"Operating Conditions" that may cast doubt about going concern assumption.
"Operating Conditions" that may cast doubt about going concern assumption.
Chiranjibi Aug. 16, 2018
The following are examples of operating events or conditions that, may cast significant doubt about the going concern assumption
- Management intentions to liquidate the entity or to cease operations.
- Loss of key management without replacement.
- Loss of a major market, key customer(s), franchise, license, or principal supplier(s).
- Labour difficulties.
- Shortages of important supplies.
- Emergence of a highly successful competitor.
