Financial Accounting News

Brexit Uncertainty Complicates Bank Disclosures of Bad Debt

Jan. 23, 2019, 9:22 PM

The economic and political uncertainty over Brexit will make it harder for banks to estimate future credit losses as new accounting rules require.

“In many ways it’s a matter of disclosure and transparency, rather than of it being impossible to come up with a figure for likely credit losses,” Philippa Kelly, head of Financial Services at the Institute of Chartered Accountants in England and Wales, told Bloomberg tax by phone. The ICAEW on Jan. 23 published a report on the impact of Brexit on bad debt reporting.

Brexit complicated an already complex calculation of future credit losses, which involved...

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