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FASB floats "going concern" guidance for management Washington
U.S. accounting rule makers floated a proposal on Thursday that would require corporate management to take a longer and more holistic view when assessing and accounting for the viability of their business. The Financial Accounting Standards Board's proposal would establish general standards of accounting for and disclosure of events that occur after a company has reported financial results. Auditors issue so-called "going concern" opinions annually, which say whether they think a company can survive. Under FASB's proposal, management would be required to consider all available information about the future and projections for "at least" one year in the future when reporting results to assess whether a business can be deemed viable. Currently, the time horizon for the "going concern" assessment is limited to looking one year forward from the date of the financial statements. The proposals are open for comment until Dec. 8. [Source: Reuters]
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