IFRS Foundation: Updated Going Concern Educational Material

Posted 28 May 2025 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The IFRS Foundation has released updated educational material to assist entities in applying disclosure requirements related to going concern assessments under IFRS Accounting Standards.

In terms of IFRS Accounting Standards, management is required to assess an entity’s ability to continue as a going concern when preparing financial statements. The updated educational material, originally published in 2021, provides guidance on how to apply these requirements across various scenarios without altering the existing Standards.

The 2025 update incorporates significant regulatory developments, including:

  • The issuance of IFRS 18 Presentation and Disclosure in Financial Statements, which replaces IAS 1;
  • The International Auditing and Assurance Standards Board (IAASB) approval of International Standard on Auditing (ISA) 570 (Revised 2024), Going Concern, in December 2024; and
  • The removal of outdated references to previous IAASB projects and superseded auditing standards.

The material specifically addresses the threshold for disclosure when management identifies events or conditions that may cast significant doubt upon the entity’s ability to continue as a going concern. It clarifies the interaction between management’s assessment and the auditor’s responsibilities under the revised ISA 570 framework.

Click here to download Going Concern—relevant IFRS Accounting Standards (Updated January 2025).

What this means for you, your business, or your clients

  • For yourself: You must update your technical knowledge to account for the interaction between IFRS 18 and the disclosure requirements for going concern uncertainties as outlined in the new educational material.
  • For your business: Audit firms and accounting practices should update their internal financial reporting checklists and work papers to reflect the revised references to ISA 570 (Revised 2024).
  • For your clients: Clients must be advised on the specific qualitative and quantitative disclosures required when “close call” going concern scenarios arise, ensuring alignment with the latest IFRS Foundation guidance.

Originally published at https://accountingacademy.co.za/news/read/ifrs-foundation-updated-going-concern-educational-material

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