FRC consults on Going Concern Guidance
The FRC has published some proposed revised guidance to help companies disclose principal risks and uncertainties within their strategic report, which may include risks that might impact solvency and liquidity.
On 5th August, the FRC published proposals for revised Guidance on the Going Concern Basis of Accounting and Related Reporting, including Solvency and Liquidity Risks.
The draft Guidance is intended to help companies prepare high-quality, company-specific disclosures about their going concern conclusions and how they were reached. This should allow investors to understand a company’s exposure to and plans to navigate solvency and liquidity risks.
The Guidance will be non-mandatory and is intended to be a proportionate and practical guide, and includes a revised range of factors and techniques directors could consider when performing going concern assessments.
The draft guidance brings together the requirements or provisions of company law, accounting standards, auditing standards, listing rules, the UK Corporate Governance Code and other relevant regulation.
The consultation closes on 28 October 2024, and the FRC expects to publish the final guidance in early 2025.
Published 8 August, 2024