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Cash Losses

CARO 2020 · Clause (xvii) · Statutory basis: Section 143(11) Companies Act 2013

Cash losses in the current and immediately preceding financial year.

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

Frequently asked — clause (xvii) / clause 17

What does CARO 2020 clause (xvii) (clause 17) require?
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 must the auditor verify before signing off on clause (xvii)?
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.
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