FASB proposes improvements to going concern uncertainties reporting.

• Author: Josephs, Stuart R.
• Position: IRS news

FASB has issued a proposal to improve disclosures of uncertainties related to an organization's ability to continue as a going concern. Stakeholders are asked to review and provide comments on proposed Accounting Standards Update, Presentation of Financial Statements (Topic 205): Disclosure of Uncertainties about an Entity's Going Concern Presumption, by Sept. 24.

There is no guidance in U.S. GAAP about management's responsibilities in evaluating or disclosing going concern uncertainties, or when or how uncertainties should be disclosed in an organization's footnotes. The proposal would provide this guidance, thereby reducing...