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Rachel Jackson

Assignment Step 3-6

ACCT11081c98078215

Rachel Jackson ACCT11081 C98078215

Step 3 (3 marks)

Link: Adelaide Brighton Annual Report 2016 (Ctrl + Click to follow link)

My Firm and First Glance

Adelaide Brighton (ADIBRI) is a leading integrated construction materials and lime producer which supplies a range of products into building, construction, infrastructure and mineral processing markets throughout Australia. How do I feel about being given this company? I was thinking perhaps something a bit smaller would have been great as a starter given that I didn’t do ACCT11059 but at least it is an Australian Company, as I saw many comments about students hoping for an Australian company this time, although I have no idea what this difference is at this stage given they all aim for the same outcome, Australian or not… time will tell!

ADIBRI produce clinker (a binder in cement) and lime which is important in the production of alumina and gold and also premix concrete, construction aggregate and concrete products. Danielle Bradley’s company Breedon operate in the same industry but on a much larger scale and predominantly in the UK.

A Quick History

Adelaide Brighton was founded by William Lewis in 1882, folded a year later and was revived by a syndicate which included two Australian pioneers and politicians, John Howard Angus and Simpson Newland. It is now an S&P/ASX100 company with 1,400 employees and operations in all Australian states and territories.

Annual Report 2016 – Highlights for me…

One of the first things I noticed when I looked at the Annual Report was the structure of the Board and the Executive leadership team and how many women were in those teams or the lack thereof I should say. There was a single female representation in each which represented approx. 15% of the teams overall. I thought that it was a disappointing result given the emphasis on female executives and the push to greater equality in power positions over my working life time. Surely with the ratio of female to male graduates being nearly equal, we should see that reflect in the work force? I guess not… However, on further investigation into the company and in reading the Diversity Report within the annual report it was clear to see that they have a robust approach in addressing gender equity within their organisation with a few positive outcomes such as:

> Recruitment training continues across the business with a view to creating diverse candidate pools and to eliminate any unconscious bias that may occur. 19% of all new hires in 2016 were female.

http://adbri.com.au/-/adbri/lib/pdfs/2016/asx%20announcements/ABL%202016%20AR%20-%20mid%20res%20version%20FINAL.pdf


> Refreshed advertising templates and copy writing training delivered to ensure job advertisements are attractive to a diverse pool of job seekers. 62% of roles advertised in 2016 attracted female applicants.

> Website page dedicated to career profiles of female employees, ‘Women in Adelaide Brighton’.

> Talent and Succession Management process proactively challenges and promotes gender representation.

> 17% of women and 13% of men were promoted internally in 2016.

This, along with a Gender Parity pay review says to me that the company is invested in providing gender equity – it was nice to see… Someone once told me (or maybe I saw it in a movie?), that if you are interested in investing in a company or buying a business, the first thing you look at is how happy are the employees? If the employees are happy then they will work harder and smarter for your business – I noticed that staff turnover for ADBIBRI is in line with that of what was reported in the most recent Australian Institute of Human Resources (2015) report on Turnover and Retention which nominated the average to be around 16%. So does this mean the staff are happy? Graph 2 shows turnover age which is looks atypical to me seeing high turnover with the younger generation and then at the other end accounting for the retiring age bracket.

So does turnover represent happy staff – It could? Another important statistic I think is that of Lost Time Injuries (LTI’s). What is significant in this graph to me is the reduction of LTI’s since 2009. This must represent ADBIBRI’s focus on ensuring the organisation is a safe place to work as the result of an LTI usually requires an efficiency in a process to remove the cause so that too would suggest there is a focus on providing best practice to remove incidents

So why, you ask, am I harping on about all of these points? Well, it’s one of the things that you can’t record accurately in the financial statements – and in my opinion, given people are a significant resource within an organisation, the health and wellbeing of your people is one of the keys to success.

% Employee Turnover Employee Turnover by age group Lost time injuries


In the News

Another aspect you can’t see in the financial statements is reputation. How are they viewed in the market? What is going on behind the scenes? Unlike AGL, Kate Edwards’ company who seem to have taken a blow reputationally with the publicity and proposed unethical behaviour following the Waukivory Pilot Project; ADIBRI seem to be keeping their noses pretty clean (or so I thought – check out the 1 st link relating to contamination in their cement product). There are few headlines for this company regarding proposed acquisitions or takeovers; none of which have come to fruition (as far as I can tell).

