Tuesday, January 26, 2010

What’s Holding Up FASB’s Going Concern Project?

The going concern project has been on the FASB’s agenda since back in 2008. Seems the FASB wants to move the guidance from auditing literature to the accounting Codification. Makes sense to me. I never have understood why the “accounting” standards were set by an auditing standard but they fixed that with the FASB Codification that was effective July 1, 2009. So what’s causing the delay? There are probably numerous reasons that it has not made it to the Codification. At first FASB was simply going to import the standard as it exists today into the Codification but then decided to revise the whole standard. That’s never a quick process, so I guess that we will just have to be patient and hope for the best. What do you think?

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