The impact of Brexit on accounting forward items
An ICAEW publication by Clea Evagorou
It's been almost 18 months since the Brexit referendum and yet we are still none the wiser about the long-term political and economic effects of the vote.
With the UK seeking an implementation period of up to two years (pushing expected completion to 2021), but with no clear indication of whether this will actually materialise and what form it would take, it would seem this turbulence is likely to continue.
In his September speech in Washington DC, Mark Carney, governor of the Bank of England, noted that Brexit would push up inflation and interest rates. With the next EU summit taking place this month, more asset price volatility is expected through to mid-2018 as future trade discussions and implementation periods begin take shape. But with financial year-end season upon us, firms need to ensure they present the boards of directors with analysis of the potential impact on their business and actions being undertaken to mitigate any uncertainties.
In our most recent publication for the ICAEW we provide some of the key financial reporting considerations for financial institutions.