ASC

Concept

one year after issuance date

Referenced in 1 subtopic across 1 area.

Presentation1

  1. 205-40Going Concern205 Presentation of Financial Statements

    ASC 205-40 requires management of every entity, in connection with preparing annual and interim financial statements, to evaluate whether conditions and events considered in the aggregate raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued (or are available to be issued). Substantial doubt exists when it is probable the entity will be unable to meet its obligations as they become due in that lookforward period, assessed initially without regard to unimplemented management plans. Depending on whether management's plans alleviate that doubt, prescribed note disclosures — including an express "substantial doubt" statement when doubt is not alleviated — are required.