Assignment 1 (Step 1-6)

Course Coordinator: Martin Turner Student name: Tai Anh Ngo

Student number: S0279543 ACCT11059 – Accounting, Learning and Online Communication

My blog link: Tai Anh Ngo's blog

Due date: 03/04/2017

S0279543 Tai Anh Ngo

STEP 1

Introduction: accounting, learning & online communication

After reading through all the introduction section. I can understand more about this subject. I know what the tasks are and what I need to achieve in this unit. In the learning tasks, we talk about what accounting is and listed company which I already learnt about those basic accounting knowledges in ACCT11057. But I can understand more clearly about it after I read your example “Deloitte reported global revenue of US$36.8 Billion last year”. That was a great example. The following section ‘Major assignment’ is one of the key concepts in this reading. I can clearly know it has two assignments worth a total of 95% (ASS#1 (25%) and ASS#2 (70%)), so it is a fair bit of work to do in this unit every week. Then, Peerwise is another key concept in my opinion. I haven’t used it or even heard about it. After I read about “Peerwise - Getting Started” section, I registered and login Peerwise with a very new experience about it. I’ve answered a few questions from other people in our unit and created new questions and commented on some of those questions as well. I think I addicted to it now because every time I’m with the computer I always login and check my reputation scores and answer questions to improve my scores. This is a great method of online studying and with another people. I had lots of fun with Peerwise though. This is also my first time of the way studying interaction with others and through a big monitor. We can talk and share experiences with students in Cairns, Townsville, Melbourne, Sydney, Rockhampton, etc. In addition, the introduction tells us what to do and not to do in this unit, give us some great advices and tips to help us interact with others in our unit and to achieve the unit in the best way and I’ll follow those tips. Besides that, this introduction section tells us the way that we should learn and have some great examples like ‘Reason for the season’. Before that, I was thinking the wrong reason but after this example, I can understand clearly the reason why and like this way of learning. In addition, they show us ways we can think of learning. Honestly, in Vietnam, I always think that learning is simply a quantitative increase in knowledge and I normally memorising and learn by heart, I think it is just simply ‘rote learn’. However, this conception of learning in the introduction tell me that there are six different ways we can think learning is and In my opinion, if you are a smart student, you should know all those ways and use it in the difference situation and flexible. Nowadays, when the technology is developed, so there are many difference ways for you to communicating effectively online by using smart phone, blogs and discussion forums, Peerwise and accounting software.

To summarise the introduction, I knew I need to interact effectively with others as I complete these learning tasks, both face to face and online. Moreover, I also spent some time reflecting on how I learn, and what I conceive, or think, learning is. Last but not lease, I knew lots of communication effectively online method especially Peerwise.

Chapter 1: a way of viewing business

Chapter 1 was a great way of easing myself back into study, and moreover, a way of viewing business. Before I started study this subject ACCT11059, I studied financial accounting subject and part of the course was some basic accounting, budgeting and bookkeeping. It was focused on the basic principles of accounting and being able to reconcile a period of trade in MYOB. I did a big assignment about budgeting in MYOB and I got great marks in that

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assignment. I also learnt some basic budgeting for manufacturing and on operating budgets for retailers. Then, I started reading Chapter 1 of the Study. Although all the information in this chapter 1 wasn’t my new knowledge, and I think same as others student in our unit, my feeling now like it is the first time I getting to this knowledge.

One of the key concepts that stood out was around the idea of five elements of accounting. Those five elements (Assets, Liabilities, Equity, Revenue and Expenses) are important in accounting firms. We use assets, liabilities and equity to measure the value of the firm. Value is a central concept in our lives with a wide range of views about what I important or valuable, or worthwhile in life. In addition, Trust in the business is a big concern. Trusts would have a trust deed which sets out the relationships between the beneficiaries and with the trustee.

A quote of Richard Levy” When we are present in each moment, the past gently rolls up behind us and the future slowly unravels before us” about we build on the past is impress me. Our cultures and “the way we do things’ have changed and developed year by year and over many generations, with each generation starting with what the previous generation had left it with.

To summarise Chapter 1, those ideas about credit, debit, five elements of accounting and equation etc. weren’t my new knowledge. However, it has been a year since I being taught those concepts so I’ll not remember all those elements before reading this chapter 1, so it is good to read it again. There are some valuable examples that can help me understand clearly about all those concepts.

