Krasnov V.D.National Research Lobachevsky State University of Nizhny Novgorod (UNN), Nizhny Novgorod, Russian Federation finfak@mail.ru
Kozmenkova S.V.National Research Lobachevsky State University of Nizhny Novgorod (UNN), Nizhny Novgorod, Russian Federation skozmenkova@yandex.ru
Subject The article covers the issues of assessment of assets and liabilities in keeping with the going concern principle. Objectives The article aims to analyze the revised ISA 570 Going Concern principle, as well as consider its essence and the assessment of assets and liabilities in the financial reporting process. Methods For the study, we used the methods of comparative analysis, systematization, induction, and deduction. Results The article introduces an accounting financial reporting process, based on the going concern assumption, starting with accounting policy and accounting. As well, it provides a dynamic balance based on the going concern assumption and defines the notion of the real value of assets used in financial reporting based on the principle of continuity of operations. Conclusions and Relevance Financial reporting preparation on the going concern principle basis should be based on a different valuation of assets than historical or market ones. The analysis of ISA 570 and the proposals formulated can be applied in the accounting theory and practice when preparing accounting financial reporting of commercial and non-profit organizations, as well as in its audit.
Keywords: going concern principle, international standards, financial reporting, audit
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