THE IMPACT OF BREXIT ON THE FURTHER DEVELOPMENT OF IFRS AND ACCOUNTING SYSTEM IN THE UK: ADVANTAGES AND DISADVANTAGES
THE IMPACT OF BREXIT ON THE FURTHER DEVELOPMENT OF IFRS AND ACCOUNTING SYSTEM IN THE UK: ADVANTAGES AND DISADVANTAGES

Summary/Abstract: The purpose of this article is to investigate the effect of the Brexit on the IFRS and GAAP UK in the post-Brexit period. The article considers three possible options for such development: 1) continued application of IFRS (EU) by the UK listed companies; 2) creation of a national mechanism for approval of IFRS, similar to the EU; 3) adoption of IFRS without any intervention by the British authorities. As a result, each of the possible development of IFRS and GAAP UK was observed with an estimation of advantages and disadvantages. The research methods based on the quantitative collection of primary data, positivism research philosophy, deductive research approach with elements of descriptive content analysis are considered as important contributions to the research methodology of the Brexit impact investigation. As a result, it was obtained that the British government will choose the path of approval of IFRS in the UK after Brexit similar to the Australian scenario. This study is a novelty that covers not only the current state of development of accounting, auditing, financial reporting in the transition period Brexit, but also reveals the forecasts and expectations for further changes after the post-Brexit period. However, the research of the accounting system in the UK after the post-Brexit period (after 2021) might be the subject of future studies.

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