williamspence98blog.files.wordpress.comwilliamspence98blog.files.wordpress.com/... · web...

ACCT11059 Accounting, Learning and online communication ASS#2 Step 3-4

Assignment 2Step 3 Restating

financial statements Step 4 Peer feedback

ACCT11059 – Accounting, learning and online

communication

William Spence

12141679

Blog: https://williamspence98blog.wordpress.com/

1William Spence – 12141679CQUniversity

https://williamspence98blog.wordpress.com/


Step 3 — Restating financial statements So, after reading Chapter four of the study guide about 10 times and writing my KCQ’s for the chapter, I think that it was fair to say that I had a little bit of a ‘melt down’ afterwards. After my ‘melt down’ I decided to have a couple of days break from studying… this was a terrible idea because a couple of days turned into a week of not studying, not doing anything. This definitely did not help me with reading chapter five and six, or with restating my financial statements. After my self-given vacation week, it was time to man up and face everything heads on, it was now time to restate my financial statements.

I began the attempt of restating my financial statements and the first thing I thought to myself was “quick, find the videos on Moodle so you can actually find out what the hell is going on”. So, I quickly jumped onto Moodle and found the first video which was about restating the statement of changes in equity, I then watched the video which goes for about twelve minutes and just because it goes for twelve minutes, does not mean I finished it in that amount of time. I had to watch the video, then I watched the video again, then I watched the video at the same time I was trying to full out my spreadsheet to see if I could do it at the same time as Maria, and finally I watched the video again to make sure I had not made any mistakes. Once I had completed restating my statement of changes in equity, I remembered back to something Martin had said in chapter four, that this part of the financial statements would be fairly straight forward, if what I had just completed over that 2 hour period was straight forward, I was in for a hell of a shock when I got to the hard part of this assignment. In this part of restating the statement of changes in equity, I only really had one problem, it was probably the only major problem that I had in restating my firm’s financial statements.

The problem I had was that in my statement of changes in equity I had nothing in my operating comprehensive income or in my financial comprehensive income, whereas in Maria’s video on Moodle she had something in there (her financial comprehensive income had no balance). This had to be a mistake on my part, so I started to freak out a little bit, I went back through my whole financial statement to try and find something, I found nothing in balance sheets, but I did find something in the income statements. It was right there, but it was placed in the wrong part of the financial statement or was it? That is what I was not sure of, so I contemplated about what I was going to do, ultimately, I decided to leave it as $0.0 as you will be able to see below, in the snip-it on my Facebook post about this particular part of my financial statement. However I did not reach this decision alone, I had help from my fellow peers on Facebook and apparently I am not the only one who has thought of it this way and decided to do the same as me, and I also got a few other suggestions as well.



As

you can see in the

above picture, as I previously mentioned before I left the other comprehensive income and the financial comprehensive income as $0.0, and as you can see in the pictures to the right hand side is the discussion that I had with my fellow peers. Hayley had some interesting points and did point out a different way of doing things, and Estelle looked at it the same way as me, however in the end I decided to leave it as a $0.0 balance because I knew that I would be covering it in my income statements and I also did not want to copy and paste it into my restated financial sheet, and I believe that excel does not let you link the same cell twice, so I decided to put it into my financial statements later.



Now you might be confused if you have looked at my excel spreadsheet, because now I have inputted my other operating income into my statement of changes in equity, I have not changed my word document because I wanted to explain my thought pattern. I would have left it as a $0.0 balance but then it was explained to me by Maria (see picture bellow) that there would be no point in restating our firms statement of changes in equity if we did not restate our other comprehensive income. I was grateful to get some clarification and I made the changes immediately.

Having completed my restated statement of changes in equity it was now time to move onto the balance sheet. Once again, I watched Maria’s video multiple times, however this time it took me about twice as long as last time. I had no real issue with restating my balance sheets, the only problem I had was trying to decide what was getting categorised into ‘O’ and ‘F’, to overcome this problem I looked through company’s annual reports, and the reason I did that is because when you go through your companies individual statement (i.e. balance sheet), they have individual foot notes that go into more detail about that specific payment. As I was looking through the foot notes I was struggling to find what I was looking for, I was looking for the individual words ‘operating’ and ‘financial’ because I thought it would let me know exactly what it was… boy was I wrong, I had to read through every foot note to try and understand what was what. Also, sometimes those foot notes do not contain enough information, or they can link to another foot note to further explain the previous foot note, confused? I sure was.

