The Government has triggered Article 50 on Wednesday 29 March 2017.
But what does this mean for corporate reporting? Unfortunately, all it tells us at the moment is that we should be braced for uncertainty.
Following the referendum in June last year, the Financial Reporting Council issued a statement regarding reporting and legislation in the UK going forward.
“Stakeholders have asked about the implications of the referendum result for our regulatory work. Our regulatory framework is unchanged and we will continue to apply it. The FRC will also continue to play its part in representing the interests of the UK internationally. We will pay close attention to the decisions now taken by the Government and Parliament, and continue to work in collaboration with our key stakeholders, particularly investors, business and the professionals we regulate, in order to ensure our work continues to support economic growth.”
We believe this still stands. Going into the divorce period, businesses should be transparent and comprehensive, particularly in assessing their principal risks. The fall out of Brexit is likely to be a risk that will be directly impacting a number of large listed companies in the UK and the discussion of risk management and identification of principal risks should reflect this.
To understand how best to ensure appropriate risk assessment see our recent white paper on ‘The importance of risk reporting’.