Entities need to consider the potential implications of Brexit and may need to include additional disclosures in the financial statements.
In March 2017, the UK Government invoked Article 50 of the Treaty of Lisbon, thereby formally notifying the European Council of the UK’s intention to withdraw from the European Union (EU) (Brexit). Although there will be no immediate change to UK financial and corporate reporting requirements, as the UK remains a member of the EU until the end of the negotiation period, entities need to consider the potential effects of Brexit when preparing their financial reports. One particular area of focus is taxation and tax accounting, which may be significantly impacted by Brexit. We discuss this further in the publication.