My thoughts and opinions in restating my firm’s financial statements
I went into this learning task stressed and confused as I had never restated a firm’s financial statement before. For this reasoning, I found it greatly beneficial working alongside Martin’s notes and explanations as he restated his own firms (Ryman Health) financial statements, as this provided me with a guide and a starting point in restating my own firm’s financial statements.
The first financial statement that I attempted to restate was my firm’s statement of changes in equity. I found this restatement fairly easy and straight forward as I didn’t have to restate much of the financial statement it was just a reorganisation of the items on the financial statement. As prior in assignment one, stage three I had entered in my firm’s data correctly which contributed to making the process easier and less time consuming. As a result, it didn’t take me too long to complete this restatement.
I then attempted to restate my firm’s balance sheet. Again, I found the restatement of my firm’s balance sheet fairly easy. The examples that was provided in the text was similar to some of the items that were entailed in my firm’s balance sheet. This enabled me to work from the examples whilst reading and reorganising my balance sheet. This process only took me two hours, once I had double checked all of the restated items and formulas to ensure that everything added up.
Finally, I was left to restate my firm’s income statement. For me personally, this one was a brain teaser, and very time consuming. As prior in assignment one, stage three I had already included in the firm’s income statement their comprehensive income. I believe this saved me some extra time as I didn’t have to back track and search for my firm’s comprehensive income statement. Like the other financial statements, I found the examples in the text very helpful in guiding me towards the layout of the income statement.
Overall, for me personally, when restating my firm’s financial statements and in particular my firm’s income statement, the most difficult part that I came across was separating some of my firm’s items into operating and financial as I didn’t know what some of the items entailed, therefore making this process challenging, time consuming, and frustrating. At first I wasn’t understanding the concept of restating and the more time that I spent on it, the more that it got confusing and the more that I got frustrated with it.
I started a discussion on the assignment two moodle discussion forum in regards to restating our firm’s income statements as this was the financial report that I struggled the most with. Here is the link to where this discussion has occurred between myself and Rayleen Galdal: https://moodle.cqu.edu.au/mod/forum/discuss.php?d=126633
I found that by engaging with Rayleen enabled me to take a different approach in restating my firm’s income statement. Also by interacting with Rayleen allowed me to hear her advice and her approach in the restatement which made my approach to the situation much easier.
From interacting with other peers within the course, one main aspect that I believe made the process of restating my firm’s financial reports easier was that I had entered the data from assignment one in correctly. As I was engaging with some of the conversations on the discussion forum between other students, one of their main concerns with the restatement was getting there items to add up.
Overall, I did enjoy the learning experience that I was able to extract from this particular learning task. Although through experiencing some difficulties throughout restating my firm’s financial statements, I liked being given a challenge as it opened me up to new opportunities and experiences. I will admit I was initially stressed about restating my firm’s financial statements as I had never done it before but by the time I got to restate my firm’s income statement I was beginning to understand the process that was required in restating the financial statements. Once I got into the rhythm of restating my firm’s financial statements, it became an easy process in analysing each particular item in my firm’s financial statement.
I believe that by restating a firm’s financial statement enables the firm to make informed decisions about the future of the firm and to reflect back on the firm’s success.