The Financial Reporting Council has published an update for directors of companies that adopt Financial Reporting Standards for Smaller Entities. As a result of the current economic climate, the FRC is heeding directors to take more care in determining whether their annual accounts should be prepared on a going concern basis, and if they need to make additional disclosures in their annual accounts. Most small companies can choose not to have an audit and file shortened accounts at Companies House under FRSSE, but they are still required to produce a full set of financial statements, which may be given to customers and banks to allow business to continue. The FRSSE provides that accounts don't have to be prepared on a going concern basis if the directors determine that they are going to have to cease trading, but the FRC says it is very rare for accounts not to be prepared on this basis. The update does not introduce new requirements for directors, but suggests procedures that they may wish to carry out in assessing whether it is reasonable to use the going concern basis of accounting and include additional disclosures in their annual accounts. Ian Wright, director of corporate reporting at the FRC said that the update was 'very practical in its approach'. For further information on the update go to www.frc.org.uk/press/pub1881.html.