Hello Sir, I am little bit confused on material uncertainty relating to going concern, and it is if directors prepare the financial statement on going concern basis when clearly company will not continue to operate into foreseeable future instead doing on break up basis then what opinion this would be..And they already disclosed the information on FS. Would this be modified ‘ except for’ or adverse opinion? Many Thanks.
If the company has clearly no hope of surviving, the FS should be on a break-up basis. If prepared as going concern this would be a pervasive misstatement and would be given an adverse opinion.