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.
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 |
addition u/s 68 addition u/s 69A ca misconduct cash deposit in bank cbdt circular CBDT Instruction cbdt notification cbdt order cbdt press release cgst circular cgst notification cit revision 263 concealment penalty condonation of delay covid-19 custom circular demonetisation due date extension e-way bill faq GST circular GST Council Meeting gst faq gstn advisory GSTR-3B GST rates IBBI ibc icai announcement income tax penalty itat ITAT Delhi mca circular MCA notification penalty 271(1)(c) penalty u/s 271(1)(c) Press Release reasons recorded reopening 148 Reopening us 147 Search & Seizure sebi circular unexplained cash credits validity of notice u/s 148 Withdrawal of 2000 500 Bank Notes
NERIST Arunachal Pradesh invites EoI for Empanelment of Chartered Accountant firm North Eastern Regional Institute of Science and Technology, (NERIST)…
Sibsagar University invites Expression of Interest (EOI) for Appointment of Internal Auditor Sibsagar University invites Expression of Interest (EOI) from reputed…
In a recent judgment Andhra Pradesh High Court struck down Section 147A of the Income Tax Act, 1961 as unconstitutional.…
Bank was liable to pay compensation to borrower as it did not verify the progress of construction before loan disbursals…
No timeline mentioned in PMLA to forward the arrest order and the material in possession to the Adjudicating Authority. It…
Whether the release of seized assets is mandatory upon completion of 120 days –High Court refers the case to a…