alleryStart learning →The going concern basis is presumed unless what is imminent?
AA change of auditor
BA dividend payout
CLiquidation of the entity
DA new financial year
Answer & Solution
Correct answer: C. Liquidation of the entity
Continuation is presumed as the reporting basis until liquidation becomes imminent.
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Related questions
Does a going concern emphasis of matter necessarily mean imminent insolvency?Under UK and Irish standards, an entity is a going concern unless management does what?Which item would an auditor weigh when judging doubt about going concern?For how long must an auditor test going concern ability after the audited statement date?The going concern principle allows a company to defer which items to future periods?How does the value of a going concern compare with its breakup value?When liquidation of an entity becomes imminent, which basis is used for its statements?Going concern statements assume the entity will do what?