What do you understand by 'The Going Concern Assumption'?

The going concern assumption holds that a business or the institution shall last for a long time. Therefore, it is also known as 'continuity assumption'. In other words, it is assumed that the business will exist for an indefinite period of time and therefore, transactions are recorded from this point of view.

On the basis of this assumption, fixed assets are recorded at their original cost and are depreciated in a systematic manner without reference to their market value.