Back to Letter G
Going ConcernA going concern is a business that operates without the threat of liquidation for the near future, usually evaluated for the following 12 months.
Concern is an early-20th century for "business" or "enterprise." it is the responsibility of managers, owners, and help from external auditors, to assess whether the business can continue as a going concern. This evaluation is performed each time financial statements are prepared. The company must disclose in the notes to their financial statements any factors that would threaten their ability to continue as a going concern.