Which of the following conditions or events would be considered a mitigating factor in a going concern assessment?
A)Disposal of land held for redevelopment that was no longer required.
B)Obtaining a loan from a new financial institution.
C)Reducing the current year's dividend from the previous year's amount.
D)All of the given answers are correct.

Question

Quizplus · Accepted Answer

Mitigating factors in a going concern assessment are actions or events that alleviate or reduce the severity of conditions or events that raise substantial doubt about an entity's ability to continue as a going concern. Disposing of unnecessary assets (A), obtaining new financing (B), and reducing dividends to conserve cash (C) are all actions that can help mitigate financial distress, thereby supporting the entity's ability to continue operating.

Which of the Following Conditions or Events Would Be Considered