Brexit Bulletin, 22 October 2018

Oct 22, 2018

Chartered Accountants Ireland and other accountancy bodies ICAEW, ICAS and ACCA have jointly stressed the critical importance of striking a Brexit deal given the impact a no deal would have on accountancy and audit.  In other news, EU leaders have agreed that not enough progress has been made in the Brexit talks to require a special Brexit summit next month. 

Irish & UK accountancy bodies appeal for Brexit deal

Chartered Accountants Ireland has joined other accountancy bodies ICAEW, ICAS and ACCA in a public statement on Brexit, stressing the “critical importance” of making use of the remaining time on the Brexit countdown to strike a deal, and highlighted the impact that a ‘no deal’ would have on accountancy and audit, including a potential collapse in mutual recognition arrangements. The joint statement came as the UK Govt released its latest Technical Paper ‘Accounting and audit if there’s no Brexit deal’.

Nothing new

The UK Prime Minister Theresa May addressed the EU27 leaders at the start of the EU Summit and it reportedly only took fifteen minutes for the leaders to establish that there was nothing new to justify allowing talks to progress.  It had been hoped that some form of agreement could be reached on the Irish border backstop by November but unfortunately time seems to have run out.

Now it seems the UK must to go back to basics and come up with some sort of solution to the Irish backstop impasse.  Reports have emerged that the UK Prime Minister is considering an extension to the transition period, which is already due to last 21 months and will keep the UK tied to EU rules until 31 December 2020.  The UK has rejected the EU’s proposal to avoid a hard border on the island of Ireland by keeping Northern Ireland within the EU’s Single Market as this puts a border between Northern Ireland and the rest of the UK.   

Extending the transition period might make it less likely that the backstop will ever be implemented as a customs deal might be agreed during that time.  But at what price might that come at? 

Read all of our Brexit updates and Back to Brexit Basics on the dedicated Brexit section of our website.