Going concern basis: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Create page. Sources: linked pages.) |
imported>Doug Williamson (Update 3rd definition.) |
||
| Line 4: | Line 4: | ||
2. | 2. ''Valuation.'' | ||
More generally, a basis of valuing a business on the assumption that it will continue in operation. | More generally, a basis of valuing a business on the assumption that it will continue in operation. | ||
| Line 15: | Line 15: | ||
The assumption that a pension scheme continues without being discontinued. | The assumption that a pension scheme continues without being discontinued. | ||
Going concern valuations are made on | Going concern valuations are made on this basis. | ||
Revision as of 15:46, 2 June 2021
1. Financial reporting - accounting concepts.
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.
2. Valuation.
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.
3. Pensions.
The assumption that a pension scheme continues without being discontinued.
Going concern valuations are made on this basis.
