- This topic has 3 replies, 2 voices, and was last updated 5 years ago by
.
- Posts
UK GAAP specifies that Foreseeable future for going concern should
not be less than 12 months form the date of approval of the FS.What does approval date mean in this context? Is it the date when auditor signs off the audit report?
FS are the responsibility of management – so only management approves them “for issue”.
(The auditor gives no “approval” – only an opinion.)
The financial statements on which the auditor gives an opinion do not exist (in law) until they are approved (i.e. signed) – the audit opinion must be dated on/after the date of approval.
Generally, in practice, the chairman will sign the financial statements on behalf of the board, the audit partner will sign the auditor’s report on behalf of the firm – both on the same date.
They will then be issued (“laid before the members in general meeting”) asap on/after that date (overcomes the potential problem of subsequent events between the date of signing and the AGM).
- The topic ‘Going concern’ is closed to new replies.