1. AdiBri contaminated cement product affecting major construction builds.

http://www.abc.net.au/news/2017-04-21/contaminated-cement-used-in-major-adelaide-projects-cfmeu-says/8462648

2. Web article on Adibri’s commitment to its Environmental Improvement Program (EIP) in line with its EPA licence

http://www.epa.sa.gov.au/business_and_industry/industry-updates/adelaide-brighton-cement

3. News article on ACCC rejecting Boral bid for AdiBri

http://www.smh.com.au/articles/2004/05/12/1084289751100.html?from=storyrhs

4. Adibri proposed acquisition of Holcim

http://www.theaustralian.com.au/business/mergers-acquisitions/adbri-eyes-lafargeholcim-unit/news-story/b6a87de4e878aaaf9bf648458608ffee

5. AdiBri under scrutiny in relation to their dust pollution and EPA making tighter controls on their licensing requirements

http://www.adelaidenow.com.au/messenger/west-beaches/push-for-tighter-controls-over-dust-from-adelaide-brighton-cement-factory-in-birkenhead/news-story/2960c1439e5028a65eecdd53a35ab38c

6. AdiBri’s CEO piece on the future of the company, their profit and their future

http://www.theaustralian.com.au/business/companies/cement-paves-way-to-profit-for-adelaide-brighton/news-story/ec44ae44d02f65452908491ab75ef22e

Financial Statements

Overall, ADIBRI’s Annual Reports are typical of what I have seen with some of the other students’ annual reports, around 100 pages, providing a snapshot of key results from the






http://www.smh.com.au/articles/2004/05/12/1084289751100.html?from=storyrhs





https://aspiringaccountaholic.wordpress.com/2017/07/26/agl-energy-adventures-of-getting-through-life-step3/


financials; information about and from varying members of the executive team and an emphasis on reporting general information about some of their key areas of work of those things that can’t be included on in the financials like diversity, sustainability, risks and opportunities. Finally providing the statements and notes to finish with.

ADIBRI’s performance summary includes the following snapshots….

So at a glance ADIBRI’s Revenue for 2016 was $1,396,000,000 down from last year by 1.2%, NPAT means net profit after tax and similarly was down by 10.4% (why doesn’t this line up with percentage decrease in revenue, I ask?). The final figure represents net profit after tax ex-property (attributable to members) with an increase on last year of 3.1%. So what does that mean??? Further reading into the annual report and the downturn of 10.4% in NPAT was due to a decrease in earnings from their property sales program (reduction in property holdings to reduce debt) so hence reporting NPAT ex property shows an increase in NPAT and is probably more reflective of the operational performance.

The remuneration report states the following:

In 2016 the Group grew net profit after tax (excluding property) by 3.1%. This was despite a decline in sales volume of 20% in the key Northern Territory and Western Australian markets and electricity market disruptions which impacted profit before tax by $9 million.

The assignment requires us to identify things we don’t really understand and this for me is one of them. How can an organisation with a decline in sales volume by 20% and where disruption in electricity supply has affected gross profit by 6% can then be reported as an increase in net profit by 3.1%? Is it due to efficiencies through a strong business improvement program – there doesn’t seem to be any mention of that within the reports? Is it due to an operational restructure and cutting of costs (expenses) through redundancies? I wonder if once I have completed this unit of study, I will be able to easily identify why this is – I would hope so but in the mean time I’ll keep looking.

I also, after learning about Underlying Net Profit through one of my fellow student feedbacks, was curious that AdiBri didn’t report the disruption in electricity supply as a one off event? I suggest that it’s a choice and potentially if it makes your outcome look better then you would report it, if not then given this is the company’s main marketing tool for investment then maybe not!


Share prices also decreased from last year’s performance however the final ordinary dividend is an increase? The dividend is the price paid to the investors as part of the profit back to them relevant to the number of shares they hold. Again, how can the dividend paid to the shareholders be increased when there has been a decrease in gross revenue and therefore have less $$ to distribute?

One of the only increases on the income statement compared to the previous year was in Share of net profits of joint ventures and associate accounted for using the equity method with an increase from $19.9M to $28.5M in 2016. All other figures in comparison from the previous year are a decrease but don’t think it represents the increase in the NPAT figure or does it? So, their joint ventures include the following companies (I found these in the notes, thought it was interesting to add):

Company Location%

Share ProductAalborg Portland Malaysia (1) Malaysia 30 White clinker and cement manufactureBatesford Quarry (2) Victoria 50 Limestone productsBurrell Mining Services JV (2) NSW & QLD 50 Concrete products for the coal mining industryE.B. Mawson & Sons Pty Ltd and Lake Boga Quarries Pty Ltd (3) NSW & VIC 50 Premixed concrete and quarry productsIndependent Cement and Lime Pty Ltd (3) NSW & VIC 50 Cementitious product distributionPeninsula Concrete Pty Ltd (3) South Australia 50 Premixed concreteSunstate Cement Ltd (3) Queensland 50 Cement milling and distribution

(1) Associate(2) Joint operation(3) Joint venture


Another term I came across in the Comprehensive Income Statement was ‘hedging’… even though I googled this I am still unsure as to what it is? One explanation is to transfer a risk without buying an insurance policy and even though I get risk and insurance (this falls into my portfolio at work) I think I’ll have to resort to ‘asking Damo’ for further explanation and hopefully an example I can contextualise?

