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IFRS Foundation: Updated Going Concern educational material
- 22 May 2025
- Financial Reporting
- South African Accounting Academy
Summary:
The IFRS Foundation has published an updated version of its educational material to support the consistent application of IFRS Accounting Standards related to going concern assessments – with a focus on disclosure.
Article:
Companies preparing financial statements using IFRS Accounting Standards are required to assess their ability to continue as a going concern. This educational material brings together the relevant requirements and explains how they might apply to a range of company situations. It is designed to support understanding and consistent application of the Standards but does not change or add to existing requirements.
Originally published in 2021, the educational material has been updated to reflect recent developments—most notably, the International Accounting Standard Board’s issuance of IFRS 18 Presentation and Disclosure in Financial Statements.
The updated educational material also removes outdated references to the International Auditing and Assurance Standards Board (IAASB) and its project on Going Concern. In December 2024, the IAASB approved International Standard on Auditing (ISA) 570 (Revised 2024), Going Concern, which is now referenced in the updated educational material.
Click here to download the 4-page document:
Relevance to Auditors, Independent Reviewers & Accountants:
- As an auditor and independent reviewer, you need to comply with International Standards on Auditing and other Assurance Services, and thus you need knowledge of newly revised standards that are approved as well as when they become effective.
- Failure to adhere to ISAs may be interpreted as negligence and you could be held liable.
- As an auditor and independent reviewer, you should be aware of new standards and publications (like guidance and support materials) issued by the standard-setting bodies, e.g. the IAASB – especially in respect of going concern.