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WorkpaperIAS 10 — Events after the Reporting PeriodL2 · L3 · L4

Going concern: assessment up to the authorisation date

2 missions8 sections to document40 min

Prepared by: AI-assisted draft
Reviewed by: Not reviewed — human review required
Status: Published

Objective of the workpaper

List the decisions of the governing bodies and the adverse events that occurred after the reporting date up to the authorisation date, compare cash needs with the financing available, conclude on the basis of preparation of the financial statements (intention, or no realistic alternative but, to liquidate or to cease trading) and on the update of disclosures about conditions existing at the reporting date.

8 sections · 17 blocks · 0 calculations · 0 entries

IAS 10 §14
IAS 10 §15
IAS 10 §16
IAS 10 §19
IAS 10 §20

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File and entity

Plant fire and plan to discontinue a business after the reporting date: going concern and disclosures

Case tasks documented here

Can the 20X5 statements be prepared on a going concern basis?
What should be done with the lawyer's letter?

1

Inputs

Inputs

Entity's situation at the reporting date (activities, results, financing)
TextRequired
TWO_BUSINESSES_SPINNING_PROFITABLE
Decisions of the governing bodies after the reporting date
TextRequired
WEAVING_DISCONTINUED_SPINNING_KEPT
Adverse events after the reporting date
TextRequired
FIRE_14_FEBRUARY_20X6_AND_EMPLOYEE_CLAIM
Cash forecast horizon (months)
Number
18 months
Case data: the horizon is given by the case; it is not set by IAS 10.
Confirmed financing available
Number
2,000,000
Forecast cash needs over the horizon
Number
700,000
Cash headroom (financing − needs)
Number
1,300,000

2

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

3

Going concern assessment

Analysis

IAS 10 §14IAS 10 §15

Points reviewed
ChecklistRequired
- Decisions and events considered up to the authorisation date
- Intention to liquidate or to cease trading
- No realistic alternative
- Later deterioration: going concern assumption reconsidered
- Assumption no longer appropriate: fundamental change in the basis, not a mere adjustment

4

Update of disclosures

Analysis

IAS 10 §19IAS 10 §20

Points reviewed
ChecklistRequired
- New information about a condition existing at the reporting date
- Update even without effect on amounts (contingent liability)

5

Conclusions

Judgment

IAS 10 §14IAS 10 §15IAS 10 §19

Basis of preparation of the financial statements
JudgmentRequired
Going concern assumption appropriate
Going concern assumption appropriate / Going concern assumption not appropriate
Management's professional judgement based on the facts of the case; disclosures of material uncertainties fall under IAS 1 (IAS 10, para. 16, wording before IFRS 18).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
NO_INTENT_TO_LIQUIDATE_REALISTIC_ALTERNATIVE_FINANCED
Is an update of disclosures required?
JudgmentRequired
Yes, disclosures to update
Yes, disclosures to update / No
Rationale: facts relied on, analysis, alternative rejected
TextRequired
EMPLOYEE_CLAIM_NOW_QUANTIFIED

6

Disclosures

Disclosure

IAS 10 §16IAS 10 §19

Points reviewed
ChecklistRequired
- Disclosures updated in the light of the new information
- IAS 1 going concern disclosures (reference in IAS 10, para. 16)
The disclosures themselves fall under IAS 1 and are not taught here. Wording before IFRS 18: the reference to IAS 1 may be amended for periods beginning on or after 1 January 2027 (new wording not taught).

7

Conclusion

Conclusion

Reasoned conclusion on going concern and disclosures
ConclusionRequired

8

Normative references

References

Normative references
References

9

Checks and financial statement impact

Going concern conclusion documentedPass
Update reviewedPass

Assets: 0
Liabilities: 0
Profit or loss: 0
OCI: 0
Equity: 0

File and entity

Review file of the events after the reporting period of an industrial group

Case tasks documented here

Is the going concern basis still appropriate?
Prepare the IAS 10 disclosures and record the findings on the draft notes.

