Political and Economic Aspects of Brexit Impact on Accounting Legislation in the UK – New Directions in Standards (GAAP UK and IFRS)

Abstract

Post-Brexit is currently being researched as not only an important geopolitical change but also as an economically conflicted period that constantly generates many issues in finance, accounting, and taxation. This paper aims to consider, identify and forecast – whether and what – the new directions for the development of IFRS and GAAP UK after Brexit. The research methods are based on a deductive research approach with elements of descriptive content analysis. The results of the study helped to determine the development direction of accounting in the UK after Brexit in the short term – the continued application of IFRS, adopted by the EU. However, it is obtained that the task of the British government – to harmonize its sovereignty with IFRS, taking into account the requirements of the EU – is being successfully implemented. So, the direction of the development of British accounting in the future – is the creation of its mechanism for the approval of national standards, controlled by the government. However, the British accounting system and IFRSs have many unresolved issues after Brexit that might be the subject of future studies.