IAS 10Chapter 4Lesson 1
Going concern after the reporting period
Step 1 of 8Learning objectives
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If, after the reporting date, management decides to liquidate the entity or to cease trading, or has no realistic alternative but to do so, the financial statements are not prepared on a going concern basis. A later deterioration may require this assumption to be reconsidered; if it is no longer appropriate, the whole basis of accounting changes, not just a few amounts.
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Learning objectives
- Assess whether a decision, or the lack of a realistic alternative, after the reporting date rules out going concern.
- Identify later situations that require going concern to be reconsidered and the related disclosures.