Section 38 makes similar adjustments to section 200 of the 1990 Act. Up to now, the Companies Acts required that accounts give a true and fair view of the financial state of a company. There was no specific obligation in law stating that accounts had to be prepared in accordance with accounting standards. Section 39 now introduces such an obligation. It is important to note that the accounting standards applicable to a company are those relevant to its circumstances and its annual accounts. This means that some accounting standards will not be relevant to some companies.