A true and fair view of financial position

Debate on the meaning of "a true and fair view", with reference to the statutory provisions relating to financial statements of companies, has almost entirely neglected the subject of such a view. Lacking specification of the subject, the debate has been fruitless. Practically significant elements of the financial affairs of firms are identified. What may be said to be true and fair views of the states of affairs and of the periodical results of firms are shown to be determinate by recourse to the theory of reasoned behaviour, accounting and legal dicta and empirical evidence. Two short additions to the companies statute, code or regulations would substantially reduce deviant reporting and its consequences, and give effect to the intention of the legislation.