Abstract:

This article examines the meaning and practical application of the true and fair view override concept. In Poland, as in many other countries, true and fair view (T&FV) is a fundamental principle of financial reporting. The article at background traces the concept’s origins in the United Kingdom and its adoption in European Union and Polish law and considers its significance for the objectives of financial reporting. It focuses on analysis of the expert survey experiment examining how accounting professionals understand departures from accounting regulations to achieve T&FV.

The study combines critical literature analysis, deduction and synthesis scientific methods with a qualitative survey experiment involving the 18 members of the Polish Accounting Standards Committee at the time. The Committee supports the development of accounting standards and related legislation.

The findings indicate broad agreement on the nature and importance of T&FV but disclose substantial differences in judgments about its practical application. These differences became especially relevant after the 2015 amendment to the Accounting Act, which introduced the requirement to depart from the legal accounting provisions in exceptional circumstances when application of them would prevent a true and fair presentation.

The article presents the first experimental study in Poland of the practical application of the T&FV and override of it.