going concern

(redirected from going concerns)

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

going concern

see ACCOUNTING CONCEPTS.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in classic literature ?
The only adequate way to arrive at the value of the telephone is to consider the nation as a whole, to take it all in all as a going concern, and to note that such a nation would be absolutely impossible without its telephone service.
"Nope; never pays to split up a going concern There's too much competition in the world anyway, and Disko says 'blood-kin hev to stick together.' His crowd never go back on him.
The appraisal community's collective view on the partitioning of going concerns into components could potentially make a tremendous difference in how the field of real estate appraisal might evolve over the next few years and beyond.
Chairman Michael Hale said he thought it 'likely' some of the businesses could be sold on as going concerns, saving some of the 450 jobs.
In general, customer-structure intangibles acquired apart from going concerns were amortizable, whereas intangibles acquired as part of a going business were not.
Is the public being mislead into thinking that auditors have the special expertise to determine going concerns? As history has shown, entities that fail often have an unmodified opinion for the prior year, and those that have a modified opinion are frequently around for the next year and, often, for many more years.
Because most viable operating enterprises trade as going concerns and inasmuch as most investors are not interested in allocating the value among the components, issues of the existence and magnitude of the non-real estate components and how they are to be allocated pose problems to anyone analyzing such transactions.
Jonathan Weil ("'Going Concerns'--Did Accountants Fail to Flag Problems at Dot-com Casualties?" Wall Street Journal, February 9, 2001) reported that during the wave of "dot-com" failures in 2000, only three of the 10 publicly held dot-com companies that filed for bankruptcy received going concern opinions on their most recent audit report.
Unless distressed, they typically are traded as going concerns. An appraisal of only the real estate or an allocation of the component parts, on the other hand, is often needed for real estate assessment appeals or condemnation assignments.
Management has concluded that these circumstances raise substantial doubt about PG&E Corporation's and the Utility's ability to continue as going concerns, and their independent registered public accountants have included an explanatory paragraph in their auditors' report which states certain conditions exist which raise substantial doubt about PG&E Corporation's and the Utility's ability to continue as going concerns in relation to the foregoing.
There is a continuous scale that reflects varying degrees of business enterprise value in going concerns that depend on stabilized occupancy.
Here's part of the confusion: Gas stations and convenience stores, for example, are commonly bought and sold as going concerns. However, real estate often makes up a majority of the value, usually 60 to 80 percent.