The true and fair view requirement in recent national implementations

This note examines the implementation of the true and fair view requirement into the laws of Austria. Finland. Norway and Sweden. It builds on an earlier analysis of the 12 EU member states that had previously implemented the requirement. It is found that three of the four countries depart from the wording of the appropriate language versions of the Fourth Directive. Also, two of the countries do not implement the 'override', and the other two implement it in a way not done before, by reserving to the member state the specification of the allowed departures. [ABSTRACT FROM AUTHOR

A European true and fair view?

After a brief historical introduction, the paper examines the true and fair view (TFV) requirement in the Fourth Directive, and in the corresponding company legislation in UK, France and Germany. Differences and nuances are explored from a language and translation viewpoint and also related to pre-Fourth Direc tive requirements and culture. The extent of true harmonization is questionable. Recent experience and usage of TFV in the UK is critically described and related to the broader European context. The general drift of the argument is that countries are tending to interpret TFV in the context of national culture, national accounting tradition and national GAAP. From a properly European perspective there is a need for changes in attitude from all concerned. TFV and GAAP are living and dynamic concepts. They are affected by the cultures within which they are used. Homogeneous attitudes to such concepts imply homogeneous cultural contexts, and this raises questions of a most fundamental nature.

The relationship between financial and tax accounting in Germany — the authoritativeness and reverse authoritativeness principle

This paper focuses on the traditionally close relationship between financial and tax accounting in Germany by looking first at the historical developments. The so-called authoritativeness principle dates back to the late 19th century. By describing the different facets of the authoritativeness and the reverse author-itativeness principle, the reader will get a good overview of the historical relationship. Furthermore, the role of the highest fiscal court and the influence of some of its decisions is presented in detail. After discussing regulations concerning deferred taxation and methods of calculating those deferred taxes, the paper concludes with an estimation of future development, where it will be shown that the close relationship between commercial and tax accounts is politically stable, but that changes might be ahead with respect to the recent developments in the international accounting harmonisation debate.

Truer and fairer. Uninvited comments on invited comments

European Accounting Review Volume 2, Number 1, carried a special section on the true and fair view concept (TFV). This contained a number of invited comments on a paper by the present author. This new paper picks up the discussion from that point and comments on the comment papers, especially on the more critical points therein. This paper, while seeking to rebut a number of detailed points from commentators, argues as its central positive thesis that an overriding concept such as TFV is logically necessary if accounting in Europe is to fulfil a rational rather than an arational function. Finally a brief comment is made on the apparently fundamental disagreement arising between two cultures within Europe.