Brexit and financial reporting

Questions for audit committees

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Brexit is not just an issue for UK companies. If you have any exposure – direct or indirect – to the UK, then your supply chain, your customer demand, your taxes, tariffs or financing may be affected...

With this in mind, audit committees need to really understand the potential impacts and ensure that they are properly reflected in the 2018 annual reports and any related disclosures are clear and company-specific.

In this podcast, Tim Copnell, Pamela Taylor and Irina Ipatova discuss what Brexit means or could mean for the annual report.

Listen on: > iTunes > Spotify > Google

“Many audit committee members I speak to express concern about signing their year-end annual reports before the Brexit outcome is known.”

Tim Copnell
Head of the Audit Committee Institute at KPMG in the UK

“The bottom line is that management are expected to provide meaningful disclosures about the specific impact on their company… The fact that there’s still significant uncertainty around the final Brexit outcome is a challenge for them.”

Pamela Taylor
Director, KPMG in the UK

“Whatever your company’s exposure to Brexit risk is, whether they are a UK or a non-UK company, the important thing is to provide clear disclosures about judgments and assumptions that you made in preparing your accounts…”

Irina Ipatova
Director, KPMG International Standards Group

A full transcript (PDF 640 KB) of this episode is also available. Visit our IFRS Today landing page to view other episodes in this series.

For discussion of some of the wider issues businesses face in the run up to the UK’s departure and beyond, listen to The Business of Brexit – the podcast series produced by KPMG in the UK.