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The going concern principle is presumed as the basis for preparing financial statements—unless and until the nonprofit’s liquidation becomes imminent.
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2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.
Transferring from one of these entities to another does not constitute a separation from service.
The following examples illustrate a sale of assets, sale of stock, tax-free spin-off and IPO.
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If and when a nonprofit’s liquidation does become imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30.