Evaluating Going Concern - What Accountants Need to Know
Author: Kelen Camehl
| CPE Credit: |
1 hour for CPAs |
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
