Educational material on going concern requirements
Jan 13, 2021
On January 13, 2021, the IFRS Foundation issued educational material, "Going concern — a focus on disclosure", which intends to supports companies in its implementation of the requirements related to the preparation of financial statements using IFRS Standards on a going concern basis.
IAS 1 requires management to make an assessment of an entity's ability to continue as a going concern. If management has significant concerns about the entity's ability to continue as a going concern, the uncertainties must be disclosed. In the current stressed economic environment arising from the covid-19 pandemic, deciding whether the financial statements should be prepared on a going concern basis may involve a greater degree of judgement than usual.
Review the press release and publication on the IASB’s website.
