Assignment 2 - Step 3 & 4

I must admit I felt quite nervous when first attempting to complete this step of the assignment as I knew it would not only be very time consuming but also very challenging. I found this learning task to be quite frustrating at times however, I felt a sense of achievement towards the end of the task.

Prior to commencing the task, I started to recap my knowledge of Chapter 4. Since this study guide covered a lot of information, I decided to re-read it and write down notes to refresh my memory. The main concepts that stood out whilst reading through chapter four were looking at a company’s activities as either financial or operating and separating them appropriately.

One of the main challenges I discovered was I had difficulty separating operational and financial activities. Firstly, I had to learn the difference between operational and financial assets, and this is where chapter 4 of the study guide came in handy. I found I had to learn how to classify each specific item as since I’m new to Accounting this task does not come naturally to me. My understanding of operational activities is the day to day operations of a business. An example of an operational activity for my chosen company Wise Tech Global would be selling logistics software programs.

Another issue I had in restating my firm’s financial statements was using excel. I use excel quite frequently for my job however, not in the sense of creating formulas. My experience using formulas in excel is limited therefore, I have found this to be quite challenging restating the financial statements however, viewing the example by Cassie Phillips gave me a greater understanding on what was expected. Also, viewing the example videos assisted me and I’m not sure if I would’ve been able to complete this without the helpful tips.

Throughout this task, I have learnt that restating shows the true operating and financial commitments of Wise Tech Global. By reinstating the financial statements, it also increased my knowledge of the company. By researching more about Wise Tech Global it also made me realise that their head office is in Adelaide. I found this out when I was searching for the USA tax rate thinking that Wise Tech Global was an American company only to be proven wrong. This only made it easier as I had difficulty trying to work out the corporate tax rate in the USA. Once I found that I could use the Australian tax rate of 30 percent I was very much relieved.

After many short breaks and coffees, in the end I was relieved that we were assigned this task as it gave me a greater understanding of Wise Tech Global and where their money goes and comes from. This task has also put together a few missing pieces that I’ve been questioning and a better understanding as to why we have been learning such content throughout this term.

As I am an auditory learner, this assignment has given me a greater insight into my learning style. The example videos on Moodle helped me greatly since auditory learners find they learn best while they are actively listening and prefer to digest information through audio or video clips.

I’ve also found the Facebook page to be very helpful during this task as often the questions I’ve been stuck on have already been discussed on the Facebook page.

By reinstating the financial statements it’s clear that their income has increased throughout the years making it a profitable business which I would consider investing in.

The net profit from the original financial statements, does not agree with the total comprehensive income from the restated financial statements for the years 2018, 2017 and 2016. I’m unsure how to fix this and hoping I’m able to solve this with more time.

Feedback I received from other students hasn’t been entirely helpful as I see that many people have struggled with this step or haven’t had enough time to complete due to the current climate and work commitments which is understandable and we’re all trying our best. I felt it helpful with giving feedback to other students as this enabled me to have a great understanding of my own work and things to look out for. I also found it hard to provide feedback to other students as I wasn’t familiar with their company and lacked knowledge to provide a detailed response.

Step 4 PEER FEEDBACK SHEET: ASS#2 Step 4

Feedback From: Anna Courtice

Feedback To: Tahnee Barker

My Comments

Step 3

I cannot understand how you have all these operating expenses with no operating income - that does not make any sense to me and unsure how to guide you.

The way I understand it is that if you have operating expenses you would then need to have operating income to cover those expenses to make a profitable business.

Not exactly sure how you have agreed the end profit figure to the restated totals. However, it works somehow – seems to add up.

Restated Statement of Changes in Equity

Restated Balance Sheet

Restated Income Statement

Commentary and discussion with others

(Note: You may wish to give some comments

on their Excel spreadsheet)

Overall ASS#2 Steps 3 & 4

Overall, you’re doing a great job with restating your financials and I wish you all the best with your studies.

Note: Please use this sheet as a guide.

Feedback From: Anna Courtice

Feedback To: Kaelyn Smillie

My Comments

Step 3

Not 100% sure on how you came up with a percentage of 5000% for the allocation of cash to operating and financial. I would suggest for the formatting to use brackets to denote negative items.

I would suggest using two decimal points for accounting and line the figures up just so it is easier to read.

Hope this feedback helps.

Restated Statement of Changes in Equity

Restated Balance Sheet

Restated Income Statement

Commentary and discussion with others

(Note: You may wish to give some comments

on their Excel spreadsheet)

Overall ASS#2 Steps 3 & 4

Overall, you’re doing a great job with restating your financials and I wish you all the best with your studies.

Note: Please use this sheet as a guide.

Feedback From: Anna Courtice

Feedback To: Ashleigh Gibson

My Comments

Step 3

I can't be sure the effect of a different balance date 30 of September instead of June 30 has on the tax in the financial statements.

The calculation of cash for operating to finance confuses me slightly and unsure on what the right answer would be for this.

How is impairment loss an operating activity expense as I thought impairment related to assets which may be financial?

Restated Statement of Changes in Equity

Restated Balance Sheet

Restated Income Statement

Commentary and discussion with others

(Note: You may wish to give some comments

on their Excel spreadsheet)

Overall ASS#2 Steps 3 & 4

Overall, you’re doing a great job with restating your financials and I wish you all the best with your studies.

Note: Please use this sheet as a guide.