Going concern

FASB Reopens Debate on Going Concern Disclosure

Tammy Whitehouse May 04, 2012

The Financial Accounting Standards Board has decided to take another look at whether management should be required to assert that it has doubt about an entity's ability to stay in business. While FASB had recently signaled that it wouldn't require a going concern-type disclosure in connection with liquidity and interest rate risks, now it wants to take a fresh look at whether management should be making a going concern disclosure after all.

FASB Retreats on Going Concern Disclosure

Tammy Whitehouse April 13, 2012

The Financial Accounting Standards Board has decided it will not require any judgment-based disclosures about whether an entity is facing difficulties remaining in business. Instead, the board will seek quantitative disclosures that will give investors early signals on when a company may be buckling under liquidity risk.

Regulators Consider New Warning Measures for Troubled Companies

Tammy Whitehouse November 08, 2011

Investors are clamoring for new mechanisms to warn that a company may be on the verge of collapsing, but the Financial Accounting Standards Board is still wondering whether the answer is new rules, or better enforcement of current rules. "I'm very concerned we are talking about adding things through [new rules] that are already required," FASB Chairman Leslie Seidman says.

FASB Adopts New Rule on Subsequent Events

Tammy Whitehouse May 28, 2009

The Financial Accounting Standards Board has published its final word on when companies should consider the effects of “subsequent events,” or game-changing events that occur after the balance sheet date but before financial statements for the period are published.Financial Accounting Standard No. 165: Subsequent Events is intended to clarify when...

Spike Predicted for Going Concerns for Accelerated Filers

Tammy Whitehouse April 28, 2009

If filing patterns for 2008 year-end financial statements hold steady, an increasing number of accelerated filers listed on major stock exchanges will get audit opinions expressing doubts about their ability to continue as going concerns.According to analysis of going concern opinions filed by auditors for previous years and for early...

IAASB Offers Audit Advice During Credit Squeeze

Tammy Whitehouse January 22, 2009

The unprecedented squeeze on credit raises the stakes for both management and auditors in determining whether an entity can continue as a going concern. The assessment for financial reporting purposes is tougher than ever, yet at the same time more important than ever.To the rescue, the International Auditing and Assurance...

Going Concern Is Issue to Watch in 2009, Fitch Says

Tammy Whitehouse January 15, 2009

Management assertions about whether a company can continue as a going concern in the current economic environment should be “required reading” for investors, according to a Fitch outlook for 2009.Companies and their auditors are facing off over whether toxic assets without ready buyers should be written down. Exacerbated by a...

UK Audit Board Offers Going Concern Guidance

Global Glimpses December 23, 2008

Britain's Auditing Practices Board has published guidance to help directors decide whether their business remains a going concern, given the tough economic climate.The Board, which is part of the Financial Reporting Council, said uncertainty about bank lending intentions, the effect of recession on the company’s business, and the extent to...

FASB Plans Update on Going Concerns, Subsequent Events

Tammy Whitehouse September 04, 2008

The Financial Accounting Standards Board is planning to update guidance on how to account for events that occur after the balance sheet date and how an entity should assess its ability to continue as a going concern.The board planned to bring the topics out of auditing literature and codify them...

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