What option(s)does a company have when directors are of the view that compliance with accounting standards does not generate a 'true and fair view' financial statements?
A) Directors may elect not to comply with the standard.
B) Directors may exercise the 'true and fair view override'.
C) Directors may disclose the standard in question, the nature of conflict and adjustments made.
D) All of the given answers are correct.

Question

Quizplus · Accepted Answer

The directors should disclose the standard in question, the nature of conflict and adjustments made. This provides transparency to the stakeholders regarding the possible deviation from accounting standards and helps maintain the credibility of financial statements. Option A is not a viable option as it may result in non-compliance penalties and loss of stakeholders' trust. Option B should only be exercised after thorough consideration of the circumstances as it is a last resort. Option D is not a correct option as option A is not a valid option.

What Option(s)does a Company Have When Directors Are of the View