Going Concern Codified into U.S. GAAP

The concept of considering, and potentially disclosing, going concern uncertainties has existed for years. FASB Accounting Standards Update (ASU) 2014-15, Presentation of Financial Statements – Going Concern, officially codifies this concept into U.S. generally accepted accounting principles (U.S. GAAP). This standard establishes what management’s responsibility is related to evaluating whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related note disclosure.