Once I had some idea of what I was reading, I got into splitting up between ‘O’ and ‘F’. As you will be able to see in my spreadsheet my company predominantly has operating assets and liabilities and not as many financial assets and liabilities. If you look through my spreadsheet, go to the financial statement tab and you will be able to see (left hand side) what I allocated to ‘O’ and ‘F’ and even what was allocated to ‘OF’, who knew they could be split? This is done for cash that comes through the firm. When it came to the splitting or the ‘allocating’ of the cash to ‘O’ and ‘F’, I did not have any problem with this, I followed the steps in Maria’s video and it made the whole process a lot easier. After I calculated the percentages out of cash of operating revenue I noticed that in 2016 the cash and cash


https://williamspence98blog.wordpress.com/ass2-steps-1-10/


equivalents was at $44,573 and the revenue was at $442,723 which left the percentage to be 10.1%, but as the years went on this changed, by 2019 the cash and cash equivalents wat at $36,698 (lower that 2016) and the revenue was at $796,263 (higher that 2016) which left the percentage to be 4.6% (lower that 2016). Does this mean that when the company is making more revenue their percentages go down? Or is it because with the times changing, consumers are more likely to pay by card, and not by cash? I believe that it is a combination of both, yes, the company’s percentage of cash is going down, but only because the times are changing and a lot less people pay with cash, evidently lowering their cash statistics. After I had found out what my percentages were, I decided to use 1% for my equation in my spreadsheet, with my percentages being higher I could have gone for a bigger percentage, but I wasn’t too sure how high we were able to go.

The end is Nye!! Last but not least the income statements. In the beginning of Maria’s video she says that this is the step that is “hailed as the hardest”, I do not know about everyone else but this was the section that I found no discomfort in, I already knew how to split everything into ‘O’ and ‘F’, I easily found my percentage — 30% for Australia — and I was all over how to link the different cells together. Just because this step was not the hardest for me does not mean it was not the most time consuming out of the three, this video was by far the longest, I think this step took me about four – five hours to complete. Within those hours of working away I ran into a few minor issues: my first issue was that I did not have many ‘Fs’ which made me very concerned, when you look at the financial statements tab in my spreadsheet you can see that there are not very many expenses classified as ‘F’. However, I believe that I am correct, and my company is dominated by operating expenses. My second issue was the comprehensive income, as I said at the start I was not sure if I should have included it in this part of the financial statement or not, so after a long time contemplating (again) I decided to stick with my original decision and leave it in the restated balance sheet opposed to putting it in the restated statement of changes in equity. Overall, I had very minimal issues with this step, which was quite comforting because I think it means I might be getting the hang of restating financial statements.

I think it is fair to say that I had some mixed emotions while restating my financial statement, and this was a very time-consuming activity (I should not have left it this late!!). Also, I think my brain has a problem… why does it make the ‘easier’ step harder than the ‘harder’ step? I wonder if any of my peers found it the same way? Overall, I found step three of this assessment to be a major learning curve, I have never done anything like this, and I quite enjoy stepping out of my comfort zone, always means there is something new to learn. I also feel confident that I could do this again — if I get my spreadsheet right of course—, which is a huge confidence boost after never doing anything like this before.



Step 4 — Peer feedback PEER FEEDBACK SHEET: ASS#2 Step 4

Feedback From: William Spence

Feedback To: Monique Greyson

My Comments

Step 3 I enjoyed the general layout and I looks nice and neat. However, there were some things that I picked up on,

- In your SOCIE you have forgotten to enter your details in the opening balance for 2018-2016, but have still included the totals for the year, is there no entry for these? (marked by red circle)

- I believe even if you have no operating CI you should still put a $0.0 balance (red circle) - Your balance sheet was done quite well, it was good to see you highlighted your checks- Maybe at the bottom in the working area you could include what percentage you used.- I think you may have uploaded an older copy of your restated financial statements

because you statement of financial performance was left blank. (bottom picture)

I looked through your blog to see if I could find your commentary and discussion with others and I could not find it, could you let me know once you have uploaded it 😊

Restated Statement of Changes in Equity

Restated Balance Sheet

Restated Income Statement

Commentary and discussion with others

(Note: You may wish to give some comments

on their Excel spreadsheet)

Step 4Individual feedback with other students

Amazing feedback and it is good to know that others were felling the same way as me throughout this assessment

Overall ASS#2 Steps 3 & 4Overall a great draft of Step 3!! Your spreadsheet is looking good and just fix up those points that I mentioned, and you should have no problem finishing this assessment!!

