imported>Doug Williamson |
imported>Administrator |
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| 1. ''Financial reporting - accounting concepts.''
| | UK Payments Administration Ltd. |
| | | (Formerly known as APACS.) |
| By law financial statements must give a 'true and fair view'.
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| This phrase is undefined but depends upon both the application of generally accepted accounting principles and the exercise of judgement.
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| :<span style="color:#4B0082">'''''Responsibilities for True and Fair View'''''</span>
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| :It's the responsibility of the '''directors''' - or equivalent officers - of the company / group / organisation to produce accounts that show a true and fair view.
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| :The directors can't abdicate or delegate this responsibility, for example to the auditors.
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| :So, for example, an Annual Report might state:
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| :"Each of the Directors, whose names and functions are listed in the biographies on pages 68 and 69, confirms that, to the best of their knowledge:
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| :– the Group and Company financial statements, which have been prepared in accordance with the relevant financial reporting framework, give a true and fair view of the assets, liabilities, financial position and profit of the Group and Company..."
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| :In addition to the directors' responsibilities, the auditor has a responsibility to form and express an '''opinion''' about the truth and fairness of the financial statements, for example:
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| :"In our opinion:
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| :– The consolidated financial statements and Company financial statements (the ‘financial statements’) give a true and fair view of the state of the Group’s and of the Company’s affairs as at 30 June [+ Year] and of the Group’s profit and cash flows for the year then ended..."
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| The extract above is from an unqualified audit opinion.
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| This means that the auditor positively confirms the truth and fairness, without limitation.
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| 2. ''Other reporting - environmental concerns.''
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| Similar principles in other reporting contexts.
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| For example, the true and fair reporting of greenhouse gas emissions under the Greenhouse Gas Protocol.
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| == See also == | | == See also == |
| * [[Accounting concepts]] | | * [[UK Payments Administration Ltd]] |
| * [[Accounting policies]]
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| * [[Accruals concept]]
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| * [[Audit]]
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| * [[Audit opinion]]
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| * [[Auditor]]
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| * [[Consistency]]
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| * [[Director]]
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| * [[Disaggregation]]
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| * [[Faithful representation]]
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| * [[Generally accepted accounting principles]]
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| * [[GHG inventory]]
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| * [[Going concern]]
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| * [[Greenhouse Gas Protocol]]
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| * [[Judgement]]
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| * [[Prudence]]
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| * [[Unqualified audit report]]
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| [[Category:Accounting,_tax_and_regulation]]
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| [[Category:Compliance_and_audit]]
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