I am looking forward to being able to more easily analyse a company’s financial position and where the cash flow, balance sheet and income statement overviews (never mind the actual statements) are more easily understood. There is so much information and I’m still trying to get used to looking at the numbers in terms of millions and billions!

Discussion with Others

Okay, so after being given feedback I am reviewing my work done so far and have to admit that I actually haven’t addressed the first requirement of the assignment i.e. ‘posting on my blog some background information on my company and its industry and commenting on other people’s blogs’. So it was a late attempt but here it is…

https://racheljackson70.wordpress.com/2017/08/13/missed-a-step-help/comment-page-1/#comment-15

Step 4 - (5 Marks) Practicing the recording process

I have several accounts, including mortgage, loan, credit cards, savings and everyday day accounts at two different banks, my husband’s account (I decided not to include – can’t give away all our secrets) pays for certain items and goes into one account and mine into another for others - it works for us but wondered how I was going consolidate all of these accounts into one and work through it… well here’s how it went…

This was an arduous process for me…

So, while I worked through each of the transactions and allocating them to an account, I thought – oh this is easy And Maria did make it look very easy. I am not an expert in excel but still it looked simple enough. As I worked through these transactions I had to think about whether a payment to my credit card (to pay for things I had already bought) was actually a liability? The same with payments to my loan accounts and to be honest, I couldn’t work through it so I removed them. I couldn’t simply treat them as an expense because that payment was decreasing a liability and increasing an asset? I didn’t know how that was going to play out if I didn’t have a starting balance so as I said, I removed them? Then it struck me, this is not a balance sheet, it’s an income statement where you record your revenue and expenses…. Ohhhhh!




Allocating was easy, figuring out what to keep in and what not to keep took a bit more thinking through, but seriously, working in the spreadsheet did me in. If you take a look at my spreadsheet, I created columns to the right so that I could check my balances, and this took me the longest. Honestly, I need glasses! Oh, no hang on, I already wear glasses. So it took me hours to find my mistakes – but I found them in the end and what occurred to me during this exercise was that thank the heaven’s we have software programs that enable process automatically! I currently have ability to allocate my expenses to particular accounts as my bank provides a function that enables me to allocate my expenditure into categories - I don’t use it, but suggest I should. It was interesting to note how goals can be achieved (i.e. savings) by doing the analysis on spend % against your income – I liked that! If I do choose to undertake this exercise and make use of the bank function, I don’t think I would like to be doing it every month. It would make far more sense to do every day, maybe a week but no longer – leaving it for so long just enables more scope for error. On reflection now, I would have broken my chart of accounts to much more detail to get a more comprehensive analysis of where the expenditure lies but as suggested earlier, I made a lot of mistakes so actually am grateful that I am only considering ‘more detail’ in hindsight Not sure I would go to the suggested extent Billy provided, i.e. an account for each takeaway food, but I see the benefit of that. If you need to look for efficiencies or cost savings, having that level of detail would certainly enable you to set budgets for those types of expenses rather than blindly spending.

a) What is the chart of accounts so far, as illustrated in this example? What is your own chart of accounts? Is it like the one shown here? Remember you can add to your chart of accounts as you classify more of your own transactions.The chart of accounts relates to revenue and expenses, there is nothing for assets, liabilities or equity. I started to allocate for the latter accounts but realised that it was an income statement and therefore they weren’t required for this exercise. My Chart was very similar with Revenue listed in 400’s and Expenses in 500’s going up in 10’s.

b) What level of detail could you change in the chart of accounts shown in this activity? Why might you want to do this.You could change the level of detail to include accounts that nominate expenditure to each person, i.e. wages for husband, wife and donations by husband, wife, phone bill to husband or wife. You could also provide further detail in general living expenses to see where you could make savings. Perhaps Interest Income could also


be detailed to show what investments provide greater return rather than lumping all interest income into one account.

c) How might you analyse your Income Statement? Has this exercise of recording your transactions through to the financial statements been useful to you? If so, why; if not, why not? As discussed above, analysing the income statement to achieve goals was something I had never considered but also to drill down on your expenses and where you might be spending. Recording my own transactions and creating the income statement has been very useful to me as it has given me the understanding of what an income statement or Profit/loss sheet is. At this stage I am not wanting to continue to analyse my bank statements but if I really did need to make some serious saving goals I would definitely start to drill down into my spend by categorising and in more detail than I did for this exercise.

