[Global Financial Insights] FRC Proposes Revised Guidance on Going Concern and Related Reporting and More

Global Financial Insights is a weekly feature for the Accounts and Audit Module subscribers of Taxmann.com. It provides you with the latest updates on financial reporting and auditing practices from across the globe. Here is this week’s financial update.

1. FRC Proposes Revised Guidance on Going Concern and Related Reporting

The Financial Reporting Council (FRC) is consulting on proposed revisions to its “Guidance on the Going Concern Basis of Accounting and Related Reporting, including Solvency and Liquidity Risk.” This draft Guidance aims to update the 2016 version, incorporating company law, accounting and auditing standards, listing rules, and the UK Corporate Governance Code.

The revised Guidance is designed to aid companies in conducting going concern assessments and preparing specific disclosures about their conclusions. It seeks to provide investors with insights into a company’s solvency and liquidity risks and plans. The draft includes updated factors and techniques for directors to consider in these assessments.
While the Guidance will be non-mandatory, it will apply to all companies within its scope, excluding small companies and micro-entities. The consultation period ends on 28 October 2024.

Source: Financial Reporting Council

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