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The Grant Thornton International IFRS team has published COVID-19 – Going concern considerations.
The consequences of COVID-19 are expected to have a significant impact on the going concern assumption for a large number of entities. Some which were previously a going concern may no longer be. Many will need to apply significant judgment and be required to consider the impact of material uncertainties in assessing the entity’s ability to continue as a going concern.
Therefore, it is likely that the impact of COVID-19 will put added pressure on entities to disclose information for users that is relevant and useful in their financial statements. In respect of the entity’s ability to continue as a going concern, such disclosures relate to the following:
- Significant judgements and estimates made in management’s assessment;
- Any material uncertainties in existence;
- Management’s plans to address the material uncertainties that exist.
In addition, in accordance with Canadian Auditing Standard (CAS) 570 Going concern, an auditor is required to consider the adequacy of disclosures in relation to management’s assessment of going concern.
The publication COVID-19 – Going concern considerations discusses ways to improve entities’ going concern disclosures.
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Download the document alert_2020-09_covid-19_going-concern_aug-2020_prot
IFRS Adviser Alert | COVID-19 – Going concern considerations