“True and fair” definitions — OpenTuition Forums

JJames5y ago

Hi, just a quick query please. Is it possible for accounts to be a ‘fair’ record but not a ‘true’ one? I’m thinking for example of a situation where a payable for $5000 is wrongly included in the accounts when it should be omitted, and meanwhile a separate payable for $5000 is wrongly omitted when it should be included. Or do records have to be ‘true’ before they even get to be considered for the ‘fair’ test? Thanks

KimTutor5y ago#1

I suppose an amount could be not sufficiently accurate (i.e. not true) but fairly presented - e.g. as PPE rather than expensed in profit or loss. This would tie in with the "true and fair" being equivalent to "fairly presents (i.e. fair) in all material respects (i.e.accurate)".

JJames5y ago#2

Okay, thanks a lot.

KimTutor5y ago#3

You're welcome!

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