Going concern means that the accounting entity is viewed as continuing in operation indefinitely in the absence of evidence to the contrary.
In other words, financial statements are prepared normally on the assumption that the entity shall continue in operation for the foreseeable future.
Going concern is particularly relevant when management shall make an estimate of the expected outcome of future events.
This postulate is the very foundation of the cost principle. It is also known as the continuity assumption.
In other words, financial statements are prepared normally on the assumption that the entity shall continue in operation for the foreseeable future.
Going concern is particularly relevant when management shall make an estimate of the expected outcome of future events.
This postulate is the very foundation of the cost principle. It is also known as the continuity assumption.
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