This publication from Deloitte (UK) provides a summary of the Sharman panel final report and recommendations about the lessons to be learned for companies and auditors in addressing going concern and liquidity risks.

The Panel has reached two key conclusions: 

• The primary purpose of the going concern assessment and reporting should be to reinforce responsible behaviour in the management of going concern risks; and 
• the going concern considerations made by directors and reviewed by auditors should cover both solvency and liquidity and these should be considered over the cycle, taking an appropriately prudent view of future prospects. 

The report recommends five areas of activity for the Financial Reporting Council (FRC) to take forward.

1. Seek to agree a common international understanding of the purposes of the going concern assessment and financial statement disclosures about going concern;
2. Review the 'Guidance for Directors' to ensure that the going concern assessment is integrated with the directors business planning and risk management processes;
3. Integrate going concern reporting with the 'Effective Company Stewardship' proposals;
4. Enhance the role of the auditor; and 
5. Take a more systematic approach to learning lessons when significant companies fail or suffer significant financial or economic stress but nonetheless survive

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