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Accounting & Tax vocabulary · Reporting Standards

Going concern

Meaning in accounting & tax, with examples

nounAdvanced term

In accounting & tax, going concern means: The assumption that a business will continue operating for the foreseeable future, at least twelve months, rather than being closed down or sold off.

In Turkish: işletmenin sürekliliği, süreklilik varsayımı

How it is used

Financial statements are normally prepared on a going concern basis. If there is serious doubt, management must disclose a material uncertainty and the auditor draws attention to it in the report.

Example sentences

  1. Given the large losses, the auditors questioned whether the company is still a going concern.

  2. The financial statements have been prepared on a going concern basis.

Common collocations

  • going concern basis
  • going concern assumption
  • material uncertainty
  • going concern doubt
  • audit opinionThe auditor's formal conclusion, given in the audit report, on whether the financial statements are fairly presented in all material respects.
  • annual reportA document a company publishes each year containing its audited financial statements and a review of its business, strategy, risks and governance.
  • IFRSInternational Financial Reporting Standards: the global accounting rules issued by the IASB and required for listed companies in more than 140 jurisdictions.
  • notes to the financial statementsThe detailed explanations that follow the main financial statements, describing accounting policies, estimates and the breakdown of key figures.

More terms: Reporting Standards

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