Ensuring the "true and fair view principle" of banks’ financial statements after the in-troduction of the application of IFRS: The case of Greece
In a highly volatile economic environment, like the one we are facing nowadays, there is a need, increasing day by day, for adequate and reliable information from companies of all economic sectors, in a way that everyone would be able to extract the maximum true and fair conclusions. However, emphasis is given to the banking sector, and that’s because banks are considered as the cornerstone of the financial support system especially in periods that economies collapsing. The present survey examines IFRS requirements, on how significant disclosures should appear adequately in financial reporting. The survey based on the analysis of financial figures combined with: the application of the Standards and requirements of the basic accounting principle of "true and fair view". Specifically: • Transactions effects and events, that are treated based on specific IFRS , are isolated and approximated using an analysis that starts from the overall picture and conclude in analysis of specific transactions. • Findings and effects of transactions that led to banks financial figures, are collected and evaluated based on specific order (major influence on Bank’s net position). • In order to try to assess the financial information’s level provided, compared with the disclosure requirements of IFRS for certain transactions and events, the financial statements of Athens Stock Exchange publicly listed Banks for the year 2009 are studied. The survey mainly focusing on events that have significant impact on the assets shown in the Financial Statements of Banks (Balance Sheet, P&L, changes in equity, cash flow) and data taken by key financial indicators as conditions. Survey’s main conclusion is that the level of information provided in the published financial statements is constantly improving and tends to reflect adequately Bank’s "true and fair view" without yet having reached the desired level. Also the survey showed that the incomplete quote mandatory disclosures set by IFRS tend to be bound by a limited number of banks. The weaknesses which have been properly identified classified and analyzed their impact on quality information, while emphasizing the decisive role of regulators in the development of quality of information that will contribute decisively to the emergence of financial position and operations results, as dictated the basic accounting principle and the needs of today's world economy.
When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xiv:y:2011:i:3:p:19-32. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marios Agiomavritis)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.