FRC issues 'going concern' update for small biz
FRC says FRSSE update is only issued as guidance and will not put small companies under a heavier reporting workload.
FRC says FRSSE update is only issued as guidance and will not put small companies under a heavier reporting workload.
The FRC has taken steps to head off a deluge of businesses issuing going
concern warnings by releasing an update to the standards governing small
companies.
The regulator stressed the Financial Reporting Standard for Smaller Entities
update was issued as guidance and would not put small companies under a heavier
reporting workload.
The FRC said: ‘The effect of current market conditions on individual entities
requires careful evaluation. However, it should not be assumed that the general
economic situation at the present time of itself means that a material
uncertainty exists about a company’s ability to continue as a going concern.’
However, the FRC stressed that companies use of the going concern basis of
accounting involved making judgments, at a particular point in time, about
future events which ‘are inherently uncertain. Those judgments are valid only at
the date of approval of the annual accounts.’
‘The fact that directors prepare accounts on a going concern basis is not
intended to and does not guarantee that a company will continue in existence
until the next annual accounts are published or even until the next balance
sheet date.’
More about:
The numbers you crunch tell a story. Your expertis...
15yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe accountancy industry has been hit by several exam cheating cases over the last few years Read More...
View articleSir Donald Brydon’s report into the quality and effectiveness of audit was published at the end of 2019, and in it, Brydon tackles the issues of the a...
View articleThe FRC has issued revised ethical and auditing standards in an effort to strengthen auditor independence and ban conflicts of interest. Read More...
View article75% of FTSE 350 audits assessed as good or requiring limited improvements, failing to meet the FRC's 90% target Read More...
View articleComments and push-back from accountants led to the change in FRS102 which gives an exemption on director’s loans, according to Steve Collings. Read Mo...
View articleRichard Murphy, chartered accountant and founder and director of Tax Research UK, says the Kingman report into the FRC failed to address much-needed r...
View articleThe recent £4m fine issued to Grant Thornton is a wake-up call to aspiring independent non-executive board members, who must be demonstrably independe...
View articleBetween the years 2012-2016, membership of UK & Ireland accounting bodies grew by 3.2% worldwide and 2.4% in the UK & Ireland, according to th...
View article