Description: Business insolvencies in January were about double of what they were in January 2023. One factor cited for the problem was the requirement to pay back loans of up to $60,000 under the Canada Emergency Business Account program by January 18. Simon Gaudreault of the Canadian Federation of Independent Business says that “Insolvencies are just the tip of the iceberg, unfortunately” as some businesses simply close down without filing the paperwork.
Date: March 5, 2024
Source: ctvnews.ca
Discussion points:
1) Have any of your favourite businesses in your campus town gone insolvent in recent months?
2) Do you have any interest in pursuing a career dealing with business insolvency cases?
3) Pages 2-8 and 2-9 of Wiley’s Understanding Financial Accounting discuss the going concern assumption. What type of action must a company take with respect to its financial statements if the going concern assumption is no longer appropriate?
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