Idiots guide to the going concern stuff in the accounts:
- The directors believe the club can survive for at least 12 months from now and have prepared cash flow forecasts that support that view.
- The auditors reviewed those projections and the assumptions within them, and agree that the club can be considered a going concern.
- However, they caveat this by drawing attention to ‘material uncertainty’ on this, because there is doubt as to whether the club will achieve its projections. This uncertainty could be, for example, because anticipated new income streams might be delayed or not materialise at all, or any of the other assumptions in the forecasts might fall a bit short and that could be sufficient to leave the club without enough money to meet its liabilities. This material uncertainty matter was in last years accounts too.
- The auditors also noted that they understand that the directors will continue to provide financial support to the club when necessary. There is nothing to suggest that there are any binding commitments/guarantees from the directors though, but the directors would have to be very brave or stupid to do so, so that’s hardly a surprise.