FCA & FRC's Revised Guidance on Going Concern Basis
Consultation on Updated Guidance
The Financial Reporting Council (FRC) has released a consultation for revised Guidance on the Going Concern Basis. The consultation focuses on bringing together the requirements and provisions from company law, accounting standards, and auditing. The FRC clarifies that the accounting and auditing standards for going concern have not been revised.
Measures for Companies
The Financial Conduct Authority (FCA) and FRC remind companies of the available measures to help them in these challenging times. These measures include the Principles of the Code, which premium listed companies should adhere to in line with the FCA Listing Rules.
Updates to Guidance
The updated Guidance replaces the current guidance, which was published eight years ago. It provides a non-prescriptive framework for assessing the continuing viability and an extended overview of factors and events that could challenge the going concern assumption.
The FRC also published a thematic review of the IFRS 17 disclosures provided by UK insurers, yielding valuable insights to enhance the quality and transparency of financial reporting.
Conclusion
The revised Guidance serves as an essential tool for companies and their stakeholders, emphasizing the importance of continually assessing going concern and providing a framework to ensure robust financial reporting. The FCA and FRC's commitment to promoting transparency and supporting companies during these challenging times is a testament to their ongoing efforts to foster a resilient and sustainable financial system.
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