Step 3 Restating commentary

The restating was very start forward when following the videos. My movement of equity didn’t have a break down in the comprehensive income on the statement of movement in equity. I used the comprehensive breakdown from the income statement after speaking with my tutor. These are restated as operating initially I thought the foreign currency was financial, after talking with Carmen the tutor about what it really was there was no financial comprehensive income.

The balance sheet restating didn’t balance at first it was troubleshooted and it was due to a small error. On the balance sheet the financial restating of the account “Investments accounted for using the equity method” seems to be from an accounting method being changed decided it was financial because of that. RPM Global has gone through a significant restructure of employment and service structure in 2015-2016 which included the purchase and development of another software company. This restructure created a loss for those 2 years. They also have a subscription based licencing product now rather than a purchase of a set IT product. RPM also has put an expense of rechargeable expense in the income section of the profit and loss I assume because it can be collected back as income and so it being shown as a negative in the income section, I it put back under operating expenses for the purpose of restarting.

Regarding the income statement all the finance accounts were all ready separated on the income statement making the process very straight forward.

I thought depreciation and amortisation was more financial rather than operating but it more accounting measurements than financial which is still operating.

Year 2016 in the income restating didn’t balance even though all the other years balanced. This was shown on the video also that one year didn’t balance I followed the example of looking for the error I couldn’t find it and sent it to Carmen my tutor for feedback.

I have tried to have conversations in class with other students regarding their firms. It has been rather generic and basic and many of them are not as far in their assessment as I am. I find the delay in response online challenging as I generally study once a week and I don’t use social media so haven’t gained useful feedback.

One more detailed conversation in class with a student about their company. Their company’s original business is transport and the company purchased an insurance company. We talked about why and how the business uses the insurance company to underwrite its own insurance and to also create income through retail products. Creating a profit. The student wasn’t able to see initially why a transport company operations would include insurance and why insurance expenses were not financial. Also what the purpose of owning an insurance company would be valuable for a large transport company. The brilliance of being able to underwrite insurance and also create income from what is previously is an expense is rather poetic. The student’s company also stated an interest in another business and thought it was also financial in nature because of the word interest. It has not occurred to me to write in either in KCQ’s or my blog to this detail I just assumed it to be general in knowledge. I read some of the notes on the financial reports on certain expense lines for interest sake and occasionally google a phase. The acronyms are tricky to remember I have created work a rounds. I am looking forward to the ratio part of the assessment.

This the the google doc link to my spread sheet it currently has a mistake in the year 2017 of the restated income statement that I cant find. I am following it up with my tutor.

https://drive.google.com/open?id=1UO8A9GeNmQOVPYsgWOFEvYHxBAvWByy7