Importance of true and fair view in both UK GAAP and IFRS reaffirmed by the Accounting Standards Board and Auditing Practices Board
News types: Publications
Published: 21 July 2011
FRC PN 338
The Accounting Standards Board (ASB) and Auditing Practices Board (APB) of the Financial Reporting Council (FRC) today reconfirm that the true and fair view remains of fundamental importance in both UK GAAP and IFRS. A paper published today (PDF) for preparers and auditors explains the continuing primacy of the true and fair requirement and its relevance to preparers, those charged with governance and auditors.
Commenting, ASB Chairman Roger Marshall said:
The Accounting Standards Board (ASB) and Auditing Practices Board (APB) of the Financial Reporting Council (FRC) today reconfirm that the true and fair view remains of fundamental importance in both UK GAAP and IFRS. A paper published today (PDF) for preparers and auditors explains the continuing primacy of the true and fair requirement and its relevance to preparers, those charged with governance and auditors.
Commenting, ASB Chairman Roger Marshall said:
“The concept of true and fair has underpinned UK GAAP for many years. Concerns have been raised about the relationship of true and fair to IFRS in some quarters, not least in evidence to the recent House of Lords Economic Affairs Committee inquiry into audit market concentration. The purpose of our paper today is to remind both preparers and auditors that the true and fair requirement remains of fundamental importance in both UK GAAP and IFRS”.
Notes to Editors
The Financial Reporting Council is the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.
Document created under a former FRC operating body.