One of the unfortunate outcomes of the COVID-19 pandemic is the economic stress. Such stress has raised concerns about many entities’ abilities to continue as a going concern, which has significant accounting, disclosure and, reporting implications. “Going concern” refers to the concept that users of financial statements can expect that the company will continue to operate in the near future unless conditions or events occur that may contradict that assumption. Even in a strong economy, companies can lose significant contracts, face cash flow problems or be in danger of missing loan payments. If there is uncertainty as to a company's ability to meet the going concern assumption, the facts and conditions must be disclosed in its financial statements.
This course will review the relevant considerations related to going concern including :
- What to do when substantial doubt concerning an entity’s ability to continue as a going concern exists
- Management mitigation efforts
- Required disclosures both when management, and the accountant, feel such efforts will be effective in mitigating the risk
- Responsibility of an independent accountant for evaluating going concern uncertainty under various levels of engagement to perform attest and nonattest services