New guidance for auditors and accountants on dealing with a no-deal Brexit
FRC and BEIS issue guidance for firms about Brexit
UK audit regulator the Financial Reporting Council (FRC) and the Department for Business, Energy and Industrial Strategy (BEIS) have jointly published new guidance for auditors and accountants in case the UK leaves the EU on 29 March 2019 without a deal.
The guidance looks at the audit legal framework that will be in place after Brexit, the issuance of new auditing standards and use of EU-adopted IFRS. There is a particular focus on the impact on UK companies with a presence in the EU and those that are listed in the UK and/or in the rest of the EU.
It is expected that a new UK body will be set up to endorse International Accounting Standards, and that UK IFRS users with financial periods beginning after Brexit will need to use UK-adopted IFRS.
Many UK audit firms undertake audits of Irish companies, something that will not be permitted in a no-deal Brexit scenario as the UK will become a “third country”.
The guidance also considers the issue of transferring personal data from EEA organisations to the FRC. In the case of data protection, third country status requires the European Commission to make a decision as to the UK’s data adequacy, and until it does so, EEA organisations will need to implement safeguards.
The guidance can be viewed here.
This article was posted on Baker Tilly International Global Office website, and posted with their approval.
