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Commercial Pilot Licence (CPAER) – Canada · Question

Which of the following is an example of a 'going concern' indicator under IFRS?

Indicators such as the loss of a major market, product, or supplier, or declining sales, can cast significant doubt about an entity’s ability to continue as a g

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Question: Which of the following is an example of a 'going concern' indicator under IFRS?

Answer options:

  • Consistent profitability over several years.
  • Significant operating cash inflows. ✅ Loss of a major market segment and declining sales.
  • A high current ratio.

Correct answer: Loss of a major market segment and declining sales.

Explanation: Indicators such as the loss of a major market, product, or supplier, or declining sales, can cast significant doubt about an entity’s ability to continue as a going concern, as per IAS 1.

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