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Principles underlying the preparation of historical financial statements include the fair presentation of disclosures related to material uncertainties, including any substantial doubt about an entity’s ability to continue as a going concern for a reasonable period of time. U.S. Generally Accepted Accounting Principles (GAAP) was recently modified to reduce diversity in the timing and content of these required disclosures.

Management’s direct responsibility to evaluate whether there is any substantial doubt, and provide disclosures appropriate to the circumstances, is relevant regardless of whether the reporting entity is a public company, private-held business, nonprofit or any other entity type.  This course assists financial statement preparers and their external accountants with complying with the spirit and form of the new financial reporting rules related to going concern uncertainty. 

Course Series

This course is included in the following series:

7 CoursesAn Auditor's Perspective on...

  1. Preparing Financial Statements – An Auditor’s Perspective on What Matters Most
  2. Independence Rules for CPA’s – An Auditor’s Perspective on Significant AICPA, Public Company, Governmental, and International Differences
  3. Designing and Performing Sampling Plans – An Auditor’s Perspective on Monitoring Internal Controls, Compliance, and the Reasonableness of Account Balances
  4. FASB ASC Section 205-40: Going Concern Uncertainty – An Auditor’s Perspective
  5. FASB ASC Topic 470: Debt – An Auditor’s Perspective on Common Balance Sheet Classification Issues
  6. FASB ASC Topic 820 Fair Value – An Auditor’s Perspective on Determining Fair Value of Non-Readily Marketable Investments
  7. Recently Issued GAAP Relevant to Small- or Mid-Size Private Companies – An Auditor’s Perspective on What Merits the Most Attention

Learning Objectives

  • Discover the requirements of Accounting Standards Update (ASU) No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 2015-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a going Concern, which is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter.   
  • Discover why complete and informative going concern uncertainty disclosures are important to financial statement users, and recognize the required elements in such disclosures.
  • Explore how to best demonstrate that management’s plans and intentions are likely to reduce the risk of going concern uncertainty within a reasonable period of time, which impacts the nature of footnote disclosures and any related audit or attest reports issued by public accountants. 
Last updated/reviewed: September 19, 2018

6 Reviews (20 ratings)Reviews

4
Anonymous Author
Lots of great content. Although I have had classes that were well structured from this instructor, in this class I had a few instances where I had trouble following the instructor.
5
Member's Profile
Thorough summary of requirements of this requirement. This instructor consistently gives good examples and makes very technical topics more understandable.
5
Member's Profile
Well-organized course. I learned a lot about going concern that I need to incorporate into my class. Anyone that teaches audit would benefit.
4
Member's Profile
The course was informative and thorough, but definitely a dry hour of CPE.
3
Member's Profile
THe course should be longer as it covers many important areas.
5
Member's Profile
Good instructor.

Prerequisites

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION and OVERVIEW
  3:06Introduction to FASB ASC Section 205-40
FASB ASC Section 205-40
  4:14Trends in Going Concern Disclosures
  6:08Introduction to ASU 2014-15
  5:49Substantial Doubt Risk Indicators
  6:11Look Forward Period Explained
  5:50Required Going Concern Uncertainty Disclosures
  15:42Evaluating The Mitigating Effect Of Management's Plans and Intentions
  3:33Challenging Management's General Assumptions
CONCLUSION
  10:36Impact on Independent Auditor's Reports
  4:38Impact on SSARS NO. 21 Engagements
Continuous Play
  1:05:57FASB ASC Section 205-40
SUPPORTING MATERIALS
  PDFSlides: FASB ASC Section 205-40
  PDFFASB ASC Section 205-40 Glossary/Index
REVIEW and TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM