This Flash Report covers questions that directors should be asking themselves, including:
- insolvency under the Corporations Act – the consequences for directors, the period of focus, and recent legal cases
- insolvency versus going concern – the difference between assessing solvency and assessing going concern, and factors that should be considered in the assessment
- supporting solvency and going concern – responsibilities of directors
- evidence to be considered
- mitigating factors when there is uncertainty
- impact on reporting – overviewing the impact on the financial report and auditor’s report, and the interaction with other disclosure requirements.