Explain the Going Concern Concept with the help of examples.
Dear Student,
Going concern is the basic underlying assumption of accounting, financial statements are prepared assuming that the business is a going concern i.e. the company intends to continue the business indefinitely. In simple words,
"Men may come and go but the business may go on and on"
For example, An oil and gas firm operating in Sudan is stopped by a Sudanese court from carrying out operations in Sudan. The firm is not a going concern in Sudan, because it has to shut down.
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Going concern is the basic underlying assumption of accounting, financial statements are prepared assuming that the business is a going concern i.e. the company intends to continue the business indefinitely. In simple words,
"Men may come and go but the business may go on and on"
For example, An oil and gas firm operating in Sudan is stopped by a Sudanese court from carrying out operations in Sudan. The firm is not a going concern in Sudan, because it has to shut down.
Hope this answers your query. For further doubts, do get back to us.
Keep studying and keep posting!!