Step 5 - (9 Marks) Creating a Trial Balance using your Company’s financial statements.

Closing off – what is that??? Reversing the entries – why??? I missed the train, literally, I have missed the tutorial with Maria’s analogy of the train… any chance we could make a clip and post it?

Two goes at it for this assignment step, first without watching the tutorial, and lucky there was one as I couldn’t balance AGAIN and went to town with the ‘checking rows’ (see Step 3 for similar outcome) so after spending hours and hours not balancing, I put it down and walked away. Next day **watched Maria’s tutorial** and ‘wa-la’ my trial balance attempt number 2 went unbelievably well??? Yes, it balanced FIRST GO! I was so impressed with myself honestly. (A feedback comment bought to my attention that while I balanced, my reported Profit, included a heading figure and so needed to be removed – so I balanced still but reported a figure I didn’t need to…)

I understand the need to take out the revenue and expenses as retained earnings represents the net figure of these two items so why even include them? Why not just refer to your income statement? Am I back to that old thing called the double entry book-keeping process… I think I am! While I don’t profess to fully understand how it all works, I am starting to see the linkages - slowly. I have struggled with some of these concepts and can see the benefit of having done last terms unit with Martin as I think others have not struggled as much as I have? I can recall where DR’s and CR’s sit quite easily now with having ‘memorised these three things’ but alas, I second guess myself and find myself flicking back to my notes to double check only to find I’m right… give it time – the confidence will come.


To be honest I am looking forward to the vacation week as I have managed to get hold of last terms study guides – thanks Carly More reading material, but maybe there is something in there that will help me make the connections I need to feel confident in this process. I will also be doing a few practice trial balances with some of the companies I have been providing feedback on and familiarise myself with their financial statements. This might also help me become familiar with all those types of accounts (like the ones in the comprehensive income statement, like hedging accounts) that I am not really sure what they even are or mean?

So, what discussions have I had with others you ask? A bit here and there, some assistance with not being able to find things like depreciation (lol) and some FB chat’s about how I am finding this course. It was great to connect even for that brief moment and I have made a post to start a Study Group in Yeppoon… here’s hoping? I have provided comments to some of the other students and commended them mostly on the calibre of their work – I am really blown away by their ability to analyse their companies with an eye that I feel I have yet to acquire.


From: Carly Despot

Step 3

Background information on companyComments/KCQs Discussion with others

You have given quite an in depth description of your company background and their services. It was really interesting to see that you discussed more around in internal operations of the business such as Turnover and LTI rather than their financial performance, I quite enjoyed that!

My only suggestion might be to pull apart the financial statements a little more and explain what information you understand from them. How is their financial performance? Are there any abnormalities or unusual things on their statements? Did you find their financial statements easy to understand? Is there anything you don’t fully know what they are? What do their statements tell you as the reader? Other than that, all your other discussions are spot on!

Step 4

The recording process

You step 4 looks to have all be completed correctly, my only suggestion would be to change your formula on your Income Statement to from SUM(C14:C19) to remove the rule error on your totals cell.

You have provided are really great explanation of how you found completing the process and you have also answered all of the questions. I believe your discussions in this area are all completed really well so great job!

Step 5

Trial balance Discussion

I love how honest you have been in this discussion with not quite grasping the concepts. Great to see that all of your totals balance on your worksheet so congratulations!

Overall Overall you have done a great job. It is obvious through some of your discussions that there are areas you are not quite comfortable with but it is great that you can identify those. With a few little tweaks I think you are well on your way to getting a hang of things. Oh, and your welcome for the Study Guides


Feedback From: Dion Echentille

My CommentsStep 3

Background information on Company

Comments/KCQ Discussion with Peers

Enjoyed reading you company’s background and information, you had good KCQ in mind.

Great insights about gender equality in your company and what you think of it, also on employees’ review

I think there needs to be bit more discussion on your company’s performance and position, for example how do you think they are performing? What can you tell us about their position in their balance sheet? Are they incurring more financing to operate? Just an initial thought, I’m sure this must be a bit difficult as you have not done ACCT11059.

You have found good articles. But what do these articles tell you about Adelaide Brighton? Does it have new investors, or has the company borrowed more funds? New directors? What is your opinion on them?

