Fair presentation Concept

Fair presentation Concept

Fair presentation of financial statement can be achieved by applying following guidelines in the preparation of financial statements.

1.    Faith full Representation

Fair presentation may be achieved by representing or recognizing the transaction in accordance with the recognition criteria.

2.    Appropriate Accounting Policies

Fair representation may also be achieved by adopting the appropriate and reasonable accounting policies. IAS 8 provides guideline for policy selection.

3.    Presentation of Information

Fair representation may also be achieved by presentation information in a way that it provides reliable, comparable and understandable information.

4.    Additional Disclosures

Additional disclosure should be provided, when the requirement of international accounting standard are not sufficient to explain the financial impact of the transaction (element) of financial statement.