The Going Concern Concept in Accounting.

Abstract The article focuses on the going concern regarding the concept of accounting. Postulates of accounting, among them the going concern concept, have been characterized as habits of mind. Almost every writer who has attempted a reasonably complete exposition on accounting has stated or implied acceptance of the going concern concept. This study has set forth purposes like he nature of the going concern concept, the placing of the concept in accounting, consequences of uses of the concept and the social significance of the concept. A comprehensive version of the going concern concept entails consideration of the life of the firm, the legal and social framework surrounding the accounting entity, the productive and distributive aspects of the enterprise, the financial plans of the organization, the management of the business unit, and the proprietor's expectations. Going concern concept in accounting provides a point of view to facilitate and implement assembling, communicating, and interpreting enterprise financial information. A complete application of the going concern concept would call for a reporting of those income-generating activities, which do not appear in current conventional reports.