True and Fair from the Accountants' Perspective

"From the accountant's point of view, what does" true and fair "mean? In your opinion, is the true fairness requirement useful or necessary? Accounting is the measurement process and communication of financial processes. Report on the economic performance of the project. These reports have played a role in the concept of "reality" and "fairness". Reality and fairness are core concepts related to the use of financial reporting standards and the conceptual framework to ensure standardization and reliability of financial reporting to users (ie shareholders and investors) (Waqas 2013).

Whenever we refer to the "fair statement" of a financial statement, we refer to the concept of accounting of "realistic and fair" view. The term "true and fair" in the context of accounting has the same meaning as truth and fairness in a general context. Thus, "reality" in the context of accounting is not meant to be factual or not false, and "fair" in the context of accounting does not imply justice or corruption. The most widely accepted accounting truthful and fair interpretation is that accounting is true and fair, if it is created and presented in accordance with generally accepted accounting principles. Therefore, the court judged that accounting based on historical cost presented a truthful and fair view. Mr. Riley pointed out that various corporate legislation requires a truthful and fair view, not a truthful and fair view.

In this article we will focus on the definition of 'realistic and fair perspective' and how they are actually used in accounting. In my opinion, the "fair view of reality" is extremely important in the real world of accounting because companies must provide reliable and appropriate information to prove their actual financial condition in financial reporting is. However, since December 2013, "the truth and fair view" is not defined in the "Company Law". 295 (4) (d) Other regulations or laws. This is because there is a controversy about the exact nature of the "true and fair view". Therefore, in the next article, I will explain the importance of "realistic and fair view" in proper disclosure of important matters in financial statements and frustration of definition.

Fairness plays an important role in accounting practice. The audit report stated that the financial statements fairly reflect the annual results of operations and cash flows in accordance with generally accepted accounting principles. This statement will provide an accountant (as a compiler) and an auditor (as a certifier) ​​to users and the market to work hard in order to guarantee fairness. This traditional nature of the notion of fairness is fairness of expression with a neutral concept in the preparation and presentation of financial reports and the concept of justice in the outcome. Accounting fairness as a fair view is very limited and it is necessary to expand the concept of fairness to deal with allocation, disclosure and resource allocation considerations. Each of these concepts is presented in separate chapters