What is one possible outcome of management's evaluation when no substantial doubt exists about the entity's ability to continue as a going concern?

When management evaluates the entity's ability to continue as a going concern and concludes that no substantial doubt exists, it implies that the entity is expected to continue its operations for the foreseeable future, typically defined as within one year from the date of the financial statements. In this case, financial statements should be prepared using the going concern basis of accounting, which means that the company will continue its operations and discharge its liabilities as they come due.

Additionally, when no substantial doubt is present, there is no need for disclosures specifically related to going concern issues, as the assumption of continuity remains intact. Therefore, financial statements can be presented in a manner that reflects the ongoing nature of the business without the need for any significant cautionary notes regarding its viability.

This treatment aligns with the fundamental principles of financial reporting, which dictate that entities prepare their financial statements based on the assumption that they will continue as going concerns unless there is significant evidence to suggest otherwise.