The going concern horizon: at least twelve months

Learning objectives

• Identify the minimum period into the future that management considers.L2
• Distinguish the reporting period from the time horizon of the going concern assessment.L2

Normative references

• IAS 1 §26In assessing the going concern assumption, management takes into account all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period; an entity with a history of profitable operations and ready access to financial resources may reach its conclusion without detailed analysis, whereas others must consider profitability, debt repayment schedules and potential sources of replacement financing.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

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