When valuing the assets and liabilities of a company, it must be assumed that it will continue to operate for an indefinite period of time (that the company operates without the intention or threat of liquidation for the foreseeable future). Only if the company is dissolved by a resolution of its decision-making bodies on a precisely defined date may liquidation values be recognized. The principle applies in this form under both IFRS and US GAAP. – When calculating risk in banking operations, the assumption is made that the bank will lose all its planned profits within a risk horizon. The economic capital requirement is therefore calculated here at a low confidence level. – Cf. Deutsche Bundesbank Monthly Report of December 2007, p. 62 (going-concern approach in the context of risk coverage potential), Deutsche Bundesbank Monthly Report of March 2013, p. 42 (treatment of hidden charges in the context of the going-concern approach).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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