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Consider the following statements about going concern:
(i) Financial statements must always be prepared on the going concern basis.
(ii) If a business is not considered to be a going concern, financial statements should not be prepared.Which of the statements is/are correct?
I did this question incorrect. Both are false. Please explain sir.
We assume that the financial statements are prepared on a going concern basis unless there is a statement saying that it is not a going concern.
If it is not a going concern then financial statements are still prepared, but on the basis that it is not a going concern, and there will be a note with the statements stating that.
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