What else is a going concern?

A basis or a focus

However others go right in and announce that going concern is a basis:

“An entity prepares financial statements on a going concern basis…”  [1]

End of discussion, clear and emphatic.

But it is the IFRS that uses going concern as a basis the most. In one of their explications they mention ‘going concern basis’ 17 times. As an example here is the first sentence:

“A fundamental decision management has to make in preparing financial statements applying IFRS Standards is whether to prepare them on a going concern basis.”

However they spoil the effect by calling going concern a focus in the heading. The above statement comes from their document “Going concern—a focus on disclosure” in January 2021.


To be fair the going concern assessment is part of the procedure under GAAP (General Accepted Accounting Principles) to determine whether an organisation can continue as a going concern especially when there might be doubts as to whether it can meet its obligations.


And finally everyone will agree that going concern is a term even an accounting term. There is little doubt about that.

[1] Source https://www.accaglobal.com/gb/en/student/exam-support-resources/fundamentals-exams-study-resources/f8/technical-articles/going-concern.html

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