going concern


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Going Concern

A term describing a company with enough cash flow and/or other resources to maintain operations for the foreseeable future. A company that is no longer a going concern has gone bankrupt.

going concern

A business expected to continue operating in the foreseeable future. A going concern is valued differently from a firm for which liquidation is expected.

going concern

see ACCOUNTING CONCEPTS.
References in periodicals archive ?
SAA submitted an application for a going concern guarantee on 21 December 2015 which is under consideration.
that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued," (p.
Going concern assumption is applied in cases where a company faces difficult financial, economic or operating conditions which may endanger its existence,said a statement issued by SECP here on Saturday.
The new FASB guidance requires consideration of the entity's ability to continue as a going concern one year from the financial statement issuance date (or at the date that the financial statements are available to be issued, when applicable).
The update defines management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures.
The FASB proposal recommends that management be required to perform interim and annual assessments of their company's ability to operate as a going concern for a 24-month period.
The going concern presumption is critical to financial reporting because it establishes the fundamental basis for measuring and classifying assets and liabilities.
The proposals contemplate making companies themselves responsible for warning when there is a risk that they may not be able to continue as a going concern.
To be sure, going concern valuation is a complex area of the appraisal profession that requires additional competency.
Assets, like these, that don't generate income, have no going concern value--only liquidation value.