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.
Use cases, Example & Why it matters
Use cases
- 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.
Example
- Example: Teams reference **Going Concern** when defining terms in manuals, policies, or training materials.
Why it matters
- Why it matters: Improves clarity and consistency across documentation and decision-making.