Step 3: Restating BSA Limited’s Financial Statements – My ...



ASSIGNMENT STAGE 2: Step 3 & 4By Monika BoltonStep 3: Restating BSA Limited’s Financial Statements – My thoughtsI will admit that I have been putting off restating my firm’s financial statements for a while now. Being away for the last week and a half has caused me to fall a little behind in my work, and I was definitely dreading tacking this step when I arrived back home. Now I am thinking to myself, what made me dread this step so much? I have put it down to the numerous posts on the unit Facebook page from students who were either lost or unsure about what they were doing. Because I hadn’t attempted to restate yet, I obviously had no idea of what they were talking about which made me feel a little nervous. I believe this is what had me worried about starting it myself. Well, it turns out the restating process was not as stressful as I initially thought it would be. My firm, BSA Limited, is relatively straight forward with their financial statements. This was a major factor that helped me to feel at ease whilst restating my financials. Of course, without Maria’s how to videos I would have been lost. I was able to follow Maria’s step by step videos on Moodle without any issues at all. It was a simple case of watching, pausing, completing, checking my work, and continuously repeating this process. I found Maria to be very elaborative with her explanations which was a major bonus. The most difficult aspect of step three would have had to be separating the financial statements into operating and financial. Having to look through the notes associated with each item on the statements, and then determining if it is either operating or financial was a challenge for me. However, I am confident that I got it right in the end. When I first started, I noticed that Maria’s firm had different items to me, which is inevitable as every firm is different. But due to this, I found myself a little confused when restating the statement of movement in equity. Maria had more other comprehensive income items than I did, this was unnerving as I thought mine was too simple to be true. After discussing this on the unit Facebook page, I was comforted to see that many other students had faced this issue also, where they had little other comprehensive income or none. I learnt that everyone is facing their own challenges with their restating, but by communicating with others, a solution will be agreed upon. This was extremely helpful and I am thankful for the communication tools available, otherwise I may have gone mad!I will admit that I was nervous the whole way through restating my statements. I was doubting myself and kept wondering if what I was doing was correct. I had no choice but to keep going and to hope for the best outcome in the end, which ultimately was everything matching the original statements. I was very lucky with my restated statements of movements in equity and financial position. I had no issues with these two as everything added up perfectly. Phew! However, when I was restating my income statement, I found myself stuck with a certain item that I was unsure what to do with. This item was investment revenue. My investment revenue figures matched my finance income figures, and I thought to myself, aren’t they the same thing? I had completely gone blank on what they both meant in my original income statement. I decided to leave it out, as I believed I was doubling up and was worried that my total comprehensive income would not match in the end. After completing my restated income statement, I found that my total comprehensive income did not equal my original. I then knew immediately that I was meant to include the investment revenue, as these figures meant that my total comprehensive income matched on both the original and restated income statement. This was a learning curve for me, as I learnt that I should take the time to understand what each item is and what it contributes to my statements. Overall, I am happy with my experience restating my financial statements. I found it to be enlightening and I feel I have an increased understanding of my financial statements. I see now why it is important to be looking at a firm’s operating and financial aspects, as it can provide a clearer picture of what is going on with the firm. I know that I have nothing to worry about when tackling a new unfamiliar task, and all that matters is that I take my time with it and ensure I am understanding the full process.Step 4: Peer Feedback(Still yet to provide and receive feedback). ................
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