going concern and break up basis

break up is, literally, the basis you would use if the company were to be broken up ( and sold in pieces ). Going concern is the basis to be used when, literally, the company is a going concern – ie it is likely to last into the foreseeable future with neither the intention nor need to curtail significantly the scale of operations of the enterprise

The audit risk would only arise if an inappropriate basis were used while preparing financial statements i.e if Co is not a going concern and the Financial statements are prepared on a going concern basis…. If appropriate disclosures are made and true state of the company’s affair is shown then there is no audit risk.
Correct me if I am wrong.

That’s depends the basis of preparing a financial statement on breakup basis.

IIRC, the assets are all classified as current assets, at the net reliasible value. (Including amount due from related parties)

non current liabilities are reclassified as current liabilities. (the assumption is that you are going to sell the assets to settle the amount in the foreseeable future).

I don’t think amount due to/from related parties can be waived just like that.

Going concern is a fundamental accounting concept that underpins the preparation and presentation of financial statements. The concept itself assumes that the entity will continue in operational existence into the foreseeable future (1 year) with neither the need nor intention significantly to curtail the scale of operations of the entity

OK?

How to measure the of NCA and NCL when a company is no longer a going concern?

Thank you so much!
I have another doubt, will the NCA be transferred as current assets at the reporting date if the company is preparing the financial statements as per break up basis?

Thank you