A HISTORICAL VIEW OF THE GOING CONCERN BEING THE FUNDAMENTAL ASSUMPTIONS OF ACCOUNTING

The going concern assumption has direct or indirect effects on accounting implementations. This assumption is closely related with periodicity assumption, cost principle and consistency concepts and it is leading motive for accrual basis of accounting. Although going concern assumption has not been encountered conceptually before 20th century, it can be suggested that some accounting implementations were based on this assumption. Thus Littleton (1933) cited accruals, depreciation and valuation processes as transactions that are recorded according to going concern basis. This study has been prepared with the aim of providing contribution to the thought of improvement of the sense of modern accounting by presenting a historical view of going concern assumption, from the point of Littleton’s (1933) approach