Top 3 Blogs

Of the blogs I looked at, my top three in no particular order are:

 

Ben Patchett

http://bensassignment1blog.blogspot.com.au

I like Ben’s blog as he has kept it simple and relevant.  He has shown that he understands the assignment tasks.  I can relate to Ben as like me, he has a Trade background and other things going on his life than Uni. 

 

Jade Thomas

http://jadethomas1995.blogspot.com.au/

Jade’s blog has lots of content as well as visuals and she has still managed to keep it neat and simple; making it an easy read.  She has included content and links from her firm’s website as well as including plenty of original articles detailing her KCQ’s. 

Emily Aitchison
http://emilyaitchison.blogspot.com.au/

Emily’s blog is really well thought out.  It is like a blueprint to her assignment.  I like that she has included plenty of content that is based around her KCQ’s and not just things she has copied and pasted from her firms website.   She seems to have a great understanding of her company and the assignment.

 

 

KCQ - Equity Raising

As equity raising has been one of the primary sources of income, my company’s financial statements and accompanying reports go into great detail about how this equity has been raised.  This is a big part that I do not fully understand and don’t think I will at this early stage of my study.  I think investing, shares and equity funding is a discipline of study in its own right.  Here are some terms I’m yet to wrap my head around:

·         Conversion of loan funds to issue shares

·         Equity funding by a renounceable rights issue

·         Share options

The Statement of Cashflow really highlighted for me the amount of money the company raised through the issue of shares. This contributed to the huge cash movement and position from 2012 to 2013. This increase in cash enabled the company to earn further revenue by way of credit interest on its bank account balances. In 2013 the Interest income increased by 90% from the previous financial year to $108,505. In turn their total finance costs had decreased.

 

The Annual Report features a summary of the equity funding events that occurred during the year in the Directors’ Report section:

KCQ - Corporate Governance Statement

I found it interesting that my company stated in its Corporate Governance Statement the percentage of their workforce who are female.  I wondered whether this is a requirement per the likes of the AASB or was this a point of interest my company wanted to mention? 

KCQ - Income Tax Calculation

I also don’t understand the income tax calculation.  The calculation shows adjustments for various income and expenses which I assume are not assessable or deductible but as my company has been making losses for consecutive years now I wouldn’t think they’d be paying any tax?  Terms in the tax calculation I don’t understand are: 

·         Deferred Tax Assets

·         Unrecognised Tax Losses

·         Temporary Differences

I'd say these terms are well beyond on ACCT11059 but any thoughts?

KCQ - Loss provisions

My company has in their liabilities a “provision for loss on engineering services contract”.  I don’t understand whether this is a loss the company has actually incurred as a result of this contract, e.g. it cost them more to do the work than the revenue they were to receive per the contract?  Or, is this item an expression of the costs yet to be outlaid as the completion of the project isn’t expected until 2014? 

KCQ - Looking at comparative figures

When reviewing AnaeCo's figures, I noticed from 2012 to 2013 there was an increase to income due to the R&D Tax Incentive declared in 2013 for both years.  There was also a huge reduction in costs, particularly in the area of project delivery.  Finance costs also reduced dramatically, perhaps because they converted so many loans to shares?  This got me thinking that it is probably a good idea when looking at figures you look at two years worth side by side as it uncovers the why’s about the different events/transactions that occurred and also the effect they have on the business and the different areas of the reports.  I guess this all goes back to the concept of Double Entry.

KCQ - Depreciation vs Amortisation

Something I wasn't fully clear on and did some extra research for was Depreciation and Amortisation.  My company depreciated property, plant and equipment but amortised patents, licences and intellectual property.  I did some research and found the concept of the two are similar however it is depreciation you apply to assets whose useful life is variable and amortisation is applied to assets where the exact life is fixed and known.  So depreciation is applied to physical assets prone to wear and tear and amortisation is applied to intangible assets.