SEC Flags Going Concern Reporting Ahead of Filing Season (1)

The SEC on Tuesday told U.S. companies to pay close attention to risks that may threaten their ability to survive the next 12 months as they gear up to report on a full quarter of business operations hamstrung by the pandemic.

Going concern warnings aren’t just the responsibility of auditors, rather management has to consider whether conditions pose a substantial doubt that the company could continue operating and meet its obligations a year out, Sagar Teotia, chief accountant of the Securities and Exchange Commission, said. Teotia’s advice was in a note posted on the regulator’s website before the start ...