STEP 2- Introductory words in Description Photo and description:

https://moodle.cqu.edu.au/user/profile.php?id=35214

- Link to my blog:

https://taianhblog.wordpress.com

STEP 3

About my company- Inspirit Energy Holdings Plc

Introduction

I went to the Moodle website, and found the company is was assigned by Martin. I have named it “Inspirit Energy Holdings Plc”. I quickly read through the financial report for 2016 and just want to give myself an initial idea what the company is about and which industry it is.

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My allocated company is Inspirit energy holding plc , formerly KleenAir Systems International plc, acquired Inspirit Energy Limited and began trading on the LSE AIM markets on 26 July 2013. The Company is now exclusively on commercialising the Company's unique and highly efficient micro co-generation boiler ("mCHP"). Their annual reports can be found under Results, reports and presentations section (Key Corporate Document). The followings are the annual reports for the firm in the past three years: 2016 Annual Report, 2015 Annual Report and 2014 Annual Report .

Inspirit Energy Holdings Plc

Inspirit Energy Holdings plc is a United Kingdom-based company, which is engaged in developing and commercializing the micro combined heat and power (mCHP) boiler for commercial applications. The Company's mCHP boiler is powered by natural gas and designed to produce hot water (for domestic hot water or central heating) and an electrical output that can be used locally or fed back into the National Grid. Its mCHP boiler generates approximately 15 kilowatts of thermal output and over three kilowatts of electrical output. The boiler is designed for reduction in carbon energy supply. It is capable of running on natural gas, liquefied petroleum gas (LPG) and bio fuels. Its installation can be of single or multiple configuration. The Company is focused on The Inspirit Charger microCHP, which enables building owners with on-site heat and power generation for their building's needs. Inspirit Energy Limited, which is engaged in product development, is a subsidiary of the Company.

On 6 February 2015, Jubeenh Nazhat, Executive Director stepped down from the board to pursue other interests. On 21 December 2015, Mr John Gunn, the Company's CEO, took on the additional role of Chairman of the Company, replacing Mr David Lenigas as Chairman who retired as a director of the Company.

Mr Gunn is the founder of the Company and the majority shareholder of Inspirit Energy Holdings plc, the owner of the intellectual property rights to the micro combined heat and power boiler (microCHP) which is during being made ready for commercialisation. Mr Gunn is also the managing director and majority shareholder of Global Investment Strategy UK Limited, stockbrokers. Mr Gunn’s experience in the energy industry and investment banking means that he is well placed to seek alternative investments and assist the Company with achieving its objectives.

Board of Directors of Inspirit Energy Holdings plc

- John Gunn (Chairman and CEO)- Neil Luke (Executive Director and Chief Operating Officer)- Nilesh Jagatia (Executive Director)

Operating Board

- Nick Stevenson (Marketing Director)- Paddy Thompson (Sales Director)- Paul Booker (Design & Development Director)

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During reading the financial report in 2016, all figures proven to be positive so far. It is a very impressive outcome of how the business is doing very well in the current competitive market. As at 30 June 2016 the Company had a cash balance of £250,000 (2015: £1,000), net current liabilities of £178,000 (2015: £481,000) and net assets of £2,261,000 (2015: £1,959,000). The Group continues to incur costs in the development and modification of their products and is pre-revenue.

Developments during the year

In July 2015, the Company announced that trademark applications had been filed in the UK and EU for the product name “INSPIRIT CHARGER” and raised £365,000 (gross) through the issue of 77,659,570 new ordinary shares at a price of 0.47 pence per share.

In December 2015, the Company announced the successful conclusion of operational testing on its first Inspirit Charger microchip appliance for field trial use.

In May 2016, the Company raised £790,000 before expenses through the issue of 158,000,000 new ordinary shares at a price of 0.5 pence per share.

In November 2014, the Group agreed a testing and field trial agreement with Utilitywise plc, which is one of Europe's leading and rapidly expanding Energy, environmental management and Utility Broker companies.

In December 2014, John Gunn and David Lenigas, the former Chairman, committed to each providing the Group with up to £250,000 in loan funding to continue with the commercialisation of the Inspirit mCHP appliance. Plus, the Group agreed with Barchester Healthcare to install a mCHP unit in one of its care homes as part of the Field Trials.