I am eager to see what feedback you have for me!!!!!



PEER FEEDBACK SHEET: ASS#2 Step 4


Feedback To: Natasha Hodda

My Comments

Step 3 I enjoyed the general layout is good, the information was easy follow, I only found a few points you might be able to fix up!!

- I believe even if you do not have operating and financial CI, you are still required to enter something in your SOCIE, even if it is still a $0.0 balance (first red circle)

- There is a blank row and a blank balance in your Financial position (second red circles)- Nothing else major just fix up a few formatting issues, double check everything- I really enjoyed how you put all of your checks down the bottom!!

I also looked through your blog for your word document on explaining all of your decisions and I could not find it, could you let me know once you have uploaded it or if I have missed it 😊







Step 4

Individual feedback with other students

Thanks for your feedback!! It is appreciated, thank you for pointing out things for me to fix up!! I willget right onto them

Overall ASS#2 Steps 3 & 4

Overall a great job!! Your spreadsheet was easy to follow an was full of information, just have a lookat those things I mentioned 😊 I am excited to see what you have to say about mine!!





Feedback To: Roceline De Vera

My Comments

Step 3 Going through your spreadsheet, I could tell that you put a lot of time and effort into it because it looks really good, it has good formatting and everything is a nice order which makes it easier to follow!!

I found your word document very informational, yours was actually one of the first ones I opened to see what I was in store for and see how much work everyone else was doing. However, I found a few minor spelling/grammar mistakes, nothing hectic.







Step 4


The feedback you gave me was really useful and really assisted me in fixing up my assessment!!

Overall ASS#2 Steps 3 & 4 Overall, amazing job!! I really enjoyed going through your drafts,I know it is not much feedback at all, but that is because there was nothing really wrong with it, you have a really strong assessment here. GOOD JOB!!





Feedback To: Malki Malnaidelage

My Comments

Step 3 I enjoyed your spreadsheet, it had a great layout, was easy to follow and understand. I did find that in your SOCIE, you forgot do the full equation for you total CI, I believe even if you have $0 in your financial CI you still have to put it into the equation. Another thing, just before you submit it, maybe go back to your financial statement tab, and change all the writing back to black, at the moment it is still red. Other than those things great job!

Just waiting on you to finish your word document.







Step 4


I am thankful for your feedback, you pointed out that I did not link everything, I am currently having some technical difficulties with this, but it will be sorted soon and I will fix up everything you mentioned.

Overall ASS#2 Steps 3 & 4 Overall great draft!! You are definitely on the right track, just fix up those little things I mentioned, and I look forward to seeing your word doc 😊 good luck!!





Feedback To: Lachlan Lang

My Comments

Step 3 I found your spreadsheet really easy to follow and I can tell you have understood what you have put into your work, however I have a few points that could help you enhance your work:

- You should take out the ‘ - ‘ out of your SOCIE and replace them with either 0.0 or just blank, because I do not think they have formatted properly

- In your restated financial statement, you have left all of your equity bolded, just some formatting issues

- I think if you are going to leave a gap between total financial assets and NFO I think you should still put a line symbolising a different total, same with your total equity and NFO + Equity

- In your financial income you still have to put a 0.0 balance- Go back through your original financial statement and

change everything back to black writing







Step 4


I really appreciated your feedback and I have had a look at everything you mentioned 😊

Overall ASS#2 Steps 3 & 4

Overall a great job!! Just have a look at the things I have mentioned!! Good luck with your assessment, hope this helped!!



Everyone I provided feedback to, provided feedback for me also, but here are the ones that I found to be the most helpful in picking up on all of my little fixes.


Feedback From: Roceline De Vera

Feedback To: William Spence

My Comments

Step 3 Upon first seeing your spreadsheet, I can see that you classified your original financials into O and F, which is great to see. However, I noticed that you did not link your restated from your original. You simply just entered the headings and figures. My recommendation is to link your original to your restated as this is what Maria kept saying and I must agree that it makes life easier. But seeing that you have entered all your headings and figures, this might be hard, but I think this will be the best as this is what the marker will be looking at in your spreadsheet. However, this only my opinion, it is really up to you, but I strongly suggest doing this.