1

Inputs

Inputs

Entity's situation at the reporting date (activities, results, financing)
TextRequired
PROFITABLE_GROUP_COVENANT_BREACH_AT_YEAR_END
Decisions of the governing bodies after the reporting date
TextRequired
ACQUISITION_DIVIDEND_AND_BREVANNES_CLOSURE
Adverse events after the reporting date
TextRequired
FLOOD_RECEIVERSHIP_AND_MARKET_FALL
Cash forecast horizon (months)
Number
18 months
Case data: the horizon is given by the case; it is not set by IAS 10.
Confirmed financing available
Number
15,000,000
Forecast cash needs over the horizon
Number
9,500,000
Cash headroom (financing − needs)
Number
5,500,000

2

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

3

Going concern assessment

Analysis

IAS 10 §14IAS 10 §15

Points reviewed
ChecklistRequired
- Decisions and events considered up to the authorisation date
- Intention to liquidate or to cease trading
- No realistic alternative
- Later deterioration: going concern assumption reconsidered
- Assumption no longer appropriate: fundamental change in the basis, not a mere adjustment

4

Update of disclosures

Analysis

IAS 10 §19IAS 10 §20

Points reviewed
ChecklistRequired
- New information about a condition existing at the reporting date
- Update even without effect on amounts (contingent liability)

5

Conclusions

Judgment

IAS 10 §14IAS 10 §15IAS 10 §19

Basis of preparation of the financial statements
JudgmentRequired
Going concern assumption appropriate
Going concern assumption appropriate / Going concern assumption not appropriate
Management's professional judgement based on the facts of the case; disclosures of material uncertainties fall under IAS 1 (IAS 10, para. 16, wording before IFRS 18).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
NO_INTENT_TO_LIQUIDATE_WAIVER_OBTAINED_FINANCING_CONFIRMED
Is an update of disclosures required?
JudgmentRequired
Yes, disclosures to update
Yes, disclosures to update / No
Rationale: facts relied on, analysis, alternative rejected
TextRequired
ENVIRONMENTAL_CLAIM_NOW_QUANTIFIED

6

Disclosures

Disclosure

IAS 10 §16IAS 10 §19

Points reviewed
ChecklistRequired
- Disclosures updated in the light of the new information
- IAS 1 going concern disclosures (reference in IAS 10, para. 16)
The disclosures themselves fall under IAS 1 and are not taught here. Wording before IFRS 18: the reference to IAS 1 may be amended for periods beginning on or after 1 January 2027 (new wording not taught).

7

Conclusion

Conclusion

Reasoned conclusion on going concern and disclosures
ConclusionRequired

8

Normative references

References

Normative references
References

9

Checks and financial statement impact

Going concern conclusion documentedPass
Update reviewedPass

Assets: 0
Liabilities: 0
Profit or loss: 0
OCI: 0
Equity: 0

1

Inputs

Inputs

Entity's situation at the reporting date (activities, results, financing)
TextRequired
Decisions of the governing bodies after the reporting date
TextRequired
Adverse events after the reporting date
TextRequired
Cash forecast horizon (months)
Number
Case data: the horizon is given by the case; it is not set by IAS 10.
Confirmed financing available
Number
Forecast cash needs over the horizon
Number
Cash headroom (financing − needs)
Number

2

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

3

Going concern assessment

Analysis

IAS 10 §14IAS 10 §15

Points reviewed
ChecklistRequired
- Decisions and events considered up to the authorisation date
- Intention to liquidate or to cease trading
- No realistic alternative
- Later deterioration: going concern assumption reconsidered
- Assumption no longer appropriate: fundamental change in the basis, not a mere adjustment

4

Update of disclosures

Analysis

IAS 10 §19IAS 10 §20

Points reviewed
ChecklistRequired
- New information about a condition existing at the reporting date
- Update even without effect on amounts (contingent liability)

5

Conclusions

Judgment

IAS 10 §14IAS 10 §15IAS 10 §19

Basis of preparation of the financial statements
JudgmentRequired
Going concern assumption appropriate / Going concern assumption not appropriate
Management's professional judgement based on the facts of the case; disclosures of material uncertainties fall under IAS 1 (IAS 10, para. 16, wording before IFRS 18).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Is an update of disclosures required?
JudgmentRequired
Yes, disclosures to update / No
Rationale: facts relied on, analysis, alternative rejected
TextRequired

6

Disclosures

Disclosure

IAS 10 §16IAS 10 §19

Points reviewed
ChecklistRequired
- Disclosures updated in the light of the new information
- IAS 1 going concern disclosures (reference in IAS 10, para. 16)
The disclosures themselves fall under IAS 1 and are not taught here. Wording before IFRS 18: the reference to IAS 1 may be amended for periods beginning on or after 1 January 2027 (new wording not taught).

7

Conclusion

Conclusion

Reasoned conclusion on going concern and disclosures
ConclusionRequired

8

Normative references

References

Normative references
References