Nigel Sleigh-Johnson looks at the implications of Brexit on financial reporting, including whether it’s best to stick to what we know.
More than six months have passed since formal negotiations for the UK’s departure from the European Union began. However, the implications of Brexit from a financial reporting perspective have yet to attract sufficient attention and debate.
Post-Brexit, it is likely the UK will become an International Financial Reporting Standards (IFRS) jurisdiction outside of the EU. IFRS have become the benchmark for reporting by listed companies across the world over the past decade, and a move away from IFRS would risk the UK becoming a less attractive market to investors. At a time when the UK will be seeking to reinvigorate trading relationships and reinforce its position as a global financial centre, it seems unlikely there would be any appetite to move away from IFRS.
This is an extract from the Business & Management Magazine, Issue 259, November 2017.