The introduction of IFRSs for listed companies and new UK auditing standards based on IAASB Standards
have replaced 'true and fair view' with 'fair presentation' as the over-arching test that financial statements should satisfy. Based on its analysis, the FRC has concluded that while the new standards will result in changes to the format and content of both company accounts and audit reports:
- the concept of the 'true and fair view' remains a cornerstone of financial reporting and auditing in the UK;
- there has been no substantive change in the objectives of an audit and the nature of auditors' responsibilities; and
- the need for professional judgement remains central to the work of preparers of accounts and auditors in the UK.
The FRC is inviting comments on both its analysis of the current UK accounting and auditing frameworks and how they should evolve in the future. Click to download (PDF 99k). Response deadline is 1 November 2005.