Client > Accounts Production > Statutory Database > All > Accounting Policies > Going Concern > Select from drop down and click Custom > Edit.
Check - Financial Statements > Accounting Policies > ensure the wording has pulled through correctly
Input the following wording for 2+ directors:
The directors, having made due and careful enquiry, are of the opinion that the company has adequate working capital to execute its operations over the next 12 months. The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
In arriving at this conclusion, the directors have given due consideration to the impact of the worldwide Covid-19 pandemic on future operations and the ability of the company to continue to operate as a going concern. The directors recognise that the situation remains highly fluid and as a result making accurate forecasts on the likely implications is difficult but the directors do recognise that trading over the coming months could potentially be adversely affected.
Despite this, the directors remain confident that the company can continue to operate as a going concern. This assessment is based on the understanding that the company will continue to trade over the coming months, albeit at a potentially reduced level from what was initially anticipated. This, along with government support measures that are available and the cash at bank will allow the company to continue to meet its obligations as they fall due and operate as a going concern.
As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.
Input the following wording for just 1 director:
The director, having made due and careful enquiry, is of the opinion that the company has adequate working capital to execute its operations over the next 12 months. The director, therefore, has made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
In arriving at this conclusion, the director has given due consideration to the impact of the worldwide Covid-19 pandemic on future operations and the ability of the company to continue to operate as a going concern. The director recognises that the situation remains highly fluid and as a result making accurate forecasts on the likely implications is difficult but the director does recognise that trading over the coming months could potentially be adversely affected.
Despite this, the director remains confident that the company can continue to operate as a going concern. This assessment is based on the understanding that the company will continue to trade over the coming months, albeit at a potentially reduced level from what was initially anticipated. This, along with government support measures that are available and the cash at bank will allow the company to continue to meet its obligations as they fall due and operate as a going concern.
As a result, the director has continued to adopt the going concern basis of accounting in preparing the annual financial statements.