We are here with you hands in hands to facilitate your learning & don't appreciate the idea of copying or replicating solutions. Read More>>

Looking For Something at vustudents.ning.com? Click Here to Search

www.bit.ly/vucodes

+ Link For Assignments, GDBs & Online Quizzes Solution

www.bit.ly/papersvu

+ Link For Past Papers, Solved MCQs, Short Notes & More

Going Concern Principle

 

Learning outcome: After attempting this activity, students will be able to understand the concept of “Going Concern Principle".

 

Background: Going concern principle states that the business should be treated as it will continue to operate for an indefinite period. 

 

Suppose that a company named Haider Limited is in a business of textile. Its financial statements for the year ended December 31, 2017, show that the company is suffering from substantial loss of Rs. 16 Million. Along with this loss, the company has an accumulated deficit of Rs. 70 Million caused at the development stage. The company has cash of Rs. 7 lac and short-term securities of Rs. 1.2 Million at the end of the fiscal year 2017. It is expected that the company will face additional losses in the future as it needs to complete the Spinning Mill project for expansion. The management of the company is optimistic about the prospects of the company and expects to earn profits once the project is complete. However, the time required by the company to reach the profitability stage is highly uncertain and there is no assurance that the company will be able to sustain such profits.

 

The company is facing negative cash flows since its inception. Although, it is expected that the company’s existing funds are adequate to fund the project. However, in case, if additional funds are required, the management is confident that they will be able to raise capital through one or a combination of financing. But, there is no assurance that the company’s financing efforts will be successful. If adequate funds are not available than there is quite a chance that the financial condition and results of the operations will be materially and adversely affected.

 

Requirement:

  • Will Haider Limited prepare financial statements using the going concern assumption?
  • What is the significance of this disclosure for financial statement users that the company may not be able to continue as a going concern?

+ How to Join Subject Study Groups & Get Helping Material?

+ How to become Top Reputation, Angels, Intellectual, Featured Members & Moderators?

+ VU Students Reserves The Right to Delete Your Profile, If?


See Your Saved Posts Timeline

Views: 469

.

+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)

+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)

+ Click Here to Search (Looking For something at vustudents.ning.com?)

+ Click Here To Join (Our facebook study Group)

Replies to This Discussion

need solution

Please Discuss here about this assignment.Thanks

Our main purpose here discussion not just Solution

We are here with you hands in hands to facilitate your learning and do not appreciate the idea of copying or replicating solutions. Read More>>

Discussed & be touched with this discussion. After discussion a perfect solution will come in a result at the end.

 

Note:-

For Important Helping Material related to this subject (Solved MCQs, Short Notes, Solved past Papers, E-Books, FAQ,Short Questions Answers & more). You must view all the featured Discussion in this subject group.

For how you can view all the Featured discussions click on the Back to Subject Name Discussions link below the title of this Discussion & then under featured Discussion corner click on the view all link.

Or visit this link 

Click Here For Detail.

&

.•°How to Download past papers from study groups°•.

 

Please Click on the below link to see…

.... How to Find Your Subject Study Group & Join .... 

 

P.S:    Please always try to add the discussion in proper format title like “CS101 Assignment / GDB No 01 Solution & Discussion Due Date: ___________”

any idea solution ????

RSS

Latest Activity

+++STUDENT+++ posted discussions
3 minutes ago
+ M.Tariq Malik liked + "AS"'s discussion Neelam Mat Karna ...
19 minutes ago
+ M.Tariq Malik liked + Adeeena's discussion har shakhas muhabt krta hae !!!
20 minutes ago
+ M.Tariq Malik replied to + M.Tariq Malik's discussion VU Students Reserves The Right to Delete Any Profile On the Site
24 minutes ago
+ "AS" liked + "AS"'s discussion Neelam Mat Karna ...
25 minutes ago
+ "AS" posted discussions
25 minutes ago
+ M.Tariq Malik liked + Adeeena's discussion sometimes......
26 minutes ago
Usama Rao is now a member of Virtual University of Pakistan
28 minutes ago
+ "AS" liked + "AS"'s discussion Zabt Sabhi ...
33 minutes ago
+ "AS" liked + "AS"'s discussion Jo Ghair Thy..
40 minutes ago
+ ! Ryan replied to + "Jɨyą's discussion me esi hon...!
58 minutes ago
Naser Javed (BBIT-6) replied to + Adeeena's discussion har shakhas muhabt krta hae !!!
1 hour ago
+ Adeeena posted discussions
1 hour ago
+ Adeeena replied to + Adeeena's discussion sometimes......
2 hours ago
+ Adeeena replied to + Adeeena's discussion sometimes......
2 hours ago
Naser Javed (BBIT-6) replied to + Adeeena's discussion sometimes......
2 hours ago
+ "Jɨyą replied to + Adeeena's discussion sometimes......
2 hours ago
+ "Jɨyą replied to + "Jɨyą's discussion me esi hon...!
2 hours ago
+ "Jɨyą replied to + "Jɨyą's discussion me esi hon...!
2 hours ago
Naser Javed (BBIT-6) replied to + "Jɨyą's discussion me esi hon...!
2 hours ago

Today Top Members 

© 2019   Created by + M.Tariq Malik.   Powered by

Promote Us  |  Report an Issue  |  Privacy Policy  |  Terms of Service