FASB Issues New Guidance for Going Concern Determinations

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In the nonprofit world, “going concern” refers to an auditor’s opinion or footnote disclosure that describes a scenario where there is substantial doubt about the organization’s ability to continue as a going concern. In other words, the organization’s ability to function for the foreseeable future. This doubt could be the result of a debt default, recurring operating losses, a bankruptcy filing, a negative outcome to a material lawsuit, governmental action threatening the organization’s future, or just simply not being able to pay the bills as they come due. Obviously, it is not ideal for external readers of your financial information …read more

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