The Auditing Standards Board (ASB) of the AICPA recently provided auditors with additional interpretive guidance when evaluating an entity’s ability to continue as a going concern.
Requirements for going concern reporting underwent a major change last year with the Financial Accounting Standards Board (FASB)’s Accounting Standards Update No. 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. Effective in 2016, the update requires management to disclose if there is “substantial doubt” that they will meet their obligations within a reasonable time period of the financial statement date.
Learn more in our latest MHM Messenger: Auditing Guidance for Going Concern Updated.