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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

UK government publishes a "no deal technical notice" on accounting and audit

17 Oct 2018

The government has published a “no deal technical notice” on accounting and audit, setting out changes to the UK’s corporate reporting and audit frameworks if there is no deal between the UK and the EU over the terms of the UK’s exit from the European Union on 29 March 2019. It does not provide details of the frameworks if a deal is reached, which would apply after the end of an implementation period on 31 December 2020 – during that period existing laws and regulations would apply.

IASB chair provides update on current activities

28 Jun 2018

At the IFRS conference in Frankfurt, IASB Chair Hans Hoogervorst provided an update on the use of IFRS Standards around the world and the current thinking of the IASB.

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.

FRC announces thematic reviews for 2018/2019

20 Nov 2017

The Financial Reporting Council (FRC) has announced the thematic reviews that it will undertake in 2018/19.

ICAEW publication on the financial reporting implications of Brexit

29 Sep 2017

The Institute of Chartered Accountants in England and Wales (ICAEW) has published 'Brexit: implications for financial reporting' as the ICAEW believes that the impact that Brexit will have on the UK’s financial reporting infrastructure and the related international ramifications have not yet been given sufficient attention.

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.

FRC letter to investors ahead of the 2017 shareholder meeting season

12 Apr 2017

The Financial Reporting Council (FRC) has issued a letter to investors ahead of the 2017 shareholder reporting season highlighting recent changes and developments in reporting and encouraging investors to “engage with companies to provide a steer on what information they believe is relevant and to challenge where reporting falls short of expectations”.

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.

ESMA announces enforcement priorities for 2016 financial statements

28 Oct 2016

The European Securities and Markets Authority (ESMA) has announced the priority issues that the assessment of listed companies' 2016 financial statements will focus on.

FRC publishes findings on the quality of corporate reporting in 2015/2016

21 Oct 2016

The Financial Reporting Council (FRC) has published its Annual Review of Corporate Reporting 2015/2016, 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.

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.

ICAS: UK unlikely to depart from IFRSs if it intends to remain a global player

01 Jul 2016

After the EU referendum in the UK, the Institute of Chartered Accountants of Scotland (ICAS) published a list with with 20 questions on the 'Brexit' ranging from business and trade to accounting and audit. In three separate batches, the ICAS staff have now published some answers to those questions and provide additional context and background to the key issues.

EU referendum in the UK

24 Jun 2016

In the EU referendum in the UK yesterday, which saw a turnout of 71.8%, 51.9% of the voters made clear that they see the UK’s interests best-served by leaving the European Union.

FRC letter to investors ahead of the 2016 shareholder meeting season

18 Mar 2016

The Financial Reporting Council (FRC) has issued a letter to investors ahead of the 2016 shareholder reporting season highlighting recent changes in reporting and encouraging investors to “engage with companies to provide a steer on what information they believe is relevant and to challenge where reporting falls short of these expectations”.

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.