ABSTRACT
Before 1929 there was no legal obligation to publish a profit and loss account and before 1948 there were no legal rules as to what it should contain. Up to then, the general idea underlying reporting of profit was that the money amount of the capital value of the undertaking at the beginning of the accounting year should be maintained, capital value being defined as the amount shown in the books for the net assets. The emphasis had been on prudence and the importance of the underlying financial position being at least as good as was shown by the accounts. Secret contingency reserves were regarded as quik-acceptable.
