The true and fair view concept: the palette of controversial points (of “worth banning” to “worth keeping”)

Abstract

Dynamic changes and observed crisis phenomena in the economy, as well as high-profile accounting scandals of recent decades and subsequent revisions of accounting standards, necessitate a critical assessment of the conceptual framework for preparing financial statements that are adequate to the real state of affairs. At the same time, the accumulated practice of applying the true and fair view concept revealed some shortcomings. In this situation, the center of attraction of researchers' interest is the question of whether this concept meets the modern challenges of accounting, whether it is advisable to preserve and develop it. The aim of the article: an overview of the main research trends describing the significance of this concept for the current state of accounting, an assessment of the stages of their development. The analysis was carried out through research of scientific publications. The result was the identification of the main researching areas of the true and fair view concept, an analysis of their changes over time, an overview of the current increment of scientific knowledge, and the factors that led to such an increment for the last few years. In the course of the work, the areas of emerging scientific interest, as well as areas of maintaining scientific interest, were noted from the position of enriching theoretical and practical knowledge about the applicability of the concept. Special attention was drawn to the following issues: the relationship between overrides from accounting standards and the quality of financial statements, options for interpreting the concept by various groups of users of financial statements in settings of the legal and socio-cultural context differences, the role of auditors in assessing of the compliance with this concept. In conclusion were called the arguments of supporters to recognize this concept as worthy of banning, as well as the arguments of supporters to recognize this concept as worthy of keeping. Prospective directions of future scientific research in this direction were proposed.