Going concern concept: The going concern concept of accounting

The going concern concept of accounting implies that a business entity will continue its operations in the future and will not liquidate or be forced to discontinue operations due to any reason. The Going Concern concept is a fundamental accounting principle that assumes a business will continue its operations for the foreseeable future. It indicates that the company does not intend or need to liquidate or significantly downsize its operations. Going concern concept is one of the basic principles of accounting that states that the accounting statements are formulated so that the company will not be bankrupt or liquidated for the foreseeable future, which generally is for 12 months. The going concern concept or going concern assumption states that businesses should be treated as if they will continue to operate indefinitely or at least long enough to accomplish their objectives.