And a few questions I might ask is, how do you feel about your given company? Are you happy with it?

How does your company compare with others? You do mention Kate Edwards, what other comparison/contrast other than unethical work behaviour?

Step 4 Chart of Accounts Reflections

All the relevant calculations look to be accurate and well linked.

I liked how you presented your banking statement into debit and credit columns, that would have been a lot of mucking around, also


item ‘options access fees’ that date must be incorrect.

Reasonable reflections you have provided, are you not interested into doing percentages in your income statement? This has helped me get a really good view on portions that made my income and what proportions my expenses go to. Obviously looks that you have one source of income, but would be a great discussion in reflections.

Step 5 Trial Balance Discussion/Reflections

All the relevant calculations look to be accurate and well linked, temporary accounts have been closed off to equity, good job.

I am sure it’s a great feeling to have your balance match, it has for me too. Enjoyed reading your last thoughts about trial balances, and yes, I have seen some of your discussions around Facebook here and there.

Overall Review Overall, I think you have demonstrated you draft well. Just a little more info that I have listed up earlier in the previous sections would be a great pointer you can incorporate a bit further into your work.

Enjoyed your thought and reflections in both Steps 4 and 5, and calculations in both seem well connected and balanced.

Additionally, your reflections and KCQ were interesting to read about and demonstrated good understanding.

In General, I think you are really doing a fantastic job considering you have not undertaking ACCT11059, so job well done.


PEER FEEDBACK SHEET: Assignment Steps 3-5Feedback From: Donna CondonFeedback To: Rachel Jackson

My CommentsStep 3

- Background information on company

- Comments/KCQs

- Discussion with others

I really enjoyed reading your Step 3 I found the background information was written well and contained some interesting information. I am very impressed that you managed to understand the annual report considering you had not completed the ACCT11059 last term. You should be very proud of yourself. I have to agree with your comments about Australian company v’s overseas company but being on the other side as I received a UK company last term it was nice to receive a company that is Australian based this term but the annual reports and what they need to report on is very similar.

I really enjoyed reading about the diversity in your company and made me start to think about my company as I believe they don’t have a very high percentage of women in executive leadership roles. I totally agree with you a company should being looking after the wellbeing of their staff as I believe they are the company’s biggest assets.

If I could make one suggestion is maybe add a few headings to clearly identify the different sections as it would make it easier for you and everyone reading to make sure that you have not missed anything from the assignment but it’s only a suggestion 😊

I liked how you have interrupted the financial statements but I would suggest expanding on them a little more about each of the financial statements eg: What was the income statement telling you about the company and their performance for the year. You could also talk about how you had compared your statements and other peer’s financial statements and differences you found between them.

I could not find the discussion or links to your discussions with your peers in your document and maybe you have not updated the document with yet and don’t forget you need to include your thoughts on whether discussing with others either helped or hindered you.

Step 4- The

recording process

I thought that you had executed the recording process correctly in your excel spreadsheet and I could find any errors so well done. I enjoyed reading how you approached this exercise and the fact that you found that some of your transactions indeed don’t fit into the Income statement but instead fit into the balance sheet. I too had found this out whilst completing this exercise as I purchased a number of assets. I thought that you answered that questions well. Overall fantastic job 😊

Step 5- Trial

balance- Discussion

You have completed this exercise but I did find an error in your income statement the difference between the debits and credits should 187.4 which is the total of the statement of Comprehensive income what you have at the moment is 186.2 which is the profit and Loss for the period. I have found the problem you have recorded the Other comprehensive income for the year, net of tax of $1.2 in the debit column but this is a total so all you need to do is remove it and it will balance but please let me know if you need a hand always happy to help.


Feedback From: Kirrilly Hervey

My CommentsStep 3

- Background information on company

- Comments/KCQs

- Discussion with others

One thing unrelated to the information, however I believe is beneficial is the structure and layout of your step 3. If you included headings and subheadings, say a heading called ‘Background Information’ and another ‘Annual Reports or Financial statements’. This would make it a lot easier for the reader to locate the information needed and also just to tidy everything up a bit.

You gave adequate information regarding your company, what they do, some interesting background information, the structure of the company, how you feel about the male to female ratio of the company, some interesting facts, what you didn’t understand and you thoroughly deconstructed your companies financials. Everything that was required for this step you covered very well and thoroughly (except for the discussion with others and comments on others blog, which you stated in your blog that it in process of being completed). The only suggestion for this step would be to summarise the 2 news articles below the hyperlinks and maybe to add more articles, blogs or videos as Maria has said if you want full marks to aim for at least 10 sources. Other than this you are certainly on the right track.

