Great Financial Statements Prepared On A Non Going Concern Basis Aged Trial Balance Of Accounts Receivable

Management intends to liquidate the entity cease trading or has no realistic alternative but to do so. June 2018 Our view The fact that a going concern basis is inappropriate does not automatically. The Companys financial statements have been prepared using the going concern basis of accounting. Neither Standard however provides any details of an alternative basis of preparation and how it may differ from the going concern basis. Financial statements that fact shall be stated. Applying paragraph 14 of IAS 10 the entity can no longer prepare its financial statements on a going concern basis and accordingly prepares its 2019 financial statements on an alternate basis non-going concern basis. Its 2018 financial statements on a going concern basis. When an entity does not prepare financial statements on a going concern basis it shall disclose that fact together with the basis on which it prepared the financial statements and the. Both IAS 1 Presentation of Financial Statements and IAS 10 Events after the Reporting Period suggest that a departure from the going concern basis is required when specified circumstances exist. An entity shall not prepare its financial statements on a going concern basis if management determines after the balance sheet date that it either intends to liquidate the entity or to cease trading or has no realistic alternative but to do so.

For instance when financial statements are prepared on a going concern basis a non-financial asset may be stated at an amount which is greater than its net realisable value provided that it is no greater than its recoverable amount. June 2018 Our view The fact that a going concern basis is inappropriate does not automatically. The example wording in this Guide has been adapted from the company examples in the FRCs. Financial statements might be prepared on a liquidation or break-up basis but sometimes this will be inappropriate. When an entity does not prepare financial statements on a going concern basis it shall disclose that fact together with the basis on which it prepared the financial statements and the reason why the entity. Neither Standard however provides any details of an alternative basis of preparation and how it may differ from the going concern basis. Both IAS 1 Presentation of Financial Statements and IAS 10 Events after the Reporting Period suggest that a departure from the going concern basis is required when specified circumstances exist. The Companys financial statements have been prepared using the going concern basis of accounting. Non-going concern The going concern basis of preparation is no longer appropriate. Going concern paragraph financial statements 8 The financial statements should not be prepared on a going concern basis when events after the reporting date indicate that the going concern assumption is no longer appropriate.

Neither Standard however provides any details of an alternative basis of preparation and how it may differ from the going concern basis. Our view The fact that a going concern basis is inappropriate does not automatically mean that a. Financial statements are usually prepared on the going concern basisThe auditor is required by ASA 570 ISA 570 to assess the risk of going concern problems at which stage of the audit. Going concern paragraph financial statements 8 The financial statements should not be prepared on a going concern basis when events after the reporting date indicate that the going concern assumption is no longer appropriate. If management has significant concerns about the entitys ability to continue as a going concern the uncertainties must be disclosed. The financial statements shall not be prepared on a going concern basis if the directors determine after the balance sheet date either that they intend to liquidate the entity or to cease trading or that they have no realistic alternative but to do so. Management intends to liquidate the entity cease trading or has no realistic alternative but to do so. An entity shall prepare financial statements on a going concern basis unless management either intends to liquidate the entity or to cease trading or has no realistic alternative but to do so. This guidance applies even if those events would otherwise be non-adjusting. An entity shall prepare financial statements on a going concern basis unless management either intends to liquidate the entity or to cease trading or has no realistic alternative but to do so.

If management has significant concerns about the entitys ability to continue as a going concern the uncertainties must be disclosed. Financial statements that fact shall be stated. An entity shall prepare financial statements on a going concern basis unless management either intends to liquidate the entity or to cease trading or has no realistic alternative but to do so. For instance when financial statements are prepared on a going concern basis a non-financial asset may be stated at an amount which is greater than its net realisable value provided that it is no greater than its recoverable amount. Applying paragraph 14 of IAS 10 the entity can no longer prepare its financial statements on a going concern basis and accordingly prepares its 2019 financial statements on an alternate basis non-going concern basis. When an entity does not prepare financial statements on a going concern basis it shall disclose that fact together with the basis on which it prepared the financial statements and the. Management intends to liquidate the entity cease trading or has no realistic alternative but to do so. IFRS does not prescribe the basis of accounting for an entity that is not a going concern. The Companys financial statements have been prepared using the going concern basis of accounting. The example wording in this Guide has been adapted from the company examples in the FRCs.

If management has significant concerns about the entitys ability to continue as a going concern the uncertainties must be disclosed. CThe planning stage and again during the. Both IAS 1 Presentation of Financial Statements and IAS 10 Events after the Reporting Period suggest that a departure from the going concern basis is required when specified circumstances exist. For example an entity might be placed in administration with liquidation or break-up being only one of the possible outcomes. Our view The fact that a going concern basis is inappropriate does not automatically mean that a. An entity shall not prepare its financial statements on a going concern basis if management determines after the balance sheet date that it either intends to liquidate the entity or to cease trading or has no realistic alternative but to do so. An entity shall prepare financial statements on a going concern basis unless management either intends to liquidate the entity or to cease trading or has no realistic alternative but to do so. Applying paragraph 14 of IAS 10 the entity can no longer prepare its financial statements on a going concern basis and accordingly prepares its 2019 financial statements on an alternate basis non-going concern basis. Neither Standard however provides any details of an alternative basis of preparation and how it may differ from the going concern basis. Management is responsible for assessing the Companys ability to continue as a going concern including whether the use of the going concern basis of accounting is appropriate.