The IFRS Foundation has published educational material intended to support companies in applying the going concern requirements of IFRS standards in the preparation of financial statements.
Noting that companies preparing financial statements using IFRS Standards are required to assess their ability to continue as a going concern, they say that in the current stressed economic environment arising from the covid-19 pandemic, deciding whether the financial statements should be prepared on a going concern basis may involve a greater degree of judgement than usual.
‘Going concern – a focus on disclosure’ looks at going concern and related requirements in IAS 1 ‘Presentation of Financial Statements’ and IAS 10 ‘Events after the Reporting Period’, and applying the requirements. The Foundation note that the material is published to support consistent application of IFRS Standards and brings together the requirements in IFRS Standards relevant for going concern assessments - it does not change, or add to, existing requirements.
For more information, and to access the material, see the press release on the Foundation's website.
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