Breaking Point – Accounting for Financial Distress and Reorganization ON DEMAND

Overview

This course covers the accounting and disclosure requirements for entities experiencing financial distress under U.S. GAAP. This going course begins with the going concern framework in ASC 205-40, which outlines how management should assess and disclose substantial doubt about an entity’s ability to continue operating. The course then moves into the specialized guidance in ASC 852 for entities that enter Chapter 11 bankruptcy and undergo formal reorganization. Throughout, you’ll gain insight into how financial reporting obligations evolve as a company moves from early signs of instability to court-supervised restructuring.

Highlights

Going concern uncertainty. Conditions and events that may raise substantial doubt. Reorganization accounting. Scope of ASC 852. Chapter 11 process. Overall financial reporting impacts. Financial reporting impacts. Quasi-reorganizations.

Prerequisites

None.

Designed For

CPAs, CEOs, CFOs, controllers and other financial managers.

Objectives

Identify the conditions that require management to evaluate going concern uncertainty. Determine the appropriate one-year look-forward period for a going concern assessment. Recognize how management’s plans may alleviate substantial doubt. Differentiate between disclosures required when substantial doubt is alleviated and when it is not. Identify when an entity is required to apply ASC 852 accounting guidance for reorganization. Recognize how to present liabilities subject to compromise and reorganization items. Differentiate between normal operating expenses and reorganization related costs. Determine the appropriate financial statement presentation during and after 1 proceedings.

Preparation

None.

Notice

None.