Tentative Board Decisions

Tentative Board decisions are provided for those interested in following the Board’s deliberations. All of the reported decisions are tentative and may be changed at future Board meetings.

May 7, 2014 FASB Board Meeting

Going Concern. The Board continued its redeliberations of its June 2013 proposed Accounting Standards Update, Presentation of Financial Statements (Topic 205): Disclosure of Uncertainties about an Entity’s Going Concern Presumption, and made the following decisions:

The Assessment Date and the Look-Forward Period

1. Management’s assessment of an entity’s ability to continue as a going concern should be based on relevant conditions or events known or reasonably knowable at the date the financial statements are issued (or for a nonpublic entity, the date the financial statements are available to be issued).
2. The look-forward period (that is, the period over which the entity’s ability to meet its obligations is assessed) should be one year from the date the financial statements are issued (or for a nonpublic entity, the date the financial statements are available to be issued).

3. The standard will apply to both public and nonpublic entities.

4. All entities will apply the new requirements prospectively for annual periods beginning after December 15, 2015, and in interim periods thereafter. Early adoption is permitted.

5. The Board directed the staff to draft a final Accounting Standards Update for vote by written ballot.