The purpose of this Alert is to highlight key changes and implications of ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The guidance applies to all companies and is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. This means that this guidance will be effective for the upcoming 2016 10-K for companies with a calendar year-end.
To assess the ability to continue as a going concern, management will need to consider relevant conditions that are known (and reasonably knowable) at the issuance date. Substantial doubt exists if it is probable that the entity will be unable to meet its obligations within one year after the financial statement issuance date.