- This topic has 3 replies, 2 voices, and was last updated 7 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
If there is an indicator in GC scenario question that “Company has decided not to pay a final dividend for the year”
So for its explanation would it be fine to write that “This may result in shareholders losing trust in company and they may decide to sell their shares leading to GC problem”
First, selling shares has no direct effect on going concern.
Not paying a dividend could be interpreted two ways: the company is simply in a dreadfully bad way, or the company is avoiding a future problem.
I don’t think it is straightforward. You can mention it, but give the alternative interpretations.
What alternative interpretation should I give OR if I do not write this explanation then what explanation shall I write? Can you please suggest?
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘Going concern 2’ is closed to new replies.