Directors could elect not to comply with an accounting standard on the grounds that applying the particular accounting standard would cause the financial statements not to present a 'true and fair view'.

Question

Quizplus · Accepted Answer

This statement is true. According to the International Financial Reporting Standards (IFRS), if compliance with a specific accounting standard would result in financial statements that do not present a 'true and fair view', directors may elect to depart from that standard. However, they must disclose the departure and explain the reasons for it in the notes to the financial statements.

Directors Could Elect Not to Comply with an Accounting Standard