IAS 1 Presentation of Financial Statements: Disclosures requirements about assessment of going concern
IAS 1 Presentation of Financial Statements includes guidance on when financial statements should be prepared on a going concern basis. It also requires that when management are aware of material uncertainties about the entity’s ability to continue as a going concern, those uncertainties shall be disclosed. This project aims to make this guidance clearer about when these disclosures are required, and what information should be given when the disclosures are made.
At its meeting in November 2013 the IASB discussed the issue and considered amendments proposed by the staff, but decided not to proceed with these amendments. At the March 2014 meeting of the Interpretations Committee some members expressed concern about the IASB’s decision not to proceed and discussed a proposed agenda decision to remove this topic from the agenda of the Interpretations Committee. The purpose of this agenda decision was to close the loop by acknowledging the topic’s removal from the IASB’s agenda. This agenda decision was finalised at the July 2014 meeting of the Interpretations Committee.