20 May 2021
The Canadian Accounting Standards Board (AcSB) has released guidance on COVID-19 and the going concern assumption.
Going concern means an organisation has the resources to continue operating. These resources may include cash flows and/or access to financing to help fund operations. However, management needs to assess whether COVID-19-related events or conditions, either individually or collectively, may cast significant doubt on an organisation’s ability to continue as a going concern. In extreme cases, the going concern assumption may no longer be appropriate as a basis for the preparation of the organisation’s financial statements.
The AcSB has, therefore, released resources that include IFRS accounting and auditing considerations on its website.