Going concern worry for Rangers

The issue of Rangers as a ‘going concern’ has been raised by a leading accountant in the wake of the Ibrox club issuing unaudited accounts.

Confirmation that Craig Whyte served a seven year ban from being a director accompanied the accounts which failed to mention a possible £49m tax bill although in his statement Whyte described the issue as a black cloud.

With UEFA looking closely at licencing issues to protect the integrity of their competitions concerns about the sustainability of any club are a major worry for the football authorities.

Discussing the impact of a potential tax bill of £49m plus on the unaudited accounts in the Scotsman Neil Patey of Ernst & Young said: “I don’t see anything sinister in it at this stage. But it would be an interesting question for the auditors if they try to have them sign the accounts before the case is determined.

“From an auditors point of view, you would challenge the going concern if you think there could be a big event which could see the club running out of cash.

“You try to get clarity before you sign so I wouldn’t be at all surprised if you didn’t see that audit opinion being given until after the tax hearing in January. There might not be full clarity then but you would expect a greater degree of it.”

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