Last night’s decision on the UK referendum on Europe caught many by surprise; capital markets have reacted negatively, and we can expect them to continue to reflect uncertainty in the short term.

The withdrawal process could be a long and complex one, spanning a number of years, and the knock-on effect in Europe is hard to predict.

“Clearly, the UK, Europe, and many other parts of the world will be operating in a period of considerable uncertainty. The accountancy profession will have an important role to play in the myriad issues that will need to be addressed,” said Fayezul Choudhury, IFAC Chief Executive Officer.

IFAC recognizes that the effects of these issues will be pervasive:

• for companies addressing short-term risks and thinking through their longer-term plans;
• for regulators as they overlay the implications of recent developments on an already complex and fragmented regulatory environment;
• for capital markets as they seek to regain stability and an orderly process; and
• for governments as they realign public policies, particularly in significantly affected areas, such as taxation.

IFAC has consistently advocated for the importance of global cooperation and coordination, and of the need for governments to work together to support a strong, sustainable global economy. Regulatory cooperation and consistency, enhanced public sector financial management and transparency, the adoption and use of globally accepted, high-quality standards, and commitments to work together to address taxation matters are fundamental to finding solutions and outcomes that benefit all of society.

“IFAC has always stressed that governments, businesses, and the regulatory community across the globe must work together, cooperatively, to respond to the challenges being faced by our interconnected financial markets and economies,” said Mr. Choudhury. "Brexit makes this collaborative approach all the more vital, and the global accountancy profession must be engaged in bringing its experience and expertise to bear in many of the areas where work will be needed.”

About IFAC^®
IFAC is the global organization for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

The International Auditing and Assurance Standards Board^® (IAASB^®)’s new ISA^® 701, Communicating Key Audit Matters in the Independent Auditor's Report, and other revised standards designed to enhance auditor’s reports for investors and other users of financial statements, have been published in French.

The other revised standards consist of:

• ISA 260 (Revised), Communication with Those Charged with Governance;
• ISA 570 (Revised), Going Concern;
• ISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements; and
• ISA 706 (Revised), Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor's Report

In addition, three other French translations of International Standards on Auditing^® were published: ISA 800 (Revised), Special Considerations─Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks, ISA 805 (Revised), Special Considerations─Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement, and ISA 810 (Revised), Engagements to Report on Summary Financial Statements.

These standards are effective for audits of financial statements for periods ending on or after December 15, 2016.

The French translations were performed by the Chartered Professional Accountants Canada.

For an overview of translations of International Federation of Accountants^® (IFAC^®) publications, please visit the Translations Database.