Step 2

Step 2

I really struggled with Step 2 of the assignment – restating the three financial statements.  I did ask for some help on the forum with classifying some of my company’s activities and got a reply so that was great (I’ve attached that conversation separately).  Even though I did what Martin said to do and print off the statements and put and O and F next to each activities, I still struggled working out the classifications as my company uses language I have never heard of before and I had trouble searching it online.  I have had a go at the restating but even though I have spent weeks looking over the tutorials, seeing how other students went about it – I even asked the advice of an accounting secretary I knew and my book keeper and neither knew how to do it, that’s a bit scary!!

In particular I spent countless hours of lost sleep over restating the comprehensive income/income statements.  I then got to a point where I thought something uploaded is better than nothing at all, it’s just frustrating as I know they are not right but I can’t work out how to fix them.  The other major problem I had was that my company’s income revenue changed dramatically in each two year period ie 2011/2012 report on Group income statement is Revenue 2011 – 11,035   2012 – 10,896, then on the 2012/2013 report we have 2012 now at 9,966   2013 – 10,118 and moving on to the 2013/2014 statement we have 2013 – 8,852 and 2014 – 8,793???? And that was just in the sales revenue.  So I feel I have been defeated after much trying – very annoying!  I did find the documents explaining for these changes but I just couldn’t get the figures to flow from one year to the next.

I did find the UK tax rates for each year - Tax Rates for UK - 2014- 21%       2013 -23%      2012- 24%     2011 - 26%

This is what happened to my study area when I tried to restate the income statements