Liquidation Basis of Accounting

Question 1

When are plans to mitigate liquidation concerns considered?

Answer 1

When plans are probable of being implemented
AND
Plans will mitigate the conditions raising concerns

Question 2

When is liquidation considered imminent?

Answer 2

When there is a remote likelihood the entity will return from liquidation and has either:

1. Adopted and approved a plan of liquidation
2. Is having a plan of liquidation imposed upon it

Question 3

How are assets and liabilities measured under liquidation accounting?

Answer 3

Assets = Amount they are expected to generate upon liquidation
Liabilities = Measured under GAAP