Handbooks | September 2021

 

Insight

Handbook: Going concern

Latest edition: Our comprehensive guide to management’s going concern assessment.

Valerie Boissou

Valerie Boissou

Partner, Dept. of Professional Practice, KPMG US

+1 212-954-1723

Tim Phelps

Tim Phelps

Partner, Dept. of Professional Practice, KPMG US

+1 212 872 3249


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 has been good to robust, making this assessment relatively easy for many companies.
  • COVID-19 has continued to impact the economic climate in different ways, making the going concern assessment more challenging for some companies.
  • This latest edition includes additional guidance on situations involving parental support, workforce reduction programs and interim disclosures.

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

Subscribe to our newsletter

Receive timely updates on accounting and financial reporting topics from KPMG.

Receive timely updates on accounting and financial reporting topics from KPMG.

ARO

Use our Accounting Research Online for financial reporting resources.

Use our Accounting Research Online for financial reporting resources.