Restatement done!

Sorry for the MIA,I been a little busy with christmas and new year, also working full time covering extra shifts at work with juggling a 18 month old. Thank god I only enrolled in 1 unit this semester!

I found this the most difficult task so far in this unit. I found restating the Balance sheet and Statement of changes in equity pretty straightforward and did them whilst following Marias lectures. The Statement of Comprehensive income has taken me two days so far to complete and it does not total my SOCIE. I have gone back through my statements and foot notes, I have taken things out, restated in other ways and it still does not total. I have argued internally with myself about what is better, submit an incorrect assignment on time or a correct one late? I have chosen to submit. Below is some questions and reasons for why I restated each statement how I did. I have also attached my spread sheet.

RESTATED STATEMENT OF FINANCIAL POSITION
This statement I found the most challenging of all, am I am not at all confident it is correct. I tried to restate this over two days and utilised all avenues of help, but I was limited due to the weekend. I have watched and rewound the lecture many times and it still is not correct. I am thinking that my original statement of income is not correct and that is why I am having issues. I re watched week 3-4 lectures and seen where Maria had to separate the finance income from the revenue? I have not done this in mine. I have gone and read the foot notes in my firm’s financial statement and it does not say. I may not have that issue with my statement but I am unsure. I do have an account listed under the heading Operating profit as finance income, so maybe its not required in my sheet. I was also confused why the cost of sales was left out of Marias Westfarmers restatement? I added mine in under operating expenses but it threw the total way out and I realised it was under the revenue title, so I left it out. Also, why does the share earnings get left out of the restatement? Is this not a financial income? I noticed Marias was and also Martin left his out when restating Rymen health cares Income statement. These are a few issues I had with my restatement, I have linked it all to my original statement and hopefully it is a simple fix. I also noticed when giving feedback one of my fellow peers seemed to also have difficulty with theirs. It does help slightly knowing that I am not the only one.

RESTATED STATEMENT OF MOVEMENTS IN EQUITY.
This statement was probably the second hardest to restate. I did it whilst watching Marias lecture and it was a very helpful way of doing so. I feel I have restated the financial and operating correctly. The only one I continue to question is the Movement in deferred tax relating to retirement benefit scheme. I had a read through my firms foot notes and as it is for the employers I stated it as an operating income, but this money does get invested into the stocks so I question if I should have split it between operating and financial?

RESTATED STATEMENT OF FINANCIAL POSITION
I found this one the easiest and it was the one I did first. It did lead me into a false security that the other two would be just as simple, but I was very wrong. I think I have restated it correctly the only concern again is with the retirement benefits scheme. Should I have split it into both operating and financing?

Concluding the restatement, I will say it was a very difficult challenge and I wish I had started this one earlier. I wish I didn’t get locked into a false sense of security with the ease of restating the balance sheet earlier in the week. I did however learn about separating the operating from the financials and how important this is for an equity investor or even a manager to see what areas of the business is performing and what areas need more work.

Company Spreadsheet 2017

 

One thought on “Restatement done!”

  1. Hi Kylie, I was the exact same. I couldn’t get my restated income statement to balance, spent 4 days working on it, working my line items around like a Rubik’s cube to get them to add up, so in the end I gave up with 11 seconds to spare before submission! I think my hardest part is being able to differentiate between the O’s and F’s. I too found the Balance Sheet the easiest. All the best for you assignment 🙂

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