Guidance on the Going Concern Basis of Accounting and Reporting on Solvency and Liquidity Risk
Published: 18 September 2023
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|Guidance on the Going Concern Basis of Accounting and Reporting on Solvency and Liquidity Risks
|18 April 2016
|PDF, 577.4 KB
On 18th April 2016, the FRC published Guidance on the Going Concern Basis of Accounting and Reporting on Solvency and Liquidity Risks. The guidance is intended to assist directors in applying the relevant requirements in accounting standards and company law, incorporating recent regulatory developments such as the introduction of new UK and Ireland GAAP and the Strategic Report.
The Guidance is for companies that do not apply the UK Corporate Governance Code. The guidance is not directed at small and micro companies as these are not required to prepare a Strategic Report. However, they may find it useful when assessing the use of the going concern basis of accounting and, in respect of small companies, when considering if any additional disclosures are necessary for the financial statements to give a true and fair view. Although directed primarily at companies, the guidance may also be useful in preparing the annual report of other entities.