This course covers the accounting and disclosure requirements related to going concern under ASC 205-40. You'll learn how management evaluates whether substantial doubt exists, how to apply the required one-year look-forward period, and what role mitigation plans play in that analysis. The course also explains when disclosures are required and how they differ depending on whether substantial doubt is alleviated.
Publication Date: April 2026
Topics Covered
- U.S. GAAP Guidance
- Time Period Under Review
- Conditions and Events That May Raise Substantial Doubt
- Management Evaluation Requirements
- Substantial Doubt Exists – Now What?
- Management Plans
- Disclosure Requirements
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
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Accounting (1 hour)
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.