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In a scenario a company is clearly not a going concern , financial statements are prepared on alternative basis and appropriate disclosures are given by management , auditors are happy with the disclosures what type of opinion would be Given by auditors? Unmodified with emphasis of matter paragraph ?
Not going concern but still on alternative basis (which is if I am not wrong – fair value), is it allowed by IAS? If yes, then why unmodified with EOM?
Thanks!I imagine that rhythm was referring to the break-up basis of valuing assets and liabilities on the understanding that the entity was not considered to be a going concern by the directors, and the auditors concurred with that opinion.
So long as everything has been properly accounted for under the break-up basis and all disclosures properly made, then the auditor would be justified in issuing an unmodified opinion with an emphasis of matter
Please correct me if I am wrong. As far as I know, the company uses break up basis only when it is going concern. And the question here states that an auditor is happy with this method of accounting even though the company is not going concern. What am I missing?
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