Pending professional review. This content was drafted with Claude from official sources and has not yet been reviewed by an ArthaKara professional. Verify against the official sources before relying on it.
Simple meaningThe assumption that a business will continue operating in the foreseeable future.
Relevant ActAccounting Standards (AS 1 / Ind AS 1)
Technical meaning
A fundamental accounting assumption that the entity will continue in operation and has neither the intention nor the need to liquidate.
Practical example
Financial statements are prepared on a going concern basis unless liquidation is intended.
Related terms
Official reference
Accounting Standards (AS 1 / Ind AS 1)
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