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Financial reporting implications of Brexit

It is difficult to predict the long term implications of the UK's decision as this will depend on the specific results of the withdrawal negotiations and the reactions of policy makers, investors and central banks around the world. What we do know is that the
outcome of the referendum has already contributed to considerable currency and stock market volatility with the pound touching a 30-year low against the dollar in the immediate aftermath (retreating slightly from this low at the time of writing). In addition to recent market volatility, the governor of the Bank of England has made it clear that, in his view, the UK's economic outlook has deteriorated as a result of the vote and some economic intervention is likely to be required in the near term. How these events might impact a company will depend on key factors including the number of transactions with EU-based customers and suppliers and the degree to which any downturn might impact demand for a company's products.