"The State of COVID-19 Disclosure, Part II: Going Concern" from Intelligize homes in on the additional COVID-19-specific guidance recently issued by the SEC's Division of Corporation Finance - CF Disclosure Guidance: Topic No. 9A (reported on here), and specifically, the topic of the company's ability to continue as a going concern. In addition to explaining the two potential sources of such a disclosure - the auditors and the company - and the differences in approach between the two, the post identifies several illustrative disclosures (categorized by Intelligize as "pandemic" and "pandemic plus") that may be instructive to other companies grappling with conditions and events that may raise substantial doubt about their ability to meet their obligations within the coming year and associated disclosure.
Pandemic-triggered concern status examples:
Pandemic and other factors resulted in concern status examples:
See also Audit Analytics: "Audit Opinions with Going Concern Modification Referencing COVID-19" and additional COVID-19 disclosure samples on our Coronavirus (COVID-19) Resources page under Samples/Templates.
This post first appeared in the weekly Society Alert!