Going Concern
Financial Dictionary — Accounting Concepts
Definition
The going concern assumption means the company is expected to continue operating for the foreseeable future and has no intention or need to liquidate or significantly reduce its activities.
Detailed Explanation
Going concern assumes the entity will continue operating in the normal course for the foreseeable future, so assets and liabilities are measured without assuming liquidation or forced sale.
Common Uses
- Used to explain the concept in accounting and business contexts.
- Used when training staff or documenting procedures and policies.
- Used when training staff or documenting procedures and policies.
Practical Example
- Example: Teams reference **Going Concern** when defining terms in manuals, policies, or training materials.
Why This Term Matters
- Why it matters: Improves clarity and consistency across documentation and decision-making.