A local politician is spreading demeaning comments about a company that has its accounts done using a “going concern” basis.
My understanding is that this just means that it is assumed that the company can continue to be solvent for the foreseeable future. Investopedia seems to back this up.
However, the politician keeps insisting that a company whose accounts are done with this assumption is in trouble, according to the SEC. I’ve tried googling, but my google-fu fails me.
Can anyone clarify why a “going concern” basis might be a bad thing?