{"id":1467,"date":"2021-03-10T16:21:30","date_gmt":"2021-03-10T15:21:30","guid":{"rendered":"https:\/\/eaa-online.org\/arc\/blog\/blog\/accountancy-europe-makes-recommendations-strengthen-going-concern-reporting\/"},"modified":"2021-03-10T16:21:30","modified_gmt":"2021-03-10T15:21:30","slug":"accountancy-europe-makes-recommendations-strengthen-going-concern-reporting","status":"publish","type":"post","link":"https:\/\/eaa-online.org\/arc\/blog\/2021\/03\/10\/accountancy-europe-makes-recommendations-strengthen-going-concern-reporting\/","title":{"rendered":"Accountancy Europe Makes Recommendations to Strengthen Going Concern Reporting"},"content":{"rendered":"

This analysis was originally posted by Audit Analytics<\/a>.<\/em><\/p>\n

In the past few years, the EU has been hit with several high-profile corporate failures and collapses: Carillion, Thomas Cook, Patisserie Valerie. Corporate failure affects not only the related shareholders, but also the confidence the public has in the sustainability of the overall market. Supply chain, demand fluctuations, and unseen shifts in consumer behavior as a result of COVID-19<\/a> have disrupted the global market and put many companies in positions where future sustainability may be uncertain.<\/p>\n

Given this environment, it is extremely important that regulators ensure disclosures of and surrounding going concern are appropriate and give financial statement users the information needed to make informed decisions. <\/p>\n

In response to these concerns, Accountancy Europe recently released Going Concern: Recommendations to Strengthen the Financial Reporting Ecosystem<\/em><\/a>.<\/p>\n

Leveraging the Audit Analytics Europe Audit Opinions database<\/a>, the policy group examined how going concern was disclosed across a spectrum of reporting entities and analyzed how effective these disclosures were in meeting financial reporting goals. <\/p>\n

The report presents the following 10 recommendations for ways to strengthen the financial reporting framework:<\/p>\n

    \n
  1. \n\t\tBroadens Companies Work Effort<\/li>\n
  2. \n\t\tMandate Disclosure on Companies’ Risk Management Systems on Going Concern and Expand the Auditor’s Involvement<\/li>\n
  3. \n\t\tMandate Going Concern Disclosure Even if No Uncertainties<\/li>\n
  4. \n\t\tChange in Mindset, Transparency and Communication<\/li>\n
  5. \n\t\tMandate an Audit Committee in Each Public Interest Entity<\/li>\n
  6. \n\t\tClarify and Harmonize the Period for Going Concern Assessment<\/li>\n
  7. \n\t\tBroaden Auditors’ Area of Consideration and Work Effort<\/li>\n
  8. \n\t\tMake Early Warning Mechanisms for Auditors Effective<\/li>\n
  9. \n\t\tAssessing Companies’ Longer-term Viability and Resilience<\/li>\n
  10. \n\t\tInterconnecting Financial and Non-Financial Information<\/li>\n<\/ol>\n

    In a rapidly changing environment, access to timely, relevant, and accurate data is instrumental to making better, more informed decisions.<\/p>\n

    Audit Analytics is a recognized leader in providing high-quality accounting, audit, and disclosure data. Accountancy Europe’s report showcases not only the power of this data, but also how clients can use this data to derive informed insights and implement global change in the public market.<\/p>\n

    \n

    For more information about Audit Analytics or this analysis, please<\/span> <\/span>contact us<\/span><\/a>.<\/span><\/p>\n

    Interested in our content? Be sure to <\/span>subscribe<\/span><\/a> to receive our email notifications.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

