Brexit resources

A number of changes resulting from the UK’s withdrawal from the EU take effect for the first time for UK companies for financial years beginning on or after 1 January 2021 and are therefore effective for the first time for 31 December 2021 year-ends onwards.  These changes, which are expanded upon in our comprehensive Closing Out 2021 publication, affect:

  • the exemption from audit (and, if a dormant company, from preparing and filing accounts) for subsidiaries whose liabilities are guaranteed by a parent.
  • the exemptions from preparation of group accounts on the grounds of consolidation into a larger group.
  • non-financial information statement requirements for large PIEs within their strategic report.
  • availability of some exemptions such as adoption of the small companies regime (s384 of the Companies Act 2006), the consolidation exemption for small groups (s399), and exemptions for medium-sized companies (s467).

Additionally for periods beginning on or after 1 January 2021, UK companies required or choosing to apply IFRS Standards must comply with UK-adopted IFRS Standards. UK-adopted IFRS Standards comprise IFRS Standards as endorsed by the EU as at 31 December 2020 and any standards or amendments that have been endorsed by the UK Endorsement Board after that date. 

As a result of the UK's exit from the EU, the FRC has issued updates to FRSs 100-105 for changes in legislation.  The Amendments were limited to those necessary to ensure consistency with UK company law and largely updated legal references and terminology used in the standards. Early application was permitted for UK entities in certain circumstances  

Investor and FRC expectations in annual reports

The significant uncertainties in relation to the UK’s future relationship with the EU and the terms of any future economic partnership agreement continue to persist. Investors look for transparent information on how the uncertainties arising from the ongoing UK-EU negotiation affect the company, including its ability to continue as a going concern and its longer-term viability and prospects.  Company reports should explain company-specific risks and uncertainties arising as a result of Brexit. This should include the impacts on different parts of the business and any effects on the financial statements including major sources of estimation uncertainty, amounts at risk and ranges of potential outcomes.

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

Related resources

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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”.

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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.

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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.

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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.

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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.

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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.

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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.

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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”.

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