Brexit - a certain uncertainty
Marianne Mau considers how Brexit might affect 2019 financial statements and beyond.
As we enter the reporting season for 2019 year-ends, we consider the implications of Brexit for financial statements and highlight good financial reporting practice for now and the future.
In its open letter to Audit Committee Chairs and Finance Directors (October 2019), the Financial Reporting Council notes that in times of uncertainty investors look for greater transparency in corporate reports. It expects companies to consider carefully the detail provided in annual reports and accounts on those areas that are exposed to heightened levels of risk. In previous years it has highlighted the importance of explanations by management of actions taken to identify and mitigate risks posed by Brexit to the business.