Even though auditors have been required by the operative standard to assess the adequacy of note disclosures regarding going concern
uncertainties, the lack of an explicit financial reporting standard led to variations in the timing, nature, and extent of disclosures in practice.
367(a) and (d) with respect to foreign goodwill and going concern
During the performance of review or compilation procedures, evidence or information may come to the accountant's attention that indicates an uncertainty regarding the client's ability to continue as a going concern
for a reasonable period of time, generally not to exceed one year beyond the date of the reviewed or compiled financial statements.
It said that, without timely access to additional financing, there is significant doubt as to the company's ability to continue as a going concern
Auditors have been accused of failing to flag going concern
doubts - and the lack of going concern
warnings for banks that got into trouble in the 2007-2009 global credit crisis has triggered calls for the original proposals to be revisited.
The new policy will allow SBA lenders to hire qualified real property appraisers to perform going concern
appraisals of special-purpose properties in lieu of obtaining a second business valuation or carrying a business valuation designation.
There is a point on the real estate/business value continuum where many real estate appraisers will draw a line and determine that the property type should not be valued as a going concern
by real estate appraisers.
Accountants use the 'going concern
' term to refer to a company which has sufficient resources to continue to operate indefinitely, thereby shrugging off any potential failure risks.The small-sized microfinance bank sunk deeper into a pretax loss of S2.44 million in the year ended last December from Sh24.87 million a year earlier.
The going concern
assumption means that the company would remain in business for the foreseeable future without being forced to halt operations and liquidate its assets.
Benjamin Wiles, joint administrator at Duff & Phelps, said: "Following our appointment on May 4 2018, the joint administrators have continued to trade the business, allowing a period of time for us to market the business and assets for sale as a going concern
. We have explored a number of potential options, however no viable offers for the business as a going concern
have been received.
Both appraisers relied primarily on the income capitalization method, valuing the property as a going concern
, as likely purchasers of a nursing home would evaluate it.
If, however, an entity is not expected to continue operating as a going concern
and its liquidation is imminent, use of the liquidation basis of accounting is required for the preparation of financial statements to provide relevant information to investors about the expected resources available after liquidation.