CVA in Financial Statements

CVA in Financial Statements

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I am preparing the financial statements for a company which this year has agreed to a CVA.

The CVA has been entered into the accounts, but my question is what disclosures need to go into the notes to financial statements and where?

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By TerryD
15th Jul 2014 16:44

I've never done accounts for a CVA company, but clearly the fact that a CVA is in place needs to be mentioned as going concern must be a considerable doubt. If the accounts are prepared on a going concern basis, there must be strong evidence to support that conclusion disclosed in the accounts. Otherwise, non-going concern accounts are needed. In any event, creditors are still creditors, but there could be effects on commitments - e.g. leases might be terminated. Going concern Notes are frequently presented as "Note 1" - i.e. before Accounting Policies.

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