PracticeAccounting FirmsCompany fears over FRC’s ‘going concern’ plan

Company fears over FRC’s ‘going concern’ plan

Companies are concerned FRC’s proposal to reveal significant doubts whether a business was a going concern

Companies have expressed concern that extensive disclosures could unsettle
investors fololowing the
Fincance Reporting
Council
’s proposal that directors should lay out clearly any significant
doubts over whether a business was a going concern.

‘We’re wary about rushing on such a key area,’ John Pierce,
Quoted
Companies Alliance
chief executive, told the Financial Times. ‘We
are studying it to determine whether it means a change in substance or in form.

‘If substance, then it could have all sorts of unintended consequences and
perhaps precipitate the demise of a business that, without veiled warnings,
could pull through.’

Some experts question the need for a fourth category in the updated guidance.
‘They could just use the new tougher language and replace the middle one – it’s
not clear why a fourth one is needed,’ Steve Priddy of the
Association of Chartered
Certified Accountants
, said.

Further reading:

Companies urged to clarify risks of failure

Read
the Financial Times story

Related Articles

Sexual harassment – is accountancy next for #MeToo?

Accounting Firms Sexual harassment – is accountancy next for #MeToo?

3d Karen Baxter, Lewis Silkin
Johnston Carmichael CEO appointed as ICAS president

Accounting Firms Johnston Carmichael CEO appointed as ICAS president

4w Emma Smith, Managing Editor
British Accountancy Awards 2018 – entries open!

Accounting Firms British Accountancy Awards 2018 – entries open!

1m Emma Smith, Managing Editor
Is the accountancy sector facing an international talent crisis?

Accounting Firms Is the accountancy sector facing an international talent crisis?

1m Lewis Silkin
RSM appoints new Chief Operating Officer

Accounting Firms RSM appoints new Chief Operating Officer

2m Alia Shoaib, Reporter
RSM announces 11 partner promotions

Accounting Firms RSM announces 11 partner promotions

2m Emma Smith, Managing Editor
BDO hires former AstraZeneca creative director as head of digital and innovation

Accounting Firms BDO hires former AstraZeneca creative director as head of digital and innovation

2m Emma Smith, Managing Editor
What does the future hold for listed accountancy firms?

Accounting Firms What does the future hold for listed accountancy firms?

2m Fergus Payne, Lewis Silkin