Going concern is a fundamental accounting principle that underlies the preparation of accounts of all business entities. Under what is still often called the going concern concept, it is assumed that a business will continue in operation for the foreseeable future.

The implication is that a business is solvent, and that there is neither the intention nor the need to liquidate it or to cease trading.

This gives rise to a potential conflict of interest, where a business is in difficulties, between management, who will not want to make the situation public for fear of making it even worse, and investors and other users of the accounts who are entitled to know the truth.