The impact of COVID-19 is expected to have a significant impact on the going concern assumption for a large number of entities. Some entities which were previously a going concern may no longer be. Many entities will need to apply significant judgement and will 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 the impact of COVID-19 will put added pressure on entities to disclose in their financial statements information for users that is relevant and useful. In respect of the entity’s ability to continue as a going concern:
- significant judgements and estimates made in management’s assessment
- any material uncertainties in existence
- management’s plans to address the material uncertainties that exist.
This publication discusses ways to improve entities' going concern disclosures.
If you would like to discuss any of the topics raised please contact us.