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FASB issues guidance on going concern

  • FASB (US Financial Accounting Standards Board) Image

Aug 27, 2014

The FASB has issued ASU 2014-15, “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern,” which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements.

The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date of issuance of the entity’s financial statements. Further, an entity must provide certain disclosures if “conditions or events raise substantial doubt about [the] entity’s ability to continue as a going concern.”

The ASU applies to all entities and is effective for annual periods beginning after December 15, 2015, and interim periods thereafter, with early adoption permitted.

For more information, see our related Heads Up as well as the press release, ASU, and FASB in Focus newsletter on the FASB’s Web site.

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