This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

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

  • FRC Image
  • BEIS Image

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.

The accounting letter explains how new legislation will affect the accounting and corporate reporting regime in the UK in the event of ‘no deal’. In particular, UK incorporated companies will be required to use “UK-adopted IAS” for financial years beginning after the date of UK’s exit from the EU, and certain preparation, filing and audit exemptions will also change.   The letter will be particularly relevant for UK and EEA listed companies, AIM companies, large privately-owned entities and Global Depository Receipt (GDR) issuers.

The audit letter sets out key actions in relation to the future of audit regulation that auditors and audit firms will need to take in preparation for a ‘no deal’ Brexit.  It specifically relates to the registration and recognition of UK and EEA auditors and to ongoing UK audits but also covers group audits and firm ownership.  The letter will be relevant to auditors and firms.

Both letters include a number of frequently asked questions to assist businesses with their preparations.

Alongside the letters, the FRC has published guidance on third country auditors and the future endorsement of IFRSs.

Please click to access the letters and supporting materials on the FRC website. Our previous news item on the new legislation is available here.

Our related Need to know publication if available here.

UPDATE 24 MAY 2019 - BEIS have issued guidance on accounting if there is a no deal Brexit which is available here.  Additionally guidance issued by BEIS on auditing if there is a no deal Brexit is available here.  This guidance is substantively the same as the guidance in the letters as mentioned above.

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.