FINANCIAL STATEMENT TRANSFERS

Step 3: TRANSFER YOUR COMPANY FINANCIAL STATEMENTS

“Transfer your data: they say

“Simple” I think..... NOT

In completing this it was a bit of an eye opener!  THEY ARE NOT ALWAYS THE SAME!!

LIGHT BULB MOMENT: Doing the actual typing of the items was good practice because as I was typing and actually reading the items that make up the sections, I was “ahh yeah of course that goes there” eg Inventories are Assets; Taxes are Liabilities!

HOWEVER........

Completing the transfer of Financials wasn’t as easy as basic data transfer.  I found that Financial Statement items changed over the years.  2012 was the primary Financial Report that had changes in Statements so I needed to actually work out what was included in each item.  I have demonstrated this below using Equity component in the Consolidated Balance Sheet.

In 2014 and 2013 Equity items consisted of share capital, share premium account, other reserves and retained earnings.  Simples!!!!

BUT.....

For the 2012 Statements this section included a breakdown with the addition of capital redemption reserves, hedging reserves and own shares with specific amounts.  Therefore I needed to condense these into the current format.  GET MY ACCOUNTING GEEK BRAIN ON!!

So I worked out that these were bundled into a single item as shown below in italics:

EQUITY

Share Capital

Share premium account

Other reserves =(capital redemption reserves + hedging reserves)

Retained earnings =(retained earnings + own shares)

Q: why are they different over different years?

KCQ: I had to use a bit of knowledge an analytical skills to work out for myself so I must be learning something.  I also checked with my father once this was completed as he is my Obi-Wan Go-To-Guru.  And I am happy to say that this young padawan was right!