    This analysis was originally posted by Audit Analytics. In the past few years, the EU has been hit with several high-profile corporate failures and collapses: Carillion, Thomas Cook, Patisserie Valerie. Corporate failure affects not only the related shareholders, but also the confidence the public has in the sustainability of the overall market. Supply chain, demand fluctuations, […]<\/p>\n","protected":false},"author":93,"featured_media":1468,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0},"categories":[],"tags":[2],"acf":[],"yoast_head":"\nAccountancy Europe Makes Recommendations to Strengthen Going Concern Reporting - ARC<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Accountancy Europe Makes Recommendations to Strengthen Going Concern Reporting - ARC\" \/>\n<meta property=\"og:description\" content=\"This analysis was originally posted by Audit Analytics. In the past few years, the EU has been hit with several high-profile corporate failures and collapses: Carillion, Thomas Cook, Patisserie Valerie. Corporate failure affects not only the related shareholders, but also the confidence the public has in the sustainability of the overall market. Supply chain, demand fluctuations, […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/eaa-online.org\/arc\/blog\/2021\/03\/10\/accountancy-europe-makes-recommendations-strengthen-going-concern-reporting\/\" \/>\n<meta property=\"og:site_name\" content=\"ARC\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-10T15:21:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/eaa-online.org\/app\/uploads\/sites\/3\/2021\/03\/accountancy_europe.png\" \/>\n\t<meta property=\"og:image:width\" content=\"600\" \/>\n\t<meta property=\"og:image:height\" content=\"335\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Jessica McKeon\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jessica McKeon\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/eaa-online.org\/arc\/blog\/2021\/03\/10\/accountancy-europe-makes-recommendations-strengthen-going-concern-reporting\/\",\"url\":\"https:\/\/eaa-online.org\/arc\/blog\/2021\/03\/10\/accountancy-europe-makes-recommendations-strengthen-going-concern-reporting\/\",\"name\":\"Accountancy Europe Makes Recommendations to Strengthen Going Concern Reporting - ARC\",\"isPartOf\":{\"@id\":\"https:\/\/eaa-online.org\/arc\/#website\"},\"datePublished\":\"2021-03-10T15:21:30+00:00\",\"dateModified\":\"2021-03-10T15:21:30+00:00\",\"author\":{\"@id\":\"https:\/\/eaa-online.org\/arc\/#\/schema\/person\/f61376a765d3f4be1057fe22deda2b4f\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/eaa-online.org\/arc\/blog\/2021\/03\/10\/accountancy-europe-makes-recommendations-strengthen-going-concern-reporting\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/eaa-online.org\/arc\/#website\",\"url\":\"https:\/\/eaa-online.org\/arc\/\",\"name\":\"ARC\",\"description\":\"Advanced Resources Center\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/eaa-online.org\/arc\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/eaa-online.org\/arc\/#\/schema\/person\/f61376a765d3f4be1057fe22deda2b4f\",\"name\":\"Jessica McKeon\",\"url\":\"https:\/\/eaa-online.org\/arc\/blog\/members\/93\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Accountancy Europe Makes Recommendations to Strengthen Going Concern Reporting - ARC","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_US","og_type":"article","og_title":"Accountancy Europe Makes Recommendations to Strengthen Going Concern Reporting - ARC","og_description":"This analysis was originally posted by Audit Analytics. In the past few years, the EU has been hit with several high-profile corporate failures and collapses: Carillion, Thomas Cook, Patisserie Valerie. Corporate failure affects not only the related shareholders, but also the confidence the public has in the sustainability of the overall market. Supply chain, demand fluctuations, […]","og_url":"https:\/\/eaa-online.org\/arc\/blog\/2021\/03\/10\/accountancy-europe-makes-recommendations-strengthen-going-concern-reporting\/","og_site_name":"ARC","article_published_time":"2021-03-10T15:21:30+00:00","og_image":[{"width":600,"height":335,"url":"https:\/\/eaa-online.org\/app\/uploads\/sites\/3\/2021\/03\/accountancy_europe.png","type":"image\/png"}],"author":"Jessica McKeon","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Jessica McKeon","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/eaa-online.org\/arc\/blog\/2021\/03\/10\/accountancy-europe-makes-recommendations-strengthen-going-concern-reporting\/","url":"https:\/\/eaa-online.org\/arc\/blog\/2021\/03\/10\/accountancy-europe-makes-recommendations-strengthen-going-concern-reporting\/","name":"Accountancy Europe Makes Recommendations to Strengthen Going Concern Reporting - ARC","isPartOf":{"@id":"https:\/\/eaa-online.org\/arc\/#website"},"datePublished":"2021-03-10T15:21:30+00:00","dateModified":"2021-03-10T15:21:30+00:00","author":{"@id":"https:\/\/eaa-online.org\/arc\/#\/schema\/person\/f61376a765d3f4be1057fe22deda2b4f"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/eaa-online.org\/arc\/blog\/2021\/03\/10\/accountancy-europe-makes-recommendations-strengthen-going-concern-reporting\/"]}]},{"@type":"WebSite","@id":"https:\/\/eaa-online.org\/arc\/#website","url":"https:\/\/eaa-online.org\/arc\/","name":"ARC","description":"Advanced Resources Center","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/eaa-online.org\/arc\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/eaa-online.org\/arc\/#\/schema\/person\/f61376a765d3f4be1057fe22deda2b4f","name":"Jessica McKeon","url":"https:\/\/eaa-online.org\/arc\/blog\/members\/93\/"}]}},"jetpack_featured_media_url":"https:\/\/eaa-online.org\/app\/uploads\/sites\/3\/2021\/03\/accountancy_europe.png","_links":{"self":[{"href":"https:\/\/eaa-online.org\/arc\/wp-json\/wp\/v2\/posts\/1467"}],"collection":[{"href":"https:\/\/eaa-online.org\/arc\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eaa-online.org\/arc\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eaa-online.org\/arc\/wp-json\/wp\/v2\/users\/93"}],"replies":[{"embeddable":true,"href":"https:\/\/eaa-online.org\/arc\/wp-json\/wp\/v2\/comments?post=1467"}],"version-history":[{"count":0,"href":"https:\/\/eaa-online.org\/arc\/wp-json\/wp\/v2\/posts\/1467\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/eaa-online.org\/arc\/wp-json\/wp\/v2\/media\/1468"}],"wp:attachment":[{"href":"https:\/\/eaa-online.org\/arc\/wp-json\/wp\/v2\/media?parent=1467"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eaa-online.org\/arc\/wp-json\/wp\/v2\/categories?post=1467"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eaa-online.org\/arc\/wp-json\/wp\/v2\/tags?post=1467"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}