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Technical Briefings

Investment Company Technical Release

Viability – making a statement

The 2014 UK Corporate Governance Code (‘the Code’) applies to accounting periods commencing on or after 1 October 2014 and therefore will apply first to 30 September 2015 year ends for investment companies on a normal twelve month reporting cycle. One of the most significant changes arising from this latest update involves the introduction of a new disclosure requirement regarding the directors’ assessment of the future prospects of the company - often referred to as the ‘viability statement’.

The new viability disclosure is distinct from the statement required by directors in respect of the going concern basis of accounting and boards will need to give careful consideration to the framing of this new disclosure in the forthcoming reporting season.