to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic , Presentation of Financial Statements—Liquidation Basis of Accounting. View Assignment blogger.com from ACCOUNTING N/A at San Jose State University. a. If the auditor has substantial doubt about a client’s ability to remain a going concern, the auditor may issue an. The going concern concept of accounting implies that the business entity will continue its operations in the future and will not liquidate or be forced to discontinue operations due to any reason. A company is a going concern if no evidence is available to believe that it will or will have to cease its operations in foreseeable future.

The Going Concern Concept The going concern concept assumes that a business will continue indefinitely. (Aerts W. & Walton P., , p. 76) This concept is important, as most of accounting is based on allocation of expenses throughout different time periods; thus, in case a business does not continue, this would not be applicable, and many items would be written off as having no value. to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic , Presentation of Financial Statements—Liquidation Basis of Accounting. The going concern concept of accounting implies that the business entity will continue its operations in the future and will not liquidate or be forced to discontinue operations due to any reason. A company is a going concern if no evidence is available to believe that it will or will have to cease its operations in foreseeable future.

Definition and explanation

The going concern assumption is a basic underlying assumption of accounting. For a company to be a going concern, it must be able to continue operating long enough to carry out its commitments, obligations, objectives, and so on. In other words, the company . The going concern concept of accounting implies that the business entity will continue its operations in the future and will not liquidate or be forced to discontinue operations due to any reason. A company is a going concern if no evidence is available to believe that it will or will have to cease its operations in foreseeable future. The Going Concern Concept The going concern concept assumes that a business will continue indefinitely. (Aerts W. & Walton P., , p. 76) This concept is important, as most of accounting is based on allocation of expenses throughout different time periods; thus, in case a business does not continue, this would not be applicable, and many items would be written off as having no value.

Accounting for Management

(ii) Going Concern Concept. In this concept, it is assumed that transactions are recorded hoping that the business concern is to exist even in the future. A firm is said to be a going concern when there is neither the intention nor the necessity to wind up its operations. The going concern assumption is a basic underlying assumption of accounting. For a company to be a going concern, it must be able to continue operating long enough to carry out its commitments, obligations, objectives, and so on. In other words, the company . to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic , Presentation of Financial Statements—Liquidation Basis of Accounting.

View Assignment blogger.com from ACCOUNTING N/A at San Jose State University. a. If the auditor has substantial doubt about a client’s ability to remain a going concern, the auditor may issue an. The going concern assumption is a basic underlying assumption of accounting. For a company to be a going concern, it must be able to continue operating long enough to carry out its commitments, obligations, objectives, and so on. In other words, the company . to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic , Presentation of Financial Statements—Liquidation Basis of Accounting.