does current year losses of rs 500000 prove that a company
lacks going concern

Answers were Sorted based on User's Feedback



does current year losses of rs 500000 prove that a company lacks going concern..

Answer / bitto_agarwal

no unless all the mitigation factors are considered a
auditor cannot conclude that it lacks going concern

Is This Answer Correct ?    7 Yes 0 No

does current year losses of rs 500000 prove that a company lacks going concern..

Answer / h.r. sreepada bhagi

Going concern concept of Accounting is applicable for
recording the transactions to enable preparation of
financial statements (P&L & B/S)at the end of the accounting
periods. Earning Profit or incurring loss in any year has no
bearing on this concept of accounting. Till a company is
wound-up, all transactions should be accounted assuming that
the company has a long existence (i.e for unknown future).

Is This Answer Correct ?    4 Yes 0 No

does current year losses of rs 500000 prove that a company lacks going concern..

Answer / kapil kr. agrawal

NO..
Because An auditor has to consider the Indicators mentioned in
AS-1 Disclosure of Accounting Policies..

Some of the indicators are:
Negative Net Worth, Negative Cash Flow, Adverse Key Financial
Ratios, Inability to pay creditors etc...
Also auditor should note the past trends of the company like
is company consistently making default in paying creditors or
consistently a loss making company....
thanx..

Is This Answer Correct ?    2 Yes 1 No

does current year losses of rs 500000 prove that a company lacks going concern..

Answer / g.vasudevan

No,here it is not proved that a company losses of Rs.500000
lacks going concern.Unless all the mitigation factors
should considered before declaring a concern going lacks.

Is This Answer Correct ?    1 Yes 1 No

does current year losses of rs 500000 prove that a company lacks going concern..

Answer / kulwant singh

Yes

Is This Answer Correct ?    1 Yes 7 No

Post New Answer

More Audit Interview Questions

What is the most effective team you have ever been a part of ?

1 Answers   Bharti,


how many types of auding report?

2 Answers  


Assume we have taken a vehicle on leasing Cost Of vehicle Rs.2445000 (vat 261964.00)on 22/12/09 ,the vecle lease for 4 years and made intial paymenent as Rs.25000 &the monthly leasing amount Rs.59806.00,pls let me know the double entries for this finacial year (with figers)

1 Answers   Fidelity,


Dividend Received From A Company Is a Indirect Income or It Should be treated as capital revenue?

5 Answers  


what is audit

6 Answers  






How has accountancy changed over the last ten years?

4 Answers   Ernst Young,


How does an internal audit differ from an external audit?

0 Answers  


what should we do in case of a Partnership wen the Partners capital account has debit balance???

1 Answers  


what would be the Same Number Of GST&CST Number??????

3 Answers  


Will it be fine if private Ltd Company do not follow depreciation rate as per The Companies Act,1956 & follow Depreciation Rates as per Income Tax. Also is it necessary to claim VAT Setoff on Asset Capitalised only after some percentage of retention.

1 Answers  


What is non statutory audit?

0 Answers  


"DUTIES OF AN AUDITOR IN VERIFYING PURCHASE OF A BUILDING" PLEASE REFER ME A BOOK TO SEARCH FOR THIS

2 Answers  


Categories