"It is the responsibility of the directors to assess whether the going concern assumption is appropriate when preparing financial statements. They must disclose in the notes to their financial statements whether there are any factors which may put the company's status as a going concern in doubt."

"The current economic environment is leading to uncertainty regarding bank lending intentions and the availability of finance generally; the impact of the recession on the company's own business and the impact of the recession on customers and suppliers. How these issues affect the ability of a business to trade in the 12 months after the date of approval must be considered by the directors and their auditors", he said.

"The need to draw attention to going concern uncertainties must be based on the facts and circumstances of the particular business. Disclosure is also required of any material uncertainties, of which the directors are aware in making their assessment, related to events or conditions that may cast significant doubt upon the entity's ability to continue as a Going Concern. For example, if credit facilities are due for renewal within 12 months after the year end and there is a possibility these will not be renewed, this may affect the ability of the company to trade. This fact will need to be disclosed, but the directors can also outline the actions they are taking in order to secure the necessary credit facilities."

"It is vitally important that creditors, investors, lenders and other stakeholders understand, when reading company accounts, that statements in relation to going concern do not necessarily indicate a crisis. Rather, the directors are being transparent about any uncertainty in relation to the business. Company owners and directors should seek the advice of their accountants or auditors in relation to this issue," he advised.