GoingConcernKonzept

The GoingConcernKonzept, often written as Going Concern-Konzept or simply going concern, is a fundamental assumption in accounting and corporate finance. It holds that a business will continue its operations for the foreseeable future and will not be forced to liquidate or significantly curtail its activities. Under this assumption, assets are valued and liabilities are settled in the normal course of business.

In international accounting standards, the going concern concept is embedded in the framework for financial reporting. Under IFRS, notably IAS 1, management must assess whether the entity can continue as a going concern for at least 12 months after the reporting date. If there is a material uncertainty about the ability to continue, this must be disclosed in the notes, and the financial statements should be prepared on a going concern basis unless liquidation is intended or necessary. If liquidation is more likely, the financial statements may need to be prepared on a liquidation basis.

Assessment and disclosure are central to the concept. Management evaluates liquidity, forecast cash flows, financing arrangements, debt covenants, and other mitigating actions. When material doubt exists, the notes must describe the factors, the evidence, and the plans to address the concerns.

Implications for financial statements include asset measurement, impairment testing, and the classification of current versus non-current items. The going concern assumption also influences note disclosures, risk reporting, and the presentation of contingencies.

In practice, the GoingConcernKonzept guides reliability and comparability in financial reporting and risk assessment, while remaining subject to professional judgment and external scrutiny, such as audits.