Reporting requirement
Report whether the company has incurred cash losses in the financial year and in the immediately preceding financial year, if so, state the amount of cash losses.
What to verify before signing
- Computation of cash loss = net loss + depreciation + amortisation + impairments (non-cash)
- Current FY cash flow vs prior FY cash flow comparison
- Implication for going concern under SA 570
Sample observation — applicable
The Company has not incurred cash losses in the current financial year and in the immediately preceding financial year.
Related standards
SA 570
On CORAA
Clause (xvii) auto-populates from the underlying ledger work in CORAA’s
Reporting hub. Each observation traces back to the transactions that triggered it. Pair with our
CARO 2020 Checklist template for the full audit-report annexure.
Related on CORAA University
