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otherwise. In practice, the reasonable period used as the unit of measurement in different
of time, which is 12 months beyond the date accounting records and related financial
when the financial statements are issued, is reports. Examples of unit of measurement
used to assess the going concern assumption. include, but not limited to, Tanzanian
For example, suppose the business has shillings (TZS), Kenyan shillings (KES),
difficulty in paying its debts or significant Uganda shillings (UGX) and the United
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outstanding liabilities or has scaled down States Dollar (USD or $).
significant parts of operations or shut down Cost concept
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one of its key branches. Cost concept is also known as historical
This might cast doubt on the ability of the cost concept. Assets of a business are
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business to continue operating as going usually recorded at their original cost and
concern and would need to be reflected no adjustment is made for the changes in
in the financial statements. If there are the market value. Cost is usually determined
no issues that indicate the existence of through business transactions in which two
going concern problem, the business will or more unrelated and unaffiliated parties
be required to continue valuing all of its agree to do business, acting independently
fixed assets (non-current assets) at original and in their self-interest. Therefore, this is
cost. This is because, it is not foreseen or more likely to be objective figure to use
expected that, such assets will be sold in as long as the going concern is sustained.

a near future. The valuation of assets at Dual aspect of accounting
current value as reflected in market can Dual aspect of accounting is also known
only be done when the business is going as double entry system. This underscores
to be sold or released to a different person. the nature of business transactions that is,
The going concern is very important in every business transaction has a dual or
business world because it gives investors two aspects that must be recognised within
and creditors an indicator of how long a assets, liabilities or equity. It is important to
business will be around. The concept is recognise both, the party giving the benefits
used to indicate the business future stability. and the one that receives the benefits. This is
Money measurement closely related to the basics of double entry
Money measurement is also known as unit of principles for every business transaction
measure concept. This is concerned with how must be recorded twice; every debit entry
different transactions are usually captured in must have its corresponding credit entry.
financial records and financial statements. Accounting period
Generally, only business transactions and Financial statements are usually prepared and
events that are capable of being measured presented to its users in periodical basis
in monetary terms are recognised in the referred as accounting period. However,
financial statements. Money is therefore the normal accounting period which is

Student’s Book Form Five
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