ASSIGNMENT 2 STEP 3Dakota Richards

S0286675As I sat down to start restating my financial statements, I had a feeling of stress as I had left this a little late and now I have so much to do in so little time. I have already read chapter 4 and completed step 1 so at least I have read and have half an idea of what is happening. I decided to watch the lecture of restating the financial reports and complete mine while watching to ensure I am doing things correctly and hopefully some of the questions that I have may get answered within the lecture from other student questions. The most important question I noticed while watching the lecture was about financial and operating expenses and what exactly they were. My basic idea of these expenses is that operating expenses are the expenses that a business must incur for daily operations but does not have a direct association with the production of goods or services. I believe financial costs are those that have a direct link to costs such as interest, borrowing costs and any costs related to renting or owing an asset or property. I have the excel spreadsheet open, the lectures ready to go and chapter 4 handy. I am ready to knuckle down and get this done.

EQUITY STATEMENTAs I started watching the lecture where Maria explained restating the Statement of Changes in Equity, I started to get a little worried thinking I was wrong when I completed my original Financial Statements. My Statement of Changes in Equity did not have any operating or financial income, in fact there was no other comprehensive income. I have attached a picture below to show that there was simply no other comprehensive income to be financial or operating.

I therefore started to double check my financials against the original reports from the Coca Cola reports. If I do not have any other comprehensive income, do I simply restate the report exactly how it has been completed originally? I linked my report on to the restated financial statements tab and basically duplicated

what I had completed for the original report. I also made a note next to this on the restated tab for students to read when providing feedback to ensure I have not missed anything and to check I have done this correctly. I started to feel confident with this after I finished watching the lecture as my restated changes in equity looked like what Maria’s did although I did not have any operating or financial costs.

With my intermediate knowledge of using excel, I found the linking concept and sum formula easy as this is something I do on a day to day basis. I find it great that I can feel like I have excelled at something even if it is just linking a figure or text or calculating a formula correctly. I find it nice to have a feeling of greatness ever now and then, even if it is the smallest of things. I felt as though the restating for this report was quite easy and even though I did not have any other costs for this company, I think this step is quick and quite simple to understand. I do wish my firm had the opportunity for me to fully grasp this report with separating the financial and operating costs as it would help me learn and understand in my companies’ case. In saying this, I decided to look at a couple of other students restated financials and see if I could complete the restating of the statement of changes in equity myself to split the expenses and see if I was correct. I know started to feel as though I knew how to complete this and felt comfortable saying so.

BALANCE SHEET When it came to restate the balance sheet, I had the lecture on ready to watch and my excel document ready to go. I started watching then it came to the cash asset. I then came to a stop and starting reading chapter 4 of the study guide as to where this should be allocated. As there was so much information in the study guide I started to get a little overloaded but the main thing I took from this was that relatively low cash is calculated that if sales are up to 0.5% or 1% of the sales of the firm, this is classified as business operations. I did a little calculation of my sales and the following percentages were the result.

2016 2015 2014 201327% 24% 17% 28%

This was therefore over the 0.5% to 1% calculation so I started to think what I needed to do with it now. I looked at the exemplar provided as this is what it is for right? Danielle Bradley had completed a little calculation in her working area at the bottom of her restated financial statements for the cash allocation. I decided to complete this on my working papers as this is obviously useful when calculating the cash equivalent dissection. I then noticed from Danielle’s calculation that the 1% of revenue is used and forms the operating amount and the remaining amount from the cash equivalent figure in the balance sheet is put to the financial amount. I also found this explained in the lecture by Maria which

was also handy. I found this quite confusing to begin with and found it hard to take this information from the study guide but I was very thankful for being provided with an example from a previous student to be able to compare and adjust my figures to.

I spent a fair bit of time trying to allocate my assets and liabilities to the correct accounts. I found it quite difficult to understand the notes on the financials which therefore made it hard for me to believe my allocating was correct. I completed my balance sheet restating while watching Maria’s lecture which was helpful and reassuring for me to confidently believe I had the correct figures and formatting in the right places. I completed the check against the original balance sheet and I was so happy to see a balance in my figures and that I had therefore not made any mistakes in my formulas or linking and that I had included everything necessary.

The only thing I am still worried about for the balance sheet is whether I have allocated my costs correctly but I hope some of my peer students will be able to check this and reassure me if I have them correct or guide and assist me if I am wrong. I think that is the best part about receiving and giving peer feedback for these assignments. The fact that we can review each other’s work and help in any way possible to ensure we are all producing the best possible assignments we can.

