325 TRUE AND FAIR VIEW IN THE CONTEXT OF THE EUROPEAN ...

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Economie Europeană: prezent şi perspective, Conferință Internațională, ediția a X-arules and methods, is sufficient to obtain atrue and fair view.Therefore, the European accounting illustratesthe reality of a different and branchedaccounting referential. Indeed, the directivesare supplemented by different nationalprovisions applicable in different ways,depending on the size of the firms.Conversely, by adopting InternationalFinancial Reporting Standards, the EuropeanUnion is considering setting up a singlereferential. This will allow the presentation“of a true and fair view of the financialposition, performance and cash flows of anentity” (IAS 1). However, because theinterpretation and assimilation of these rulesby Member States will be done in thelanguage of each country and in the context ofthe national concepts and practices, will bedifficult to create a single regulatoryframework to ensure an easy time and spacecomparison of the information provided bythe annual accounts.Instead of conclusionsThe concept of true and fair view requires thepreparation and presentation of annualaccounts based on accounting principles(regularity) and use as much as possible theexact figures (sincerity), to offer a moreobjective reality, without intentionaldistortion, manipulation or omission of thematerial facts.A challenge for professional accountants isthe question “how true and fair must be thetrue and fair view?” Responses are varied,depending on the philosophy of theaccounting system in which they practice. So,those in continental systems, which arecharacterized by a greater or lesser influenceof taxation on accounting, will measure thedegree of fidelity of the true and fair viewaccording to regularity, which requirescompliance with rules, regulations. But thoserules have sometimes a fiscal nature andcontradict the economic content of accountinginformation, which can affect the quality ofthe true and fair view.On the other hand, professionals belonging tothe accounting systems of Anglo-Saxonorigin, will give priority to economic reality,opting for total disconnection between tax andaccounting. To ensure a true and fair view isnecessary that the documents underlyingaccounting records be accurate, authentic andgenuine. Also, the quality of accountinginformation and, implicitly, the true and fairview is determined by the professionalcompetence of accountants and application bythem, in good faith of the accounting rulesand regulations. Both accountants andmanagers should be loyal, honest and not todistort reality. The degree of fidelity of theimage provided by financial statements isgreater, since they contribute in an objectiveway to the substantiation of the decisionmakingprocess of their users, who base theirbusiness decisions on the image of theeconomic reality provided by them.Since the first use of the concept of true andfair view it is more than half a century, andduring this period, it has been writtenextensively in the field. However, until now,this concept does not have a single, cleardefinition that is generally accepted by mostprofessional accountants and regulatorybodies governing the activity of accounting.This is because the interpretations that aregiven to this concept bear the imprint of theeconomic environment factors which iscontemporary with those who aim at finding asingle definition of true and fair view. As aresult of the differences between the manyaccounting practice, and between nationalaccounting laws, the possible definitions thatcould be given to this concept vary widely.For countries whose accounting systems havean Anglo-Saxon influence, true and fair viewis the supreme principle that should guide andgovern the accounting and the preparation offinancial statements – the supreme qualitativerequirement. In contrast, in countries whoseaccounting systems are continental influence,the true and fair view is the accountingobjective, what should be achieved.But the absence of a generally accepteddefinition need not be seen as a bad thingbecause it allows avoiding excessive rigidity,leaving to the accounting practitioner theopportunity to contribute to the developmentand evolution of the concept. Accounting is amodel for the representation of the businessreality but this reality is always changing.330
European Economy: present and perspectives, International Conference, 10th editionThat is why accounting principles or conceptsmust be in a perpetual evolution, to rank asclose to reality.AcknowledgementsThis work was partially supported by theEuropean Social Fund in Romania, under theresponsibility of the Managing Authority forthe Sectorial Operational Programme forHuman Resources Development 2007-2013(grant POSDRU/88/1.5/S/47646).References:[1] Boța-Avram F. (2009). Imaginea fidelă încontabilitate, Risoprint, Cluj-Napoca, 2009;[2] Bunget O. (2005). Contabilitatea românescă întrereformă şi convergență, Economică, Bucureşti;[3] Capron M. (1994). Contabilitatea în perspectivă,Humanitas, Bucureşti;[4] Colasse B. (2009). Fundamentele contabilității,TipoMoldova, Iaşi;[5] Feleagă N., Ionaşcu I. (1998). Tratat decontabilitate financiară, vol. I, Economică,Bucureşti;[6] Honore A., (2000). Image fidèle et provisions pourrisques et charges, Les actes du XXIe Congrès deL’Association Française de Comptabilité, Angers,18-20 mai 2000, avaible at http://www.afccca.com/archives/docs_congres/congres2000/Angers/Fichiers /HONORE.pdf;[7] Horomnea E. (2001). Tratat de contabilitate, vol.I, Sedcom Libris, Iaşi;[8] Iqbal Z., International Accounting. A GlobalPerspective, 2nd edition, South –WesternThompson Learning, Cincinnati, Ohio, 2002[9] Ionaşcu I., Epistemologia contabilității,Economică, Bucureşti, 1997[10] Klee L., (2009). Image fidèle et représentation del’entreprise, în Colasse B. (coord.), Encyclopédiede Comptabilité, Contrôle de Gestion et Audit,2ème édition, Economica, Paris, pp. 901-911;[11] Matiş D., Contabilitatea operațiunilor speciale,Intelcredo, Deva, 2003[12] Nobes C., (1993). The true and fair viewrequiremment: impact on and of the FourthDirectives, Accounting and Business Research, 24(93), pp. 35-47;[13] Ristea M., Noul sistem contabil din România,Cartimex, Bucureşti, 1994;[14] Tabără N., Horomnea E., Dimensiunile etice aleprofesiunii contabile, Revista Contabilitatea,expertiza şi auditul afacerilor, nr. 12/2000;[15] ***, Law no. 82/1991, Accounting Law(L82/1991);[16] ***, Minister of Public Finance’s Order no.3055/2009 for approving the accountingregulations harmonized with EU directives (OMFP3055/2009);[17] ***, Standardele Internaționale de RaportareFinanciară, inclusiv Standardele Internaționale deContabilitate şi interpretări la 1 ianuarie 2007,Editura CECCAR, Bucureşti, 2007[18] ***, Fourth Council Directive 78/660/EEC of 25July 1978 based on Article 54(3)(g) of the Treatyon the annual accounts of certain types ofcompanies, avaible athttp://www.cnpf.md/file/leg_com/dir_UE_as/Directiva_78-660CEECont_Cons%20 unele%20societati.pdf (DE4);[19] ***, Seventh Council Directive 83/349/EEC of 13June 1983 based on the Article 54 (3) (g) of theTreaty on consolidated accounts, avaible athttp://www.cnpf.md/file/leg_com/dir _UE_as/Directiva_83-349-CEE_Cont_Cons.pdf (DE7).331
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