ABSTRACT
‘Requirements’ will not be construed in the narrow sense of an imperative demand, but in the broader sense of what is called for or needed. ‘Capital’ throughout will include shares, stock, medium and long-term indebtedness. Accounting matters arise in determining the amount of additional capital required. Within a strictly limited range there is opportunity usefully to introduce the fiction element, and to calculate and submit one or two specific would-have-been figures. The heading includes the placing of new issues–usually by a finance house—and also the taking up of the whole or part of a new issue by a financial institution specialising in that class of business. Personnel of management; levels of directors’ remuneration and expenses; adequacy of accounting and costing systems ; possible under-valuations of stocks; liability to sur-tax; estimate of working capital requirements; these are matters which may be of special importance in the smaller company.
