Going concern assumption. The appraised entities are assumed to fully comply with all relevant laws and regulations and will operate sustainably in the useful life of machinery and equipment.
Going concern assumption. Going concern assumption is to assume that the enterprise, as the operating entity, can operate on a going concern basis in accordance with its business objectives under the external environment where it exists after the valuation base date.
Going concern assumption. Going-concern assumption refers to the assumption that the appraised entity will not cease to operate for various reasons in the foreseeable future based on the conditions of existing assets and resources, but will operate lawfully and on a going-concern basis.
Going concern assumption. It is assumed that Tianguan will fully comply with all relevant laws and regulations and continue to operate as a going concern in the foreseeable future. Special assumptions
Going concern assumption. It is an assumption of assessing all the assets of the enterprise as the target asset. That means the enterprise will be able to, in pursuit of the operation objectives, continue operating in all external environment. The management of the enterprise is responsible for and capable of assuming responsibility, the enterprise operate legitimately and can obtain adequate profit for continuing operation;
Going concern assumption. These financial statements are prepared on a going concern basis, reflecting the Government’s ongoing obligation to fund the Scheme and the long-term nature of its funding policy pursuant to sections 166A and B of the Accident Compensation Act. The Board has considered a combination of circumstances and their likelihood which could create uncertainty over the going concern assumption. We are particularly mindful that in the circumstances when interest rates continue to fall to historically low levels, the Outstanding Claims Liability increases to historically high levels requiring increased funding to meet the future costs of current claims, and the likelihood of funding deficits increases. ACC has a statutory obligation to operate the scheme whilst the Government has the obligation to fund the scheme through levies and appropriations so that ACC is able to properly operate. The regulatory scheme contemplates periods when funding of some Accounts will be inadequate and catch-up funding will occur at a later stage. In the circumstances where the Crown has elected for a period to not fund the deficit in the Crown funded accounts (Non-Earners’ Account and Non-Earners’ portion of the Treatment Injury Account), and or not approve the levy changes recommended to the Crown by the Board, a financial deficit results. Were this to continue for some years an increasing significant financial deficit would accumulate, as seen in the 2018/2019 and these 2019/20 Financial Statements. Going forward over the next 12 months we expect that the difficult economic environment arising from Covid19 may result in an increase in the financial deficit of the organisation, increasing the gap between ACC’s liability for the future costs of current claims and the investments we hold to meet that liability. ACC levy recommendations to meet the Funding Policy have been declined in full or in part by the Government in recent years, as have Government appropriations to the non-levied accounts. Where this position continues and combined with further decreasing interest rates, it is possible that as well as an increasing large financial deficit in the next 12 months, ACC may not have sufficient revenue to meet the costs of claims and operating the scheme. ACC has a statutory obligation to pay those costs and operate the scheme, and in that situation the organisation would have no choice but to sell investments that have been made in previous years from levies which have been reserved to mee...
