In June 2013, the FASB issued a proposal that would require management to assess a company's ability to continue as a going concern and provide related footnote disclosures under certain circumstances.
Under the proposal, footnote disclosure would be required if a company determines it is either 1) more likely than not that it will be unable to meet its obligations within 12 months of the financial statement date or 2) known or probable that the entity will be unable to meet its obligations within 24 months after the financial statement date without taking actions outside the ordinary course of business.
SEC filers would be required to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and, if so, express that conclusion in the footnotes using the term "substantial doubt" and specific phrases that use the term "going concern."
Currently, U.S. GAAP and the SEC’s rules on MD&A require companies to disclose all matters that are material. However, there is no financial statement disclosure requirement in the United States specific to going concern. The proposal provides guidance on management’s responsibilities for evaluating and disclosing going concern uncertainties.
This Dataline provides a high level summary of the proposal.