FASB ASC Section 205-40: Going Concern Uncertainty

FASB ASC Section 205-40: Going Concern Uncertainty

Principles underlying the preparation of historical financial statements include the fair presentation of disclosures related to material uncertainties, including any substantial doubt about an entity’s ability to continue as a going concern for a reasonable period of time. U.S. Generally Accepted Accounting Principles (GAAP) was recently modified to reduce diversity in the timing and content of these required disclosures.

Management’s direct responsibility to evaluate whether there is any substantial doubt, and provide disclosures appropriate to the circumstances, is relevant regardless of whether the reporting entity is a public company, private-held business, nonprofit or any other entity type. This course assists financial statement preparers and their external accountants with complying with the spirit and form of the new financial reporting rules related to going concern uncertainty.

This course assists financial statement preparers and their external accountants with complying with the new financial.

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What you will learn

• Discover the requirements of Accounting Standards Update (ASU) No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 2015-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a going Concern, which is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter.
• Discover why complete and informative going concern uncertainty disclosures are important to financial statement users, and recognize the required elements in such disclosures.
• Explore how to best demonstrate that management’s plans and intentions are likely to reduce the risk of going concern uncertainty within a reasonable period of time, which impacts the nature of footnote disclosures and any related audit or attest reports issued by public accountants.

Rating: 0

Level: Intermediate Level

Duration: 1 hour

Instructor: Illumeo Learning