AM Online

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.

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Login to comment


No comments have been made yet.