When the going concern concept is no longer applicable, the fixed assets are recorded at their

The going concern concept in accounting assumes that a company will continue its operations for the foreseeable future. However, if this concept is no longer applicable, fixed assets of the company are recorded at their revalued amount. This means that the fixed assets are recorded at their current fair market value as determined by an independent valuer, and not their original purchase cost less accumulated depreciation (i.e., net book value). The reason for this is that in the absence of the going concern assumption, the company will not be able to use its assets to generate future income, and therefore, their fair market value becomes more relevant. By recording the assets at their revalued amount, the financial statements provide a more accurate representation of the company's financial position in the absence of the going concern assumption.