IOSCO Highlights Importance Of Going Concern Disclosure During Pandemic

IOSCO emphasized the importance of going concern disclosure by public companies during the COVID-19 pandemic, particularly as it relates to the preparation of annual financial statements and the annual audit. IOSCO welcomed the International Accounting Standards Board's recently published educational material, "Going Concern - A Focus on Disclosure."

On annual financial statements, IOSCO stressed that an entity must identify material uncertainties that cast "significant doubt on the entity's ability to continue as a going concern." For material uncertainties that do not cast significant doubt, IOSCO said that management must disclose "complete information about significant judgements" that led to any executive determination.