This article discusses the financial reporting and audit
considerations for entities facing going concern challenges while
preparing their financial statements
Business entities have many objectives, including making a
profit and, to a large extent, maximising stakeholders'
interests. Business risks such as a harsh business environment,
unfavourable government policies, and adverse effects of changes in
macroeconomic indicators have continued to threaten the ability of
entities to continue in business and achieve their objectives. The
recent Covid 19 pandemic, which resulted in a global lockdown,
significantly impacted businesses as some companies are yet to
recover from the losses occasioned by the pandemic. Companies have
continued to develop resilient strategies to enhance their ability
to navigate these risk exposures. As a result, many entities
struggle with going concern issues as they engage in various
approaches to survive.
