ICAI Implementation Guide to Standard on Auditing (SA) 570 (Revised) Going Concern

ICAI Implementation Guide to Standard on Auditing (SA) 570 (Revised) Going Concern

The first edition of the “Implementation Guide to SA 570, Going Concern” was brought out by Auditing and Assurance Standards Board of ICAI in the year 2013.

On account of revision of SA 570, there was a need to revise the Implementation Guide.

The preparation of financial statements and going concern is one of the fundamental accounting assumptions. Under the going concern basis of accounting, the financial statements are prepared on the assumption that the entity is viewed as a going concern and will continue its operations for the foreseeable future. Their disclosure is necessary if they are not followed.

However, when the use of the going concern basis of accounting is not appropriate in the circumstances, management may be required, or may elect, to prepare the financial statements on another basis.

Under these circumstances, assets and liabilities are recorded in the financial statements assuming that the entity will be able to realise its assets and discharge its liabilities in the normal course of business. If this assumption is unjustified, the amounts and classification of assets and liabilities in the financial statements may require adjustments.

This Implementation Guide provides a framework to assist in determining whether the use of going concern basis of accounting in preparation of the financial statements and the related disclosures are appropriate and in making balanced, proportionate and clear disclosures.

ICAI Implementation Guide to SA 570 (Revised) 

The guide has been divided into 6 chapters as under:

Chapter 1  Introduction and Overview
Chapter 2 The Implementation Guidance and Suggested Questionnaire
Chapter 3 Template for Checklists for Evaluating Management’s Use of Going Concern Basis of Accounting
Chapter 4 Practical Case Studies and Illustrative Examples
Annexure-I Illustrative Template for the Format of Auditor’s Report under Different Scenarios as Illustrated in this Implementation Guide
Annexure-II Illustrative Format of Support letter

Download ICAI Implementation Guide Click Here >>

read latest abcaus posts

Read by Tags abcaus posts

addition u/s 68 budget 2017-18 ca misconduct cash deposit in bank CBDT cbdt circular CBDT Instruction cbdt notification cbdt order cbdt press release cgst notification cit revision 263 concealment penalty custom circular demonetisation due date extension e-way bill faq GST circular GST Clarification GST Council Meeting gst faq GSTR-3B GST rates gst refund IBBI icai income tax prosecution itat ITAT Delhi mca circular MCA notification order u/s 119 penalty 271(1)(c) penalty u/s 271(1)(c) Press Release reasons recorded reopening 148 Reopening us 147 sebi circular service tax notification transfer and postings unexplained cash credits validity of notice u/s 148 Withdrawal of 2000 500 Bank Notes

----------- Similar Posts: -----------

Leave a Reply

Subscribe to ABCAUS Newsletter

Get reliable, authentic and latest updates on taxation/corporate and other laws in your mail box free.



After subscribing, please check your email (including spam or junk folder) and activate the subscription link by clicking it.