Going concern concept

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2013 What is the application of going concern concept on companies with no source of income?
There are no operations in the company only the assets n liabilities are being carried forward every year.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 September 2013 If the entity looses the concept of 'going concern' and does not prepare financial statements on a going concern basis, it shall disclose that fact, together
with the basis on which it prepared the financial statements and the reason why
the entity is not regarded as a going concern.

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