Wednesday, September 03, 2008
Rules to toughen on business viability
Directors of companies could have to disclose any significant doubts over whether the business really is a going concern under new rules.
Under current guidance, directors can reach one of three conclusions: that they are confident the business is a going concern; that they have some doubts but are content to use 'going concern'; or that the business is not viable.
Going concern is a judgement that the business is financially viable for 12 months.
The Financial Reporting Council is proposing an overhaul that would require directors to disclose if they have identified material uncertainties that may cast doubt about the ability of the company to continue as a going concern.
DATED: 03.09.08
FEED: AM
Under current guidance, directors can reach one of three conclusions: that they are confident the business is a going concern; that they have some doubts but are content to use 'going concern'; or that the business is not viable.
Going concern is a judgement that the business is financially viable for 12 months.
The Financial Reporting Council is proposing an overhaul that would require directors to disclose if they have identified material uncertainties that may cast doubt about the ability of the company to continue as a going concern.
DATED: 03.09.08
FEED: AM
