The financial statements have been prepared on the going concern basis. This assumes that the company will continue in operational existence for the foreseeable future.
At the balance sheet date, the company’s liability for the period ended 31 March 2022 exceeds its assets. The director of the company has sought assurance from the creditors that their debts will not be called in within the next twelve months.
The director has therefore deemed it appropriate that the financial statements be prepared on the going concern basis.