Fair presentation
Under IFRS Accounting Standards, management assesses compliance with the relevant standards and the requirements for fair presentation, accounting policies and additional disclosures. The term true and fair view is also used in some legal frameworks; legal wording and responsibilities depend on jurisdiction. Fair presentation does not guarantee that estimates are exact or that statements are free from every immaterial error. Following the IFRS 18 amendments, the basis-preparation requirements for fair presentation are in IAS 8.
Worked example
A company applies applicable standards to a material transaction and adds disclosure where necessary for users to understand its effects. Management assesses the overall presentation against the applicable requirements.
Common mistake
Assuming that formal compliance with a checklist makes misleading statements acceptable, or promising absolute accuracy for every estimate.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FR | Direct | September 2026–June 2027 |
| ACCA | SBR | Supporting | September 2026–June 2027 |