Fun Going Concern Financial Statements

However the staff continued to support the Committees analysis that an entity that is no longer a going concern cannot prepare financial statements including those for prior periods applying IAS 1014.

Going concern financial statements. The Companys financial statements have been prepared using the going concern basis of accounting. It would be inappropriate to prepare financial statements for a prior period on a non-going concern when it is known that the entity continued as a going concern for the next reporting period. Australian accounting standards require an entitys board to assess whether the company can continue operating for the foreseeable future and at least the next 12 months before they prepare their accounts on a going concern basis.

Going Concern Evaluation Items. The NBA owners are set to officially lock out the players tonight at midnight and the strangest piece of information and some say the cause of the ownerplayer beef is highlighted in Tommy Craggs post which is known as roster depreciation. The auditor evaluates an entitys ability to continue as a going concern for a period not greater than one year following the date of the financial statements being audited.

Certain expenses and assets may be. The use of the going concern. Income Statement The Income Statement is one of a companys core financial statements that shows their profit and loss over a period of time.

Going concern is an accounting term for a company that is financially stable enough to meet its obligations and continue its business for the foreseeable future. However IAS 1 also contains overarching requirements that would require additional information regarding an entitys ability to continue as a going. An entity should take into account all available information about the future which generally is at least but is not limited to twelve months from the date the financial statements are issued.

Going concern disclosure The financial statements should not be prepared on a going concern basis where events after the reporting date indicate that the going concern assumption is no longer appropriate para 14 of MFRS 110 EventsAfter the Reporting Period. Financial statements shall be prepared 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. The auditor considers among other issues the following items in deciding if there is a substantial doubt about an entitys ability to.

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. Under IFRS financial statements are prepared on a going concern basis unless management either intends to liquidate the entity or to cease trading operations or has no realistic alternative but to do so paragraph 25 of IAS 1 Presentation of Financial Statements. The concept of going concern is an underlying assumption in the preparation of financial statements hence it is assumed that the entity has neither the intention nor the need to liquidate or curtail materially the scale of its operations.