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.

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

Related content

CPE webcast: Going concern

KPMG Financial Reporting podcast: Going concern