Marking Guide: ASS#2 Steps 3 & 4 (ACCT11059)

ASS#2 Steps 3 & 4

Steps 3 & 4: to be completed by 11.00am Monday 10 May (Week 9)

There are NO penalties for late submission.

Please copy the Individual Feedback table and words into your student’s Word document from the Word document I have sent your separately.

STEP 3   (16 marks)

Restated Statement of Changes in Equity              2 marks

This is usually very quick to mark, as for many companies there will be little or no changes to their Statement of Changes in Equity. However, a few students can ‘muck it up’.

  • Check if closing equity in year 1 equals opening equity in year 2 and so on for each year
  • Check whether closing equity equals equity in the Balance sheet in the same year
  • Check if Comprehensive income equals Comprehensive income at the end of the restated Income statement (if it does not, do not take a mark off restated Statement of changes in equity – checking this now simply flags there is usually one or more errors in their restated Income statement)
  • Be generous with marking for statement of changes in equity
  • It is likely quite a few people’s firms will not have any Other comprehensive income items in their Statement of Changes in Equity (the Other comprehensive income items will all be disclosed in the Statement of Comprehensive Income). In these cases, all the student needs to do is link through the Statement of Changes in Equity from the other worksheet as it is to get full marks. Better students will also comment on how the Other comprehensive income is in the Statement of Comprehensive Income.

Restated Balance Sheet                                            5 marks

Many students can do this very well, perhaps with one or two errors. These can be quite quick to mark. However, some students can get ‘into a tangle’ with their restated Balance sheet. If they do, do not attempt to redo it for them; rather, flag some of the areas of errors and tell them they need to redo their restated Balance sheet to be able to complete their ASS#2. Tell them they can email Martin Turner at with their changes to their restated Balance sheet and I will review it for them and support them to get it into good shape for the rest of their ASS#2.

  • Check if it balances: NOA = NFO + Equity
  • If it does not balance, add up Operating Assets (OA) and Financial Assets (FA) and see if they equal Total Assets in the original balance sheet; and add up Operating Liabilities (OL) and Financial Obligations (FO) and see if they equal Total Liabilities in the original balance sheet. This helps to identify where the error(s) lie. You can then indicate to the student whether there are errors in the OA and/or FA, or in the OL and/or FO, or in both.
  • Also peruse quickly to see if they have mixed up some operating and financial items (just peruse quickly)
  • Allocation of cash between operating and financial – just check what has been done seems roughly OK. If operating cash is about 10% or more of Revenue, you should deduct a mark if they have included all cash as operating – unless they have written some reasonable justification for what they have done.

Restated Income Statement                                    6 marks

To mark the restated Income Statement use the ASS#2 template. Copy the template into the student’s spreadsheet underneath (or beside) their restated Income Statement. Follow the instructions for using the template (see a separate Word file for these instructions). Using the template helps you quickly (within a minute, usually) to develop an ‘answer’ for your student’s restated Income Statement. The one thing that can make it a bit longer to mark (add a couple of minutes) is if you need to go back to the company’s financial statements to identify financial income (from a footnote). You can then mark the student’s restated Income Statement against your ‘answer’ for their company from the template. This also gives the student feedback as to figures for OI and NFE which they can use in the rest of their ASS#2, if their own figures for these items were incorrect in their restated Income Statement.

Potential errors:

  • Errors in adding and subtracting numbers, e.g. add Expenses to Revenue, rather than subtract Expenses from Revenue
  • Comprehensive Income in Statement of Changes in Equity not equal Comprehensive Income in Restated Income Statement – this usually indicates an error(s) in the restated Income Statement
  • Not set out how calculated income tax benefit.
  • Not correctly calculated and/or allocated tax between operating and financial
  • Use the wrong tax rate.
  • Not identify Comprehensive income after tax (CI)

Note: this link gives the company tax rates for many countries in the world:

Brief commentary on any issues or concerns you had in restating your firm’s financial statements and the results of your discussions with other students     (3 marks).

Step 4    (3 marks)

Note: Students should use Peer Feedback Sheet as required by ASS#2.

3 marks           Feedback is totally off the charts (usually only one or two students, if any, in the unit will get 3/3). If you have to give a student more than 2.5/3 because their feedback is of such a high quality, give it 2.75/3.

2.5                      Provides quality, thoughtful and considered feedback to three other students, setting out specific suggestions for improvement 

2 marks           Provides reasonable quality feedback to three other students (OR thoughtful and considered feedback to only two other students).

1.5 marks         Provides limited feedback to three other students

1 mark             Provides limited feedback to one or two students

0 mark             Provides little or no feedback


When finished marking – loading marks and feedback files onto Moodle:

  1. When you have finished marking the students’ assignment, attach the student’s Word document with your feedback and marks in the Response files section. Click on Add, then Upload a file, then click on Browse to locate the feedback file you wish to attach and then click on Upload this file.
  2. Add some words in the Feedback box: Moodle individual feedback words, using the student’s name and your name. Any updates to the General Feedback will flow through to this automatically. Also, when I have some exemplars on Moodle I will also make changes to these words.
  3. Include the student’s grade in the Grade box.
  4. Also, make sure the Send notifications box is ticked (this will ensure the student receives an email that their assignment has been marked).
  5. Then click on Save changes. This completes the marking task for that student.

 Note:  If you find a student has seriously ‘mucked up’ their ASS#2 Step 3 (so that it is difficult to mark), you can forward it to me (Martin) and I will mark it. There will usually be a small number of these each term. I can deal with them quickly.

Note: Marking time of 2 students/hour has been allocated to marking ASS#2 (Steps 3 & 4).