Whilst the issues relating to Brexit rage on through Parliament, there have been a couple of developments issued by regulatory bodies as to how accounting and auditing will be affected by Brexit. Steve Collings summarises those developments.

The FRC and the Department for Business, Energy and Industrial Strategy (BEIS) have published letters and guidance for accountants and auditors in the event that Britain leaves the EU without a deal.

UK GAAP will be unaffected but in terms of entities reporting under IFRS this does not remain the case. Currently, the UK adopts IFRS as adopted in the EU which will not be legally possible once Britain leaves the EU. At the point of Britain’s exit, the Withdrawal Act brings into UK law those International Accounting Standards which have already been endorsed in the EU in order to provide continuity.