Going concern is an assumption in many accounting documents and is the favourite for accountants. Here is an example: “Ordinarily, information that significantly contradicts the going concern assumption relates to the entity’s inability to continue to meet its obligations as they become due…” [1] often with an adjective attached, for instance a fundamental assumption The…
Here are some more ludicrous expressions used by accountants to explain going concern Concept or assumption Many accountants call going concern a concept and then contradict themselves that it is an assumption and not a concept at all. Take the ACCA (The Association of Chartered Certified Accountants) in their global site. They state: “The concept…
Accountants struggle to decide what ‘going concern’ really is. Is it a concept, a principle or a standard? These three are not enough, they have eight different expressions in total to describe going concern here are the other five: an assumption, a basis, a presumption, a focus, an assessment and an accounting term? They cannot…
Going concern what a ludicrous expression accountants have invented. If they think a company will survive in the future they should just say it. But no they have gone out of their way to treat it as a concept give it a stupid name and hide behind the terminology to show how clever they are….