ASU 2014-15 Going Concern Assessment

ASU 2014-15 Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern is effective December 31, 2016 for calendar year-end companies.

For 2016 calendar year companies, management is required to apply the new guidance (i.e., ASU 2014-15) related to the assessment of the reporting entity’s ability to continue as a going concern. Management is required to consider events and conditions up to and within one year from the issuance date of the financial statements to determine if conditions exist, or will exist, that give rise to “substantial doubt” about the company’s ability to meet its obligations. If it is determined that substantial doubt exists, certain disclosures are required, regardless of whether such doubt is alleviated by management’s plans.

On August 27, 2014, the FASB issued ASU 2014-15, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if “conditions or events raise substantial doubt about [the] entity’s ability to continue as a going concern.” The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted.

Additional information:

Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern
PwC In depth FASB defines management’s going concern assessment and disclosure responsibilities
EY To the Point - FASB requires management to assess an entity’s ability to continue as a going concern 
BDO FASB Flash Report - September 2014
Deloitte Heads Up — FASB Issues ASU on Going Concern