INCOME STATEMENTAs I first started watching the lecture for completing the income statement I was feeling quite good. I started to get a little confused when Maria said that when we are allocating the other comprehensive income that we can check and link this directly to the statement of changes in equity restatement. My firms’ statement of changes in equity did not have any other comprehensive income so therefore I was quite confused as to why this was not all adding up and my brain was completely overloaded. As I wait to receive feedback and answers on this, I don’t know how to feel about this exactly. Allocating the other costs between financial and operating income was difficult as I am not very confident in my decisions and am hoping some peer feedback will reassure me along with my balance sheet allocating. There was a lot more involved when restating the income sheet but it was great having the step by step instructions through Maria’s lecture.

When I got to the bottom of the restated income statement, my comprehensive net profit after tax (CI) did not match the total comprehensive income for the year for the original income statement only for 2013 and 2014. I spent some time considering this as to why it did not reconcile and I could not put my finger on it. Submitting my draft, I am hoping one of my peers may be able to assist with where I have gone wrong. I am not a fan of submitting things when they are not complete or correct but feedback is for assistance and help if needed so I

thought I should make the most of it instead of completely stressing myself out and pulling my hair out.

I enjoyed completing all the different calculations involved with Maria explaining it every step of the way. I find it so much easier to practical learn rather than read a textbook and take it all in.

OVERALL THOUGHTSOverall, I had a mix of emotions while completing this step. I had a feeling of excitement when things reconciled and when I felt as though I was learning so much. I also had some thoughts of ‘why won’t this stupid thing work’, ‘I’m so done with this’, and many more. I found the use of Maria’s step by step lectures the best thing when restating these statements. I felt as though without spoon feeding us, she was teaching us each way to do things and explaining why she was doing it. I quite enjoyed completing this exercise and in a weird way, I wish I could do it again and hope to get it right the first time, but hey I’m only learning. I have now submitted my draft for feedback and I am hoping my fellow students are able to assist me with my errors.

ASSIGNMENT 2 STEP 4When it comes to the feedback side of completing assessment pieces, I always find myself nervous and unsure on what to say to others. I always feel as though my assignment is not going to be as good as anyone else’s and that I will receive harsh, negative feedback. This assessment piece was completing different though. I found myself looking forward and needing the help and feedback of other students.

I came to have some issues when completing my restating of financial statements with not balancing and unsure if I have classified correctly. This is where the peer feedback is handy. I straight away hoped on the forum and asked for help. I had a few peers look at my work and give me ideas and their opinion on how I can fix my work to get it to reconcile which was such an immense help.

I enjoyed providing feedback to other students as it is something different and you get to see if you have done your assignment similar and how other people think about different things.

Overall, I found receiving peer feedback to be a god send as I had some issues with my restating but with the help of some feedback, I was reassured and confident with my spreadsheet.

FEEDBACK TO OTHER STUDENTS

Feedback Fro m: Dakota Richards

Feedback To: Kate Dwyer

My Comments

Step 3

Restated Statement of Changes in Equity

Financial Position

Your restated statement of changes in equity all seems to be correct. You have linked everything back to your original financial statements and completed the formulas correctly. Your total figure at 31 December also reconciles back to your original financial statements balance. You have done a great job at restating your statement of changes in equity.

Your restated balance sheet all seems to be correct. You have linked everything perfectly and all formulas seem to be correct except for one. I believe your ‘total NFO + Equity’ should be adding together instead of subtracting.

You have also completed the cash allocation between operating and financial correctly. The only thing I noticed is that ‘consideration’ is spelt incorrectly. I also noticed the title says allocation of cash vs finances. Is this supposed to allocation of cash to operating and finances? If I am incorrect please disregard this. I may be taking it the wrong way.

I have noticed one thing in your formatting. I don’t know if it’s just my eyes, but I believe the blue colour changes to a green colour from line 65 and also line 18. If you are unsure on how to find the same colour that is already there, try using the Format Painter tool in excel. You can clink the blue cell, press format painter then click on the line you want to be that colour and it will make it the same. It might even be easier to google it if I have just

Income Statement

confused the hell out of you haha.

The income statement has not yet been completed.

Step 4

Individual feedback with other students

I don’t believe this has been completed yet. I apologise if you have completed this but I am unable to find any.

Overall ASS#2 (Steps 3 & 4) Overall you have done a great job so far on step3. All your linking and nearly every single one of your formulas are perfect. Your formatting is very easy to read and interpret. Great work Kate!

