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The New Requirements Relating To Going Concern Evaluation And Disclosure Provide A Critical Improvement To The Financial Statements Taken As A Whole, Achraf A. Seyam, Sharon Brickman
The New Requirements Relating To Going Concern Evaluation And Disclosure Provide A Critical Improvement To The Financial Statements Taken As A Whole, Achraf A. Seyam, Sharon Brickman
Publications and Research
The going concern principle assumes that an entity will continue to exist into the future. This assumption implies that the entity will not be compelled to end their operations, liquidate their assets, or go into bankruptcy. It is an integral assumption in financial statements since it allows for the deferral of recognition of certain expenses until a period of time into the future, when the company is still assumed to exist. Members of management, as well as financial statement auditors, are required to identify signs that could indicate that an entity will not be able to continue their operations into …