Following the application of this concept, the accounts are drawn up on the basis that the enterprise will continue in operational existence for the foreseeable future. Thus, the accountant does not normally prepare the accounts to show what the various assets would realize on liquidation or on the assumption of a fundamental change in the nature of the business. It is assumed that the business will continue to do in the future the same sort of things that it has done in the past. If, of course, such continuation is not expected, then the going concern concept must not be applied. So if, for example, liquidation seems likely then the valuation of assets on the basis of sale values would be
appropriate. The accountant must then give warning to the users that the usual going concern concept has not been applied.