Lesson Plan

• Describe the going‑concern assumption and its role in financial statement preparation.
• Explain how the assumption influences asset valuation, liability classification and depreciation.
• Analyse indicators that may cast doubt on going concern and determine required disclosures.
• Apply the assessment process (cash‑flow forecast, financing review, profitability, legal factors) to a case study.
• Evaluate the relationship between going concern and other accounting principles such as accruals, consistency and prudence.

• Projector or interactive whiteboard
• Slide deck summarising key concepts
• Handout with assessment checklist and sample exam question
• Calculator (optional)
• Copies of a brief financial‑statement excerpt for analysis
• Whiteboard markers

Begin with a quick question: “What would change in a company’s accounts if it were about to close?” Capture a few ideas, then link to the need for a continuity assumption. Remind students that the going‑concern premise underpins most accounting treatments. State that by the end of the lesson they will be able to assess continuity and explain required disclosures.

1. Do‑now (5’) – Students write brief answers to the opening question; teacher collects responses.
2. Mini‑lecture (10’) – Define the going‑concern assumption, discuss its importance, and outline key implications for asset valuation, liability classification and depreciation.
3. Guided analysis (12’) – Walk through the five‑step assessment checklist (cash‑flow forecast, financing arrangements, profitability trends, legal/contractual obligations, post‑period events) using a sample company.
4. Group activity (15’) – Teams examine a short financial‑statement excerpt, identify any doubt indicators, and decide whether the assumption can be applied; record findings on the worksheet.
5. Class discussion (8’) – Groups share conclusions; teacher highlights correct reasoning and connects back to valuation and disclosure requirements.
6. Exam‑question practice (10’) – Students outline an answer to the provided exam question, focusing on impact on statements and note disclosures; teacher gives rapid feedback.

Recap the definition of going concern, the assessment steps, and the disclosure obligations when doubt exists. Ask students to write one “exit ticket” sentence summarising why the assumption matters for financial reporting. Assign homework: read a short case study and prepare a brief report identifying any going‑concern concerns and suggested disclosures.