This guide summarises management’s responsibilities for assessing going concern and the associated practical implications for financial reporting under IFRS.
Preparing financial statements
Financial statements are prepared on basis that a business will continue to operate for the foreseeable future ie, that it is a going concern. Our guidance outlines who is responsible for ensuring that the going concern basis is appropriate, offers practical advice on how to make this assessment, and explains the implications for the accounts.
Factors for preparers of micro-entity accounts to consider when doing a going concern assessment and the practical implications for financial reporting.
19 July 2020: When it comes to the 2020 accounts, the FRC is recommending companies provide full disclosure.
July 2020: the FRC publishes the key findings of its review of the financial reporting effects of Covid 19 for a sample of interim and annual reports and accounts with a March period end
June 2020: the FRC issues specific guidance on going concern, risk and viability disclosures.
June 2020: The FRC provides further practical advice to companies setting out the disclosures investors expect to see from companies during this time of uncertaint
Factors to consider when doing a going concern assessment and the practical implications for financial reporting.
A 20-minute webcast exploring the financial reporting implications of COVID-19 for micro-entities.
In this short webcast, ICAEW’s Financial Reporting Faculty provides an overview of the financial reporting implications of COVID-19.