does current year losses of rs 500000 prove that a company
lacks going concern
Answers were Sorted based on User's Feedback
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 |
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 |
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 |
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 |
What is the most effective team you have ever been a part of ?
how many types of auding report?
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)
Dividend Received From A Company Is a Indirect Income or It Should be treated as capital revenue?
what is audit
How has accountancy changed over the last ten years?
How does an internal audit differ from an external audit?
what should we do in case of a Partnership wen the Partners capital account has debit balance???
what would be the Same Number Of GST&CST Number??????
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.
What is non statutory audit?
"DUTIES OF AN AUDITOR IN VERIFYING PURCHASE OF A BUILDING" PLEASE REFER ME A BOOK TO SEARCH FOR THIS