The concept of “going concern” in accounting emphasizes that a business must persist into the future to retain its value. This principle signifies that present value already incorporates expectations of future value; thus, a business facing uncertainty about its future will inevitably diminish in present value. It highlights the interconnectedness of present and future values, suggesting that they cannot be regarded in isolation. All stocks traded on the stock market are priced based on their anticipated future value. In essence, we trade on a future that has yet to materialize. Consequently, determining how far into the future to evaluate is a critical factor in making investment decisions. Since individuals have varying skills and perspectives on forecasting the future, selecting an investment strategy must align with one’s attitude toward time. - Joseph’s “just my thoughts”
Cotton needs 500 mm of water to produce cotton wool, and 1 kg of cotton wool requires 8,500 liters of water to fill 40 baths. A fashion company can make a pair of jeans from this. It needs at least 2,700 liters of water to create a T-shirt. This amount is enough for one person to use as drinking water for three years. Clothing consumption has recently increased by an average of 60% each year on Earth. The Aral Sea in Uzbekistan was the fourth-largest lake in the world, but it has now shrunk to one-tenth of its original size, as river water has been used to grow cotton due to increased consumption. Few people are concerned about how their consumption affects the global environment. - Joseph’s “just my thoughts”