What is faithful representation

Here are some basics to help you refresh yourself with GPFR in Xero

It is part of the "conceptual framework".

Financial reports are designed to represent economic phenomena of an entity in words and numbers.

To be useful, the financial information presented must faithfully represent the substance of the phenomena that it purports to represent. 

Fair presentation requires the faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the Conceptual Framework.

To be a perfectly faithful representation it must have three characteristics — it must be complete, neutral and free from error.