Al Etehad Electonic Company, a manufacturer of laptops, operates in a challenging domestic market for electronic goods, prompting many industry players to explore export opportunities. The company reported net losses of BD $10$ million for the fiscal year ending on December $31,2023,$ as disclosed in its audited financial statements. By the close of $2023,$ its current assets amounted to BD $45$ million, while current liabilities stood at BD $50$ million. Concerns among shareholders regarding the company's performance have led to discussions about the possibility of closing down operations.

Anticipated changes in government policies for the electronics industry are expected to further dampen profitability prospects in the foreseeable future. Moreover, shareholders are reluctant to secure additional funding to support the company's expansion plans and operational requirements over the next $12$ months.

Required

In accordance with the principles of IAS $1,$ is it advisable for Al Etehad Electonic Company to formulate its financial statements assuming the going concern assumption? Kindly elucidate the rationale behind your answer