Consultation on Guidance on the Going Concern Basis of Accounting and Related Reporting, including Solvency and Liquidity Risk
Published: 5 August 2024
Response deadline: 28 October 2024
| Title | Guidance on the Going Concern Basis of Accounting and Related Reporting Exposure Draft |
|---|---|
| Format | pdf, 482.1 KB |
The FRC is consulting on proposals for revised 'Guidance on the Going Concern Basis of Accounting and Related Reporting, including Solvency and Liquidity Risk' (the draft Guidance). This would replace the FRC’s existing Guidance on the Going Concern Basis of Accounting and Reporting on Solvency and Liquidity Risk, issued in 2016.
The draft Guidance brings together the requirements and provisions of company law, accounting standards, auditing standards, listing rules, the UK Corporate Governance Code and other regulation relating to reporting on the going concern basis of accounting and solvency and liquidity risks.
It is intended to help companies in performing going concern assessments and in preparing company-specific disclosures about their going concern conclusions and how they were reached. The process should allow investors to understand a company’s exposure to and plans to navigate solvency and liquidity risks.
It includes a revised range of factors and techniques directors could consider when performing going concern assessments.
The consultation closes on 28 October 2024.