PricewaterhouseCoopers has raised concerns about Northern Rock's interim report disclosures, warning that there was no guarantee the bank will be able to continue as a going concern unless a key approval is secured from Europe.
The troubled bank's auditor did not qualify the bank's half-year numbers, but said there was a 'material uncertainty' hanging over Northern Rock because the government's £25bn bailout had not been endorsed by the European Commission.
'The going concern assumption is dependent on the European Commission approving financing facilities provided by the Bank of England and HM Treasury.This outstanding approval indicates the existence of a material uncertainty which may cast significant doubt about the company’s ability to continue as a going concern,' said PwC.
In reaching its conclusion, the firm found fault with disclosures made in it half-year report.
'The condensed financial statements do not include the adjustments that would result if the company was unable to continue as a going concern,' PwC added.
You may also like
If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.
In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.