going-concern concept

going-concern concept

in preparing the accounts of a business it is always assumed that the business will continue to operate indefinitely. Accordingly, in accounts prepared on a going-concern basis, it is unnecessary to show the current sale value of fixed assets, but rather it is permissible to enter them at their historical cost. Only if the business is to be sold or closed down is the current cost figure required.
References in periodicals archive ?
My article points out, as the writer of the second letter above suggests, that "management had guidance for a long time" about the going-concern concept.
The going-concern concept was first documented in accounting literature in 1892 and was a generally accepted concept following that time.
Thus, Fitch recognizes the loss absorption surplus notes provide in liquidation (due to their deep subordination to policyholder obligations) in its approach to capital credit, which is a liquidation-based concept, compared to its approach to equity credit, which is a going-concern concept.
Commons traced the going-concern concept to a 1620 lawsuit (Jollife v.
The going-concern concept is not clearly defined anywhere in the official pronouncements of either GAAS or GAAP.
The statement simply says that "When a company decides or is forced to liquidate, the going-concern concept is not appropriate.
The going-concern concept and government regulations make the profession even more economically secure.
The projection of the going-concern concept is defined as not exceeding one year beyond the date of the audited financial statements.