SAICA's recently issued draft guide on Insolvency and Financial Distress offers crucial insights into solvency considerations and the importance of identifying when a company faces financial difficulties.
Evaluating a company's going concern status is critical for all stakeholders—whether directors, auditors, or shareholders. This session will equip you with a deeper understanding of the key considerations for assessing solvency and exploring effective responses when insolvency or financial distress is identified.
Join us for this conversation on safeguarding your business's future. We'll unpack:
• The significance of going concern evaluations.
• Practical steps for assessing your company’s going concern.
• When to contemplate business rescue or liquidation.
• The importance of the going concern principle
• Assessing going concern
o Financial indicators
o Operational indicators
o Other indicators
• Insolvency VS Financial distress
• Auditing the going concern principle – ISA 570 requirements
• Responses to Insolvency
o Letters of support
o Subordination agreements
• Responses to Financial distress
o Business rescue in terms of the Companies Act
o Liquidation proceedings
