• Register
Return to: Home > News > Regulation > ACCA warns of going concern proposal complexity

ACCA warns of going concern proposal complexity

The Association of Chartered Certified Accountants (ACCA) has said smaller companies may find proposed guidance on assessing and reporting going concern difficult to implement.

ACCA head of corporate governance and risk management Paul Moxey said the draft proposal, issued by the UK Financial Reporting Council (FRC), was "crucial to all companies", but that it was oriented towards companies with "specialist audit and risk committees", rather than smaller businesses without.

Moxey noted the main point of a going concern assessment was to demonstrate a company's viability to shareholders, and to this end it would be better to see a set of good practice principles for all companies, supplemented by guidance for larger ones.

However, he warned against the risk of varied interpretations of the guidance being used to give stakeholders a false sense of security, saying it may prove so complex it could "provide a smoke screen for any negligent party in a company failure to claim that they had fully complied."

Moxey added it was important to provide uniformity in "vital financial reporting", any scope for differing interpretations could lead to such a goal being undermined.

Related articles

FRC consults on Sharman panel recommendations

Sharman panel hands down 'going concern' recommendations

Related links

Association of Chartered Certified Accountants

Financial Reporting Council

Top Content

    Accountancy Europe: the winner takes it all

    Jonathan Minter spoke to Olivier Boutellis-Taft, chief executive officer at Accountancy Europe, about how technology could change the industry, and how training needs to keep up to enable the profession to develop

    read more

    Embracing global technology trends

    Accountancy Europe’s Digital Day 2018 found the European accounting profession looking to tackle the challenges presented by new technologies head on. Jonathan Minter reports from the day

    read more

    IMA Conference: automation of the audit

    At the annual conference of the Institute of Management Accountants (IMA) in Indianapolis, Deloitte partner Alex Smith gave a presentation on digital transformation in the profession. Joe Pickard spoke to Smith following the presentation to find out more about his views on the future of audit

    read more

    IMA Conference: technology and the human effect

    The annual conference of the Institute of Management Accountants (IMA) took place in Indianapolis this year. Members of the profession gathered to hear the latest from the institute and other market players, covering some of the challenges and opportunities the profession faces.

    read more

    The Caribbean: a digital paradise

    The ICAC hosted its 36th annual conference in June this year – very much looking to the future following a tough 2017 for the Caribbean. Jonathan Minter spoke with chief executive officer Misha Lobban Clarke

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.