The extent to which the Australian regulatory environment for financial reporting supports the TFV

At the very core of financial reporting lies the concept of the True and Fair View (TFV). In many countries the requirement for financial statements to reflect the true and fair view of the entity has been codified in national legislation (such as Australia's Corporations Act), given prominence in financial accounting standards and the accompanying conceptual framework. Nevertheless, the TFV is not really given prominence in accounting practice or accounting education. It seems to be just one of those things that is accepted and is not worthy of further discussion. Consider, for example, for following quote given by an accountant to the authors of the paper:

I am fairly sure that in all our discussions with the auditors, and we have had many, the term "true and fair" has never once been used. It is a concept that we all hold in common, and not a matter for discussion (Nobles and Parker 1991, p. 360). It probably won't surprise you that I disagree with this sentiment even though I understand it. Much more focus has been placed on the outcome of committing to a "true and fair view": the conceptual framework and the accounting standards. I am therefore going to give you an opportunity to undertake research into the TFV, its origins and its intent. The assignment requirements Your literature review, therefore, is to research and report into particular aspects of the TFV. Your assignment is split into two parts.

Part A What is the history of the TFV? How did it come about, where, and when? What has been this historical purpose of the TFV?

Part B provides you with a choice; you may research or report on either one of the following: • The extent to which the Australian regulatory environment for financial reporting supports the TFV, or

• Whether the current requirements of the Australian accounting standards to "faithfully represent" the reporting entity's accounts is the same as requiring a true and fair view. Some links to journal articles will be provided below to help you start your research, but you will have to search much further than that. Your textbook can also provide some useful references, and I urge you to search the Library's database for useful articles.

You may certainly work with other students to share the research and discuss the best ways to present the report, but keep in mind that this is an individual assignment. So work with others, share notes, and so on, but you must write your own report.