This course covers the accounting and disclosure requirements for entities experiencing financial distress under U.S. GAAP. It begins with the going concern framework in ASC 205-40, which outlines how management should assess and disclose substantial doubt about an entity’s ability to continue operating. The course then moves into the specialized guidance in ASC 852 for entities that enter Chapter 11 bankruptcy and undergo formal reorganization. Throughout, you’ll gain insight into how financial reporting obligations evolve as a company moves from early signs of instability to court-supervised restructuring.
Publication Date: March 2026
Topics Covered
- Going Concern Uncertainty
- U.S. GAAP Guidance
- Time Period Under Review
- Conditions and Events That May Raise Substantial Doubt
- Management Evaluation Requirements
- Substantial Doubt Exits - Now What?
- Management Plans
- Disclosure Requirements
- Reorganization Accounting
- Scope of ASC 852
- Chapter 11 Process
- Overall Financial Reporting Impacts
- Financial Reporting Impacts - During Chapter 11
- Financial Reporting Impacts - After Chapter 11
- Quasi-Reorganizations
Learning Objectives
- Identify the conditions that require management to evaluate going concern uncertainty
- Determine the appropriate one-year look-forward period for a going concern assessment
- Recognize how management’s plans may alleviate substantial doubt
- Differentiate between disclosures required when substantial doubt is alleviated and when it is not
- Identify when an entity is required to apply ASC 852 accounting guidance for reorganization
- Recognize how to present liabilities subject to compromise and reorganization items
- Differentiate between normal operating expenses and reorganization-related costs
- Determine the appropriate financial statement presentation during and after Chapter 11 proceedings
- Recognize required disclosures for entities undergoing reorganization under ASC 852
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Kelen Camehl
Kelen is a recognized author and reviewer of CPE courses and has authored over 145 courses (350 CPE credit hours) covering a range of accounting, auditing, financial reporting, regulatory, and ethics topics. His courses are available for purchase from many online CPE providers including the AICPA. Kelen remained involved in CPA exam content development for nearly 10 years and authored more than a thousand multiple choice questions for various sections of the CPA exam. He also serves as an Editorial Advisor for the AICPA’s "Journal of Accountancy".
Kelen has nearly 20 years of progressive finance and accounting experience. He currently serves as an Accounting Policy Advisor with HP. Prior to HP, he served in multiple accounting roles in the oil & gas industry with ConocoPhillips including technical accounting policy, SOX compliance, and internal audit. He also gained public accounting experience with PricewaterhouseCoopers, working with various clients in the energy, electric, power, gas, and utility sectors.