Going Concern Considerations in the COVID-19 Environment (AGC1)

Overview

Of all the financial reporting impacts related to COVID-19, financial statement disclosure and accountants’ reporting when substantial doubt about an entity’s ability to continue as a going concern is likely to continue for several reporting cycles. In this course, we’ll review the accounting disclosure guidance related to going concern considerations found in ASC 205-40, and provide actual client examples when substantial doubt exists and it has and has not been alleviated by management’s plans. Further, the course will cover auditors’ responsibilities related to going concern as well as those of the accountant in SSARS engagements. The course will cover standard audit procedures, which an accountant would likely perform regarding management’s mitigation plans, as well as review when and how an accountant in a review engagement would assess management’s plans to alleviate the going concern risk.

Major Topics:

• FASB guidance in ASC 205-40 regarding required disclosures when substantial doubt about an entity’s ability to continue as a going concern exists
• Sample disclosures under ASC 205-40
• Accountant’s reporting considerations when substantial doubt exists

Learning Objectives:

• Recall accounting and reporting issues related to going concern considerations and the COVID-19 pandemic
• Apply FASB and AICPA guidance to client situations