KPMG explains how an entity’s management performs a going concern assessment and makes appropriate disclosures. Q&As, interpretive guidance and illustrative examples include insights into how continued economic uncertainty may affect going concern assessments. This latest edition includes illustrative application of going concern’s most significant complexities.
Applicability
- All entities
Relevant dates
- Effective immediately
Key impacts
- The requirement to assess a company’s ability to continue as a going concern is a relatively new requirement – dating back to 2017.
- Since that time, the global and domestic economic climate had predominantly been good to robust, making this assessment relatively easy for many companies.
- However, recent global events have impacted the economic climate in different ways, making the going concern assessment more challenging for some companies.
- This latest edition includes updated guidance on changes in AICPA auditor’s report terminology.
Report contents
- Overview of going concern assessment
- Step 1: Assess whether substantial doubt is raised
- Step 2: Assess whether substantial doubt exists
- Disclosures
- Impact on other accounting matters
- Risk assessment and ICFR
- Auditor’s going concern assessments
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