The AASB and AUASB have recently released a new publication which highlights the impact of COVID-19 on Going Concern and related assessments as well as an overview of directors’ and management’s:
- duties in relation to assessments of solvency and going concern, how these concepts interact and how these may be impacted by COVID-19; and
- responsibilities to assess whether the going concern basis of preparation is appropriate and how this impacts the preparation of and the disclosures in their financial statements.
Whilst the focus of the document is on the impact of COVID-19 on solvency and going concern assessments, it is also relevant for other circumstances where solvency and/or going concern issues arise.
To view the AASB/AUASB publication, click here