Construct · 1 fields · 1 citations

going concern: a standalone construct

One name. One construct. A landmark on the map.

● anchor · a load-bearing accounting assumption Nearest construct by meaning·not indexed
goingconcern1 CONSTRUCTGoing concernCONTINUITY · BASIS

A single standalone construct; nearby constructs are located against it in the Collider. Tap a field for its definition, unit, and measures.

Accounting

Assuming the business will keep operating

In accounting, the going-concern assumption is the default premise that a business will continue operating for the foreseeable future, with no intention or need to liquidate or curtail its activities; it is the foundation on which assets are carried at cost rather than fire-sale value and expenses are deferred to future periods. Kieso, Weygandt, and Warfield's Intermediate accounting treats going concern as a basic assumption underlying the financial statements, one that auditors must assess and disclose when substantial doubt exists. The referent is the continuity premise that justifies ordinary (non-liquidation) accounting, evaluated by whether there is substantial doubt about the entity's ability to continue.[1]

Unit
Whether the entity is expected to continue operating for the foreseeable future
Recovery means
Not applicable
Measured by
Assessed by management and auditors for substantial doubt (liquidity, losses, obligations), with disclosure when it exists

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Nearby constructs

business1 fields · 1 citationsanchor · a standalone constructcontinuity4 fields · 4 citationsjingle · one word, four constructscost4 fields · 4 citationsjingle · one word, four constructs

References

  1. Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2016). Intermediate accounting (16th ed.). John Wiley & Sons. ISBN 9781118743201

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