# Going Concern

*Accounting & Reporting — Finicade finance glossary*

Going concern is the assumption a business will keep operating for at least a year, which is what allows assets to be valued at use, not fire-sale prices.

Going concern is the assumption that a business will continue operating for at least the next year, which is what allows assets to be valued at their use rather than at fire-sale prices. When auditors doubt it, they issue a going concern qualification — a formal signal that has historically preceded a large share of corporate failures, and one that can become self-fulfilling by frightening lenders and customers.

**Also known as:** going concern assumption, going concern qualification

**Related terms:** [Audit](https://finicade.com/glossary/audit), [Financial Statements](https://finicade.com/glossary/financial-statements), [Bankruptcy](https://finicade.com/glossary/bankruptcy), [Liquidity Risk](https://finicade.com/glossary/liquidity-risk), [Disclosure](https://finicade.com/glossary/disclosure)

Source: https://finicade.com/glossary/going-concern