Assessment of the Entity’s Ability to Prepare Financial Statements

In preparing the financial statements, management makes an assessment of the entity’s ability to continue as a going concern. An entity prepares financial statements based on a going concern assumption, unless management aims to liquidate the entity or discontinue trading, or has no other realistic alternative but to do so.


If management becomes aware (in making its judgment) that there is a material uncertainty relating to events or conditions that may cast significant doubts about the entity’s ability to continue as a going concern, the entity shall disclose the uncertainty.

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