Headroom target: Difference between revisions
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imported>Doug Williamson (Extracted from "Headroom" page.) |
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Revision as of 14:22, 21 November 2012
Total sources of liquidity need to be sufficient to meet the cash needs of an organisation, taking into account any uncertainty over future cash requirements.
For this reason a headroom target should be set to provide flexibility and to ensure the Directors are able to certify their company as being a Going Concern (under IFRS accounting guidelines) at the end of each financial reporting period.