Faithful representation: Difference between revisions
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imported>Doug Williamson (Create page. Source: IAS Plus webpage https://www.iasplus.com/en/standards/other/framework) |
imported>Doug Williamson m (Amend header.) |
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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. |
Revision as of 13:55, 29 October 2020
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.