PODCAST

KPMG Financial Reporting Podcast: Going concern

An overview discussion of going concern assessments and financial reporting implications.

Tim Phelps

Tim Phelps

Partner, Dept. of Professional Practice, KPMG US

+1 212 872 3249

Brian Fields

Brian Fields

Partner, Dept. of Professional Practice, KPMG US

+1 212-872-3397

Podcast overview

In this podcast, specialists from our Department of Professional Practice discuss the elements of management’s going concern assessment.

Applicability

  • All companies

Relevant dates

  • Effective immediately

Podcast contents

  • 01:00 – Liquidity drivers in the current economy
  • 02:15 – Overview of liquidity and going concern disclosures
  • 04:05 – Management’s assessment of whether there is ‘substantial doubt’ about the company’s ability to continue as a going concern
  • 06:20 – Assessing items that are harder to predict, such as legal contingencies and acceleration clauses in debt agreements
  • 08:10 – If there is substantial doubt, whether management’s plans mitigate that doubt – and differentiating actions from plans
  • 11:05 – The financial reporting consequences depending on the outcome of the going concern analysis: no substantial doubt; substantial doubt and not mitigated; substantial doubt but mitigated
  • 12:55 – Practical tips on making the process of assessing going concern easier, including risk assessment process and control environment