Tuesday, September 30, 2014

Going Concern: FASB issues new standard on reporting adverse conditions and events



The Financial Accounting Standards Board (FASB) has released a new accounting standard that provides much-needed guidance on management’s responsibility in evaluating and disclosing adverse conditions or events that raise substantial doubt about a company’s ability to continue as a “going concern.” The guidance, published in Accounting Standards Update (ASU) 2014-15, Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, applies to all companies that prepare their financial statements in accordance with US Generally Accepted Accounting Principles (GAAP).

The changes in ASU 2014-15 are effective for the annual financial statement period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted.

See full Article: http://www.bakertilly.com/insights/going-concern-fasb-issues-new-standard-on-reporting-adverse-conditions