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


ASSIGNMENT 2 Steps 3 & 4

Steps 3 & 4: to be completed by 11.00am Monday 7 May (Week 9)

There are NO penalties for late submission.

STEP 3   (15 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 balance sheet in the same year
  • Check if comprehensive income equals comprehensive income at end of 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 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#3. 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                                    8 marks

To mark the restated Income Statement use the ASS#2 template. Copy the template into the student’s spreadsheet underneath their restated Income Statement. Follow the instructions for using the template (see another 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:

Here are some of them:

Country 2018 2017 2016 2015 2014 2013
Australia 30 30 30 30 30 30
Belgium 29 33.99 33.99 33.99 33.99 33.99
Brazil 34 34 34 34 34 34
Canada 26.5 26.5 26.5 26.5 26.5 26
China 25 25 25 25 25 25
France 33 33.33 33.33 33.33 33.33 33.33
Germany 30 29.79 29.72 29.65 29.58 29.55
Hong Kong 16.5 16.5 16.5 16.5 16.5 16.5
Sth Korea 25 22 24.2 24.2 24.2 24.2
Malaysia 24 24 24 24 25 25
New Zealand 28 28 28 28 28 28
Singapore 17 17 17 17 17 17
Sth Africa 28 28 28 28 28 28
Switzerland 18 17.77 17.92 17.92 17.92 18.01
UK 19 19 20 20 21 23

 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           Provides quality, thoughtful and considered feedback to three other students, setting out specific suggestions for improvement. (usually only a few students in the course will get 3/3).

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 further words in the Feedback box, using the student’s name and your name. For example: “Hi Fred, Your feedback is in the attached file.  Regards, Martin”.
  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: I copy the words (and marking table) below into the student’s ASS#2 directly above the marking table and then delete the points not relevant and then adjust/add to as required. If you have suggestions about any improvements to these ‘standard feedback items’ for Step 3, please let me know – they will be gratefully received.


Step 3    
Restated Statement of Changes in Equity 2  
Restated Balance Sheet 5  
Restated Income Statement 8  
Commentary and discussion with others 3 18
Step 4    
Individual feedback with other students (Steps 3 & 4)   3
TOTAL   21


Hi [student’s first name]

You have completed a sound ASS#2 Steps 3 & 4. Your spreadsheet is well prepared and is in good shape to use in future steps in your ASS#2. [Your spreadsheet is quite well prepared; and you need to make a few changes to your spreadsheet so that it is in good shape to use in future steps in your ASS#2.]

Step 3

Restated Statement of Changes in Equity                            /2 marks

  • Not show opening and closing equity
  • Not show transfers with shareholders

Restated Balance Sheet                                                         /5 marks

  • Not separate operating and financial items [indicate which items incorrectly allocated, e.g. Trade Debtors: operating not financial]
  • Not identify NOA and NFO
  • Not balance – NOA = NFO + Equity
  • Not allocate cash between operating and financial

Restated Income Statement                                                 /8 marks

  • Not identify Comprehensive operating income after tax (OI)
  • Not identify Net financial expenses after tax (NFE)
  • Not calculate income tax benefit
  • Not allocate tax to operating and financial
  • See attached spread sheet. You can use my figures for OI and NFE in the rest of your ASS#2

Step 4

You gave thoughtful feedback to three other people, including some occasional suggestions on how people could improve their work.


I enjoyed reading your ASS#2 Steps 3 & 4. Your spreadsheet is in good shape for use in the rest of your ASS#2. [As noted above, you need to make a few changes to your spreadsheet so that it is in good shape to use in future steps in your ASS#2.]

[You have laid a good foundation for the rest of your ASS#2].

I look forward to reading your next assignment.



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


Martin Turner

Course Co-ordinator