Some tips from Kerryn Zimmerman (Distance – Melbourne; who is studying a Bachelor of Property and a Bachelor of Building Design):
I have come across many tips to help me with step 3 so I thought I would post a blog about them to share them with everyone. I would like to thank everyone who provided me with these tips.
Tip 1: Make sure that your other comprehensive income in your restated equity statement has actually been split out into operating and financial categories.
Tip 2: On your ‘restated statement of financial position’ make sure that your operating assets + financial assets = your total assets on your balance sheet. If they are not this means that your categories are not correct and you will need to rework them until you get the right amounts. This concept also applies to your liabilities. **Make sure you do both**
Tip 3: Also on your ‘restated statement of financial position’ you need to check that NOA = NFO+Equity. If it does not you have made a mistake and will have to recheck it.
Tip 4: In your restated statement of financial performance the ‘comprehensive net profit after tax (CI)’ needs to match both your ‘profit (loss) after tax for the year in your income statement and your ‘profit (loss) after tax for the year and total comprehensive income (loss) in ‘your statement of movement in equity’. Again if they do not match then you have done something incorrect and will need to go back and rework it. **My tip is that you might have done something incorrectly with the tax part so I would head there first.
Tip 5: Dividing your cash between operating and financing
First line: Cash and Cash Equivalents – link this from your statements
Second line: Revenue – link your revenue from your income statement (from 1st assessment)
Third line: Percentage of cash out of total revenue – Cash and Cash Equivalent divide by (/) Revenue – make this into a percentage
Forth line: Allocating to operating – =.01 time (*) Revenue
Firth line: Cash and Cash Equivalents minus (-) allocation to operating
Then add the amounts to operating and financial
**You can find further details on this step by watching Maria’s lecture from this week.**
Tip 6: In your ‘Restated Statements of Financial Position – if your (FA) is larger then your (FO) you will actually have a Net Financial Assets (NFA) and not a (NFO) also you will need to change the last question from (NFO) + Equity to Total Equity – (NFA) to get the correct answer. ** also put your (FA) above your (FO)**
I hope these tips help you in completing step 3.