Ensuring the "true and fair view principle" of banks’ financial statements after the in-troduction of the application of IFRS: The case of Greece.

Abstract

1. Introduction 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 and 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, like nowadays. Businesses face the problem of sustainability rather than inconsistency in standard operations and practices. An important issue critical in making appropriate decisions of financial/ investing content (and not only) is the production and disclosure of reliable information to the user's which must be provided (offered) by every business sector of the economy (Choi and Meek, 2010). Views and opinions of professional and scientific Unions and Associations concerning the true financial position, appropriately defined outcomes ',' full disclosure ',' required disclosures, etc., are timely and widespread these days, while the relatively recent introduction and application of IFRS in the world demonstrates the need for adjusting these positions and views (Alkafagi, 2010). The present study focuses on this subject examining the degree of adequacy of the provided financial reporting on significant disclosures required by International Financial Reporting Standards. The survey is based on an analysis of the financial figures in conjunction with application of these Standards and in light of the basic accounting principle of fair view. 2. The Proper Meaning of Fair View Financial statements should provide essential information to any interested user of financial information in order to be able to extract a reliable and picture relevant to the financial position of its company. The international mandatory application of IFRS is a practical demonstration of the latest effort to ensure quality information. The overriding purpose of the application of IFRS is to ensure the implementation of the fair of business on the property structure, financial position and profit or loss. In particular, the principle is that the basic objective of financial statements is to show very clearly the fair of the asset structure, financial position and profit or loss (MacKenzie, 2010). In particular, the principle of view requires: a) The balance sheet includes all assets and liabilities, the company had at the time of the balance sheet. We should not, ie the balance sheet includes fewer or more assets and liabilities than the company possess in reality. Also, that the funds in the account income actually incurred under the generally accepted accounting principles. b) The balance of the funds generated by and accurate quantities after specific valuation in accordance with the provisions laid down by law. c) The aggregate balance of the funds came from aggregating uniform homogenous sub-funds. d) The funds are properly called, ie the titles of the bills reflect the content. e) The assets shown in the balance sheet based on the degree of liquidation, while the liabilities according to their degree of maturity, in order to result from the balance sheet the financial position of the company. The picture under the light of other accounting principles does not coincide with objective truth because in some cases basic deviations from this principle appear. Thus, the rules for valuing assets are governed by the principle of prudence and do not reflect the value of things (fixed assets at historical cost, the inventories at the lower price between purchase price and current price, etc). From the foregoing discussion it comes up that this principle establishes the absolute but not the actual picture that emerges on the basis of generally accepted accounting principles. …