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A going concern is an accounting term for a business that is assumed will meet its financial obligations when they become due. It functions without the threat of liquidation for the foreseeable future, which is usually regarded as at least the next 12 months or the specified accounting period (the longer of the two).
In accounting, goodwill is an intangible asset recognized when a firm is purchased as a going concern. It reflects the premium that the buyer pays in addition to the net value of its other assets. It reflects the premium that the buyer pays in addition to the net value of its other assets.
Monetary unit principle: assumes a stable currency is going to be the unit of record. The FASB accepts the nominal value of the US dollar as the monetary unit of record unadjusted for inflation. Time-period principle : implies that the economic activities of an enterprise can be divided into artificial time periods.
Under this concept a profit is earned only if the physical productive capacity (or operating capacity) of the entity (or the resources or funds needed to achieve that capacity) at the end of the period exceeds the physical productive capacity at the beginning of period, after excluding any distributions to, and contributions from owners during ...
Some important elements that accounting standards cover include identifying the exact entity which is reporting, discussing any "going concern" questions, specifying monetary units, and reporting time frames. [1] In the public sector, 30% of 165 governments surveyed used accrual accounting, rather than cash accounting, in 2020. [2]
Update: Big Lots says it reached a deal in late December to keep hundreds of U.S. stores open. Big Lots is preparing to close all of its stores, the bankrupt discount retailer said Thursday. The ...
"I think we're definitely going to continue to gaslight the brother." This article was originally published on TODAY.com. Show comments. Advertisement. Advertisement. Holiday Shopping Guides.
However, if the auditor considers that the auditee is not a going concern, or will not be a going concern in the near future, then the auditor is required to include an explanatory paragraph before the opinion paragraph or following the opinion paragraph, in the audit report explaining the situation, [8] [9] which is commonly referred to as the ...