This free, guided checker walks your finance team through the key decision points for IAS 1 Going Concern and Disclosure Assessment. Answer a few questions to see the likely treatment and the evidence to document.
Answer a few quick questions below. It is private - nothing is submitted or stored - and takes about a minute.
This tool is a high-level IFRS screening aid for general information only and is not accounting, audit or legal advice. Conclusions require entity-specific evidence and judgement - confirm the treatment with your advisor.
Here is what the checker asks and why each step matters. Prefer to talk it through? Contact us and we will help directly.
The assessment horizon may need to extend beyond twelve months when significant events fall just outside that period or when regulatory capital planning requires a longer view.
Prepare and approve a going-concern assessment covering at least twelve months from the end of the reporting period, as IAS 1.25-26 require.
Official guidance: IFRS issued standards
Use downside scenarios and evidence available through the authorization date, including recurring losses, net liability position, or adverse regulatory ratios.
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Official guidance: IFRS issued standards
Going concern is assessed for each reporting entity; a subsidiary may not be a going concern while the group remains so if support from the parent is legally and practically available.
Retain the assessment and monitor events through the authorization date per IAS 10.14-15; no material uncertainty is indicated on current evidence. Complete an IAS 1.25 assessment for each subsidiary reporting entity, evidencing any parent support relied upon, before finalizing its basis.
Official guidance: IFRS issued standards
Evaluate enforceability, timing, counterparty capacity, and management's ability to execute each action such as new financing, asset sales, or cost reductions.
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Official guidance: IFRS issued standards
Cost reductions, asset sales, and financing must be feasible and largely within control; unsupported intentions do not eliminate significant doubt under IAS 1.25.
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Official guidance: IFRS issued standards
A material uncertainty exists when the magnitude of the potential impact and the likelihood of occurrence make disclosure necessary for fair presentation. When it remains, IAS 1.25 requires disclosure of the uncertainty, and practice expects an explicit statement that a material uncertainty may cast significant doubt on the ability to continue as a going concern. A close call - doubt removed only through significant judgment - triggers IAS 1.122 judgment disclosure instead.
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Official guidance: IFRS issued standards
Auditors expect entity-specific liquidity, covenant, and mitigation narrative linked to the approved forecast rather than generic going-concern language alone.
Use the going-concern basis and disclose the material uncertainty - events, conditions, and management response - as IAS 1.25 requires. Draft entity-specific IAS 1.25 material-uncertainty disclosures - events and conditions, management response, and the explicit statement - before authorization.
Official guidance: IFRS issued standards
Management intention to liquidate or cease trading, or no realistic alternative, makes the going-concern basis inappropriate even when mitigations were previously identified.
Use the going-concern basis; disclose the significant judgments applied in reaching that conclusion where material (IAS 1.122). Prepare the financial statements on another appropriate basis and disclose that fact, the basis used, and the reason the entity is not a going concern (IAS 1.25).
Official guidance: IFRS issued standards
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