The going concern principle of entities in accounting regulations

• Main Author: Andrzej Tokarski
• Format: Article
• Language: English
• Published: WSB University in Torun 2012-12-01
• Series: Torun Business Review
• Subjects: principle of going concern, accounting, national and international accounting regulations
• Online Access: https://tbr.wsb.torun.pl/index.php/journal/article/view/221

The principle of going concern is one of the fundamental concepts in accounting. Under this rule the enterprise management prepares financial statements on the assumption that there is neither intention nor the necessity to liquidate or significantly reduce the scale of business activity now or in the foreseeable future. At present, a major challenge facing the management team is to ensure the continuity of the entity's operations and to avoid possible bankruptcy. Going concern is defined in both national and international accounting regulations, with no difference between the principle of going concern in the Polish law on accounting and international solutions.