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The UK will leave the EU on 31 October. This page tells you how to prepare for Brexit. It will be updated if anything changes, including if a deal is agreed.
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There will be changes to the UK’s corporate reporting regime after the UK leaves the EU. These changes will affect a small number of companies.
Preparing annual accounts
All companies will need to use ‘UK adopted IAS’ instead of ‘EU adopted IAS’ for financial years beginning after the UK leaves the EU. Both sets of standards will be the same on the day the UK leaves the EU. There may be differences later if the UK adopts or amends standards and the EU does not.
You can continue to use EU adopted IAS when preparing your accounts for financial years beginning on or before the day the UK leaves the EU.
Some types of companies will need to take further action after the UK leaves the EU.
UK incorporated parent companies
UK incorporated parent companies with a subsidiary in the EEA need to check the reporting requirements in the country where the subsidiary is based.
UK companies with a presence in the EEA
UK companies with a presence in an EEA country – for example, a branch – need to check the reporting requirements in that country.
UK public companies with a UK listing
The way companies raise capital and trade securities on a regulated market will change.
UK incorporated groups with securities admitted to trading on a UK regulated market will need to prepare accounts using UK adopted IAS for all accounting periods beginning the day after the UK leaves the EU.
They can use EU adopted IAS for accounting periods starting before the UK leaves the EU. They will not need to restate these accounts after the UK leaves the EU.
UK public companies with an EEA listing
UK incorporated groups that issue debt from a subsidiary incorporated in the EU will need to do both of the following:
- comply with the rules of the country where the subsidiary is based
- produce accounts that comply with the UK Companies Act 2006
All UK public interest entities (banks, building societies, insurers and issuers of securities that trade on UK regulated markets) will have to follow:
- Disclosure and Transparency Rules issued by the Financial Conduct Authority (FCA)
- rules issued by the Prudential Regulation Authority (PRA)
Changes to the Audit Directive
UK issuers of shares or debt securities that are only admitted to trading on EEA regulated markets will no longer be subject to this framework.
The Audit Directive requirement will still apply to companies with a parent company incorporated in the UK.
For subsidiaries that are issuers of securities on UK regulated markets, the parent company may be subject either to the FCA or the PRA rules.
For subsidiaries that are banks or insurers and qualify under the more limited exemption provided by the PRA, the parent must be subject to the PRA rules.
UK companies will need to appoint a UK registered audit firm. An individual UK registered auditor will need to sign the audit report on behalf of the firm.
Some rules relating to approving individuals and firms for registration as auditors will change. Find out more about auditing after Brexit.
Accounting for EEA companies in the UK
Find out what you need to do if you’re an EEA company working the UK.