What is Going Concern
Going concern is basically one of the fundamental concepts
for the preparation of the financial statements. Going concern assumption believe
that there is no immediate threat to the organization existence and entity will
continue to exist for a long period of time.
Going concern assumption also believe that entity will not
curtail it operation materially in near future. The term long period is
normally assumed to be next twelve month from the date of financial statement.
Going concern is important assumption because the financial statement
prepared different when going concern assumption is not valid.
No comments:
Post a Comment