As reported last week by Ken Tysiac in the AICPA's Journal of Accountancy
FASB decided Wednesday that it will not require qualitative disclosures about an entity’s ability to remain a going concern that would supplement the proposed quantitative disclosures about liquidity risks.
The Board decided not to require qualitative disclosures related to an entity’s ability to remain a going concern that would supplement the proposed quantitative disclosures about liquidity risks
The basis for that decision was that meeting the additional informational needs of users with respect to the topic of an entity’s ability to remain a going concern would likely require a collaborative effort of the FASB and other organizations that possess the interest and means to provide the most effective solution.
Encompassing this most recent decision, the board directed the staff to proceed with a 'ballot draft' of a proposed Accounting Standards Update (to be released for public comment in the form of an Exposure Draft or ED) on disclosures about liquidity and interest rate risk. As described by FASB, the board also decided:
- transition: the board will propose that entities apply the new requirements prospectively with ongoing comparative disclosures after the period of initial adoption
- effective date: the board will not specify a proposed effective date in the Exposure Draft, but will instead invite comment on this point
- comment period: there will be a 90-day comment period on this ED.
Posted: 4/16/2012 2:42:53 PM
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Filed under: Going Concern,interest rate risk,liquidity and interest rate risk,liquidity risk,FASB