Restating financial statements

Company Spreadsheet 2016

Hey guys, I have restated my financial statements for assignment 2. I am feeling confident with my restated statement of equity and balance sheet, however, my income statement I am only just out. The amount of my tax benefit to be exact, but I can’t seem to find the problem. Have a look at how I constructed my statements along with my statements and see if you can pick up on my mistakes. Thank you!! 🙂

Restated Statements of Equity:

I found in my statement of equity that I have no operating or financing income, as I only have shareholder related incomes. Is this correct? Or is it even possible for my company to not have and operating or financing income within the statement of equity?

I feel as if my statement of equity is missing stuff however, I have triple checked with my firm’s financial statements and it doesn’t appear that I have missed anything. But I am wondering how my firm was able to gain a total comprehensive income without any operating or financing income? I noticed in the notes section it states that my company’s profit after income tax non cash flow is $1,493,422 which is equivalent to my total comprehensive income. So I was wondering if I should write my total comprehensive income as profit for the year instead of the comprehensive income? Although in the notes it doesn’t state where it gets this income from. See below screenshot.

cash flow

I was also unsure about increase on issue of employee rights in my statement, however, after reading the notes I realised that it was share related, so I left it in the transactions with shareholders section.

Does anyone else have this problem with their statements of equity? I would love some feedback to this matter as I am a little confused about it.

Restated balance sheet:

I found restating the balance sheet relative straight forward however, I am a little worried about my Net financial obligations (NFO). As my company doesn’t seem to have any debt at the moment my Financial assets (FA) are significantly higher than my Financial obligations (FO) unlike Rymans healthcare and Maria’s company. Did anyone else find this? As a result of that I got an – $4,800,653 for my net finical obligations (NFO) unlike Rymans healthcare which got a positive NFO. Although my NFO plus my equity still equalled my Net Operating Assets (NOA) which I was rather happy with. In theory I think this just means that my company doesn’t have any current loans or debts at the moment and has a lot of equity in shares. Is this correct? And did anyone else’s Net financial obligations (NFO) equal a negative number?

Restated income statement:

I found restating the income statement by far the hardest statement to restate. At first I had trouble calculating my Net financial expenses (NFE) as my firm has no financial expenses (FE). It took me a while to realise this as my firm has no current loans therefore they are not paying any interest on loans. I also found that I had to go back through my firms financial statements notes to find there interest revenue which in turn gave me my financial income (FI). So seeing as that NFE = FE+FI, I got an answer of $140,325. However cause my firm is making interest and not paying any at all does this mean that this number should be negative? Because technically my firm doesn’t have any net financial expenses they have a net financial income. I found this concept very confusing to get my head around, and I think this is one of the factors as to why my income statement is out.

Following on from that, I found in my original income statement a line called profit contributable to members. However this line is also equal my total comprehensive income for the year. I found this line very confusing as to why it is there and what is the reason of it? I had a look in the notes section of my financial statement however, there are no notes about this line. I had trouble deciding whether or not this line should be included in my restated statement or not? I originally put it in with my total operating revenue however (with great doubt) on completion of my statement my CI was out consideringly.

total comprehensive income profit screenshot

I came to a realisation that this was just a line stating how much of the profit was contributed to the members (as the line states). So therefore it was more of a total before total as the firm contributed all of its profits to its members. Therefore, I decided to just restate the line before the comprehensive net profit after tax for the year.

After taking the profit attributable to members line out, my total came to $1,451,324.5 this total is very close to my original total comprehensive income for the year of $1,493,422. In fact I noticed it is the difference between my tax benefit which is $42,097.5. So I know I must be close with finishing my statement now it is just a matter of fixing this problems, it may have to do with my minus and positives of my tax benefit somewhere. Can anyone see where my mistake it here?

KCQ’s Step 2


After initially looking over the annual report I am felt as if I was looking at an entirely different language (68 pages of different language to be exact), with no idea where to start. Please tell me I was not the only one feeling like this?

I was initially having problems with identifying what the firm actually profited for the year. I was having trouble/am still having trouble if I use the profit before tax? Or after tax? Or once dividends have been paid out? Or the total comprehensive income for the year? It all seems very confusing to me. Although the profits to me seem very favourable, the directors annually report suggests that it was a tough year, with difficult market conditions. In saying that, the board is still pleased with the results considering the conditions.

Following from week one’s study I recall, it is more important to know what the firms value is rather then its profit. So I am having trouble finding the actually value of the firm (whether that be the value of all the equity or shares or not?).

Even though the throughout the report they state it is tough economic times ASR are still able to pay out dividends to their shareholders.

I had noticed in the annual report that total of employees has dropped from 19 to 15. I wonder if this is from the slowing down of the economy or if they had just moved on?

Key Challenges/Strategy

One of the key challenges that I fear ASR are having are the current weakness of the share market, as started in their annual report 2015, this weakness is making it hard for them to grow, however they are still able to maintain profit. Following that, market competition from other big firms are another big challenge for ASR. Currently the board is examining ways in that they can use their infrastructure for additional business opportunities. In the mean time they are adding further services and products to its portfolio of services to clients.

Advanced share Registry – About

On initial thought I had completely no idea on what Advanced Share registry did and I must admit it took me quite some time to understand what the company actually does. I was daunted with the thought of my company as shares are an entirely new concept for me and I still am quite unsure about them.

In a nutshell Advanced Share Registry (ASR) manage and update other company’s shares for them. They assist small businesses in managing and communicating to their shareholders.

Kim Chong was the founder of ASR and established the business in 1996, he did this because he was tired of working for larger organisations. Chong virtually started from the bottom, with the aid of a few programmers he developed the software for the business and got started with an initial 6 clients. Those 6 clients are still there today (as of 2008). Chong was able to reinvest into the business using cash flow rather than the equity capital. After a successful 11 years ASR had a total of 170 clients. Chong then decided that he wanted to sell some of his equity to accelerate the company’s strategy, which was to move beyond a small and midcap stock base. Chong offered 12.5million shares at 40cents each, which gave ASR a capital rising of 5million dollars (see share register seeks investor). Chong was able to sell these shares and still remanded the major shareholder with 64.7% of the shares. The 5 million was used to fund a targeted infrastructure and staffing upgrade. In more recent times the firm has currently just purchased an office in Sydney to allow for a more economically premises to conduct its Sydney operations and has currently a total of 15 employees.

That’ll do for now but stay tuned for more on Advanced Share Registry.

Hey all!

Welcome to my blog for ACCT 11059

My names Richy, I am 23 years old and blogging is a completely new concept for me and I am most definitely out of my comfort zone with it, but hey, here I am. I am currently working through a bachelor of property at CQU with my final goal being, to become a property valuer. I am a Fitter and Turner by trade and this is my first accounting course so I am feeling both anxious and eager to start.

Thanks for dropping by.