Think you don’t need to worry about going concern disclosures because the new FASB rules aren’t in effect yet? Well, we’re encouraging you to think again! Even for those who aren’t implementing ASU 2014-15 early, it is still relevant to discuss going concern disclosures now under existing rules.
Going concern is an area of uncertainty, which leaves its rules and standards open to interpretation. Many people tend to take the easy road and only rely on what the accounting standards explicitly tell them to do. This is why the FASB felt a need to make it a rule.
One objective of financial reporting is to ensure that financial statement users have complete information to make reasonable financial decisions, including the likelihood and magnitude of future events and outcomes on the uncertainty of current financial picture.
We are covering this topic through a webinar at multiple dates and times in the coming weeks and months This course will focus on going concern issues relevant to compilations, reviews and audits.
Some of the highlights will include:
- Current FASB accounting standards related to going concern
- Evaluating risk of material misstatement in financial reports related to improper presentation and disclosure of going concern uncertainty.
Even if you believe you are exempt (most people aren’t, especially those doing full disclosure financial statements), it is always appropriate to discuss this uncertainty. Make it easy on yourself and your financial statement users and provide relevant information in footnote disclosures.
Interested in learning more about going concern issues? Join us and register today!