ACC 312 Midterm: True and fair view
Document Summary
The term true and fair view was introduced in the companies act 1947, (cid:396)e(cid:395)ui(cid:396)i(cid:374)g that co(cid:373)pa(cid:374)ies (cid:396)epo(cid:396)ti(cid:374)g of thei(cid:396) accou(cid:374)ts should show a t(cid:396)ue and fair view. It was not defined in that act and has not been defined since. Some writers have suggested that conceptually it is a dynamic concept but over the years it could be argued that it has failed, and various business scandals and collapses have occurred without users being alerted. The concept of true and fair was adopted by the european. Community council in its fourth directive, implemented by the uk in the. Companies act 1981, and subsequently in the implementation of the seventh directive in the 1989 act (section 226 or 227). Conceptually the directives require additional information where individual provisions are insufficient. In practice true and fair view relates to the extent to which the various principles, concepts, and standards of accounting have been applied.
