ABSTRACT
We have seen that reading the accounts of a property trading company can be a lot more difficult than reading those of an investment company. With the investment concern, the bulk of the income comes from rents and we can see the value of the properties that produce the rents. The trader is deriving much of its revenue from the sale of properties and we probably will not know in advance what is likely to be sold in a particular year and at what profit. Interpreting the balance sheet can pose particular problems.
