Professional Documents
Culture Documents
Going Concern-Presentation
Going Concern-Presentation
Auditors responsibility and collection of evidence on going concern Reporting of going concern
Period of Time Considered in Making a Going Concern Assessment - Whether 12 months from the Balance Sheet date or months
from the date the financial statements are published being preferred.
There may be circumstances in which it is appropriate to look further ahead. - Nature of Business
-Associated Risk in the business
Whether or not a company can be classed as a going concern affects how its financial statements are prepared. -usually prepared on the basis that the reporting entity is
a going concern -SLFRS 1 states that 'an entity should prepare its financial statements on a going concern basis - the entity is being liquidated or has ceased trading, or
-the directors have no realistic alternative but to liquidate the entity or to cease trading.'