In your statement of changes in equity (SOCIE) you have an opening and closing balance; your closing balance also matches closing equity in the balance sheet, both in original and restated. I once again noticed that you just copied ‘Other comprehensive income for the year, net tax’ and the figures for the 4 years. I believe what you are supposed to do if you only have one line for other comprehensive income in SOCIE is to go to your income statement. In your income statement, under the heading ‘Other comprehensive Income’, there should be accounts under it (Net change in the fair value of cash flow hedges taken to equity, net of tax and foreign currency translation). You will then notice that the total of these accounts in your income statement is equal to other comprehensive income in SOCIE. So therefore, you should have operating activities listed on your heading ‘Other Operating CI’ in your SOCIE. Once you have done this, your other operating CI in SOCIE will match your operating CI in income statement.

Your balance sheet (BS) looks good to me. Your operating assets plus financial assets equals your total assets in your original financials. Additionally, your operating liabilities plus financial liabilities (or financial obligations) also equals your total liabilities in your original financials. The equity in your BS matches the restated CI equity. Finally, the most important checks among them all, is that your NOA is equal to NFO + E. It is also great to see how you split your cash into O and F in your working space and use 1%, as well as the checks for restating BS, which is included in your notes area.









There is nothing much to say in your income statement. You have included your firm’s income tax rate in your working notes, which is also the ones you used in determining your firm’s tax benefit/expense. And most of all, your total comprehensive income in restated matches your original total comprehensive income. The only thing that did not match is your operating CI and financing CI does not reflect your restated SOCIE CI. However, if you will do what I said above, in the SOCIE comments, then you should be able to match and balance them.

Your overall financial statement is great and almost everything are balance. My only suggestions are to link them from your original financials and check that other CI in SOCIE matches other CI in Income Statement. Also, you might want to bold your total headings as I noticed some of them are not, as well as the total figures. But other than that, I think you did great for your restated financial statement spreadsheet!

Step 4


In reading your Word document, it is nice to see that you are interacting with our peers and seeking help. I also read that you decided not to put any values for operating and financial activities in your SOCIE and just stick onto it in your Income Statement. I think it is a fair decision as you explained this in your Word document, but I think there will still be a problem with your spreadsheet as your SOCIE other CI will not match your Income Statement other CI. So, I think it is best to include all other CI both in SOCIE and Income Statement.

Overall ASS#2 Steps 3 & 4 Overall, I think you did great. Just need to fix few errors, especially in your spreadsheet as this is an important aspect of the assignment. But once you have fixed all of that, I believe that you will produce a terrific piece of assessment. Continue the great work, William!



Feedback From: Natasha Hodda 06/05/2020

Feedback To: William Spence

My Comments

Step 3*Restated Statement of Changes in Equity*Restated Balance Sheet*Restated Income Statement*Commentary and discussion with others

(Note: You may wish to give some comments on their Excel spreadsheet)

- Please check cells J:13 through to and including M:16 as I found this a little confusing due to the number of underlines (view image below).

- Good use of formulas and bold underlines for each total- Review cell B13 (spelling error) - Column B is meant to be linked to your Financial statement

(review Marias video).

- Good use of calculations in cells J:122- M:128 to show your

decision surround your % chosen.

Step 4. I enjoyed reading your feedback regarding my restated financial statement. You have clearly explained areas I should revise and to double check my formatting.

Overall ASS:2 Steps 3 & 4


I enjoyed reading your commentary on issues and concerns you come across for this assignment. I could relate to what you were talking about and I would like to compliment you on showing a direct photo of your communication with peers using the Facebook page.

In conclusion this assessment has been a huge eye opener for me, I have never don anything like this before and I enjoy being outside of my comfort zone. I definitely think that I could do this again, which is good because it means that my brain has actually retained some of the information. The one thing that I am extremely glad is a part of the assessment is peer feedback, because without it, I would have missed some major mistakes in my spreadsheet and in my word document. Overall, this was a great experience and I look forward to the next stages of the assessment.


williamspence98blog.files.wordpress.comwilliamspence98blog.files.wordpress.com/... · web...

Documents