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COMPANY ACCOUNTS AND THE GOING CONCERN BASIS
All sets of limited company and LLP accounts in the UK are prepared on a going concern basis, unless the accounts state otherwise in the accounting policies.
What does this mean? The true definition is that the entity will continue in business for the foreseeable future. In practical terms this has been taken to be for at least 12 months from the date that the accounts are signed by the Directors, not the date of the balance sheet.
If a decision has been made to close the business or that events have conspired to leave no market for the company goods and services, then accounting adjustments and disclosure might be required. It might appear strange when we ask you about the business being a going concern, but this is why!