Risks and Uncertainties — FASB Tentatively Decides Against Requiring Management to Perform a Going-Concern Assessment
In response to feedback received as a result of the FASB staff’s outreach activities, the Board tentatively decided on Wednesday not to require management to perform a going-concern assessment under U.S. GAAP.
The Board added the project on going concern and the liquidation basis of accounting (now the project on disclosures about risks and uncertainties and the liquidation basis of accounting) to its agenda in May 2007 and issued an exposure draft (ED) on going concern for public comment in October 2008. Since then, the Board has continued deliberating the project and expects to release a revised ED in the first half of 2012 to incorporate tentative decisions made since the issuance of the original ED. For more information about the history and current status of this project, see the project update on the FASB’s Web site.
