Accounting Glossary
Going Concern Explained: Why a £40,000 Cash Shortfall Forces Directors to Reassess Whether the Business Can Carry On
A £40,000 cash shortfall in a twelve-month forecast is not just a funding headache — it's a formal accounting trigger. This article explains going concern rules under UK GAAP and IFRS, walks through a worked cash flow example, and shows directors exactly what to document, disclose, and act on before signing their accounts.