Guidance on the Going Concern Basis of Accounting and Related Reporting (including Solvency and Liquidity Risks)
1 minute read
Introduction
On 25 February 2025, the Financial Reporting Council (FRC) published updated ‘Guidance on the Going Concern Basis of Accounting and Related Reporting, including Solvency and Liquidity Risks’ (the Guidance).
The 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.
The Guidance supports all UK companies except small companies and micro-entities.
This non-mandatory guidance serves as a proportionate and practical guide for companies within its scope to prepare high-quality, 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.
Current edition
| Name | Guidance on the Going Concern Basis of Accounting and Related Reporting (including Solvency and Liquidity Risks) |
|---|---|
| Publication date | 25 February 2025 |
| Type | Guidance |
| Format | PDF, 717.6 KB |
Previous editions
| Name | Guidance on the Going Concern Basis of Accounting and Reporting on Solvency and Liquidity Risks |
|---|---|
| Publication date | 18 April 2016 |
| Type | Guidance |
| Format | PDF, 577.4 KB |
| Name | Going Concern and Liquidity Risk: Guidance for Directors of UK Companies |
| Publication date | 15 October 2009 |
| Type | Guidance |
| Format | PDF, 384.0 KB |