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going concern

Sontena bhaskara rao (78 Points)

30 August 2018

what is going concern and explain it briefly with examples.

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The going concern concept is a fundamental principle of accounting. It assumes that during and beyond the next fiscal period a company will complete its current plans, use its existing assets and continue to meet its financial obligations. ... This underlying principle is also known as the continuing concern concept.

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CA Neelima Kotha (Consultant) (606 Points)
Replied 30 August 2018

Going concern implies that the business operations shall be continued in the future and will not be forced to discontinue operations due to any reason

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Sontena bhaskara rao (78 Points)
Replied 30 August 2018

thank you neelima kotha madam

Ashwin Kumar (CA ipcc) (447 Points)
Replied 30 August 2018

its like someone asking you your date of birth and date of death. you know your date birth but not date of death. going concern is that the business operations will continue for a forseeable future and there is no need to curtile the business operations