Gone concern

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Valuation - financial reporting - risk management - prudential regulation - capital adequacy.

A basis of valuation or other financial assessment, which assumes discontinuance of the bank (or other undertaking) being assessed.

The gone concern concept is important in bank prudential regulation and capital requirements.

To be fully effective as loss absorbing capacity, capital should absorb losses when the entity is still a going concern (and not yet a 'gone concern').

See also