Chartered Accountant Advice Post Brexit

With the British people coming down in favour of leaving the European Union (EU), there will be a broad range of implications that will need to be faced in the short, medium, and long term. This historic decision was made even though many business leaders strongly advised against it, and politically, the country’s Prime Minister put his job-on-the-line, hoping for a different conclusion.

Nothing will become apparent until Article 50 has finally been activated, but politically, socially and economically, the result will be mooted, and speculation both favourable and unfavourable will, at the end of the day, be just that. A lot of voters feel that the decision may destabilise and unravel the very core of the UK, while others fear that it is the first death knell of the EU itself.

The Accountancy Profession and Exit

All in the industry with reccomend that you choose an experienced chartered accountant such as www.linghamscharteredaccountants.co.uk. With many questions to answer inside the accountancy profession, there are also a lot of opportunities to give business sound advice and support during a time of uncertainty. Some of the significant issues that need to be examined and advised on include:

Banking advice

Restructuring and human recourses advice for companies dealing with Europe.

It is evident from the start of the recession in 2008 that many businesses will look to the accountancy profession to lend a guiding hand when the way forward is less than clear.

Uncertainty

The result has been so unexpected that the CEO of the Institute of Chartered Accountants of Scotland (ICAS), Anton Colella said that in British boardrooms there was an underlying ‘sense of shock.’ The ICAS wrote 20 questions that were seen as vital, as a tool to end the uncertainty. These included work carried out by accountants such as VAT restrictions that are currently imposed on the UK by the EU, as well as the IFRS’s future in Britain and European audit reform. Even though some firms did not have a favourable opinion on EU audit reform, the major issue needing to be answered, is what happens now?

A view by Gilly Lord (PWC’s Regulatory Affairs), believes that in short to medium term, EU audit regulations will not be affected. Whether the UK is in or out of the EU, the focus must not change, and the main thrust must be to improve audit quality. Even though in the long term there is the likelihood of changes, it is highly likely that much will remain in place, in order for British companies to continue to access the lucrative single market.

Because no state has ever left the EU before, a certain amount of volatility will be unavoidable. For businesses, there is a need to feel secure, and belief that they are still set up to navigate through the risks and impacts of what Brexit means.

A global approach

With the move that the profession has taken over the past decade to end fragmentation and globalise systems, a continued approach will be beneficial. The CEO of the IFAC, Fayezul Choudhury, calls for this work to continue. Both British companies and the accountancy profession will need to look beyond the EU, to a wider global market, and adapt accordingly.

Whatever happens next as a result of the decision, it must be highlighted that change will be slow, and gives the profession time to examine consequences and advise accordingly.

October 9, 2016 admin Legal No Comments