IOSCO issues statement on Going Concern Assessment and Disclosures during the COVID-19 pandemic

The International Organization of Securities Commissions (IOSCO) has issued a statement of Going Concern Assessment and Disclosures during the COVID-19 pandemic.

In the statement, the IOSCO has welcomed the educational material issued by IASB in January 2021 on going concern disclosures. The IOSCO has emphasised the importance of providing complete information to investors about the significant judgements that may have been exercised in going concern assessments by management, especially related to mitigation of material uncertainties about the entity’s ability to continue as a going concern.

The IOSCO has also discussed the implications for auditors, including reporting requirements of Key Audit Matters (KAMs) which may deal with going concern, significant judgements and material uncertainties in the current economic environment.

The IOSCO has reminded issuers, audit committees and/or those charged with governance (TCWG), and external auditors of the important role each plays in providing investors with high quality, reliable, timely, and transparent financial information.

The statement may be accessed here.