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IAS 1 — Going concern disclosure

Date recorded:

The Committee considered a request a request on whether the disclosures required by IAS 1 Presentation of Financial Statements on 'material uncertainties related to events or conditions that may cast a significant doubt upon the entity's ability to continue as a going concern' should be enhanced.

Committee members, especially those in public practice, noted that subtle differences in the manner in which similar requirements in International Auditing Standards and IFRSs were expressed had the potential for disclosures considered necessary by the auditor might be omitted by management yet the financial statements could still claim compliance with IFRSs.

In a short debate, the Committee noted the auditors' predicament, but thought that the principles in IAS 1 in general, and the requirements of IAS 1.25 in particular were sufficiently clear and that an Interpretation was not necessary, nor was this a topic that should be referred to the IASB for inclusion in the 2009-2011 cycle of Annual Improvements. A tentative Agenda Decision will be published in the forthcoming IFRIC Update.

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