Proposals on financial reports and going concern published

News Article - 01 September 2008
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A consultation paper containing proposals to revise the guidance for directors of listed companies on financial reports and going concern has been published by the Financial Reporting Council (FRC).

Directors currently use guidance from a 1994 guide called Going Concern and Financial Reporting: Guidance for directors of listed companies registered in the United Kingdom, but the FRC are considering whether this guide is now outdated.

"In light of the current economic conditions we believe that it is timely to consider whether the guidance for directors on going concern remains appropriate, and whether it can be improved," said Paul Boyle, chief executive of the FRC.

Both the Financial Services Authority and the Irish Stock Exchange demand that directors compile a statement on the going concern status of their companies, along with the annual report.

The FRC says that the guidance will still exist, but developments in accounting standards and markets means that the guidance requires refreshment.

Because of this, changes have been kept to a minimum and the FRC are seeking the view of stakeholders to find out if greater changes are required.

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