New going concern disclosures

In this report, we examine financial statements issued by public companies where substantial doubt was alleviated. We find considerable user confusion, and in some cases with apparent economic consequences, regarding the disclosures when substantial doubt was alleviated, with many users not discerning between entities where substantial doubt was alleviated and where substantial doubt exists. We also found diversity regarding the wording of the required disclosures when substantial doubt was alleviated. Some entities appeared to carefully word disclosures in order to attempt to avoid unintended consequences but may be sacrificing transparency and compliance.