The Conceptual Framework for Financial Reporting issued by the International Accounting Standards Board (IASB) includes the concept of going concern as an underlying assumption. At the time of preparing the fin
It is important that candidates understand that it is the responsibility of management to make an assessment of whether the use of the going concern basis of accounting is appropriate, or not, when they are preparing the financial statements. In order to conclude as to...
Representing more than 220,000 members, CPA Canada is one of the largest national accounting bodies worldwide. Find out more at: www.cpacanada.ca 3 CLOSING THE EXPECTATION GAP IN AUDIT – THE WAY FORWARD ON FRAUD AND GOING CONCERN: A MULTI-STAKEHOLDER APPROA...
GOING CONCERN Photo by: absolutOne of the most basic accounting assumptions is the concept that a business is a going concern. Unless there is significant evidence to the contrary, it is assumed that a specific business enterprise will continue to operate for an indefinite period, or at least ...
The results also suggest that managers have higher “substantial doubt” thresholds than auditors, and their perceptions regarding the fairness of the going concern standard also influence their decisions about disclosures of going concern issues.
‘Going concern’ is an accounting term. Thegoing concern principleis the assumption that the business will continue operating successfully for at least the next year. Conversely, people do not expect it to cease trading or liquidate its assets, at least over the near term. ...
Absence of going concern means that the company will disappear within twelve months at latest. This means a lot for financial reporting. The next accounting period is assumed to be the last; accordingly: a. the company will cease trading, therefore, all assets will be liquidated and all liabil...
Going-Concern Assumption: The going-concern assumption is one of the Generally Accepted Accounting Principles (GAAP) that is used in financial reporting. The going-concern assumption assumes that the company in question intends to operate in perpetuity. ...
Ms Tokar is a highly-respected figure in the field of international financial reporting. She has served for more than 10 years as the global leader for KPMG’s International Financial Reporting Group, leading KPMG’s dialogue with the global accounting regulatory and standard-setting communities. Ms...
1. This Hong Kong Standard on Auditing (HKSA) deals with the auditor’s responsibilities in the audit of financial statements relating to management’s use of the going concern assumption in the preparation of the financial statements. Going Concern Assumption ...