Section 10 in The Companies (Accounting Standards) Rules, 2006
10. The following have been generally accepted as fundamental accounting assumptions:
a. Going ConcernThe enterprise is normally viewed as a going concern, that is, as continuing in operation for the foreseeable future. It is assumed that the enterprise has neither the intention nor the necessity of liquidation or of curtailing materially the scale of the operations.b. ConsistencyIt is assumed that accounting policies are consistent from one period to another.c. AccrualRevenues and costs are accrued, that is, recognised as they are earned or incurred (and not as money is received or paid) and recorded in the financial statements of the periods to which they relate. (The considerations affecting the process of matching costs with revenues under the accrual assumption are not dealt with in this Standard)Nature of Accounting Policies
