Faithful representation: Difference between revisions
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''Financial reporting - accounting concepts.'' | ''Financial reporting - accounting concepts.'' | ||
Under the IFRS Conceptual Framework, faithful representation means representation of the substance of an economic phenomenon instead of representation of its legal form only. | Under the IFRS Conceptual Framework, faithful representation means representation of the substance of an economic phenomenon instead of representation of its legal form only. | ||
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* [[Relevance]] | * [[Relevance]] | ||
* [[Substance over form]] | * [[Substance over form]] | ||
* [[True and fair view]] | |||
* [[Useful financial information]] | * [[Useful financial information]] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] |
Revision as of 01:05, 16 April 2023
Financial reporting - accounting concepts.
Under the IFRS Conceptual Framework, faithful representation means representation of the substance of an economic phenomenon instead of representation of its legal form only.
A faithful representation seeks to maximise the underlying characteristics of completeness, neutrality and freedom from error.
Information must be both relevant and faithfully represented, if it is to be useful.