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The purpose of this case article is to bridge the gap between theory and practice of financial reporting by analyzing the reporting practices from an accountant’s perspective. True and fair financial reporting is the basic requirement for achieving the objectives if Islamic financial system. Importantly, what causes the accountants to mismark the financial status of the companies has been spotlighted. It depicts the impact of aggressive revenue recognition, outright fraud, failing to accrue liability, misclassification of operating and non operating income and expenses, understatement and capitalization of expenses on financial statements. The management manipulates financial statements to have good impression about its performance and to shoe profitability, better return on assets, return on equity and debt ratios. Study provides evidence for the mechanics used for manipulation and provides valuable input for the motives for aggressive reporting and outright fraud. It highlights the importance of accounting model to help and trace the manipulated financial statements for efficient investment decisions. The results of the study cannot be generalized to all countries because of difference in the adoption of international accounting standards, international financial reporting standards, generally accepted accounting principles and AAOFI standards in some cases.

Muhammad Akhtar, Mubashar Hassan Zia, Faisal Shehzad. (2018) True and Fair View of Financial Reporting Practices: Accountants’ Perspective, Journal of Islamic Business and Management, Volume 8, Issue S.
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