Which accounting principle mandates that a business will continue its operations indefinitely?
A. Going Concern Concept
B. Accounting Period Concept
C. Dual Aspect Concept
D. Business Entity Concept
Answer: Option A
Solution (By JKSSB Mock Tests)
The Going Concern Concept assumes the enterprise has neither the intention nor the need to liquidate or curtail materially the scale of its operations.
S1: Under Ind AS 116, short-term leases (12 months or less) and leases of low-value assets are exempt from recognizing right-of-use assets and lease liabilities. S2: For these exempt leases, the lease payments are recognized as an expense on a straight-line basis over the lease term. Which statement(s) is/are correct?
Explanation:
Both statements are correct. Ind AS 116 provides a recognition exemption for short-term and low-value leases, allowing lessees to simply recognize the lease payments as an expense, typically on a straight-line basis.
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