The notion “true and fair view” has originated from British accounting. There has numerous definition of “true and fair view” as there is no exact definition available of the term either by the standard setters or in law or even through court verdicts. The notion “true and fair view” has never been defined officially and as the principle is dynamic, it is neither desirable nor possible to give an exact definition for the concept. (Evans 2003:312)
However , in a French case that was decided in 1994 did mention about the phrase that termed it as a trust on adhering with accounting regulations, which does not automatically guarantee a true and fair view. IASB demands that financial reports should offer a true and fair view. US accounting regulation's demand that accounts should be presented as per generally accepted accounting principles. (Walton & Aerts 2006:69).
As per IFRS, the general intention of financial reports is to offer a just and fair presentation of the modification or changes in the financial performance and position of a business organisation or a company. The Conceptual Framework of IASB advocates that fair presentation could also be mentioned as offering a “true and fair view”. However, IAS 1.15 standard specifically states that publication of financial reports, which is based on the chief hypothesis that the application of IFRS with further or additional dissemination, if needed, is supposed to present financial reports mirroring a “fair presentation.” ...Show more