Adviser alert – IFRS Viewpoint – Preparing financial statements when the going concern basis is not appropriate (March 2017)
The Grant Thornton International IFRS team has published IFRS Viewpoint – Preparing financial statements when the going concern basis is not appropriate.
The IFRS Viewpoint series provides insights on applying IFRS in challenging situations. Each edition will focus on an area where the standards have proved difficult to apply or lack guidance.
This edition provides guidance on issues encountered when an entity determines that it is not appropriate to prepare its financial statements on a going concern basis.
Both IAS 1 Presentation of Financial Statements and IAS 10 Events after the Reporting Period suggest that a departure from the going concern basis is required when specified circumstances exist. Neither standard, however, provides any details of an alternative basis of presentation nor how it may differ from the going concern basis. Entities will therefore need to develop an appropriate basis of presentation. This IFRS Viewpoint addresses some of the issues that entities will face when doing so.
The publication IFRS Viewpoint – Preparing financial statements when the going concern basis is not appropriate follows this Adviser alert.
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