Feedback From: Dakota Richards

Feedback To: Caitlin Pendal

My Comments

Step 3

Restated Statement of Changes in Equity

Financial Position

Your restated statement of changes in equity seems to be all right. Everything looks to link back to the original financial statements. I checked your total figure against the original balance and it all reconciles. Great work on reconciling your statement of changes in equity.

While checking through your balance sheet, everything appears to be linking back correctly. I noticed the ‘Total Equity’ amounts on row 73 and 75 are not using the ‘sum formula’. I believe they should be using the formula rather than linking back to the financials as this is a double check to ensure all your figures are correct and everything is included.

Income Statement

The cash allocation calculation all seems to be correct.

I have noticed something in your formatting which I also noticed in someone else’s. I don’t know if it’s just my eyes, but I believe the blue colour changes to a green colour from line 69 and also line 19. If you are unsure on how to find the same colour that is already there, try using the Format Painter tool in excel. You can clink the blue cell, press format painter then click on the line you want to be that colour and it will make it the same. If I have completely confused you, it might be easier to google it.

Your income statement is all correct as per what I can see and your balance is correct as per the original report.

Step 4

Individual feedback with other students

Overall ASS#2 (Steps 3 & 4) Overall you have done a great job on your restating of financials. All the linking is perfect and your formatting is easy to read and follow. I noticed that I am looking at your updated spreadsheet so I’m sorry that I have no helpful feedback for you but I believe you have already received some which is why you have updated it. I’m hoping that is the case otherwise you’ve done perfect!!

Great work Cait!

Feedback From: Dakota Richards

Feedback To: Kelly Patrick

My Comments

Step 3

Restated Statement of Changes in Equity

Financial Position

Income Statement

The restating of statement of changes in equity all looks right. All your links seems to work correctly as well as formulas. I personally wouldn’t put the financial comprehensive income section in as I feel as though because there is nothing included that I don’t see the need in putting it there. That might just be my opinion and it might be wrong.

Some of your formatting is a bit out of whack. Just little things such as row 10 and row 22 should be blue and row 18 is a green colour when it should be blue. Just little things but could make a difference.

As I was checking through your balance sheet, all links and figure appeared to be correct. The only error I noticed was on row 60 for the total equity. Should this figure be using the sum formula rather than linking back to the original reports. I find it would be better to use the formula as it is another check to ensure you have included all the correct figures and it all reconciles.

The cash allocation calculation all seems to be correct.

Your income statement is all correct as per what I can see and your balance is correct as per the original report.

Similar to the SOCIE with including the section for financial comprehensive income when there isn’t anything to go in there. Please ignore this if you think I am wrong, it is just my opinion.

Step 4 Your feedback to others seems to be

Individual feedback with other students

very in depth and very helpful. It looks like you take great time in helping out others.

Overall ASS#2 (Steps 3 & 4) You have done some great work at restating your firm’s financials especially considering how in depth your financials where. I am sorry I could not give you much feedback but I cannot find hardly any errors, which is a good thing!!

You have a great spreadsheet, great work Kelly.

Feedback From: Dakota Richards

Feedback To: Tiffany Treen

My comments

Step 3

Restated Statement of Changes in Equity

Balance Sheet

Income Statement

Commentary and discussion with others

Everything on your equity statement seems to match up and reconcile. Your formatting is great and easy to follow. As per your question on the classification on cash flow hedges and shared based payments – deferred tax asset, from my knowledge I think these seem to be correct. I had a lot of issues on classifying my items so I really don’t feel comfortable giving you feedback on classification when I’m not too sure myself.

All your links and balances look perfect on your balance sheet. Once again, I don’t want to comment on the classification on the assets and liabilities but it seems to me like you’re on top of it.

Your income statement also appears to be pretty close to perfect as per what I can see. Links and formulas are error free and your cash calculation is also correct.

I always notice your discussions and advice on the forums with other students. You are always so helpful and helped me out a lot with my assignment – Great work at being so kind and helpful. 😊

Step 4 The feedback your supply other students is always so generous and valuable. You take your time to

Individual feedback with other students

really try and help others which a great trait to have and its people like you we need in the world. 😊

Overall ASS#2 (Steps 3 & 4)

Overall, your spreadsheet seems perfect to me as I expected. I always look forward to looking at your work and always expect close to perfection.

I apologise that I was not much of a help at all with providing you feedback. I struggled quite a lot with this assessment piece so I would not want to give an incorrect advice.

All your formulas, formatting and linking is great and it is obvious your know your way around excel.

I think you have done a fantastic job and you should be proud of yourself. Great work once again. 😊 Keep up the good work!

