Going Concern Assumption
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MS: Andaian Usaha Berterusan · EN: Going Concern Assumption · ZH: 持续经营假设
Meaning
The going concern assumption assumes that a business will continue to operate for an indefinite period and will not be closed down in the near future. Because of this, assets are recorded at cost and not at their immediate sale value. This assumption allows the depreciation of an asset to be spread over its useful life.
Example
Selera Kampung Restaurant buys an oven for RM6,000 and depreciates it over 5 years because the business is expected to keep operating, not be sold tomorrow.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 4