The UK left the EU on the 31st of January 2020. Up to that date the UK tended to follow EU regulations. This is no longer the case and it is going to lead to a divergence between the jurisdictions. Brexit has both implications and opportunities for nearly every sector and will continue to impact Irish company directors and financial controllers of UK companies. The impact of Brexit will mean more scrutiny will be required when dealing with company law, preparation of financial statements and auditing issues.
Brexit has some implications for:
- Irish directors of UK companies: Company Law in the UK is similar but not identical to ROI. It is important for Irish directors to be aware of their responsibilities under UK legislation, in particular as UK and Irish company law diverge.
- Irish Audit firms continuing to Audit UK companies: Irish auditors need to be aware of the differences in the format of UK Audit Reports. The auditing standards are similar but there are a separate set of UK regulations since January 2021. For example, the recent implementation of New ISA (UK) 700 “Forming an Opinion and Reporting on Financial Statements” and the enhanced requirement for the tailoring of Fraud Reporting within the Auditors Report.
- Financial Reporting: The UK and Ireland continue to use FRS 102 and FRS 105 for private company reporting. However, Irish accountants need to be mindful of specific UK provisions, including Appendix C to Section 1A of FRS 102.
Irish directors and financial controllers of UK Companies will need to monitor divergence and have controls and procedures in place to identify any issues and have the ability to reach out to their advisers to source solutions when the need arises.
For more advice and support or to discuss, contact our team:
- Johannes Rice, Senior Manager, Audit & Business Advisory, (01) 6440100
- Brian Feeney, Partner, Audit & Business Advisory, (01) 6440100