Step 4- The

recording process

This step was enjoyable to read. You clearly expressed your key concepts and questions in relation to recording and classifying your transactions. I liked how you also added in a sentence or two about how another student’s chart of accounts differs from your own. Even though this was not required on the assignment task sheet, it was a very great idea. Also the 3 questions you answered were excellent. Your spreadsheet was very well thought out, detailed and set out perfectly.

Step 5- Trial

balance

- Discussion

When looking at your trial balance I first thought holy crap it is so small, but then I realised you have not included the balance sheet in your table. I am not sure if this was just a draft and you have included it now. But both the income statement and the balance sheet need to be included. Maybe watch Maria’s tutorial, it should show you what to and what not to include. Other than this error your step 5 key concepts and questions and discussions with others was very well written.

Overall Overall you have produced a very well constructed first part of the assignment. You have managed to meet all of the requirements and more, with just a few tweaking to do. Once you have included the discussions with others for both step 3 and 5, and fix up the trial balance you will have an excellent assignment. You should be very proud considering this is your first accounting unit, as you did not complete ACCT11059. Well done.


Feedback From: Thi Doan Thao Bui

My Comments

Step 3

Background information

on company

Comments/KCQs

Discussion with others

Hi Rachel, you have provided some information your company very well. I

have learnt more from this step through annual report. KCQs are some

great insight your company how the staff turnover for ADBIRI and I can see

that the financial statement is not reputation. You have completed

discussion with Kate and someone else well done. You shown what you

learnt from their company.

Step 4

The recording process

Your step 4 looks to completed to great in excel. Good job.

You have some account from different banks to provide more information

in this step. You are compared your chart account and chart of account

company well done. I hope you get full mark for this step

Step 5

Trial balance Discussion

Obviously, a lot of people are struggling with trial balance. But you did well

and your Trial balance was excellent and perfectly. You explained how you

have learn and done your trial balance for your firm and I also

understanding more about how and why to need to take out the revenue ,

expense , so on in your trial balance, income statement of your company.

Overall

Overall, you have effort and work hard this assignment. I can have learnt a

lot from your company. I believe that you can get high mark this

assignment. I hope you will be doing well in future of this term. Good job

Feedback to: Carly Despot

Step Description My comments


3Background information on company comments/KCQ’s


Well Carly, I think you have nailed it – I can see how your exposure to the previous unit has enabled you to look at this company exactly how we are expected to… with ‘accountant eyes’, I hope to be there by the end of this unit if not sooner. I would have liked to understand why you didn’t like your Hong Kong based company though? Your company background is also excellent and my only suggestion there would be to provide more of a description of what property development they do – it looks like they buy land, build houses and sell in the domestic market. Perhaps they make their profit out of buying brownfield sites at low cost then regenerate/rehabilitate the site – Redrow say there is no problem they can’ t solve! Are they only in the housing market or do they venture into commercial development also? I liked that you picked up on how many women sit on the Executive but more importantly your overview of the Financial Statements is impressive – you provided a really good picture in my head before I read over the statements. Your comments on the challenges and opportunities was also insightful and I think you are spot on with how comfortable you are at looking at statements now – excellent job in my opinion. I didn’t notice any discussion with others mentioned here but then I haven’t done much in that arena either except our quick little chat about living closer together so we could start a Study Group I get a sense that you will do well regardless!!!

4 The recording process

You obviously did this exercise a lot easier than I did I have experience with a Chart of Accounts but not adding it to an excel spreadsheet manually – that was my demon!

5 Trial balance discussion

I missed the ‘train’ analogy so must go back and watch that. Did you experience any issues with your trial balance? What did you think about the linkages from the Income Statement to Balance sheet and the Statement of Changes in Equity?

OverallOverall Carly your analysis of your company was excellent and you seemed to breeze through the exercises without any real issue at all – good on you

