True and fair view — Accounting glossary

The precise legal requirements and circumstances of application depend on the jurisdiction and reporting framework. In IFRS financial statements, fair presentation requires a faithful representation and compliance with applicable requirements, with additional disclosures where necessary. Do not assume that true and fair view is a separate worldwide IFRS recognition test or that following a checklist automatically makes misleading financial statements acceptable.

Worked example

Directors prepare financial statements under the applicable legal framework, assess material information and provide further disclosure where necessary to explain a significant transaction. They consider whether the statements meet the required view as a whole.

Common mistake

Assuming that the phrase has identical legal meaning in every jurisdiction, or using it to override a specific requirement without considering the relevant legal and reporting rules.

Where it appears in your exams

Qualification	Exam	Relationship	Period
ACCA	FR	Supporting	September 2026–June 2027
ACCA	SBR	Supporting	September 2026–June 2027