In response to the difficulties and uncertain economic conditions being faced by Australian companies and other entities, the Australian Institute of Company Directors (AICD) and the Auditing and Assurance Standards Board (AUASB) have issued a publication Going Concern issues in financial reporting: a guide for companies and directors, which explains the concept of ‘going concern’ and assists company directors in performing and reporting on their going concern assessment. It can accessed be on the AUASB website (PDF) or the AICD website. 
 
To assist directors and other stakeholders such as the business media, the guidelines distinguish between the sometimes confusing concepts of ‘insolvency’ and ‘going concern’, including an overview of the relevant law to explain what constitutes ‘insolvency’. 
 
The paper also examines the distinctions between an ‘unqualified opinion with an emphasis of matter’ paragraph, a ‘qualified’ audit opinion and a ‘disclaimer’ of audit opinion, which are not always well understood by some readers of financial reports. It also explains the nature and range of possible auditors’ opinions relating to going concern issues, to enable directors to be better informed of the audit implications. 
 
The publication is specifically aimed at for-profit companies, particularly listed companies, and their directors, but may also be useful for directors of unlisted and other companies, other disclosing entities and non-corporate entities, such as not-for-profits with similar reporting and regulatory responsibilities related to going concern. 
 
The media release is available on the AUASB website.