CERTYNEX IFRS ACADEMY

After the reporting period, Vrarnys's board considers selling its businesses in the face of difficulties, but an investor has made a firm recapitalisation offer that management considers realistic. No decision to cease trading is taken. What should be concluded on the basis of preparation?

The going concern basis may be kept: a realistic alternative to ceasing trading exists.

The going concern basis is kept only if the recapitalisation is paid before the reporting date.

The choice of basis is deferred until the investor decides, without authorising the accounts.

The going concern basis must be abandoned as soon as the board considers selling its businesses.