UK businesses have been urged to review their Brexit plans by the Financial Reporting Council (FRC).The FRC has written to audit committee chairs and finance directors setting out the measures firms should consider.
The letter, written by the FRC’s Chief Executive Stephen Haddrill, sets out five areas businesses should review. It says the top priority for firms is to ask their employees if they need to apply to the EU Settlement Scheme in order to ensure they can continue to live and work in the UK in the event of a no-deal Brexit.
The FRC also recommends that businesses check whether they will face additional legal, regulatory and/or administrative barriers as a result of a no-deal Brexit.
The Council advises firms to check information with their local chambers of commerce, as well as the government’s recently launched Brexit readiness events. These provide advice on areas including importing and exporting and employing EU citizens.
In the letter, Mr Haddrill wrote: ‘Even businesses which have invested much time in preparing to leave the EU are well advised to keep their plans under close review.
‘The broad uncertainties that may still attach to exiting the EU when companies report will require disclosure of sufficient information to help users understand the degree of sensitivity of assets and liabilities to changes in management’s assumptions. We expect that many companies will want to consider a wider range of reasonably possible outcomes when performing sensitivity analysis on their cashflow projections.’