Information about Going Concern
A going concern is a business that functions without the intention or threat of liquidation for the foreseeable future, say at least within 12 months.
Financial statements are prepared on the assumption that the entity is a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the normal course of operations. Different bases of measurement may be appropriate when the entity is not expected to continue in operation for the foreseeable future.[1]
The most general definition of an audit is an evaluation of a person, organization, system, process, project or product.
..... Click the link for more information.
Use in Accounting
In accounting, "going concern" refers to a company's ability to continue functioning as a business entity. Accountants and auditors may be required to evaluate and disclose in the notes to the financial statements whether a company is no longer a going concern, or is at risk of ceasing to be one.Financial statements are prepared on the assumption that the entity is a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the normal course of operations. Different bases of measurement may be appropriate when the entity is not expected to continue in operation for the foreseeable future.[1]
Use in Risk Management
If a public company reports that its auditors have doubts about its ability to continue as a going concern, investors are likely to take that as a sign of increased risk. Some fund managers may be required to sell the stock to maintain an appropriate level of risk in their portfolios. A negative judgment may also result in the breach of bank loan covenants.References
See also
- ASA 570 Going Concern
- HKSA 570 Going Concern
- List of auditing topics
External links
- Going Concern Evaluation by Solvency.com
- Glossary of Accounting Terms page ("going concern assumption").
Business law
Business organizations
Basic forms:
Sole proprietorship
Corporation
Partnership
(General · Limited · LLP)
Cooperative
USA:
Business trust · LLC · LLLP
Delaware corporation
Nevada corporation
UK/Commonwealth:
Limited company
..... Click the link for more information.
Business organizations
Basic forms:
Sole proprietorship
Corporation
Partnership
(General · Limited · LLP)
Cooperative
USA:
Business trust · LLC · LLLP
Delaware corporation
Nevada corporation
UK/Commonwealth:
Limited company
..... Click the link for more information.
liquidation refers to the process by which a company (or part of a company) is brought to an end, and the assets and property of the company redistributed. Liquidation can also be referred to as winding-up or dissolution
..... Click the link for more information.
..... Click the link for more information.
Accountancy (profession) or accounting (methodology) is the measurement, statement or provision of assurance about financial information primarily used by managers, investors, tax authorities and other decision makers to make resource allocation decisions within companies,
..... Click the link for more information.
..... Click the link for more information.
Accountant, or Qualified Accountant, or Professional Accountant, is a certified accountancy and financial expert in the jurisdiction of many countries. Such as other legally-restricted professions including medical doctors and lawyers, different countries have their
..... Click the link for more information.
..... Click the link for more information.
worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page.
Please [ improve this article] or discuss the issue on the talk page.
The most general definition of an audit is an evaluation of a person, organization, system, process, project or product.
..... Click the link for more information.
Notes to the Financial Statements are additional notes and information added to the end of the financial statements to supplement the reader with more information. Notes to Financial Statements help explain the computation of specific items in the financial statements as well as
..... Click the link for more information.
..... Click the link for more information.
An investor is any party that makes an investment.
The term has taken on a specific meaning in finance to describe the particular types of people and companies that regularly purchase equity or debt securities for financial gain in exchange for funding an expanding company.
..... Click the link for more information.
The term has taken on a specific meaning in finance to describe the particular types of people and companies that regularly purchase equity or debt securities for financial gain in exchange for funding an expanding company.
..... Click the link for more information.
For the Parker Brothers board game, see risk (game)
Risk is a concept that denotes a potential negative impact to an asset or some characteristic of value that may arise from some present process or future event.
..... Click the link for more information.
Risk is a concept that denotes a potential negative impact to an asset or some characteristic of value that may arise from some present process or future event.
..... Click the link for more information.
In financial markets, the stock capital of a corporation or a joint-stock company is the capital raised through the issuance, sale and distribution of shares. A person or organization that holds at least a partial share of stock is called a shareholder.
..... Click the link for more information.
..... Click the link for more information.
covenant, in its most general sense, is a solemn promise to do or not do something specified.
More specifically, a covenant, in contrast to a contract, is a one-way agreement whereby the covenantor is the only party bound by the promise.
..... Click the link for more information.
More specifically, a covenant, in contrast to a contract, is a one-way agreement whereby the covenantor is the only party bound by the promise.
..... Click the link for more information.
Financial auditing topics
..... Click the link for more information.
- Confirmation
- Control risk
- Correctness
- Cut-off
- Detection risk
- Due diligence
- Engagement letter
- Existence
- External audit
- External auditor
- External confirmations
- Financial statement assertions
..... Click the link for more information.
This article is copied from an article on Wikipedia.org - the free encyclopedia created and edited by online user community. The text was not checked or edited by anyone on our staff. Although the vast majority of the wikipedia encyclopedia articles provide accurate and timely information please do not assume the accuracy of any particular article. This article is distributed under the terms of GNU Free Documentation License.
Herod_Archelaus
