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⍰ ASK What is going concern in the context of UK company financial reporting?

Financial statements assume a going concern meaning the company will keep operating without liquidation or major cutbacks.

Management evaluates if the entity can continue this way for at least a year from the reporting period end. They look at past and future performance, considering uncertainties and risks.

If significant doubts arise about the company's ability to continue, its disclosed in the financial statements. In such cases, additional info explains managements plans, like getting more funds or restructuring operations, to tackle uncertainties.
 

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