Headroom target: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Classify page.) |
imported>Doug Williamson (Mend link.) |
||
| Line 7: | Line 7: | ||
* [[Going concern]] | * [[Going concern]] | ||
* [[Headroom]] | * [[Headroom]] | ||
* [[ | * [[International Financial Reporting Standards]] (IFRS) | ||
* [[Liquidity]] | * [[Liquidity]] | ||
Latest revision as of 15:47, 23 June 2022
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.
