The following are examples of events or conditions that, individually or collectively, may cast significant doubt about the going concern assumption.

This listing is not all-inclusive nor does the existence of one or more of the items always signify that a material uncertainty exists.

Financial

• Net liability or net current liability position.
• Fixed-term borrowings approaching maturity without realistic prospects of renewal or repayment.
• Indications of withdrawal of financial support by creditors.
• Negative operating cash flows.
• Adverse key financial ratios.
• Substantial operating losses.
• Discontinuance of dividend payments.
• Inability to pay creditors on due dates.
• Inability to comply with the terms of loan agreements.
• Change from credit to cash-on-delivery transactions with suppliers.

Operating 

• Management intentions to liquidate the entity.
• Loss of key management without replacement.
• Loss of a major market, key customers, franchise, license, or principal suppliers.
• Labor difficulties.
• Shortages of important supplies.
• Emergence of a highly successful competitor.

Other

• Non-compliance with statutory requirements.
• Pending legal or regulatory proceedings against the entity leading to legal claims.
• Changes in law expected to adversely affect the entity.
• Uninsured or underinsured catastrophes when they occur.