This 20-mark question was based on a pharmaceutical company, Medimade Co, which was experiencing going concern problems.

Part (a) for 2 marks required a definition of the going concern assumption. Most candidates were able to score at least one mark in relation to a reference to continuing to trade for the foreseeable future. In order to gain further credit there either needed to be an explanation of what the foreseeable future was, or a reference to the IAS 1 Presentation of Financial Statements requirement to prepare financial statements on a going concern basis.