The Financial Reporting Council today publishes its analysis of the implications of the new accounting and auditing standards on the ‘True and Fair View’ and auditors’ responsibilities.
Significant changes in financial reporting in the UK have taken place from 2005 as a result of the EU requirement for listed companies to adopt international accounting standards (IAS). Furthermore, the standards that auditors in the UK have to follow have also changed following the introduction in the UK of new standards based on International Standards on Auditing (ISAs). Those changes will potentially affect preparers, auditors and users of financial statements.
The move to IAS will result in changes in key measures such as profit and net assets, the format of financial statements, and the terminology used in the statements. One change in terminology that has received particular prominence is the replacement of “true and fair” by “fair presentation” as the over-arching test that financial statements should satisfy.
See full Article.
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