What is the Going Concern Concept? 

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WHAT IS THE GOING CONCERN CONCEPT?
The going concern concept illustrates that, in general, it should be assumed that the business of the prepared final accounts is in a healthy and stable condition. The concept also presumes that the business will continue to trade and be active in the foreseeable future. In other words, the concept presumes that the accounts are made because there is a high probability that the business is still going to trade in the next few years or business periods. It is also assumed that the business has no intention to significantly reduce the size of the business itself or to liquidate in the short term. In some cases, however, if a business was not a going concern, this would mean that the assets of the business maybe worth a lot less. In more depth, the market value of the assets maybe worth considerably lower compared to their value in the accounts and financial statements. Due to this, the business will need to make a statement in the accounts stating the situation.
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