ICAS is calling for company law to require directors to confirm explicitly that the financial statements they prepare give a “True and Fair”view .
This is in response to the concerns of institutional investors that UK financial reporting is being weakened by recent changes to the Companies Act for companies adopting International Financial Reporting Standards.
ICAS backs the Financial Reporting Council’s position that, despite a change of terminology, the intent and substance of the new requirement is that financial statements should still give a ‘True and Fair” view. However, to clarify this, ICAS is calling for a directors’ statement to avoid potential confusion amongst investors and others.
ICAS Chief Executive, Des Hudson, has written to the FRC and DTI to call for the early adoption in the forthcoming Companies Bill of this requirement – contained in the forthcoming EU Transparency Directive. It means that directors would have to state in the accounts that the financial statements prepared in accordance with the applicable set of accounting standards give a ‘True and Fair’ view of the company’s performance and financial position.
See full Press Release.
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