KPMG US GAAP Handbook: Going concern

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.


  • 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

Download from KPMG FRV

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