IOSCO statement on going concern and COVID-19
25 March 2021
The International Organization of Securities Commissions (IOSCO) has released a
statement on the need for high-quality information regarding going concern
assessments and disclosures during the COVID-19 pandemic.
The statement stresses that the responsibility for developing and maintaining
high-quality standards lies with the IASB and especially welcomes the recent
IASB educational material on the topic of going concern
disclosures as the topic is likely to be relevant for a larger
number of public companies for 2020 and 2021 financial reporting periods in many
jurisdictions.
IOSCO highlights that is important for investors to receive high-quality information
about the existence of material uncertainties that may cast significant doubt on an
entity’s ability to continue as a going concern. IOSCO also notes that it is
important for investors to receive complete information about significant judgements
that management may have exercised in determining the entity’s ability to continue
as a going concern.
In conclusion, IOSCO reminds issuers, audit committees, and external auditors of the
important role each plays in providing investors with high-quality, reliable,
timely, and transparent financial information, especially in times of heightened
uncertainty.
Please click to access the full
statement on the IOSCO website.