Financial reporting after the EU referendum

In light of Brexit the Financial Reporting Council (FRC) has highlighted some matters for directors to consider when preparing their half-yearly and annual financial reports. Extracts follow.

Clear disclosure of a company’s business model as part of the strategic report should be made including a description of the main markets in which the company operates and its value chain. The disclosure should enable readers to assess the company’s exposure arising from the outcome of the referendum.

Directors must consider the nature and extent of risks and uncertainties arising from the result of the referendum and the impact on the future performance and position of the business. Boards should also explain steps they are taking to manage or mitigate those risks.

As part of the assessment boards should consider whether the vote gives rise to solvency liquidity or other risks that may threaten the long-term viability of...