US expected to get tougher on 'going concern' warnings.

PositionUpdate

In the US, the Financial Accounting Standards Board is expected to revisit 2008 proposals that would address the knotty issue of "going concern" warnings, with a view to ensuring that alarms are sounded before companies fail.

At issue are the standard warnings that auditors are required to include in annual reports when they have substantial doubt that a company will survive.

Auditors have been accused of failing to flag going concern doubts - and the lack of going concern warnings for banks that got into trouble in the 2007-2009 global credit crisis has triggered calls for...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT