Going concern: Difference between revisions
imported>Administrator (CSV import) |
imported>Doug Williamson (Added See also Headroom.) |
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* [[Discontinuance]] | * [[Discontinuance]] | ||
* [[Discontinuance method]] | * [[Discontinuance method]] | ||
* [[Headroom]] | |||
* [[Liquidation value]] | * [[Liquidation value]] | ||
Revision as of 14:49, 21 November 2012
1. A going concern is an entity which is commercially viable, able to pay its obligations as they fall due, and whose owners (or other controllers) intend it to continue in operation for the foreseeable future.
2. The going concern basis of accounting requires that the accounts are prepared using the assumption that the business will continue in operation for the foreseeable future (more than 12 months) and that there is neither the aim nor need to liquidate or limit significantly the nature of the operations.
3. More generally, a basis of valuing a business on the assumption that it will continue in operation. Such a valuation may be made for accounting purposes or for other purposes.
4. Pensions. The assumption that a pension scheme continues without being discontinued. Going concern valuations are made on such a basis.
