Accounting in case going concern is not followed

As per which AS or ind AS or framework accounting is done in case going concern is not followed?
Replies (6)
Quick Summary
This discussion explores accounting practices when the going concern assumption is not followed, particularly in the context of joint ventures. Joint ventures, often created for specific projects or limited periods, do not typically adhere to the going concern concept. The conversation touches upon the applicability of cash basis accounting and how income might be assessed under the Income-Tax Act for such entities. It also briefly considers other scenarios like leases and the broader implications of deliberately undermining a business's continuity.

Joint venture is created by two firms for completing a particular project, or for a definite period of time. Hence, going concern concept is not followed in such case.

1)  JOINT VENTURES DOES NOT HAVE ANY SPECIFIC GOVERNING ACTS .

2) CASH BASIS OF ACCOUNTING IS APPLICABLE  IN  JOINT VENTURES.

3)  LIQUIDATES  AFTER  DEFINITE PERIOD OF TIME  AND  ON  ACHIEVING PURPOSE   

4) Income of a Joint Venture project, may be assessed in the status of an ‘Association of persons’ under the Income-Tax Act.

 

I do not think this has any other issues. While a joint venture is being carried out, it's conventional that we must have some accute issues.

Someone is trying hard to override the conceptual framwork. What about leases? They also get terminated! Going concern is only for reporting entities! They try every trick to keep they businesses running. 

So long as the profit structure and conceptual framework remains correct. It's OK otherwise not.

Otherwise, its a federal offence and no matter who it is like related parties or third parties if they have deliberate acts to ruin a business. Personally I try to ruin my ex employers because they did not treat me properly. Its all consumer laws now rather than going concern 

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