Q.1 "Lee G.A. (1981), cited by Rutherford (1985) in The True and Fair View Doctrine: A Search for Explanation, suggested a definition for the concept of True and Fair View as:
"it is generally understood to mean a presentation of accounts, drawn up according to accepted accounting principles, using accurate figures as far as possible, and reasonable estimates otherwise: and arranging them to show, within the limits of current accounting practice, as objective a picture as possible, free from willful bias, distortion, manipulation, or concealment of material facts" "
Source. Vladu A. B., Mati$ a And Solos 0. A. (2012), 'True and fair view and creative accounting conceptual delimitations based on Papineau's tree methodology" Annales Universitatis Aputensis Series Oeconomica, 14(1), 2012. Pp 104-115
Critically evaluate this statement, showing:
The history and significance of the concept of "true and fair view",
The usefulness of accounting standards/principles and the process by which they are agreed.
The explanation of the relationship between the concept of "true and fair view" and "creative accounting".
Q.2 "Intangible assets are identifiable, non-monetary assets, so they may not affect the financial statements".
Critically assess this statement, showing:
- How intangible assets can be valued;
- How the financial statements may be affected.
- Examples to illustrate your points.
Question 1 for 600 words and question 2 for 600 words.