Financial reporting update: Brexit and auditing, the FRC’s accounts list, and moreHere’s a roundup of recent developments in the financial reporting world.
Accountancy Europe position on Brexit
Accountancy Europe, which counts the Chartered Institute of Management Accountants as one of its member organisations, has called for the UK Government and the European Union to ensure minimum disruption to the work of auditors after 29 March, when the UK is scheduled to leave the EU. Accountancy Europe recently published a position paper, Implications of Brexit on Cooperation Within the European Audit Profession.
The EU Audit Directive allows pan-European sign-off of audits by suitably qualified people. However, Brexit could mean that this is no longer valid in the UK. As negotiations continue, it is unclear whether the EU will agree to maintain the status quo in this area.
IASB publishes consultation on financial instruments
The International Accounting Standards Board has published a consultation on how companies issuing financial instruments should classify them in their financial statements. The consultation is introduced through a discussion paper and relates to IAS 32, Financial Instruments: Presentation.
Financial Reporting Review Panel
The Financial Reporting Council has published a list of companies whose accounts it is reviewing. This follows a change in procedure since last year which allowed for publication. The idea is to bring greater transparency to the review of company accounts in the hope of ensuring better practice. The list includes major organisations whose annual reports require further attention by the regulator.
— David Hackett is technical policy manager at the Association of International Certified Professional Accountants. To comment on this article or to suggest an idea for another article, contact Neil Amato, an FM magazine senior editor, at Neil.Amato@aicpa-cima.com.