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The true and fair view construct in the context of the Polish transition economy: some local insights

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  • Katarzyna Kosmala-MacLullich

Abstract

This paper addresses issues of financial reporting within the context of European harmonization and accession. The construct of the True and Fair View (hereafter TFV) constitutes a locus of reflection for the establishment of a mutually intelligible foundation for financial reporting in the New Europe including applicant states for European Union (hereafter EU) membership. This paper provides insights as to the meaning and the local embeddedness of TFV in the context of the Polish transitional economy. The Audit Act 1994 and the Accounting Act 1994, as amended by the 2000 Acts, incorporate the provisions of European law with the aim of harmonizing Polish accounting and financial reporting regulations with the corresponding regulations in the EU. The Accounting Act 1994 for the first time introduced in Poland the current wording of the TFV construct in accordance with the requirements of the Fourth Directive. The question addressed in this paper is how the construct of TFV is understood and operationalized. This paper demonstrates the particular local understanding of the TFV construct in contemporary Poland through (1) textual analysis of the legal pronouncements (both national and international) and (2) narrative analysis of local debates and commentaries in the national press and academic journals. Given the difficulty of expressing judgements based upon accumulated experience, where much of the experience is constituted by continental influence, in particular the German tradition, and regulatory arrangements of a centrally planned economy, Polish practice perceives the TFV requirement primarily as a formal and legal compliance, and not yet as something with a substantial rationale in the observance of the rule of accounting law. The paper concludes that TFV is a contingent construct which resides in a particular socio-economic, historic and cultural context and is understood differently outside this context. The local Polish reception and understanding is articulated.

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  • Katarzyna Kosmala-MacLullich, 2003. "The true and fair view construct in the context of the Polish transition economy: some local insights," European Accounting Review, Taylor & Francis Journals, vol. 12(3), pages 465-487.
    • Handle: RePEc:taf:euract:v:12:y:2003:i:3:p:465-487
    DOI: 10.1080/0963818031000087844
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    Cited by:

    1. Huerta, Esperanza & Petrides, Yanira & Braun, Gary P., 2013. "Translation of IFRS: Language as a barrier to comparability," Research in Accounting Regulation, Elsevier, vol. 25(1), pages 1-12.
    2. Albu, Cătălin Nicolae & Albu, Nadia & Alexander, David, 2014. "When global accounting standards meet the local context—Insights from an emerging economy," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(6), pages 489-510.
    3. Tyrrall, David & Woodward, David & Rakhimbekova, Almagoul, 2007. "The relevance of International Financial Reporting Standards to a developing country: Evidence from Kazakhstan," The International Journal of Accounting, Elsevier, vol. 42(1), pages 82-110.
    4. Laaksonen, Jenni, 2022. "Translation, hegemony and accounting: A critical research framework with an illustration from the IFRS context," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 89(C).
    5. Judy Day & Peter Taylor, 2010. "Trajectories of accounting and auditing development in EU enlargement: comparative analysis of ten new member states," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 14(4), pages 313-350, November.
    6. Nhu Tuyên Le, 2009. "Liens Entre Comptabilite Et Systeme Economique : La Transition Vietnamienne," Post-Print halshs-00460227, HAL.
    7. Lisa Evans & Rachel Baskerville & Katariina Nara, 2015. "Colliding Worlds: Issues Relating to Language Translation in Accounting and Some Lessons from Other Disciplines," Abacus, Accounting Foundation, University of Sydney, vol. 51(1), pages 1-36, March.
    8. Bohuslava Knapová, 2006. "Fair and True View in Czech and Polish Practices [Věrný a poctivý obraz v české a polské účetní praxi]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2006(4), pages 140-145.
    9. Anne Marie Garvey & Laura Parte & Bridget McNally & José Antonio Gonzalo-Angulo, 2021. "True and Fair Override: Accounting Expert Opinions, Explanations from Behavioural Theories, and Discussions for Sustainability Accounting," Sustainability, MDPI, vol. 13(4), pages 1-23, February.
    10. Kettunen, Jaana, 2017. "Interlingual translation of the International Financial Reporting Standards as institutional work," Accounting, Organizations and Society, Elsevier, vol. 56(C), pages 38-54.
    11. Nhu Tuyên Le, 2009. "Liens Entre Comptabilite Et Systeme Economique : La Transition Vietnamienne," Grenoble Ecole de Management (Post-Print) halshs-00460227, HAL.
    12. Jerzy Gierusz & Katarzyna Kolesnik & Sylwia Silska Gembka, 2019. "The Interpretation of "in Context" Verbal Probability Expressions Used in International Financial Reporting Standards - Evidence from Poland," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2019(1), pages 25-45.

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