RSS feedsCompanies have expressed concern that extensive disclosures could unsettle investors fololowing the Fincance Reporting Council’s proposal that directors should lay out clearly any significant doubts over whether a business was a going concern.
‘We’re wary about rushing on such a key area,’ John Pierce, Quoted Companies Alliance chief executive, told the Financial Times. ‘We are studying it to determine whether it means a change in substance or in form.
'If substance, then it could have all sorts of unintended consequences and perhaps precipitate the demise of a business that, without veiled warnings, could pull through.’
Some experts question the need for a fourth category in the updated guidance. ‘They could just use the new tougher language and replace the middle one – it's not clear why a fourth one is needed,’ Steve Priddy of the Association of Chartered Certified Accountants, said.
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