Assessment of the going concern status
The preparation and assessment of continuation and going concern forecasts are also part of our insolvency investigation expertise, for which we are publicly appointed and sworn.
The going concern forecast is an integral part of the over-indebtedness audit. According to the German Financial Market Stabilisation Act (FMStG), which came into force in 2008, a company is not materially overindebted if it has a positive going concern forecast, even if it is overindebted in its balance sheet.
Liability claims against the director arise as a result of corporate crises or insolvency. In this situation, the director is often exposed to high risks, also from a criminal law perspective.
In this context, the following questions may arise, for example:
- Is or was the entity a going concern at a particular date?
- Since when has there been no positive going concern forecast?
In this context, we examine in our reports whether there is a predominant, i.e. more than 50%, probability that the company will be able to continue as a going concern. To this end, we first prepare a single-value financial plan, which can be tested for sensitivity using a simulative risk analysis.
