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Going concern and subsequent events.

FASB issued two related Exposure Drafts for public comment: Going Concern and Subsequent Events.

The proposal on going concern would require management of a reporting entity to consider all available information about the future, which is at least, but not limited to, 12 months from the end of the reporting period, when assessing whether a going concern assumption is appropriate. It also would require disclosures when either the financial statements are not prepared on a going concern basis or there is substantial doubt as to an entity's ability to continue as a going concern.

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The proposal on subsequent events establishes general standards of accounting for, and disclosure of, events that occur subsequent to the balance sheet due date, but before financial statements are issued or available to be issued.

It also would require disclosure of the date through which management has evaluated subsequent events and whether that date represents the date the financial statements were issued or the date the financial statements were available to be issued. That disclosure would alert all users of financial statements that management has not evaluated subsequent events after that date.

Learn more at www.fasb.org/news/nr 100908.shtml.
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Title Annotation:news&trends
Publication:California CPA
Date:Nov 1, 2008
Words:198
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