Helping accountants navigate the post Brexit transition period
The FRC and Department for Business, Energy and Industrial Strategy (BEIS) have published joint letters for accountants and auditors, confirming that there is no change to the UK’s accounting and corporate reporting framework during the transition period post Brexit.
In the letter addressed to accountants, the FRC and BEIS confirm that during the transition period, due to end on 31 December 2020, there will be no change to the UK’s accounting and corporate reporting framework.
The letter explains that for financial years beginning after 31 December 2020, UK incorporated companies and groups that currently use EU-adopted IAS will instead be required to prepare accounts using UK-adopted international accounting standards. There will be no change for UK incorporated companies that use UK GAAP to prepare their annual accounts.
“We hope that you find the information in this letter helpful as you use the transition period to adjust to the UK no longer being a member state of the EU,” the letter reads.
“You should also note that the UK is seeking equivalence decisions on accounting and audit, and an adequacy decision on audit from the European Commission.”
To access the whole letter, click here.