True and Fair Override: Accounting Expert Opinions, Explanations from Behavioural Theories, and Discussions for Sustainability Accounting
This study focuses on true and fair view (TFV) and fair presentation (FP) in financial statements. It questions if attitudes towards the true and fair override (TFO) condition, included in European Union (EU) legislation and International Financial Reporting Standards (IFRS), is indicative of a prin...
| Autores: | , , , |
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| Tipo de recurso: | artículo |
| Fecha de publicación: | 2021 |
| País: | España |
| Institución: | Universidad de Alcalá (UAH) |
| Repositorio: | e_Buah Biblioteca Digital Universidad de Alcalá |
| Idioma: | inglés |
| OAI Identifier: | oai:ebuah.uah.es:10017/64126 |
| Acceso en línea: | http://hdl.handle.net/10017/64126 https://dx.doi.org/10.3390/su13041928 |
| Access Level: | acceso abierto |
| Palabra clave: | True and fair view Fair presentation Override Survey Sustainability IFRS Ostrich effect Comfort theory Economía Empresa Economics Management science |
| Sumario: | This study focuses on true and fair view (TFV) and fair presentation (FP) in financial statements. It questions if attitudes towards the true and fair override (TFO) condition, included in European Union (EU) legislation and International Financial Reporting Standards (IFRS), is indicative of a principles-based approach or lip service to a concept that is rarely applied. We address this subject because we consider that there should be a consensus and harmonisation on TFV?that TFO has a vital role within the principles-based framework, and while the accounting standard development process should limit the application of the TFO concept, in practice, it is an important reporting option. TFV/TFO harmonisation also has an important role in sustainability accounting, to reveal company actions which are influenced by more than just the objective of complying with the standards. In the empirical part, accounting experts from 24 European countries were surveyed. Their responses suggest a lack of clarity around the distinction between TFV and FP and a reluctance to consider, in practice, the application of the TFO. Drawing on behavioural theories?ostrich effect and comfort theory?we find explanations and reasoning behind attitudes to these cornerstone concepts. Specifically, we try to explain behavioural attitudes to TFV/FP and TFO positions, which defend uncompromising compliance with standards. |
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