ABSTRACT
The difference between the naive interpretation and the legal one is well illustrated by the case of Re Press Ca'ps Lid. reported in the Chancery Law Reports of 1949 at page 434. The balance sheet v::lue of freehold property differed by a very substantial sum from an accepted estimate of its saleable val ue. It was alleged that the balance sheet did not represent he true position - i.e. was not 'true'. The judges rej('cted this argument. Somer ... ell, L. J., said that the basis used for showing the freehold property in the balance sheet (cost less depreciation) was common practice; it did not seem to him that there was anything misleading in the balance sheet in this respect.
