Northbank Custom Fixtures, Inc. is finishing its 12/31/2026 GAAP financial statements, and the finance team is also preparing the going concern evaluation that lenders and auditors will ask for. The timing question is practical, not academic, because the one year look-forward period determines which obligations we must consider when we assess whether the company can meet its obligations as they become due. For this private company, the statements are available to be issued on 03/15/2027 and issued on 03/31/2027, so we have to decide which of those dates starts the one-year clock under US GAAP for going concern. Put the three dates in order and mark which one starts the ASC 205-40 look-forward window, then we will use that window in a due-date schedule.
Once we know the window, the decision we make each reporting period is whether conditions and events raise substantial doubt, meaning it is probable the entity will be unable to meet its obligations as they become due within that look-forward period. This is a management evaluation under ASC 205-40, so the focus is on due dates and cash requirements, not on whether the balance sheet is technically insolvent at period end. Before we build any forecasts, the first screen is mechanical and date-driven, so the first question is which obligations even land inside the window we just defined.
Northbank has several known obligations, but their due dates cluster in early 2028, which is exactly where the start date matters. Before reading the schedule, decide which start date would pull more of these 2028 maturities into the one-year look-forward period, 03/15/2027 or 03/31/2027.