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Going concern

The objective of this project is to provide guidance about (1) how an entity should assess its ability to continue as a going concern and (2) the timing, nature, and extent of any related disclosure requirements.

Meeting minutes

FASB discussions regarding this project are found in the following meeting minutes:

  • May 7, 2014 — The Board discussed issues relating to the development of a final Accounting Standards Update (ASU).
  • March 26, 2014 — The Board discussed issues relating to the development of a final ASU.
  • November 6, 2013 — The Board discussed feedback from proposed ASU, Presentation of Financial statements (Topic 205): Disclosure of Uncertainties About an Entity's Going Concern Presumption.
  • January 31, 2013 — The Board met to discuss remaining issues with the proposed going concern reporting model, and made decisions related to the disclosure threshold, definition of "outside the ordinary course of business," disclosure principle, applicability to nonpublic entities, and transition and other matters.
  • November 7, 2012 — The Board decided to adopt a new financial reporting model for management’s assessment of going concern, and related disclosures.
  • May 2, 2012 — The Board met to discuss issues relating to the liquidation basis of accounting and decided that a limited-life entity should prepare financial statements using the liquidation basis of accounting when significant management activities are limited to those necessary to carry out a plan of liquidation other than that which was contemplated in the entity’s governing documents.
  • February 15, 2012 — The Board met to discuss issues relating to the liquidation basis of accounting and the development of an exposure draft relating to that aspect of this project.
  • January 11, 2012 —The Board decided not to require that management assess whether there is substantial doubt about the entity’s ability to continue as a going concern, and directed the staff to develop a principle for an entity to assess the adequacy of its disclosures about risks and uncertainties and to evaluate how the content of such disclosures could be improved.
  • October 26, 2011 —The Board discussed the project’s scope and overall objectives and decided that improving disclosures that would serve as an early warning of an entity’s potential inability to continue as a going concern would not be an objective of this project, possibly adding this issue to the separate project on accounting for financial instruments.
  • December 1, 2010 — The Board met to discuss issues relating to the development of an exposure draft addressing disclosures about risks and uncertainties and the liquidation basis of accounting.
  • November 10, 2010 — The Board discussed a summary of key issues raised by external reviewers on a preliminary staff draft of a proposed ASU for this project. Input from the SEC and PCAOB would be sought.
  • March 31, 2010 — The Board discussed changes to the proposed accounting model for management’s going concern assessment and whether and how to proceed with the liquidation basis of accounting portion of this project.
  • January 13, 2010 — The Board discussed several scope alternatives but decided against making changes to the scope at the time. However, the Board directed the staff to draft language that would clarify the disclosure requirements related to management’s going-concern assessment.
  • June 3, 2009 — The Board redeliberated its October 2008 exposure draft, Going Concern. Discussions were focused on the meaning of the concept of “substantial doubt” concerning whether an entity’s ability to continue as a going concern exists.
  • February 18, 2009 — The Board discussed issues raised by constituents in their comment letters on the Board's proposed Statement on Going Concern.
  • August 27, 2008 — The Board discussed its plans for incorporating guidance on subsequent events and going concern into U.S. GAAP.
  • September 19, 2007 — The Board decided to remove both the going concern and liquidation basis of accounting and the subsequent events projects as separate projects from the its agenda and include them in the codification and retrieval project.
  • May 30, 2007 — The Board met to discuss whether it should add a project to its agenda on an entity’s assessment of its ability to continue as a going concern and the adoption of the liquidation basis of accounting, and, if so, to determine a basis for the proposed standard.

Current status

Project milestones

DateDevelopmentComments
May 30, 2007 Added to the FASB's agenda.
October 9, 2008 Exposure Draft, Going Concern. Comment deadline December 8, 2008.
January 31, 2013 Board directed the staff to draft a proposed ASU. Expected second quarter of 2013.
June 26, 2013 Proposed ASU, Presentation of Financial Statements (Topic 205): Disclosure of Uncertainties About an Entity’s Going Concern Presumption. Comment deadline September 24, 2013.
August 27, 2014 FASB Accounting Standards Update No. 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern. Effective December 15, 2015.

Correction list for hyphenation

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