In January 2015, the Group committed to the development and production of a new 2 kilowatts ("kW") electrical output version of the Inspirit mCHP boiler-generator for the domestic market to complement the larger 3 kW electrical output version currently being built for the SME market. The significance of this decision was to significantly increase the market potential of Inspirit's product range by offering an appliance that is suitable for the larger domestic sector and that can qualify for the current UK Government Feed in Tariff.

In February 2015, the Company signed a Letter of Intent with a major multi-national contract manufacturing Services Company that may lead to a significant manufacturing agreement, and raised £350,000 (gross) through the issue of 38,888,889 new ordinary shares at a price of 0.9 pence per share.

On 13 September 2013, the Company entered a £472,000 placing and an Equity Swap Agreement with YA GlobalMaster SPV, Ltd. at 2.8 pence per share.

On 14 October 2013, the Company announced an agreement with Sentec Ltd, for the final stage development of its mCHP controls package. This will provide the appliance control and an energy management system that will feed back into the National Grid.

On 26 June 2014, the Company raised £1,000,000 through the issue of 71,428,571 new ordinary shares of 0.1p each at a price of 1.4p per placing share to fund the next important commercialisation phase of mCHP boiler.

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Inspirit Energy Holdings plc’s principal activity

I thought that there must be significant changes in the Company’s accounts and principal activity in the past three years. Thus, I decided to research into the Company and found out that the Company’s principal activity is mostlt focus in the commercialisation of the Company’s micro combined heat and power (“mCHP”) boilers in four years, namely:

For the year ended 30 June 2015 and 2016:

Inspirit Energy Holdings plc has maintained its focus and taken important steps forward in the commercialisation of the Company’s micro combined heat and power (“mCHP”) boilers “Inspirit Charger 2.0” and “Inspirit Charger 3.0”.

For the year ended 30 June 2014:

Since Inspirit Energy Holdings Plc’s interim results, important steps in the commercialisation of the Company micro combined heat and power (mCHP) boiler have been achieved and the Group shows great progress in delivering its business plan.

Challenges and associated risks

Key risks and uncertainties

Early stage product development carries a high level of risk and uncertainty, although the rewards can be outstanding.  At this stage, there is a common risk associated with all pioneering technologically advanced companies in their requirement to continually invest in research and development. The Group has already made significant investments in addressing opportunities in the renewable energy sector.

The Group has raised funds during the period as discussed in the 'Developments during the year'. The Directors feel that while this is sufficient for operating forecasts, further funding requirements are necessary to expedite the commercialisation of the micro co-generation boiler.

Financial risk management objectives and policies

The principal financial risk faced by the Group is liquidity risk. The Group's financial instruments included borrowings and cash which it used to finance its operations. At the year end, borrowings did not include any borrowings supplied from the Group's principal bank, Barclays. More information is given in Note 3 to the Financial Statements. The Group has no significant concentrations of credit risk.

Our strategy and goal

Our strategy is A Product That Truly Meets the Market Needs. The global drive to reduce carbon emissions needs a practical, reliable and effective technology that fits with our current lifestyles and generates financial savings greater than its cost. Inspirit Energy have developed such a product... The Inspirit Charger.

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Our goal is to allow our customers to reduce their energy expenditure and carbon footprint by providing potentially millions of users around the world with the opportunity to become less reliant on major energy utilities. by enabling customers to generate heat and power through the installation of our state of the art micro combined heat and power system – the Inspirit Charger. We do this by applying first class engineering know how to real market needs to ensure the product is perfectly matched for each application.

Useful links to my company:

Inspirit Energy Holdings Plc CEO John Gunn Successful testing of Inspirit Charger

MicroCHP and battery storage – a powerful combo?

My top 3 blogs:

1. (Between The Spreadsheets) This is Jen’s blog. The reason why I have added her to my favourite bloggers list because of the awesome presentation and contents with all the main characters are fabulous and I certainly can take a lesson from each episode.

2. (Montana's blog) This is another blog I came across and thought it deserved a spot in my top three for numerous reasons. I have enjoyed reading her posts and her titles are so captivating, they make me want more. Additionally, I found this blog full of rich article with great pictures reflecting good messages. Last but not lease, I found the blog extremely easy to navigate because the blog posts were set out right in front of me to click on and enjoy.

3. (My journey though Bachelor of Accounting) Finally the last blog in my top three is a blog created by Katherine. I liked this blog because it was easy to navigate and set out very precisely. . This blog is also highly entertaining and engaging to read because the writing is just very straight forward like there was no hesitation in writing it.

