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The following extract is from ‘Comments of Leonard Spacek’, reproduced in A.
Belkaoui, Accounting Theory, 5
th Ed. Thomson Learning, 2004. Great Britain, P.113-
114.
“A discussion of assets, liabilities, revenue and costs is premature and meaningless
until the basic principles that will result in a fair presentation of the facts in the
form of financial accounting and financial reporting are determined. This fairness
of accounting and reporting must be for and to people, and these people represent
the various segments of our society”.
This comment may be linked to one of the major criticisms that could be made of
the IASB’s latest Conceptual Framework document, that the framework does not
consider the meaning of the term ‘true and fair view’ despite this being a
fundamental characteristic discussed in International Financial Reporting
Standards.
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