Going concern
Management’s assumption that the company will continue to operate for the foreseeable
future. Financial statements are prepared on a going concern basis, unless management
either intends to liquidate the company or to cease operations, or has no realistic
alternative but to do so. In these cases, the break-up basis is used (see above). The going
concern basis is one in which the assets and liabilities of the business are realised and
settled in the normal course of its activities.