Going concern concept: Means an organisation would continue

Going Concern Concept means an organisation would continue its business operations indefinitely till the concept of bankruptcy and/or liquidation invades. This concept assumes that a business will continue to do its operations for the foreseeable future or at least for the next 12 months. The going concern concept or going concern assumption states that businesses should be treated as if they will continue to operate indefinitely or at least long enough to accomplish their objectives. The going concern concept is a fundamental principle in accounting that assumes a business will continue to operate for the foreseeable future, without any intention or need to liquidate or significantly reduce its operations. Going concern is an accounting term for a company that is financially stable and can continue operating for at least 12 months. Learn how accountants use going concern principles to report assets, expenses, and liabilities, and what red flags indicate a company is not a going concern.