Read David’s explanation again and compare it carefully with the financial statements. It is quite likely that you will not understand everything immediately because the purpose of this book as a whole is to help you understand published financial statements and we are, as yet, only at the end of Chapter 4. Make a note of the items you don’t fully understand and keep that note safe in a file. As you progress through the rest of the book, look back to that note and tick off the points which subsequently become clear. The aim is to have a page full of ticks by the end of the book.