“Financial winners dont’ run sprints, they run marathons. They don’t rush. They do it step by step over time.” Dave Ramsey
The statement above sums it all up. This has been a marathon working out the restatements. However I plugged away step by step and was able to complete the spreadsheet.
What did I get out of this exercise?
Firstly, a massive headache and hardly any sleep the last two nights. Seriously I have learnt that no matter what mistakes are made a solution will be found. Whether it be redoing the spreadsheet or putting it out there and allowing another set of eyes to help with and maybe finding out where you went wrong. Without the help that I have received over the past couple of days, I would probably still be hitting my head against that brick wall and wondering why my head still hurts.
After Restating my Income Statement (Comprehensive Income Statement) I found it took 3 attepmts to see where I went wrong. Through watching the video I was able to ascertain where I was going wrong. In the end I found that my Comprehensive Net Profit after tax (CI) also matched my original Income Statement. With the balance Sheet I had an error and after posting on Facebook for evaluation a fellow student was able to locate where I had made the error of totally missing two rows in my Restated Balance Sheet. Once I corrected those two mistakes it also balanced out with Net Operating Assets (NOA) equalling Total Equity minus NFA. What I have discovered is that China Outfitters Holdings Ltd has a very high Reserve cash which makes the Equity Higher than the Net Operating Assets.
From 2014 through to 2018 the Board of China Outfitter Holdings Ltd did not recommend to declare any final dividends for the years ending 31 December 2015, 31 December 2016, 31 December 2017 and 31 December 2018.
The calculation of basic earnings per share was based on the profit attributable to ordinary equity holders of the parent and the weighted average number of ordinary shares of 3,435,162,000 in issue during the year stated. This made it impossible to work out some figures due to dividends not being paid in 2016, 2017 & 2018.
It is interesting to note when going through the annual reports small titbits of information come to the fore. In this instance for the year 2018 there has been a change in the way it will do its curent year’s financial statements.
- The Company has adopted the following new and revised IFRSs:
- Amendments to IFRS 2 Classification and Measurement of Share-based Payment Transactions
- Amendments to IFRS 4 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts
- IFRS 9 Financial Instruments
- IFRS 15 Revenue from Contracts with Customers
- Amendments to IFRS 15 Clarifications to IFRS 15 Revenue from Contracts with Customers
- Amendments to IAS 40 Transfers of Investment Property
- IFRIC 22 Foreign Currency Transactions and Advance Consideration
- Annual Improvements 2014- 2016 Cycle
- Amendments to IFRS 1 and IAS 28
ACCT13017 - Financial Statement Analysis 
Hi Iris,
I really appreciate your vote as a top blogger and for taking the time to provide feedback to me.
Unfortunately, with three assignments on the go, I had to make a deadline of Tuesday for providing detailed feedback to people and then move on to other work. Sorry I haven’t had the time to go through and review it properly. I would suggest that next time, maybe get your draft up earlier even if it isn’t finished. A lot of people could probably have helped with what was left and you would not have had to struggle through alone so much 🙂
I did a quick review:
Your spreadsheet looks great now and everything balances. There are formulas in all the right places and your spreadsheet mostly reflects the statements. I would have probably left finance income where it was so your gross profit is the same as the financial statements but not a big deal and not worth changing now. I don’t know if anyone has mentioned it but I think row 33 should say ‘Profit attributable to:’ Your non-current assets are not on top of current like the statement but again not a big deal and not worth changing now.
In regard to allocation:
At first the title for the item ‘Impairment losses on financial assets, net’ made me think it was going to be financing but the notes say this is impairment of trade and bills receivables so I too would consider this operating.
Your ‘Changes in fair value’ and the related ‘income tax effect’ are for available-for-sale assets. Available-for-sale assets are debt or equity instruments and could be considered as potentially short term. I would have probably classified these items as financing based on my research for this item. The notes were not too detailed for this item.
You have allocated ‘Investment properties’ to financing which I think is correct as it doesn’t seem to be a part of normal everyday business operating activities. However, you have ‘properties under development’ as operating. I would assume these will eventually be investment properties too so I would have classified them as financing.
I’m curious as to what made you allocate ‘Prepayments and other receivables’ to financing? The notes for this are not super detailed. Prepayments are generally operating as they are normally payments in advance for rent or materials, etc. Other receivables still sound operating to me as well. However, I have not probably looked through the notes in the same detail you have.
You have classified ‘Income tax payable’ as operating but ‘Deferred tax liabilities’ as financing. However, I think these two items should be consistent as they both refer to tax? Tax seems like it is operating as it is an every day occurrence of earning a profit from operating activity.
Of course the allocation opinions are just that and don’t feel you have to change any. I am not 100% on any of time….just providing an alternative view.
The company information is detailed and I can see that a lot of effort has been done in putting it all together. It looks like you have addressed or almost addressed all the assignment components. Well done on getting it all completed.
Apologies I ran out of time to do proper feedback
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Thanks Kym Thank you for your feedback.
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