CONCEPTUAL GROUNDS OF THE GOING CONCERN ASSUMPTIONS OF ENTERPRISES IN UNCERTAINTY CONDITIONS

Abstract

The purpose of this article is to explore the conceptual grounds of the going concern principle of enterprises as a fundamental principle in the process of preparing financial statements. This issue has become particularly relevant in modern times due to the high degree of uncertainty caused by the impact of the global coronavirus pandemic and military actions of the Russian Federation on the territory of Ukraine. To achieve the stated objective, the research employed general scientific research methods, including empirical methods (observation and description) and theoretical methods (analysis and generalization). The purpose of the research is to reveal the essence and importance of the going concern principle, determine the interpretation of the concept of «going concern» depending on the context and approach of scholars, form its own vision regarding the interpretation of the essence of the going concern principle, taking into account the impact of high level of economic uncertainty, investigate the fundamental conceptual grounds of the going concern principle, such as risk management, flexibility, automation, provisioning, communication and planning. The research identifies the need to enhance the conceptual grounds of the going concern principle in modern conditions of uncertainty. The interrelation between the concepts of «principle» and «assumption» in the analysis of going concern is substantiated. The international and Ukrainian legislative and regulatory framework is analyzed to establish the importance of the role of the going concern principle in the system of accounting and financial reporting. The interrelatedness of the main features of the going concern principle from the perspective of different scholars is identified and characterized. The practical significance of the obtained results lies in defining the fundamental conceptual grounds that ensure compliance with the going concern principle for entities and in formulating directions for their improvement in conditions of uncertainty.