What is going concern? A concept or something else

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 decide. Perhaps they believe in all eight at the same time. How ridiculous would that be!

Here are some quotes from accounting literature on the subject:

The CONCEPT of going concern is an underlying assumption in the preparation of financial statements.

The STANDARD defines going concern by explaining that financial statements are prepared … Accountants use going concern PRINCIPLES to decide what types of reporting should appear on financial statements.

The going concern ASSUMPTION is universally understood and accepted by accounting professionals.

An entity prepares financial statements on a going concern BASIS.

The going concern PRESUMPTION – i.e. that the company will be able to meet its obligations when they become due.

Going concern—a FOUCUS on disclosure.

The going concern ASSESSMENT is performed for a finite period of 12 months from the date the financial statements are issued.

Going concern is an accounting TERM.

This is ridiculous. They might be one or two but not eight!

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