WHY DIRECTORS ARE RELUCTANT TO DISCLOSE GOING CONCERN PROBLEMS OF COMPANY?
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AAAGOING CONCERN PROBLEM
13y ago#1Hi Shahrukh,
Because it will have an impact on their business - the business may not continue trading and may not be able to get much needed overdrafts/ loans if they disclose going concern problems.
Competitors could target the companies for potential takeovers
Because it will have an impact on their business - the business may not continue trading and may not be able to get much needed overdrafts/ loans if they disclose going concern problems.
Competitors could target the companies for potential takeovers
13y ago#2It will also effect share prices, key staff may leave, banks could foreclose on loan arrangements, will effect recruitment of staff, suppliers may not provide the goods etc
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