Meaning and assessment
Going concern relates to the basis for preparing financial statements and assessing whether an entity can continue operating. It does not guarantee profit, the absence of cash-flow gaps or the preservation of a security’s price. The official IAS 1 overview expressly includes going-concern matters within its scope. Source: **curr-stat-ias1**, About.
It is important to distinguish the selected basis of preparation, material uncertainty and separate risk factors. A profitable company may depend on near-term refinancing, while a loss in one period by itself does not prove that operations will cease immediately. The analysis needs the timing of obligations, resource availability and disclosed plans.
Changes and review boundaries
The 2026 issued edition of IAS 8 also presents basis-of-preparation provisions connected with changes to IFRS 18; the applicability of that edition must be checked separately. Source: **curr-stat-ias8-text**, Going concern. An analyst’s educational stress scenario is not an audit opinion on the going concern of a particular organization. Related reading: [financial statements roadmap](/guides/financial-statements-roadmap/) and [balance sheet](/guides/balance-sheet/).