The Company in liquidation

[smraza]

Salam to all,
if the company has sold its all fixed assets except for only one administrative assets, and it is intended to file liquidation in next year, then what is requirement for its disclosure as per IAS, i have consulted the IAS 35 but i m not so clear. can any one give refrence of book relating to this topic.
Raza

S.M.R.

[geo]

<font color=teal></font id=teal>Asad Sahib,
I cant understan why you consulted IAS-35, when the company has only adminstrative assets.Explain it might help me to give a better answer.

As far as the issue of liquidation is concerened CO 1984 and explanation of it is a good source.

Well i think IAS-10 might give you some help as far as i remember it has a portion on GOING CONCERN. There is an auditing standard on it which can also be some help to you.

But if you want to save the company from the going concern assumption consider the annual report of CHAKWAL CEMENT 2002. It is really something every student of chartered accountancy must read. From that report it seems that going concern assumption can only be applied after the entity has wounded up.

[smraza]

Dear Geo,
the managemetn of the co. has intention to file for liquidation after balance sheet date, and as at balance sheet date, the company has only one vehicle in its books of accounts. so it has sold its all fixed assets(manufacturing & non mfg.) so i think the question is more clear than the previous.

S.M.R.

[geo]

<font color=purple></font id=purple>Asad Bhai,

I think in this situation a clear disclosure is required of the company not being a GOING CONCERN according to IAS.

[smraza]

Dear Geo,
first of all why do u call me Asad bhai ? i m raza ), anyways, my question is still there, the problem is still there, i just want to know how should the company present its assets and liabilities (remaining current assets and liabilities) and remaining one vehicle, so can anyone give me a specific book reference for that, i know as per IAS the accounts will not be prepared on going concern basis, and our auditor will give matter of emphasis in their report, so is there any reference of book for presentation of financial statements ?

S.M.R.

[geo]

Sorry Raza,

A specific book on presentation is hard to find but try to search ur answer on pwcglobal.com.

The best source is applyingifrs.com

try to put ur question on any of the above sites, both are a part of PWC.