Reading the accounts
Going concern
The assumption that a company will continue operating for at least the next year.
How it works
Accounts are prepared on this basis. If auditors doubt it, they must say so, and a material uncertainty about going concern is one of the most serious disclosures in any annual report.
Related terms
More in Reading the accounts
- Goodwill
- GAAP and IFRS
- Gross margin
- Free cash flow
- Income statement
- Fixed costs
- Intangible assets
- Economic profit
All 51 Reading the accounts terms · The full glossary, 433 terms
Educational reference only. Nothing here is investment advice or a recommendation to buy or sell anything, and tax treatment depends on your own circumstances and the country you are in.