Going Concern etc.

Going Concern etc.

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I have completed a clients (ltd co) set of accounts for their first period of trading.

They have made a loss for the period, so have a negative balance sheet. However, this loss is being covered by directors loans made to the company.

I wish to incorporate a note into the accounts that the directors are willing to keep these loans in the company in the foreseeable future, therefore we are preparing the accounts on a Going Concern basis.

Does anyone have a sample wording I could use?
G

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Euan's picture
By Euan MacLennan
11th Jun 2008 13:54

Similar wording
We insert as the first accounting policy:

"Basis of preparation

The financial statements have been prepared on a going concern basis on the grounds that the bank/director(s) will continue to provide sufficient finance.

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By User deleted
11th Jun 2008 13:34

Going concern wording
The wording I use is:

The director, Mr A N Other agrees that the funding provided by him will not be withdrawn in the forseeable future and it is on this basis that he considers it appropriate to prepare the financial statements on the going concern basis.

As they say one good turn deserves another:

My earlier any answers posting has not received a response so do you or anyone else have a view on the following:

When preparing the accounts of a company which has ceased trading after the balance sheet date but before the accounts approval what requirements are there regarding going concern basis etc?

Company had goodwill, fixed assets, debtors, work in progress, creditors etc etc at the balance sheet date but these have been sold to another company (the reason for the company ceasing) at approx the balance sheet values. Therefore no material differences exist.

Is it sufficient to record the cessation as a post balance sheet event and state that no material adjustments to the accounts / assets values were required.?

Any comments / ideas welcome.

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