This will be the first update to the going concern guidance since it was first issued in 2016.

The FRC expects the guidance to ‘encourage directors to take a broader view, over a longer term, of the risks and uncertainties that goes beyond the specific requirements in accounting standards’.

The changes will update the current eight-year-old Guidance on the Going Concern Basis of Accounting and Related Reporting, including Solvency and Liquidity Risks. It will affect companies reporting under IFRS, FRS 102 and FRS 101.

Once finalised, new guidance will be issued to replace the FRC’s existing guidance.

The draft guidance is designed to help companies prepare high quality, company specific disclosures about their going concern conclusions and how they were reached.