Well, its done.
Not sure how I feel about the actual spreadsheet, or how I will go in this part of the assignment, but here it is – my spreadsheet and submission for anyone’s interest.
Surprisingly, I was feeling disturbingly satisfied with the end result, which makes me nervous in itself! I’m actually looking forward to getting the feedback this week (as opposed to cringing most other weeks).
Hope everyone else goes well!
Company Spreadsheet – Grand Baoxin Auto Group
Ok, so after my last frantic semi-melt down post, I have had a few “aha” moments and I think I might actually be getting there, also thanks to some much needed feedback and reassurance that I’m not completely losing my mind ….. thank you Brodie McDougall!!
While I still don’t completely understand the Statement of Movements In Equity, I think I at least understand how to restate it – luckily it seems simple enough and the figures look right to me.
I think I have figured out the tax – there was a section in the footnotes of the annual reports that referred to calculation of tax under Chinese regulations, so I have adopted the general 25%. I have decided to ignore the potential for this tax rate to be varied to either 15% or even 5% as there is no way of actually knowing what rates apply to what company or when portion of income. I hope this is correct 🙂
I found some hidden references in the footnotes to the interest income, and also found the solution as to why my total NFO + Equity did not equal my NOA – just a straight forward check on the calculations and its all looking matchy matchy.
Still hoping for some feedback as I’m hoping my matching figures aren’t just a coincidence, if anyone has the time. Company Spreadsheet – Grand Baoxin Auto Group
Finally seeing a light at the end of this very long tunnel though! Hope everyone else is too 🙂
So i have finally come to the end of my tether in restating these financial reports on my own. This is my plea for help if anyone has a spare moment to help me out 🙂
I have uploaded my work in progress restated financials here: Company Spreadsheet – Grand Baoxin Auto Group
If needed, the 2016 annual report is also here: 2016
The first and probably most major problem I have encountered in entering, interpreting and restating is my firms Consolidated Statement of Movements in Equity – yes, the very first report!!
For some reason this report does not make sense to me and I find it very difficult to follow. Perhaps because it runs and is laid out differently to the others, perhaps because there are no direct footnotes to help me decipher the different “reserves” or maybe it is a combination of both.
I’m not sure and I cant seem to figure out what it all means and how I show the Transactions with Shareholders. The final three items being the Equity Settled Share Based Transactions, the Final Dividend Declared (from previous year) and Transfer from retained profits accounts. Are these simply transfers of equity to the shareholders?
Can anyone can offer some translation of this report or of these items in particular? Any assistance would be most graciously received! I can feel some grey hairs coming through….
The second problem i have encountered is with calculating and allocating Tax.
I have known this problem was coming for some time, ever since I looked into the setup of the company with the Cayman Islands, Hong Kong and China. I just wasn’t sure what form it would take or exactly how it would cause me grief. Income tax seems straight forward enough, this seems to fall under China’s rules for the majority of the business, but the Company Tax (which I assume is what we are generally referring to when we say “tax”) I feel becomes a bit complicated. Firstly, the principal place of business is in Hong Kong; therefore I would think I would adopt their company tax rate of 16.5%.
However, there are footnotes in the annual report that talk about the Chinese subsidiaries, that may be allocated either a 25%, 15% or 5% Company Tax rate, depending on different circumstances and agreements between the 2 countries.
The Cayman Islands on the other hand, has no Company Tax.
So how do I know/decide what rates to apply for restating the financial reports?? Or, if I have to apply these at all, and how do I decide what part of income to allocate it to, particularly given that the company has so many subsidiaries, and not all of them are even listed in their reports?
Has anyone else come across this situation??
Also, to further complicate this issue, I cannot for the life of me find any reference to interest, either being received or paid as a separate item, or in the footnotes. Am I completely missing something?
The (hopefully) final thing I am searching for some assistance/guidance with is my balance sheet. Why in my restated balance sheet would my total NFO + Equity not equal my NOA for 2015, for one year only?
Is there an obvious reason for this that i have missed or is this “acceptable”?
I have checked all the figures and sums which seem right to me, but its sending me a little crazy!
Any thoughts or other comments/insights into my work in progress would be much appreciated!!
Treading water hoping someone might be able to throw me a lifeline 🙂 Thanks in advance for taking time to look at them for me, or even just letting me vent on here!
Hope everyone else is going ok with theirs!
Whose idea was it to undertake a Term 3 at uni that would allow only 1 week intermission over Christmas????
I’m sure all of you (myself included) have now “restated” the weekly study program to discover that the “realities” of this are that there is no study break over Christmas!
Nevertheless, I submitted by Step 2 this morning, which is attached below for anyone who may be interested.
In the end, I enjoyed this chapter a little, assuming that my interpretation of the material is correct! Otherwise I am anticipating another type of “F” in my accounting vocabulary.
Also, in the spirit of Christmas and giving, my computer has given me a very valuable lesson in backing up data and keeping in in 5 different places……. (“massive face palm”). Needless to say, I have managed to fall a little behind in my restating the financial reports, so I am hoping to upload my draft for comments and review tonight.
Hopefully I am not too late for you guys to give me some much needed feedback as I am just catching up to where I was 2 weeks ago!
Hope your all managing to stay sane through it all 🙂 x
Strength In Numb3rs 