Going concern

• The financial statements are normally prepared on the assumption that an entity is a going concern and will continue in operation for the foreseeable future.
• Hence, it is assumed that the entity has neither the intention nor the need to liquidate or curtail materially the scale of its operations;
• if such an intention or need exists, the finacial stetements may have to prepared on a different basis and, if so, the basis used is disclosed.