Understanding Going Concern: Insights from IFRS and the Companies Act 71 of 2008

The going concern principle is a cornerstone of financial reporting, shaping how businesses assess their ability to operate over the next 12 months. This article explores the critical guidance from IFRS and the Companies Act 71 of 2008, practical tools like cash flow analysis and stress testing to measure going concern, and actionable steps when a business faces financial uncertainty. Whether it's transitioning to liquidation accounting or engaging stakeholders, understanding these principles ensures transparency, compliance, and proactive decision-making for long-term viability.