ABSTRACT
The market capitalisation of the entity will be larger than the sum of the net realisable values of the assets shown in the Assets and liabilities statement. The management should have a strategic plan, which will cover several years ahead, a financial plan, which will be for a shorter period, and estimates of future cash flows. These planning documents grow out of each other towards the fulfilment of what have been established as the overall objectives. The shareholders should be entitled to share, by means of cash or scrip dividend, in the net increase in financial wealth which has taken place during the year, whether it arises from operations or from changes in the values of assets or liabilities. Distributions statement picks up the changes in financial wealth from the statement of that name, together with any retained surpluses from previous periods.
