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Change of PATTERN OF ASSESSMENT FROM MAY 2019 EXAMINATION

ICAI has already notified that from May 2019 examinations, pattern of assessment is going to be changed, as of till now, whole pattern was...

Saturday, 24 November 2018

Financial Indicators for evaluating Going Concern assumption


  • Negative Net Worth
  • Negative Working Capital
  • Fixed Term borrowings approaching maturity without realistic prospects
  • Adverse Key Financial Ratios
  • Substantial Operational Losses
  • Substantial Negative Cash Flow from operations
  • Arrears of discontinuance of dividends
  • Inability to pay creditors on due date
  • Difficulty in complying with terms of loan agreement
  • Change from credit to cash on delivery system with suppliers
  • Inability to obtain financing for essential new product development
  • Entering into scheme of arrangement with creditors for reduction of liability

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