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Old 22nd Jun 2009, 21:29
  #252 (permalink)  
James 1077
 
Join Date: Jan 2006
Location: Auckland, NZ
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... there were insufficient grounds for considering the company to be a going concern and that the company's valuation of its assets was unjustifiable.
Not necessarily anything nefarious by management here. Normally assets are held on the balance sheet at depreciated cost; but if the company is no longer a going concern then they need to be restated to market value. Generally management will prepare the accounts on a going concern basis but if the auditors think that this is incorrect then you can end up with large differences in asset values.
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