Phil Fitz-Gerald outlines the key findings from the Financial Reporting Lab's reports on reporting in times of uncertainty and s172 disclosures.
Presentation of the statement is critical. Companies should consider how it fits within the context of stakeholder engagement and how the statement itself can provide context to other areas of the report.
Going concern is not a simple pass/fail concept – a company can report on a going concern basis despite material uncertainties existing. In the current environment, such situations will be more prevalent, and disclosure of these in conjunction with management’s considerations and conclusions will be highly valued by stakeholders.