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Accountants use going business principles to determine what types of reporting should come along on financial statements.
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Mini- case: going- business reporting.
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Ias 1 presentation of financial statements requires management to appraise a company's power to continue equally a going concern.
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What should a company report as a going concern?
Accountants use going concern principles to decide what types of reporting should appear on financial statements. Companies that are a going concern may defer reporting long-term assets at current value or liquidating value, but rather at cost.
What does it mean for a company to no longer be a going concern?
If a company is no longer a going concern, it must start reporting certain information on its financial statements. Negative trends that lead to no longer being a going concern include denial of credit, continued losses, and lawsuits.
What are the conditions that lead to substantial doubt about a going concern?
Conditions of a Going Concern. Conditions that lead to substantial doubt about a going concern include negative trends in operating results, continuous losses from one period to the next, loan defaults, lawsuits against a company and denial of credit by suppliers.
What are going concern principles?
Accountants use going concern principles to decide what types of reporting should appear on financial statements. Companies that are a going concern may defer reporting long-term assets until a more appropriate time, such as in an annual report, as opposed to quarterly earnings.
Last Update: Oct 2021
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19.10.2021 10:32
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