CERTYNEX IFRS ACADEMY

In January, Vrairois loses a contract accounting for 60% of its revenue and builds up monthly losses. No decision to cease trading is taken. What must management do before authorising the accounts at 31 December?

Restate the prior-year accounts.

Provide at 31 December for the monthly losses expected for the following year.

Reconsider whether the going concern assumption is still appropriate.

Nothing: only formal liquidation decisions count for going concern.