Home Part 2 TRUE AND FAIR VIEW – THE SUPREM TRUTH IN ACCOUNTING?

 

TRUE AND FAIR VIEW – THE SUPREM TRUTH IN ACCOUNTING?


*Phd. Student Ana-Maria MARCULESCU,
*Phd. Student Octavian Florin DONDERA
WEST UNIVERSITY OF TIMISOARA, FACULTY OF ECONOMICS AND BUSINESS
ADMINISTRATION, 16 J.H.PESTALOZZI STREET, TIMISOARA. 300115, ROMANIA
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Abstract
Acting in a social and economic environment in a continuous movement and transformation, accounting is experiencing with new situations, in its attempt to answer all functions and information users that it generates, making it an important arbitration instrument in the game of those involved in business world. The main characteristic of accounting is represented by providing useful information retrodictive and predictive in an efficient and economic decision process regarding the economic entity's financial position and accounting performance. Under these circumstances, the information must not contain significant errors, is not biased, and users can be confident that it accurately represents what they proposed to represent, or what is expected, in a reasonably manner to be.
Fair and true view seen as an ideal to which any professional accountant should aim, seems to be more difficult to achieve under the current conditions, in which fiscal pressure is more
and more unbearable and top management is more and more willing to make compromises that sometimes are at a legal limit. In theory, it is well known that registrations and
accounting reports must provide a clear image, honest, fair and full on the assets, financial position and results of the entity. In practice, contrary to ethical principles, more and more
"servants" of the accounting profession are either willing, or forced to submit distorted accounting information giving the impression of calmness to a disastrous situation.
Keywords: true and fair view; accounting information; regularity; sincerity; economic reality.
JEL classification: M4

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