The Financial Accounting Standards Board is planning to tweak its proposed standards around the assessments of whether an entity can continue as a going concern and how to treat “subsequent events,” or events that occur after a financial statement closes but before it is published.

The board determined it will offer some new guidance to define “going concern,” so preparers will be clear on whether they should flag investors that there are questions about the viability of the business. The board also determined it will provide some new language to clarify the time horizon that management should consider in reaching a going concern conclusion.

In developing the standards on going concern and subsequent events, FASB is seeking to move concepts traditionally governed by auditing literature into the accounting literature. In writing the going concern standard, FASB made a subtle but significant change in the time horizon.

Under auditing standards, the going concern assessment is expected to consider a timeline of not more than 12 months beyond the date of the financial statements. FASB said in its proposal the timeline should consider at least 12 months. That raised objection in comment letters, where preparers interpreted the timeline as limitless, and therefore unrealistic.

FASB said during its regular weekly meeting it will try to recast the requirement to make it clear that the timeline should not be limited to a bright line of 12 months but is not intended to be infinite. “We’re saying consider … (material) information, events, and circumstances that are in about a year horizon,” said board member Tom Linsmeier. “Maybe we need to make that clear. We’re not saying that you have to go to infinity. We’re saying keep in mind things within that general horizon, but don’t limit it to absolutely 12 months.”

In the subsequent events standard, the board determined it will include an exception for any existing accounting rules that conflict with the requirements of the statement, and it will require entities to disclose the date through which subsequent events have been evaluated.

Both standards are expected to be finalized in time to take effect for interim and annual periods ending after June 15.