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Step 4:

An Excel spreadsheet that show Annual report of Inspirit energy holding plc in four years: 2016, 2015, 2014, and 2013 has been submitted separately.

Step 5

Chapter 2: understanding the game

When I first read the title of this chapter 2: 'understand the game'. I think that is just a common sense and feeling because as you know, games have rules, making them easier to understand and play. Unfortunately, after reading through Section 2.2 and when I realized this was an accounting, unlike a normal game, so I felt fading. In accounting, there is always another aspect of the story or it does not simply regurgitating clear-cut, black-and-white facts.

So, what game are accountants playing? Is it hide and seek? How does the game work when we have a game plan for one kind of organization and another for those who do not follow these rules?

When I read the "Rules of the Game" again, I kept thinking about how the world has changed over the past 100 years, not just in accounting and business but inside and outside. It has been claimed that until the end of the 19th century, financial reporting was provided to outside parties - I am happy that the world has grown in the past 100 years but I still cannot understand the reality. Are we able to view a company's annual report on their website or through other sources? I agree that financial institutions (i.e., banks) should have the right to request these documents to view information about one's income, assets and liabilities, and with the capital investors when they are Invest in the company.

The widely accepted accounting standards (GAAP) refer to the planning person's preparedness for budgeting. These rules are issued by the Financial Accounting Standards Board (FASB). While exploring GAAP, I found them to be an arrangement of planners to use to improve simplicity and accuracy in monetary interpretation, but there is no certainty that the Coupling relates to the company's money without errors or omissions during deliberately fraudulently financially. After commenting on some of the comments made on Facebook by some of the students, some people have now overcome mistakes in explaining their organization's budget, that’s outside to look at as mind blowing.

An important concept I find attractive is accrual accounting. Significance, a company will include in account transactions or economic activity when occurring, regardless of when cash is received. This factor for a financial report takes a lot of management; How do even accountants keep track of this? I can only imagine the hard yards that have been put in to track the types of deals in major organizations. Is it a difficult task to keep track of when cash is objectionable when the transaction is made?

I thoroughly enjoyed reading chapter 2 of the study guide; I never thought of accounting as a game until now!

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Chapter 3 (Sections 3.1 and 3.2)

Chapter 3 introduces us to the financial statements. If someone wants some important advice, read this chapter before trying to test your company's spreadsheet. I hope I'm not alone on this one. I wish I had read this chapter before starting the Excel Spreadsheet for my company because I entered the wrong number from the Company Income Statement instead of the Group Income Statement, as I realized there are two types Various Income Statement and Balance Sheet - one for each Group and Company - I must quickly go back and correct that error and replace the Company's data with the Group.

After read through all about the section, I can understand more about the balance sheet of annual report, statement of changes in equity, income statement and the cash flow statement.

The balance sheet of the annual report represents the financial situation in one day. The balance sheet includes assets, liabilities and equity. This balancing date may be any date; Typically, many companies will use the same date as the end of the normal tax year in their country. Have people stumbled across one of their companies that this was not the case? Is it effective and useful for a company to show off their balance at a random date before the end of the financial year?

Regarding the statement stated in Chapter 3 that the annual report is a marketing tool I fully agree, the company has full control over what they do and is not included in the annual report, though. There are some numbers that they cannot deny Reports but conversely there is no established structure or guidelines on what exactly to go in so they can create an illusion for the public how they Being aware of being made like a business.

As noted in this chapter, three additional financial statements tell us what is going on in the journey or movement of a company between the balance sheet is the income statement (shows Sales and costs and therefore the profitability of a company over a period), equity and cash. An important concept about a business result report that I see remarkably is that it shows the activities of a company (usually one year) and how this has affected the stock market. part. I feel as if the income statement evidences the evidence when equity investors are looking for a business to buy.

My brain is full of knowledge from reading chapters so far and reporting my company's finances. This is a party that I will never forget!

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Step 6PEER FEEDBACK SHEET: ASS#1

Feedback From: Tai Anh Ngo

Feedback To: Aida Pita

Aida's blog link

My CommentsStep 1

KCQs

Everything you have written in your step 1 is fantastic! I felt that you did write all your thoughts, reflection, feelings, ideas and personal experiences in this step. Great job! I’ll advice you get your work peer checked before you submit it. You can also seek help from the ALC, which is the greatest option for resources as well as the YourTutor located on the left-hand side of the Moodle site.

