The Financial Reporting Council (FRC) and Department for Business, Energy and Industrial Strategy (BEIS) released FRC/BEIS letter on accounting and corporate reporting during transition period and FRC/BEIS letter for auditors during transition period late last month. Each letter summarises the regulatory schemes that have been introduced prior to the Referendum, and assures business valuers, auditors, and accountants that, at least through the end of the transition period on 31 December, no significant surprises are expected.

Deliberations about the UK’s financial reporting regime afterwards continue, overshadowed by the public health situation.

Accountancy Daily provided a short summary of the major points in the two new releases. The good news: ‘For financial years beginning after 31 December 2020, UK incorporated companies and groups that currently use EU-adopted International Accounting Standards (IAS) will instead be required to prepare accounts using UK-adopted international accounting standards. There will be no change for UK incorporated companies that use UK GAAP—FRS 102, for example—to prepare their annual accounts.’

In addition, the EU Audit Regulation and Directive (ARD) will continue to apply in the UK during the transition period.