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    Fin611 GDB by Zeb........ (Idea)

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    Zahid Usman
    Zee Ltd is currently in a favorable financial position and can assume going concern status for preparing its financial statements. [1] The going concern assumption impacts the timing, nature, and amount of accounting transactions recorded. [2] Management must assess going concern status at each reporting date based on indicators such as liabilities exceeding assets, loan defaults, penalties, fines, negative cash flows, or adverse legal claims. [3]

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    Fin611 GDB by Zeb........ (Idea)

    Uploaded by

    Zahid Usman
    119 views1 page
    Zee Ltd is currently in a favorable financial position and can assume going concern status for preparing its financial statements. [1] The going concern assumption impacts the timing, nature, and amount of accounting transactions recorded. [2] Management must assess going concern status at each reporting date based on indicators such as liabilities exceeding assets, loan defaults, penalties, fines, negative cash flows, or adverse legal claims. [3]

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    Fin611 gdb by Zeb........(Idea)

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    Zee Ltd is currently in a favorable financial position and can assume going concern status for preparing its financial statements. [1] The going concern assumption impacts the timing, nature, and amount of accounting transactions recorded. [2] Management must assess going concern status at each reporting date based on indicators such as liabilities exceeding assets, loan defaults, penalties, fines, negative cash flows, or adverse legal claims. [3]

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    119 views1 page

    Fin611 GDB by Zeb........ (Idea)

    Uploaded by

    Zahid Usman
    Zee Ltd is currently in a favorable financial position and can assume going concern status for preparing its financial statements. [1] The going concern assumption impacts the timing, nature, and amount of accounting transactions recorded. [2] Management must assess going concern status at each reporting date based on indicators such as liabilities exceeding assets, loan defaults, penalties, fines, negative cash flows, or adverse legal claims. [3]

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Muhammad Zubair

    Fin611 gdb take idea write in ur own words dnt copy paste

    1st solution

    Zee ltd is Favorable financial statements are prepared assuming that the company can and will
    continue its business in the foreseeable future. The assumption that a business is expected to
    continue in future affects the timing, nature and amount on which accounting transactions are
    recorded. For example, one criteria for classification assets and liabilities into current and non-
    current is whether they are realized/settled within normal course of business

    Zee LTd is required to assess at the date of financial statements whether a business is a going
    concern. Some accounting frameworks require management to disclose their assessment of going
    concern. Indicators that jeopardize the going concern status of a business include: (a) situation
    where liabilities exceed assets, (b) default of a loan(s), (c) tax penalties, heavy fines, etc., (d) very
    adverse regulations, (e) negative cash flows, (f) extremely adverse legal claims, etc.

    Read handouts going concern topic

    2nd solution

    Zee ltd is in favorable; zee ltd should prepare financial statements that a business entity will
    continue to operate in the foreseeable future without the need or intention on the part of
    management to liquidate the entity or to significantly curtail its operational activities. Therefore,
    it is assumed that the entity will realize its assets and settle its obligations in the normal course of
    the business.

    It is the responsibility of the management of a company to determine whether the going concern
    assumption is appropriate in the preparation of financial statements. If the going concern
    assumption is considered by the management to be invalid, the financial statements of the entity
    would need to be prepared on break up basis. This means that assets will be recognized at amount
    which is expected to be realized from its sale (net of selling costs) rather than from its continuing
    use in the ordinary course of the business. Assets are valued for their individual worth rather than
    their value as a combined unit. Liabilities shall be recognized at amounts that are likely to be settled

    Vu strength

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