This aims to help companies demonstrate the assessments underlying their going concern conclusions, which can increase confidence from all stakeholders including investors who rely on these important disclosures.

This non-mandatory guidance now brings together the requirements of company law, accounting standards, auditing standards, listing rules, the UK Corporate Governance Code and other relevant regulation into one convenient place for those preparing reports.

It serves as a proportionate and practical guide for companies of different sizes to prepare high-quality, company-specific disclosures about their going concern conclusions. Clarity around how these disclosures are reached promotes investor and end-user confidence, and enable these companies to access capital and support UK economic growth.

The FRC’s executive director of regulatory standards, Mark Babington, said: “The FRC is focused on delivering proportionate guidance on both the production and usability of high-quality reporting, as it looks to support businesses’ access to capital and their contribution to UK economic growth.

“I encourage companies to make the most of this guidance to provide investors and other stakeholders with clear and coherent going concern disclosures.”

Listen to the latest In Conversation podcast episode, with Kate O’Neill, Director of Stakeholder Engagement and Corporate Affairs, and Jenny Carter, Director of Accounting and Reporting Policy, as they discuss the FRC’s updated going concern guidance.