UK FRC reaffirms importance of 'true and fair'

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21 Jul 2011

The Accounting Standards Board (ASB) and Auditing Practices Board (APB) of the United Kingdom Financial Reporting Council (FRC) have published a paper discussing the 'true and fair' requirement and its relevance to preparers, those charged with governance and auditors.

The purpose of the paper is to confirm the view of the ASB and APB that the true and fair requirement remains of fundamental importance in both UK GAAP and IFRS.

The paper discusses the need for professional judgement, the role of 'prudence' under UK GAAP, reflecting 'substance over form', how the true and fair concept is represented in accounting standards, and the approach to be taken by auditors.

Click for FRC press release (link to FRC website).

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