Improvements Project
Date recorded:
IAS 1, Presentation of Financial Statements
The true and fair view was considered. There is a requirement to comply with all IAS; however, this may be an issue in some countries due to their legal framework.
The Board unanimously agreed to amend IAS 1 to retain a true and fair override provision and to limit its use to two cases:
- Compliance with certain provisions of an IAS is prohibited by law in a particular country, so a true and fair override is needed to permit departure from those provisions, with disclosure; and
- Compliance with certain provisions of an IAS would result in financial statements that do not give a true and fair view, so a true and fair override is needed to permit departure from those provisions, with disclosure, to present the information in a more meaningful way.
Additional disclosures will also be added to IAS 1 for key assumptions and any management judgements made with regards to measurement issues.