The FRC has published an exposure draft of its updated Guidance on the Going Concern Basis of Accounting and Related Reporting (including Solvency and Liquidity Risks), which was last issued in 2016.
Compliance with the guidance is not mandatory but it aims to be of practical help when reporting on a going concern basis. It brings together the requirements from various sources, including company law, the UKLRs, the UK Corporate Governance Code and accounting standards.
The areas on which the FRC is seeking views include the scope of the guidance, how directors approach the assessment process when considering the appropriateness of adopting a going concern basis of reporting, and whether the guidance is proportionate.
The consultation on the draft guidance closes on 28 October 2024 and the FRC says that it aims to publish the finalised guidance within 12 weeks of consultation. The final guidance, once published, will be available for use immediately (although the implementation dates for the various requirements to which it relates vary).
Key contacts
Disclaimer
The articles published on this website, current at the dates of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.