what is going concern basis?


assumption that the company will stay in business (wont go bankrupt anytime in the near future)

If a company is in an operating situation that would inevitably lead to bankruptcy, said company would not be a going concern as it is determined they cannot exist in the future. That’s one take on the concept. When doing a debt underwriting, we need to get going-concern opinions from auditors to ensure the company will continue to exist.