Step 1:
Like with
every chapter in the study guide, so far, I sat down with the determination to
read it. A few pages it turned into a determination to just ‘read’ it. It’s
intense to see how a mindset can change so quickly. Ah the title of analyzing financial statements was comforting at first, but short lived also. My
perception of how it could have been was very different. With a slow
introduction it turned into a real grind. There is a lot of terminology and
abbreviations in the first few pages alone and while reading through the first
time looks like the same functions and formulas over and over and the thinking
of ‘get me out of here!’ sets in. it was the wrong approach to think I could
get in quick and get the reading done in a short amount of time! Note for
future reference: Don’t rush the process!
Early page 5
reminded me of a previous/current course (seeing as though I failed it last
year) I am studying. Financial Accounting (name of the course) also teaches
operating and financial activities in parts but the way the study guide
portrays it adds a bit of a twist. My other textbook doesn't cover the
operating and financial activities as such in much detail but shows more how to
classify each one specifically. Could this come in handy come part 2? Time will
tell! I was aware that this chapter of the study guide would be relevant come
step 2 and further in my degree, but at the moment it is looking very useful.
The section
of ‘A conceptual view of a firm’ my head was spinning again. This is
particularly confusing and took multiple read throughs! No doubt all the
letters, abbreviations and formulas are over me. I do however find it very
useful and a great example how the author puts in examples of his own company –
Ryman Healthcare. It gives me as a reader something to follow through and they
can picture doing it with their company instead. Actually it is something the
author has done all the way through the study guide so far and it’s been great!
All sections regarding the ‘restating financial statements’ or something
similar was very beneficial!
It is
starting to look like I am easily confused by a lot of the concepts and can
really only grasp the basics or material already covered elsewhere.
Nevertheless, it’s what this is all about. Picking up new knowledge and adding
it what I have stored away. It’s a nice experience – the university life is nice
but stressful! Maybe more of a daunting task. The whole thing remind me of
getting my second job actually. Mid last year I started work at APS Accounting
and I remember how scared I was to start. Having to go through the training and
learn the sort of work we do. Sometimes I can connect certain aspects between
my learning at university (my education) and concepts at work (my career). It’s
a good feeling to be able to put them together and I've enjoyed my work there
more since starting this course.
Each and
every chapter I’m working my way through more content, but once again I feel
maybe there is too much. The author uses such great depth in the writing to the
point where it’s overwhelming. Material should be taken out or have sections
trimmed which just aren't as important. Maybe then I could connect a little
more simply. But overall a well written chapter.
Two main
things that stuck out to me from the readings where the frameworks of Discounted Cash Flow & Economic Profit and how people use them for
business analysis. I am the sort of person to just look at the income and
profit and base my opinion on that but it makes me sound silly! Looking into it
further gives a greater definition on a firms operations and opportunities. The
second being return on net operating assets (RNOA). Although, I got a few
questions wrong on PeerWise concerning this and took and few reminders – thanks
to google!! But I've got it down now without a doubt.
Last year I studied a different accounting course which
focused more on the basic principles of accounting. More on debits and credits
and not so much from a business point of view. One course shows what to do with
the financial statements and the other course shows how to make them and what
they mean. Two different perspectives and it’s actually been a good comparison.
Very interesting to see it from both sides and I suppose lasts year studies
have helped with this a lot.
For anyone interested in looking at my restated financial statements feel free to comment or send an email requesting it.
Email me at: matthew.e.smith@cqumail.com.
Thanks!
