New Research on True and Fair in the EU
SVI’s True & Fair Project has published a concise research summary on how the “true and fair” requirement appears in four EU jurisdictions: Italy, the Netherlands, France and Spain.
The work focuses on Article 4 of Directive 2013/34 and the duty on directors to approve financial statements that not only comply with accounting standards but also give a true and fair view.
Why this matters now
Financial statements sit at the heart of decisions for investors, lenders and creditors. The true and fair requirement is an overriding principle that ensures accounts reflect economic reality. As sustainability issues continue to move from the margins to material drivers of risk, there is an increasing responsibility on directors to assess whether their accounts give a true and fair view.
In 2024, SVI commissioned a UK legal opinion that urged directors to “exert themselves” in meeting the true and fair requirement. This new EU-focused summary builds on the same messages and momentum.
The report at a glance
The research summary covers:
A clear explainer of the true and fair requirement in Article 4 of the EU Accounting Directive and how it operates as an overriding principle
Country spotlights for true and fair (or its equivalent) in Italy (“rappresentazione veritiera e corretta”), the Netherlands (“inzichtsvereiste”), France (“image fidèle”) and Spain (“imagen fiel”), describing how courts, regulators and practice interpret the requirement
Practical implications for boards, auditors and investors where impacts and dependencies may give rise to disclosures or recognition
Who contributed
This summary draws on inputs from legal experts in each country:
Roberto Randazzo (Legance) for Italy
Bas Visée and Anouk Oosterom (Rutgers & Posch) for the Netherlands
Alissa Pelatan (AMP Avocats) for France
Marianne Leyte, Ignacio Ramos, Blanca Manuel and José Antonio Vega (Insight4) for Spain.
Several of these legal experts are members of the Global Alliance of Impact Lawyers (GAIL), whose collaboration helped connect SVI to regional expertise.
What’s next
SVI is developing tailored guidance for company directors, investors, accountants and lawyers across the EU and beyond, translating the true and fair requirement into practical steps for decision-making and reporting. Further country research will be released in early 2026. Organisations interested in piloting the guidance or contributing case material are invited to get in touch.
Note: This report is for general information only and is not legal advice.