Step 2

Introductory words in Description box

Photo and description Link to your blog/Set up blog

For your second step, you have uploaded your photo, provided the link to your blog and included introductory words in the description box. You have followed all the requirements.Well done!!!

Step 3

Background information on company

Comments/KCQs

Comments on other’s blogs

The background information on your company had a lot of interesting details, what they do and data about their profits and loss. and I liked how you supplied a timeline of your company’s production over the years.The comments on other’s blogs were positive and honest, it drew me in to want to have a look at their blogs.

Step 4

Input company’s financial statement

As I can see from the attached spreadsheet,you still have a lot of missing figures and inputting to complete. Just let me know if you need any helps.

Step 5

KCQs

For step 5, I liked the way you have presented your reflection and how you have put apart of yourself into your KCGs as well as still discussing the different information you had learned.A great job.

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Step 6Feedback to others N/A

Overall ASS#1 Overall assessment 1, Blog is nice to look through- pictures are great, well presented. My feedback is that I genuinely enjoyed your work and best of luck for your studies.

PEER FEEDBACK SHEET: ASS#1

Feedback From: Tai Anh Ngo

Feedback To: Kaylee Baldwin

Kaylee's blog link

My Comments

Step 1

KCQs

It was good to see that you included your emotions towards the reading. I found it easy to read with how you set it up. The key points you stressed on was interesting and I think the correct choice to be talked as key points. I think the step one is perfectly complete as you listed all the things what you found interesting, boring, also have listed the questions and key points of introduction and Study Guide Chapter.

Step 2

- Introductory words in Description box

- Photo and description- Link to your blog/Set up blog

- Great introductory words and photo in description box- Able to access link to blog on Moodle- Great blog set up

Excellent work!

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Step 3

Background information on company

Comments/KCQs

Comments on other’s blogs

Your background information about the company is detailed and easy to understand. You had provided a lot of information about your company which was great. It was great to see all the accomplishments that your business has achieved. I also loved how you had included images on your blog and links to resources for the business.

Step 4

Input company’s financial statement

Your spreadsheet for the company look’s good and it seems to have been done the right way. It is easy to read and to tell what are the totals. I had a look at yours when you first had done it to try and figure out how to do mine! I was so confused how to do it but after looking at yours and comparing my own financial statements I started to understand how to do it. So, thank you!!

Step 5

KCQs

Again, you did a good job in writing KCQs. You are good at writing. It was so interesting to read what you had honestly thought about the Chapters.

Step 6

Feedback to others

Overall the feedback you have given to others seems great you seem to know your way around feedback!

Overall ASS #1 Overall, I found your assignment great to read with it providing a lot of information about your business and how you felt about it as you worked through.I had also enjoyed reading your blog and what you have posted. I think you have done a great job with this assignment! You have put down a lot of effort in it and I am sure it will pay off. I enjoyed reading your work and I look forward to reading more from you in this unit.

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PEER FEEDBACK SHEET: ASS#1

Feedback From: Tai Anh Ngo

Feedback To: Montana Baker

Step 1KCQS

Firstly, I enjoyed reading the beginning of your step 1. I like the honest way how you write about the things you like or which you don´t like. Every section you write is very detailed. Great job on your KCQs!

Step 2

Introductory words in Description box

Photo and description

Link to your blog/Set up blog

Hi Montana!It was a pleasure reading your blog, I enjoyed knowing a little bit about yourself.

Step 3Background information on company

Comments/KCQsComments another’s blogs

The background information you’ve provided is relevant and you’ve outlined the industry well.It was great to read about your company and all the interesting facts!Good luck studying your business :)

Step 4Input company’s financial

statement

Your company’s spreadsheet is well done, and all the numbers match. By clicking in the different cells, I could see the right use of the formulas! Well done!

Step 5

KCQs

Like your first section of KCQs, this is well written and clear to the reader. References back to the chapter of the study guide here are well used.

Step 6 - Feedback from others I couldn’t see any feedback from other people in the blog but I am sure you will do this as well.Couldn’t review.

Montana's blog link

Overall feedback to ASS1

I enjoyed reading your assignment and it was well composed, the blog was easy to navigate and all the key information is there. Overall very impressed with your assignment one draft and think you have done a great job, keep up the good work.

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