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The Fair Presentation Requirements of International Accounting Standard 1 Will Undermine the Uk’s View of True and Fair

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The Fair Presentation Requirements of International Accounting Standard 1 will Undermine the UK’s View of True and Fair

During the last 20/30 years there has been an increase in trade and communication. It is easier for people to do business across the world as the new technology allows this to be possible. The problem with this is that different countries have different ways of accounting standards, and therefore there is a problem on how to account standards. Hence, during the last years the debate on whether to use Fair presentation or the True and fair View is becoming a major concern. Fair presentation and the true and fair concept may seem as a similar concept, however, they do differ as well. While the former is the concept for United States, the latter is used in the UK, EU, Singapore, Australia and New Zealand.
The IASB job is to prepare a “high quality global accounting standard that requires transparent and comparable information in general purposes financial statements”. According to the International Accounting Standard Board (IASB) the fair presentation is the concept which should be used, while the UK’s company act believe it’s the true and fair view ( TFV). The latest version of International accounting standard (IAS1) was brought into action from July 1998. This adopted both concepts, and it “required fair presentation and disclosure of compliance with IAS and a limited true and fair view override if compliance is misleading”
. Fair presentation comes from the word GAAP (Generally accepted accounting principles) and first appeared in 1939. “Fair presentation requires the faithful representation of the effects of transactions, other events, in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the framework.” and can be defined as “ Presenting information, including accounting...

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