Feedback to: Donna Condon





So straight up Donna, if you want or need to connect with anyone please pick me… I found your discussion to be excellent. How you expressed your learnings and your ability to bring some over from last term was awesome and I’m jealous (I didn’t do last semesters unit but Carly has kindly provided me with the study guides so hoping to glean some learnings from them this vacation week – yay for vacation week!) I like how you went straight to the highlights or facts in brief to get a quick glance at how they are doing and decided that is probably a first step to comparing my company with others so thanks for that. Your explanation on what Underlying net profit is perfect and has made me now re-think how my company has reported the UK electrical interruption that cost them $9M in sales last year – so another thank you! Your comment on the underlying net profit enabling true forecasting and budgeting helped me understand the concept further. Best analogy of your reports and exactly how I felt about my reports was the ‘sugar and sweet theme and not one sour lolly amongst them’… totally agree but then if you are looking for investors then I guess the financial statements are your hard pitch! Where you have analysed revenue and sales, I wonder if you have answered your own question in relation to Revenue increasing but % decreasing and then you note an increase of cost in sales every year – is that it? I like that you interpret challenges being they may be selling faster than they can produce and what might they be able to do to address that. A bunch of take-aways for me from your discussion including What’s hedging? What does OCI mean? I will be checking it in my Changes In Equity statement against my comprehensive income statement to get an understanding. My ONLY tip (that I got from another student in my peer review) was to maybe give a brief summary of each of the news articles so the reader can decide whether they want to have a further look or not?

Donna, I think you have gone above and beyond in trying to connect and seek feedback and if you don’t get full marks for this, then I’m not sure how the rest of us are going to go… like I said I am keen to keep in contact with you and for you to email me directly if you want or need any future discussion – I would value your input tremendously!

Pretty straightforward stuff, there isn’t a lot I can say here



that someone hasn’t already except great pick up on the quarterly rates payment – I didn’t take that into consideration myself about some of my payments so will make me take a re-look and re-assess my analysis.

5 Trial balance

discussion

As I said I missed the benefit of last semesters learning so the idea of temporary accounts is new to me, but I am continuing to hear it over and over through the feedback so its sinking in. It looks like you are all over understanding the trial balance process, I am yet to grasp the whole ‘trial balance in reverse’ thing yet… is there anything you didn’t understand – perhaps you could give some insight on that?

OverallYou’ve done an excellent job and I have tried to provide you with what is hopefully some beneficial and constructive feedback… Overall, well I don’t think I need to say too much – except that if I haven’t communicated my keenness to keep connected with you then I’ll say it again… please can we be study buddy’s? My blog site is https://racheljackson70.wordpress.com/ and I’ll be sure to keep an eye out on FB for you.

Feedback to: Katherine McGill




Firstly, there is some great stuff in the Highlights for your company so perhaps we could have learnt more about your company by sharing some of those insights. Also, you made comment in your spreadsheet that your company didn’t have any comprehensive income items? You should check that and be certain. I don’t currently feel connected to my company either as you mentioned but maybe we just haven’t spent enough time getting to know them.

I saw you’re reach out for help on FB and wish I could have helped but glad Billy came to the rescue! Looks like you are getting help with connecting when you need it.

4 The recording processIt’s only one month’s worth of Fake Katherine don’t’ stress, she could have

https://racheljackson70.wordpress.com/


better months? I think you are right about breaking General living expenses into more detailed accounts, I could have done the same I think but agree that it depends what you want to get out of the exercise. Good analysis.

5 Trial balance discussionWould have loved an explanation of what you were doing wrong and how Billy helped you do it. I like how you felt you have been able to understand your company more through this process.

OverallOverall I loved your steps 3-6, I found them to be really down to earth and relatable. Perhaps just a little bit more focus on the business could be done but still an easy read!

Feedback to: Kirrilly Hervey




So I read through all of your steps last night and thought, I’ll get up in the morning fresh and make comment but first I will do a little googling myself – just because it seemed such a mystery to me that there was little to no info about your company. And well, I have just spent the last 2 hours digging into what seems to be (to me) a ‘bogus’ company! There were a few things that were weird, like their address has 246 other registered business’s at that location and its essentially a house/2 story office (perhaps). Their financial statements were prepared by Temple Secretaries (google that and find that they were involved in not only a mafia front but also the Lyoness UK scam (well that’s what the internet says) But also, Temple Secretaries has the same address as ABE! The subsidiary British Polar Engines is at the same address as Kelvin Engines (this company is the 100-year-old marine engine building OEM firm which seems to be about the only real thing I could find!) I also decided to google the Director, turns out at the age of 41 he holds 6 appointments at 6 active companies, has resigned from 5, held 23 appointments at 23 dissolved companies???? I have found your company to be the most interesting of all that I have provided feedback on so far!!! What I did notice as well, and I’m not sure what the answer is but on the Income Statement it claims to have cash of


$1,577K and then on the notes only $28K? So, my feedback to you would be to maybe take a lot closer look at the Financials. How have they performed year on year? How can they sustain that loss? I can see your evaluation is based on what you have read and believe you have assessed it fairly. I also liked your discussion with Tia and comparing companies and names of statements and how they can be different.


