CERTYNEX IFRS ACADEMY

Virgence runs a single licensed activity. In January, the authority permanently withdraws the licence; no conversion is possible and management concludes, before authorisation, that the activity will have to cease. What is the consequence for the accounts at 31 December?

None: the withdrawal of the licence is a non-adjusting event.

The decision is deferred to the following year's accounts.

Only the licence is written down, the going concern basis being kept for the rest of the accounts.

The going concern basis is ruled out for these accounts.