Feeling relieved and proud of myself after completing the restating the financial statements of my firm. However, it wasn’t a straight and easy-going road but rather a narrow and bumpy one as I came across some difficulties which took me a while to wrap my head around. I couldn’t thank Maria Tyler enough with her very helpful videos on what to do with regards to restating my firm’s financial statements. Without this help I would have been completely lost. The first difficulties I encountered was in my restatement of changes of equity where operating (O) and financial statements (F) had to be subbed into separate categories. The thing is my firm does not have a single financial income and it took me a very long time to realise this. My firm is only controlled by operating income and this made no sense to me. The way Maria explained it in her videos I thought I was restating incorrectly because surely all firms have O’s and F’s present in their annual reports? This is clearly not the case. Thankfully with the help of my peers and also Maria I began to realise my firm is quite unique with not having any financial incomes.
I’d have to say that restating the balance sheet was the most difficult to comprehend. For starters as can be seen in the working area on my excel spreadsheet my firms ‘percentage of cash out of operational revenue’ was around 631%. This was a huge red flag for me. I initially thought I had done something wrong, how can a percentage of a firm be 600%? In Marias video regarding the balance sheet, she states that this section has to equal within 0.5% to 1% so how in the heavens did I whine up with 631%? Fearing that I have done my assignment wrong I actually begin researching this problem and find that my initial revenue in my original financial statements where not written in 100-thousands (522,000) but rather 100’ths (522). So, I change this and thankfully the percentages change into 1% to 0.5%. With the biggest sigh of relief, I complete the entirety of the restatement of the balance sheet with a few more problems arising in the totals section of NFO + equity. My totals weren’t matching an I couldn’t understand why. I went online and messaged people through the use of Facebook and then I was told thankfully by a helpful student that in my case because my firm has such a large total equity I actually have to minus the NFO from the equity instead of adding it. A very simple mistake which flew right by me, but I was simply following Marias instructions, yet I was lucky I got this right. However, something inside wasn’t satisfied with how I changed those initial percentages from 631% to 1.0% so I took my work to Maria and asked for her help and explanation on this matter. She gave me a very in-depth explanation and I was once again confused. My initial findings of the percentages of 631% were correct. This is due to my company only having operating compressive income and no financial comprehensive income. after that I felt relief once again because having linked all my work I only had to change the percentages back to the initial findings and everything was correct.
Then came the restatement of the income statement and that was by far the easiest to understand and to interpret. To me this statement is very similar to the restatement of changes in equity. With that being said I can clearly defined and separate my Operating income and my financial income. luckily, I know that my firm has no financial comprehensive income, so everything is left in the operating comprehensive income which made my life so much easier. By following Marias instructions, I very quickly finished the restatement of income statements with everything matching. The only small little difficulties I faced was just a tiny mistake where I added an amount instead of subtracting. My comprehensive net profit after tax (CI) was not matching my original income statement. But when I realised this small error I was quick to fix it, and everything matched once again.
Overall it was quite nerve racking doing step 3 with all the difficulties I faced but with the help of others, the internet and Maria/ Martin I am proud of myself to complete the restatement of financial statements of my firm.
Here is my Entire ASSIG#1