Wednesday, 6 August 2014

What do you mean by Going Concern Concept?

When preparing a couple of financial statements management need to assume, unless there are specific reasons to think otherwise, that the business will keep operate for the foreseeable future. This is called the going concern concept. This is particularly relevant when management make estimates in regards to the expected outcome of functions of the entity, such as the recoverability of trade receivables plus the useful lives of non-current possessions.

0 comments :

Post a Comment