Financial reporting frameworks generally require the adoption of the going concern basis of accounting in financial statements unless management intends to liquidate, cease trading or has no other realistic alternative. When there are material uncertainties about whether the entity will be able to continue as a going concern, these uncertainties need to be disclosed in the financial statement.
In the wake of international business collapses, regulators and standard setters around the world are exploring whether enough is being done to publicly disclose material uncertainties around going concern. CPAB is exploring how auditors, audit committees and management can better apply best practices and will publish findings in 2020.