Question

What does “true and fair view” mean in this context (or other areas impacted by Accounting standards) generally?

Please provide a few examples.

Answer 1

Defination

True and fair view in auditing means that the financial statements are free from material misstatements and represent the true financial performance and position of the entity.

Explanation

true and fair view is not defined in the any accounting standred , we may derive the following general conclusions as to its meaning:

True

Suggest that the financial statements are objective correct and have been prepared according to applicable reporting framework as per IFRS and they do not contain any material misstatements that may mislead the users. Misstatements may result from material errors or omissions of transactions And balances in the financial statements

Fair view:

It means that the financial transactions are treated fairly as they should be and all significant information is sufficiently disclosed in the financial statements to ensure that the users are not misleading.

The fair view mainly focuses on the ways how the quality of the information in the financial statements is.

For example: financial statements have sufficient comparative information. Information that should have been disclosed in Financial statement.

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