SAA submitted an application for a going concern
guarantee on 21 December 2015 which is under consideration.
that raise substantial doubt about the entity's ability to continue as a going concern
within one year after the date that the financial statements are issued," (p.
367(a) or (d) to Foreign Goodwill and Going Concern
assumption is applied in cases where a company faces difficult financial, economic or operating conditions which may endanger its existence,said a statement issued by SECP here on Saturday.
The new FASB guidance requires consideration of the entity's ability to continue as a going concern
one year from the financial statement issuance date (or at the date that the financial statements are available to be issued, when applicable).
The update defines management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern
and to provide related footnote disclosures.
The FASB proposal recommends that management be required to perform interim and annual assessments of their company's ability to operate as a going concern
for a 24-month period.
The going concern
presumption is critical to financial reporting because it establishes the fundamental basis for measuring and classifying assets and liabilities.
GAAP, there are two bases of accounting: going concern
The proposals contemplate making companies themselves responsible for warning when there is a risk that they may not be able to continue as a going concern
To be sure, going concern
valuation is a complex area of the appraisal profession that requires additional competency.
Assets, like these, that don't generate income, have no going concern
value--only liquidation value.