Home > Term: going concern assumption
going concern assumption
Assuming the company will continue in operation long enough to realize its investment in assets through operations (as opposed to sale). Presenting assets at historical cost is justified by assuming productive assets will be used rather than sold. This makes market values irrelevant and supports accounting methods that match the actual cost of an asset to periods benefited.
- Part of Speech: noun
- Industry/Domain: Accounting
- Category: Auditing
- Company: AIS
0
Creator
- worm
- 100% positive feedback