The FRC recently published a short update to help directors of smaller companies with their thinking on assessing going concern. Most small companies may opt out of an audit and/or file abbreviated accounts at Companies House. However, they are still required to produce a full set of financial statements, for which they may use the Financial Reporting Standard for Smaller Entities (FRSSE). The FRSSE requires them to assess whether the use of the going concern basis of accounting is appropriate and to make disclosures of any material uncertainties. Whilst the full financial statements are not required to be filed, they may be given to customers, banks and others to allow business to continue.
For a press release, click here. Or for the full report, please click here.