You have explained your experience with this task well with detailing how you obtained your bank statement information and then your clarification question about the ‘key’ was a good pick up. I listed each of the five elements in my Chart of Accounts and stuck to the order so my Rev and Ex’s were in the 400’s and 500’s (Assets 100’s, Liablities 200’s, Equity 300’s). I think you answered the questions appropriately and like that you noted where your 3 highest spends are… very appropriate

5 Trial balance

discussion

You described what the trial balance is in a simple form that was so easy to understand i.e. a list of the chart of accounts in terms of debits and credits and is a trial of whether these match! But your spreadsheet shows that your trial balance doesn’t balance, and your balance sheet is also out.

OverallOverall I think you relate your experience really well and look forward to hearing whether you do some more investigation on your company. Your notes say that you balance and that figure is the same as on your DR’s column but the CR’s column doesn’t match.

Feedback to: Melissa Edwards




I found your background information on your company to be thorough and you covered what they do really well. One of the things to note that line up with the 2015 loss include their year to year performance since 2012 but also the affect that has had on their share prices from $3.02 to .21c in 2016. I think that they have recovered really well, as you say, from that loss and is interesting to see what the executives are being remunerated at – nice!


In relation to discussion with others, I too struggled to connect. I don’t even think it’s a matter of being behind or that perhaps we don’t have similar business types, it is a difficult thing to do if you aren’t in a study group or able to attend class OR aren’t technologically savvy?


5 Trial balance discussion

Overall

Feedback to: Doan Thao Bui




Hi Thao, I think you company information is good and provides appropriate overview of what the company does but you could provide more detail about the building materials company and what specific material they deal in. I think you should provide more information in relation to the overall financial performance. It seems like your company is a long standing company that perform consistently over time. A tip I got from one of the other students was to add up to 10 articles (if you can find that many) and provide a short summary of each as this helps to get marks also (thanks Kirrilly!).

I note that you haven’t included any comments about this – even if you haven’t had any discussion talk about why that might be? What are the barriers? What could you do to get more engaged?


I think you could think about changing some of the names for your chart of accounts in particular 2-2 Purchases, could be more specific about what type of purchase e.g. Personal purchases or miscellaneous purchases or are they


inventory? Lastly, you could answer the questions in this step using your own feelings and experience in completing the chart of accounts.

5 Trial balance

discussion

You will need to provide some discussion on how you completed your step 5. I don’t think your Trail Balance balances correctly either, looking at some of the figures seem to not be in the right place and one of your formula’s is totalling up the final balance? Can I suggest you watch Maria’s tutorial again (week 4) to help you revise your TB.

OverallI think you will get there Thao, you might need to read the assignment questions again to get a better feel for what it is you need to do and definitely look at some of your peers to see what they have done.

Feedback to: Dion




I found your background information to be very thorough and don‘t believe there is a lot of advice for improvement to be given. Only one thing that I have provided to several students I have given feedback for (and it was originally feedback given to me) is to include up to 10 news articles (if you can) as this will get you more marks. Unfortunately, I was confused by your blog page and spent time last night reviewing your previous terms company ATNA, on a brighter note – they had an awesome website and really easy to read report!

There is little evidence of your discussion with others but we are working on that!


Your step 4 is great, couldn’t identify any issues with your calcs. Should you maybe provide a heading for your %’s so that people understand what the measure is against, i.e. % of Total Income?

5 Trial balance

discussionYour trial balance looks to be complete and accurate. Seems you had exactly the same question as me in regards to the closing out of the temporary accounts – a factor I am yet to get my head around!

Overall Overall your step 3 is awesome and you have addressed steps 4 & 5 well.


Feedback to: Kelly Tranberg




I found your background information to be very thorough and don‘t believe there is a lot of advice for improvement to be given. Only one thing that I have provided to several students I have given feedback for (and it was originally feedback given to me) is to include up to 10 news articles (if you can) as this will get you more marks.

I can’t see any discussion with others or any comparison against others company’s.


I too had the same concerns about everyone seeing my expenses but in the end I didn’t include my husband’s or a lot of our transactions, just the general ones in our ‘bill paying account’. I think you really got into this step and have described what your thoughts and feelings about it very well. Just remember though, an income statement is a statement that shows our revenue and expenses which reveals our Profit or Loss, that is then taken over to the balance sheet to balance off against our assets, liabilities and equity; the income statement doesn’t include these last three items.

5 Trial balance

discussion

Your trial balance looks good including your discussion. I note that you will be adding more but great job so far. I hope to get some more understanding about the closing of accounts during the vacation week as I missed last semesters unit and like you it took me a couple of goes to get it right.

OverallOverall you are it’s looking good and you have lots of info maybe just lacking in the discussion with others situation. Good luck!!!!

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