“CAD, MAS and Acra launch joint probe into Hyflux and its directors”
Going concern concept states that the business is assumed to be on going forever. Many a times, students are not sure how relevant such concept are applied to real life. In this case probe, KPMG (The company which checked and verified the accounts of Hyflux) , the appointed auditors, had signed off assuming going concern for Hyflux. In other words, this means that Hyflux is stable financially. Yet within, 2 months, Hyflux filed for bankruptcy.
This would require some form of investigation to find out the basis KPMG had assumed about Hyflux, resulting in the conclusion made by KPMG that going concern was acceptable. Let see how this case unfolds…….
Want to know more of other accounting concepts?
You may check out “Prudence concept and what it actually mean“.
If you want to know the techniques to learn for learning Principles of Accounts (POA), read up Learning Principles of Accounts (POA) and Scoring As.
Felix Lim is the coach for Principles of Accounts (POA) Tuition class in Edulight Learning Hub. Experience in the line of coach Principles of Accounts (POA) for over 10 years, he understood well how students learn through the wrong methods. He seeks to correct the wrong methods of learning in Principles of Accounts (POA) and advocate “Understanding not Memorizing” in his teachings.
You can visit Edulight Learning Hub to understand more about him and his tuition sessions.