As a member of Kreston we have responded to the Sharman Inquiry – Call for Evidence, looking at the level of evidence necessary to satisfy auditors and directors of a company’s ability to continue as a going concern and to consider the liquidity risks they face.

One of the main comments is that there is a lack of sensitivity from credit rating agencies and banks in their response to going concern issues reported in financial statements. Often they appear to issue a blanket response when establishing credit ratings or borrowing facilities showing a lack of understanding of the intention of the commentary in the financial statements on going concern.

If you’d like to know more about our response to the Inquiry please contact Dougie Rae at the Dundee office.