Query regarding as

Dear Ankur, 

1. under AS 19 "Accounting for Lease" there is nothing about contingent liability. so please check ur question once a again.
2. The going concern concept is not clearly defined anywhere in GAAP, and so is subject to a  considerable amount of interpretation regarding when an entity should report it. However, GAAS do instruct an auditor regarding the consideration of an entity’s ability to continue as a going concern. .............................. The auditor evaluates an entity’s ability to continue as a going concern for a period not greater than one year following the date of the Financial Statement being audited. The auditor  considers such items as negative trends in operating results, loan defaults, denial of trade credit from  Suppliers, uneconomical long-term commitments, and legal proceedings in deciding if there is a substantial doubt about an entity’s ability to continue as a going concern. If so, the auditor must qualify the audit report with a statement about the problem.
3. peer review file is maintained by the reviewer when he is conducting peer review of CA Firm. this is as similar as audit file.

Thanks & regards

Shankar

Dear Ankur,

Contingent Liability not recognised in books only disclosure through Notes to accounts required when a present obligation that arises from past events, and when it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or a reliable estimate of the amount of the obligation cannot be made.

If the contingent liability matured then no further disclosure required, becouse the same has been matured and there is no contingencies at all.

Thanks with Regards

Shankar

for checking whether contingent liability mature or not .............. you have to mention about what is the nature of contingent liability and what types of contingent liability you are talking ................. then only we can say that what points should be consider for evaluating the maturity of contingent liability.

Thanks

Dear Shankar Can u please also tell me 

How to check going concern concept if there is continious lossses in an organisation?

Dear Ankur,

I think you confused on Going concern Concept. i will try to explain

1. Under going concern there is assumption that, an entity is viewed as continuing in business for foreseeable future.
2. Its management responsibility to assess the entities ability to continue as a going concern even if the financial reporting framework does not include as explicit requirement to do so.
3. We are (Auditor) responsible to obtain Audit evidence about the appropriateness of managements’ use of the going concern assumption.
4. there are following indicators that may affect the going concern concept - 

• Negative Net worth/working capital
• Arrears of dividends
• Adverse financial ratio
• no payments to creditors on due date
• non compliances with the terms of loan agreement
• loss of major market
• strikes
• Pending legal proceedings
• Non compliances with the Statutory requirements, etc

5. However, such indication may be mitigating by some positive factors. for ex - loss of some major supplier may be compensated by availability of some other sources of supply.
6. Finally we have to conclude whether a material uncertainty exists related to events or conditions that individually may cast significant doubt on the entities ability to continue as a going concern concept.

So for testing going concern we have to consider all the above points.