In March 2009 the Financial Reporting Council (FRC) published an update that is intended for directors of smaller companies, that qualify for the small companies regime in the Companies Act and who choose to apply the Financial Report Standard for Smaller Entities. The purpose of the update is to assist the directors of smaller companies by summarising the criteria that must be met in order to produce their annual accounts on a going concern basis and identifying some basic procedures that may be used to support their conclusions on going concern.
Possible procedures include preparing a budget, trading estimates, cash flow forecasts or a similar analysis for a period of up to 12 months from the date of approval of the annual accounts.
