Step 2
I left this step until last, and in hindsight… Baaddddd
decision! I struggled through my ‘Restated Statements of Movement in Equity’, I
think it took me around 4 hours. Around half way through and I’d had just about
enough when it finally dawned on me to read the study guide again, wow did I
think I was stupid. I opened it up and went through the chapter as I was
restating my report and this made it a help of a lot easier. The notes in the
reports helped slightly, however a great deal of progress came through the
study guide and perseverance, lots and lots of perseverance.
As I was completing my initial restated report, I came
across some major hurdles. Whilst restating my Restated Statements of Movements
in Equity report it became evident that figures from my previous report (not
restated) were not aligning with those of the restated report. I came to the
conclusion through calculating the figures one by one to find which was out of
place, the ‘Relating to acquisition of a subsidiary’ and ‘Relating to purchase
of non-controlling interests’ amounts for 2014 were featured below the ‘Total
comprehensive income (losses)’ tab in the financial statements report. However
in the restated reports I moved them above this total and therefor they were
calculated along with the other figures.
This lead to the figure for ‘Total comprehensive income
(losses)’ being lower on the restated report as opposed to the norm. I did not
change this however, as I believe that they should feature in the ‘Total
comprehensive income’ calculations as they relate to that category. The same happened
for ‘Relating to purchase/acquisition of non-controlling interests
and subsidiaries’ as well as ‘Transactions costs (losses)’
in the year 2013. However these categories should also lie in the ‘Total
comprehensive income’ calculations as they relate to the income sections as
opposed to transactions with shareholders.
Therefore, due to this variance in amounts they ‘Total other
financial comprehensive income’, ‘Total other comprehensive income (losses)’
and therefore ‘Total comprehensive income’ sections are misaligned between the
two reports. The ‘At 31 December each year (2011 to 2014)’ tab however is
matching perfectly in regards to the amounts on both reports.
The following two reports, ‘…Financial Position’ and ‘…Financial
Performance’, were a great deal easier than the initial report. I believe this
is due to the fact that I now had an understanding of the basic operations that
go with restating a financial report as I was able to think more for myself and
rely a lot less on the study guide and peers in the forums. No major dramas had
to be overcome when doing these reports, I’m choosing to take that as a good
thing and believing that I have completed them correctly as opposed to the
alternative… haha! My only question I couldn’t figure out myself however is in
regards to the balance sheet; why is the entirety of this report not included
as part of the restated report however in the origin report everything is
present? I assume that this is due to the fact that not all figure of this
report are needed for the restated report, however I remain uncertain.
I never thought that I would say this but I actually enjoyed
this assignment, yes I know. The overwhelming amount of frustration and
sleepless nights I will not miss however now that I have completed this step
the greatest feeling of fulfilment has rushed through me. I am happy to be
finished this step, however it is something I would welcome experience again.