Definition of a going concern statement and draft a going concern statement
A going concern statement is one in which the board states that in its opinion there is no reason to believe that the business enterprise will not be operating in 12 months from the date of the statement, having taken into account: financial controls, compliance with laws and regulation, exposure to contingent liabilities, guarantees, product liability, environmental damage, and insurance arrangements. The board of TheronGroup has considered and recorded the facts and assumptions on which it relies to conclude that the company will continue as a going concern in the financial year ahead. Energex board is of the opinion that the business will be a going concern in the year ahead and its statement in this regard is also contained in the statement on the responsibility of directors for the annual financial statements.
