Question 3 – Dec 215 exam

The question asked you to identify factors indicating why the company was NOT a going concern ie why it was unlikely to survive in the foreseeable future. It did not ask you to decide whether or not it was a going concern.

The question did not ask for an optimistic interpretation of the position.

If a company is a going concern it is likely to survive ie it is likely to keep going as a business.. If it is not a going concern it is unlikely to survive.

I’ve just read this and realised that I obviously misunderstood. Thanks for the explanation but this is a bit worrying as if you misinterpret the question you’ve lost all of the marks straight away.