Despite the dispute over the meaning of ?a true and fair view? ever since it was formally introduced by the Companies Act 1948 (UK), the concept has not only continued to be integral to financial reporting regimes of many countries, but its application has expanded in recent times. In Australia, however, its status has been subordinated by accounting standards. By examining the interpretations of this concept of anti-formalist law by two royal commissions against the notion of value, this paper attempts to explicate a pragmatic meaning of this concept. Its replacement paved by Australian reforms, however, with an accounting concept of ?not misleading? enunciated by two royal commissions should bypass the dispute over the meaning of the true and fair view concept and restore the diminishing credibility of mandatory financial statements and their audits. It also has the potential to transcend the discordant interpretations and national idiosyncrasies of the true and fair view concept and provide a meaningful direction for international harmonisation of financial reporting.
Journal Of Law And Financial Management Collection
Publisher version archived with the permission of the publisher Macquarie Graduate School of Management, Macquarie University, NSW, Australia. This archived copy is available for individual, non-commercial use. Permission to use this version for other uses must be obtained from the publisher.