SGeorgieva week 1
DeVry University
ACCT540
Week 1Assigment
Professor Dr. Uzell Freeman-Williams
Silviya Georgieva
November, 2014
(ASU) 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern
Under U.S GAAP going concern is a fundamental assumption and a basis of which financial statements are prepared. The update issued August 2014 entity should assess its ability to meet obligations and sets disclosure requirements for how this information should be disclosed in the financial statements. Under the update, management is required 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. The evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. Management should disclose uncertainties about such ability if there is “substantial doubt about an entity’s ability to continue as a going concern”. Substantial doubt is defined as a condition that exist when aggregate events indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or available to be issued). Management is also required to evaluate and disclose whether its plans alleviate that doubt. The update was necessary because there was no guidance in GAAP on management’s responsibility for evaluating and disclosing going concern uncertainties. Currently the assessment is performed by auditors under auditing standards.
ASU 2014-15 is effective for annual periods ending after December 15, 2016 and for interim periods within annual periods beginning after December 15, 2016.
ASU 2014-14, Receivables —Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain
ACCT540
Week 1Assigment
Professor Dr. Uzell Freeman-Williams
Silviya Georgieva
November, 2014
(ASU) 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern
Under U.S GAAP going concern is a fundamental assumption and a basis of which financial statements are prepared. The update issued August 2014 entity should assess its ability to meet obligations and sets disclosure requirements for how this information should be disclosed in the financial statements. Under the update, management is required 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. The evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. Management should disclose uncertainties about such ability if there is “substantial doubt about an entity’s ability to continue as a going concern”. Substantial doubt is defined as a condition that exist when aggregate events indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or available to be issued). Management is also required to evaluate and disclose whether its plans alleviate that doubt. The update was necessary because there was no guidance in GAAP on management’s responsibility for evaluating and disclosing going concern uncertainties. Currently the assessment is performed by auditors under auditing standards.
ASU 2014-15 is effective for annual periods ending after December 15, 2016 and for interim periods within annual periods beginning after December 15, 2016.
ASU 2014-14, Receivables —Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain
References: FASB (2014) Presentation of Financial Statements—Going Concern (Subtopic 205-40) Retrieved from: http://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176164329772&acceptedDisclaimer=true FASB (2014) Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40) Retrieved from: http://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176164282728&acceptedDisclaimer=true FASB (2014) Consolidation (Topic 810) Retrieved from:http://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176164268998&acceptedDisclaimer=true FASB (2014) Compensation—Stock Compensation (Topic 718) Retrieved from: http://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176164147053&acceptedDisclaimer=true