Reporting entity and underlying assumption

2. Reporting entity and Underlying Assumption

2.1 Reporting entity

A reporting entity is an entity that is required, or chooses, to prepare financial statements. A reporting entity can be a single entity or a portion of an entity or can comprise more than one entity. A reporting entity is not necessarily a legal entity.

2.2 Underlying assumption-Going Concern

It is assumed that the entity has neither the intention nor the need to enter liquidation or to cease trading for the foreseeable future.

If such an intention or need exists, the financial statements may have to be prepared on a different basis. If so, the financial statements describe the basis used.