ACCT11059: Accounting, Learning and Online Communication



77001355725540005773420ACCT11059: Accounting, Learning and Online CommunicationASS #2, STEP 3Daniella Romeo035000ACCT11059: Accounting, Learning and Online CommunicationASS #2, STEP 3Daniella Romeoright23002457452020760098002020ASSIGNMENT #2STEP: 3Martin was not wrong when he said restating your firm’s financial statements for the first time would be frustrating. This part of the assignment is definitely on the top of my “Hardest things to do in Uni” list. Nevertheless, I attempted, persisted, and hope I did what I had to do correctly (or at least majority of it correctly). Anyways, here are my thoughts on the process.Before I got started restating any financial statements, I got a blank piece of paper and started jotting down notes about the difference between operating and financial activities. I wrote down who and what each activity interacts with as well as deeper examples of who and what they interact with.RESTATING THE CHANGES IN EQUITYI started my day by looking at the changes of equity statement in my financial statements. I was completely puzzled at my own attempt to try and restate this statement, there just was not really anything to restate. I decided to look back to chapter 4 of the Study Guide to read yet again what Martin wrote about restating statements. Martin had written that the Changes of Equity statement would be simple. So, I looked over how Martin did it, and came to the conclusion I would not retouch this statement. I did not see a need to restate the Changes of Equity as it all seemed to be in the correct places anyway. I did mention in my notes area that the transaction with employees was placed under the owner’s sub-heading was quite confusing, as I thought it would be under the operating activities. After rereading the statement many times, and doing a bit of research, I concluded that the employees had shares in the business, and that is why it is under the owner’s transaction heading instead of the operating activities. This was mainly my only big concern when I attempted to restate this statement but as I mentioned earlier, I decided to leave it untouched.0254000I wondered if anybody else was in the same boat as me and decided this will be one of the key things I will look for when others in this unit post about on their blog. If we are in similar situations, it will bring me relief that I have done possible the correct thing. If I was the only person who did not restate this statement, however, my concern would be skyrocketing, and you will soon see multiple posts from me on our Facebook page asking for help. Before that happens, though, I choose to make peace with what I have done, or lack thereof, and the reasons behind it. RESTATING THE BALANCE SHEETRestating the balance sheet was a much simpler task. In year 12, the class would have to sort through a trial balance. This included separating things that belong into different categories, such as assets, liabilities, revenue, expenses and equity. The familiar task eased my nerves, as I quickly found that sifting through the different items was easier than I had thought. One of the biggest things I struggled with would have to be trying to understand the correct layout in the excel spreadsheet. I had no idea what headings to use, or where to place them. Having examples available was extremely helpful for me. I find that being able to see how it is supposed to be done makes it easier for me to be able to do myself in my own way. After some time, I finally got around to completing the balance sheet, and was proud to say that I had hopefully, successfully restated my first balance sheet. Overall, I quickly learnt that the balance sheet was so far the easiest one out of the three statements to restate and the changes of equity was the hardest purely because of how confusing it was that I did not have anything to restate. I also concluded that The Rank Group has so far, been handling their costs to run their business well. The Rank Group continued to make a high profit that can be seen in the balance sheet each year since 2016 to 2019.RESTATING THE INCOME STATEMENTAfter handing up my first assignment, I realised that I did not enter the information in from the comprehensive income statement. This was a mistake I was determined not to repeat. Like the study guide had said, if you write an O or a F next to each item it would be easier to then restate and rearrange the financial statements, and the income statement was no different. Thanks to the ability of being able to look at past student’s work, I was able to quickly grasp how to set out our restated financial information and determine, if I was unsure, which items go where. I believe I did most of this part correctly, although I wouldn’t be surprised if I had missed a few items, although I did double check, so my fingers are crossed I have nailed it! One thing that I did find confusing was calculating the comprehensive net profit after tax. While I was sure it was just based off the comprehensive income statement, I was unsure whether I had to add or subtract certain figures. I tried looking at past examples although since we did not always have the same items it didn’t always work out my way. I was not always successful in finding the answers I was looking for. I wouldn’t be surprised if the bottom half of my restated financial performance statement was a bit muddled up. Hopefully just getting the items on the excel spreadsheet goes a long way. Besides, even though it may be muddled up, I got all the right figures out of my company’s annual report, so the right information is there, I just believe that I may not have displayed it all correctly. Hers hoping I did actually do the right thing!I am not the best at analysing the restated statements as of yet, but from what I can see, it looks like The Rank Group has seen a large decrease in the amount of income they have received after being taxed since 2016. Within the four years, it appears that The Rank Group have seen almost a ?50m loss in the income received after tax, compared to what it was in 2016. I believe that the loss of other operating income and the expenses of operating costs are what lead The Rank Group to see such a large difference in their comprehensive income after tax. OVERALLOverall, like I mentioned previously, I definitely found the balance sheet the easiest financial statement to restate compared to the others. If I had to rank them from easiest to most challenging, it would be the balance sheet, income statement and then the change in equity statement. And although the entire task was quite challenging, it is easy to see that with the more practise you have under your belt, the easier this task would become in time. While being extremely frustrated for a few hours was not all that enjoyable, I still liked rising up to the challenge and found myself very interested and focused on the task. ................
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