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IFRS: Preparing financial statements when the going concern basis is not appropriate

Louise Kelly Louise Kelly

Both IAS 1 ‘Presentation of Financial Statements’ and IAS 10 ‘Events after the Reporting Period’ suggest that a departure from the going concern basis is required when specified circumstances exist.

Neither Standard however provides any details of an alternative basis of preparation and how it may differ from the going concern basis. Entities will therefore need to develop an appropriate basis of preparation. This IFRS Viewpoint addresses some of the issues that entities will face when doing so.