Thursday, 3 October 2013

UK: IFRS, the 'true and fair' view and the Companies Act 2006

In 2011, the Financial Reporting Council published a paper in which it reiterated the importance of the 'true and fair' requirement under IFRS and UK GAAP: see here (pdf). In doing so, the FRC relied heavily upon a legal opinion written in 2008 by Martin Moore QC: see here (pdf). A more recent legal opinion, prepared by George Bompas QC at the request of a group of investors including the Local Authority Pension Fund Forum, raised questions about the FRC's position and called for Mr Moore's opinion to be reconsidered: see here (pdf). Today the Department for Business, Innovation and Skills supported the FRC"s position with regard to the centrality of the 'true and fair' view: see here. The FRC also published a response from Martin Moore QC in which he addressed the points made by George Bompas QC: see here (pdf).

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