus — On the board agenda 2018

27 Nov 2017

As 2017 draws to a close, our review of hot topics for boards and committees for the 2018 reporting season covers both areas of regulatory focus as well as emerging themes.

Governance in focus — The risks and opportunities of Brexit – Survey of FTSE 100

14 Jul 2017

Our latest publication examines how companies have disclosed the risks and opportunities of Brexit in their annual reports and includes examples of disclosure. These annual reports were written and published in advance of the triggering of Article 50 and the general election but they do represent the start of a journey to more comprehensive disclosure.

Governance in focus — On the board agenda — H2 2017

27 Jun 2017

The Deloitte Academy’s review of hot topics for boards and committees for the remainder of the year covers both emerging themes as well as areas of regulatory focus. We have pulled together in one place a series of articles across the board and board committee agenda – from responding to Brexit, demonstrating the board’s consideration of broader stakeholder interests and addressing complex and emerging technology matters. There is much more to consider than usual.

Need to know — UK exit from the European Union

29 Mar 2017

This newsletter discusses income tax reporting following triggering of Article 50 by the United Kingdom and which transactions might be affected.

2016 update on half-yearly financial reporting

15 Jul 2016

This publication provides an illustrative half-yearly financial report (also referred to as 'interim accounts') and disclosure checklist, suitable for use for June 2016 half-years. The regulatory requirements for UK listed companies’ half-yearly financial reports are also explained, highlighting the changes for preparers to contend with in 2016.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.