LORD SHARMAN‘s conclusions on going concern are to be applauded. The system we have has long since been problematic and not nearly nuanced enough.
In a report this week Going Concern and Liquidity Risks he concludes that the current system is too “binary” – a company is a going concern or it isn’t.
That doesn’t nearly cover all the possibilities. After all, a business may be deemed a going concern for the purposes of reporting, but may indeed face serious difficulties that stakeholders should know about. Hence the need for more information and in different forms.
A more nuanced approach should also mean that disclosures can be made without becoming the killer blow that causes a company to collapse. This is why the all or nothing approach of the current going concern regime is inadequate. The International Accounting Standards Board has to listen because accountants and company directors really do need a better system.
PwC has been hit with a £2.3m fine by the accountancy watchdog over its audits of the financial statements of Cattles and Welcome Financial Services Limited
KPMG has retained its position as the listed company auditor, according to the latest Adviser Rankings.
We discuss the Accountancy Age Top 50+50 supported by Sage; growth at Menzies; and the provision of value-added services
While everyone values audit quality highly we must be be careful that we don’t let it deter talent. We need to guard against its commoditisation and the threat to a unitary profession