本文着重论述了公允价值观的定义及其在会计实务中的应用。在我看来,“真实和公允的观点”在会计界是必不可少的,因为公司必须提供可靠和相关的信息来证明财务报告中的实际财务状况。然而,从2013年12月起,《公司法》第295(4)(d)和其他条例或立法没有明确界定“真实和公平的观点”。这是因为关于“真实与公正”的确切性质的争论一直存在争议。因此,本文将从财务报表中重大事项的披露和定义中的挫折感两方面说明“真实公允”观点的重要性。
Introduction 简介
This
essay focuses on the definition of the ‘true and fair view’ and how to use in
Accounting practically. In my opinion, ‘true and fair view’ is essential in the real world of accounting because the company has to provide reliable and relevant information to demonstrate its actual financial situation in financial report. However, from December 2013, the ‘true and fair view’ is not defined in Corporations Act s. 295(4)(d) and other regulations or legislations. This is because it has been a controversial debate towards whether the exact nature of ‘true and fair view’. Therefore, the following
essay will explain the importance of the ‘true and fair view’ in terms of the appropriate disclosure of material matters in financial statement and the frustration in terms of the definition as well.
What is True and Fair?
The ‘true and fair view’ concept is one of two competing but not mutually exclusive legal standards for financial reporting quality that have been subject to debate on their meaning, use and importance. The other is ‘present fairly in conformity with generally accepted accounting principles’ (GAAP). The mainly prescriptive literature suggests that each regime that requires compliance with ‘true and fair view’ tends to address and interpret the concept according to specific historical, social, cultural, political and economic roots and environments (Deegan & Michael 2012).
The nature of truth, whether absolute or relative, it is the existence of a reality, an unquestionable thing, or as an abstract concept, either dependent or independent of believers. The interpretation equated with the truth and fairness to the relevance together with adequate disclosure in financial report. In accounting concept, ‘True and fair view’ indicates that the financial statement must not contain material misstatement and actually reflect the financial performance and position on the company(Deegan & Michael 2012). To be specific, ‘True’ means the financial statement accord with the reality and formal reporting framework such as conceptual framework and free from any unreal information which could mislead the users. ‘Fair’ means the information in financial statement do not include any personal prejudice or bias thus it could reflect the economic substance or transaction.
The Importance of True and Fair in Accounting
The Corporations Act requires the accountants to provide true and fair information so that the accounts of the company can convey a true and fair view explicitly. Under s. 297, it is required that the financial statements and
notes should to give a true and fair value of the entity’s financial position in the financial year. Moreover, s. 308 requires auditors to give a true and fair view in the annual financial statements and comply with accounting standards. Beside to the Corporations Act, Chastney (1975) suggests that fairness means that, in order to achieve a true and fair view financial reports should present information both impartially and in a manner that a reader can understand clearly.
The concepts of truth and fairness are of great significance to ensure the accounting information to be re
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