What is the timeline for assessing going concern?
Going concern is an assessment on whether the company will be still be operating a year from now. The question that should be asked is whether the company will have enough cash to meet their obligations (i.e. pay their debts) within one year from the date the financial statements are issued. Remember, going concern isn’t assessed as of the financial statement year-end, but rather, the date that they are issued.
Back To All Questions