FEEDBACK FROM OTHER STUDENTSFeedback From: Caitlin Pendal

Feedback To: Dakota Richards

My comments

Step 3

Restated Statement of Changes in Equity

Balance Sheet

Income Statement

Commentary and discussion with others

Everything on the equity statements match up. It is strange that your company hasn’t broken down their total comprehensive income for the year. I’m not 100 percent sure on your note on the equity statement but on your income statement under other comprehensive income some of the items you have listed are similar to mine and I’m thinking some of these should be in the breakdown of O & F on the restated changes in equity. i.. e

Foreign exchange rate differences (O) Reclassification of exchange rates (O) Cash flow hedges (F)

Etc… Sorry I can’t be more help!

Everything is linked and your totals match up!

Ahh my feedback is not going to be much help in this section as I struggled so much with this particular statement. But I noticed there is a 0.7 amount on your original income statement under the attributable to section. Is this something that needs to be included?

Discussion on the forums.

Step 4

Individual feedback with other students

Overall ASS#2 (Steps 3 & 4)

Firstly, I’m sorry I couldn’t provide you with more helpful feedback on the notes on your excel spreadsheet! I looked through your financial statements and they were a little confusing, but I

would try the study guide chapter 4 as your financials look similar to the ones Martin used in his example and seem to have similar line items so you could potential break down your CI on your equity statement similarly.

Good Luck!

Feedback From: Kelly Patrick

Feedback To: Dakota Richards

My Comments Step 3

Restated Statement of Changes in Equity

Balance Sheet

SOCIE:

I checked your annual reports and 2013-2014 do list comprehensive income separately. 2015-2016 only have a total. I would include the following items in your SOCIE: Profit, Other comprehensive income, Total comprehensive income for the year. I would then use row 8 to total those figures. This will help you to see where the comprehensive income is and how to classify it (operating/financing)

Excellent use of linking between sheets

Formulas are correct I would change Row 9 Total

comprehensive income for the year to a formula rather than linking it to original financials. This will allow you to double check your work.

BS:

Excellent use of formulas Excellent use of linking between

sheets Formula for NOA is correct Formula for NFO is correct

Income Statement

Commentary and discussion with others

IS:

Excellent use of linking between sheets

Formulas are correct OI formula is correct There is no item listed in row 114

to describe what these figures are.

Could the variance from original income statement be due to rounding?

Step 4

Individual feedback with other students

I really appreciate feedback from people who will point out all the little mistakes I have missed which will cost me marks. Thanks for the second set of eyes!

Overall ASS#2 (Steps 3 & 4) Dakota, I looked at your annual reports and couldn’t make heads nor tails of the financials. The fact that you have been able to get your spreadsheet to this point is a fantastic effort – Well done!

I know it’s frustrating when something doesn’t balance and you don’t know why, but ultimately this is a learning experience that will give you a more solid foundation to build on. From my own experience, I know I learn more when things go wrong and I must troubleshoot than when everything works the first time. Don’t give up, you will get there.

Your formatting and presentation is fantastic and without fault. Clearly, you are someone who expects a high quality of work and this is shown by your attention to detail. Keep up the great work and good luck with the rest of your assignment.

Feedback From: Tiffany Treen

Feedback To: Dakota Richards

My CommentsStep 3

Restated Statement of Changes in Equity

Balance Sheet

Income Statement

SOCIE:

You have linked cells and used formulas where appropriate 😊

Your total matches the original SOCIE – great work

Well formatted and easy to read – perhaps delete row 20 as it is blank

BS:

You Have linked cells and used formulas where appropriate 😉

Well formatted and easy to read You have calculated cash

between operating and financial – great work

The total of your OA on row 50 is not correct – the formula does not include row 48 & 49 – investments in joint ventures & bottlers’ agreement. This will make everything balance 😊

You have the correct formula of NOA = NFO + EQUITY

From my very novice opinion you seem that classified everything correctly – you had a few difficult ones!

IS:

You have linked cells and used formulas where appropriate 😊

Well formatted and easy to read – don’t forget to delete row 126 where you copied over the total to check if everything balanced

The totals for operating CI & financial CI match to the SOCIE – well done

You have calculated out the tax benefit

The total matches your original –

Commentary and discussion with others

great work

Commentary:

I cannot locate – don’t forget to complete this before submitting

Step 4

Individual feedback with other students

I cannot locate – don’t forget to provide to 3 people

Overall ASS#2 (Steps 3 & 4) Overall your spreadsheet is very well done. You have done a very good job with a very challenging task. Few minor changes and it will be perfect 😊. Don’t forget to include your KCQs/commentary in your submission.