Hi,

Please find below a link to my assignment 3 word doc.

https://docs.google.com/document/d/1ZcuJjVmrcjXEp3xGsy7ZVoKRnOEdLDkVqGwSZo575f0/edit?usp=sharing

Please also find a link to my companies newly undated spreadsheet

https://docs.google.com/spreadsheets/d/1KgvXh6E63oEFo0x-QYoeHx3EpRxO-Nbp2SRt7CfPnbY/edit?usp=sharing

If you would like to provide any feedback that would be greatly appreciated otherwise I wish you all the very best.

take care.

Assignment 2 Draft

Hi and Happy New Year,

Please click the link below to view a copy of my Steps 1 - 3 word document.

https://drive.google.com/file/d/0B2vIPJX4BYfWdVdmYldZRG1CLWc/view?usp=sharing


Here is a link to my firms (Spectris) original and restated financial statements.

https://docs.google.com/spreadsheets/d/11_L_Ltxgfszz8W7uLxndB2WKO8EtiQ0_BvTvYq2c7oY/edit?usp=sharing

Thank you

Step 4 Chapter 1 &3 reflections and and reactions.

Chapter 1

After reading the first paragraph in chapter 1 I was filled with intrigue. The question of what accounting actually is drew me in and started to entice me to continue reading. Having previous experience in Quality Assurance and Accounts and knowing that this is the direction I want my career to go in, identifying exactly what accounting is made me feel excited and eager to continue with this reading. A few more paragraphs in and I began to feel that a lot of things were starting to make sense. The comment about accounting being more like a business model rather than just an activity really began to hit home and ring true.

Continue a little further and all of a sudden I began to get a little frustrated. It appeared that after every defining moment, the next sentence started to change the view on what was just said. For example in one sentence the author states that accounting is about understanding the realities of business, the next sentence he then goes on to change his mind and questions what he just stated ie ”Or is it”. This occurred a few times throughout the reading which became very annoying, I much rather he chose a side and stuck to it.

In saying that I felt that most of the examples used to illustrate his point of view were of a high quality which enabled me to gain a good grasping of some of the key concepts and terms however I feel that at times the author went on and on a little too much. I don’t need to be told about the 100 shops that are located down the main street of Yeppoon or how the keyboard works and was invented or even need to know that he enjoyed playing musical instruments.

The definition of double entry book keeping seemed to lack a little body for my linking. I would have preferred a clearer definition rather than focussing on various publications and telling me all about the Father of Accounting. I mean is this something I really need to know?

As I am an individual who wishes to become involved in book keeping as soon as possible I really enjoyed the topic of book keeping without books. Understanding that networking with bigger firms as a means of ensuring all of the clients needs are met and also ensuring your work is confirmed as being true and correct was really insightful.

Overall I felt defining the relationships between what is accounting, the accounting equation, book keeping, the five elements of accounting and measures of view, changes in value and revenue and expenses was quite practical and to the point. It is this type of presentation of information that I enjoy and wish there was more of.

Chapter 3

After reading chapter 1 and believing there was a lot of unnecessary elements I was a little apprehensive about reading chapter 3. This was of course before I saw the subject title. Once I started to read chapter 3 “Introducing financial statements”, it began with a fantastic definition about how being introduced to financial statement was sort of like meeting two people for the first time. I was able to relate to this which changed my entire mindset. I felt relief come over me. This was a great way to understand this key concept. It was clear, precise and expressed by using real life examples.

Continue reading and it doesn’t take long before the gobbligook creeps back in; “Parent Companies”, what is this all about? Then after the author attempts to explain this to us he proceeds to inform us that we do not need to worry about this now. This just frustrates me once again. My feelings are if we do not need to worry about it then why put it in. This only sets out to confuse me. Once over this initial confusion we are again presented with insightful valuable information with recognisable and valuable information which begins to calm me down.

Then we come to ratios. While I do understand this subject matter, do I really need to know who Euclid or Sir Thomas Little Heath or Alexander Wall is? And why does there need to be a lot of debate among practitioners with regards to the usefulness of financial statements analysis in order to examine profitability, long-term and short term solvency? How is it that we are able to come up with a set curriculum to educate our children but when it comes to predicting the future economic and business outcomes of a business we are all up in the air about how to achieve it? If Warren Buffet, Benjamin Graham and David Dodd are able to make sense of things and get rich from it then why can we not agree to use the same process. It worked for them.

In conclusion after reading this chapter I get the sense that we procrastinate too much and worry more about the why we do things rather than accepting that if it works successful, then we should just use it. 

Step 3 My Companies Spreadsheet

My company’s financial statements in spread sheet form will be uploaded with this assignment as requested.

Week 3 Step 2

Links to my firms (Spectris) Annual Reports:

Annual Report 2014

Annual Report 2013

Annual Report 2012

Financial Highlights

After reading through these reports What I have noticed is:

Sales have increased from  £1177.2m in 2012 to  £1197.8m in 2013 but dropped to  £1173.7m in 2014.

Operating Profit went from  £216.9m in 2012 to  £214.7m in 2013 but dropped to  £198.1m in 2014.

Adjusting earnings went  from  130.3 pence in 2012 to  132.9 pence in 2013 then dropped to 124.4 pence in 2014.

Dividends have increased from  39pence in 2012 to  42.75pence in 2013 and  46.5pence in 2014.

National Debt to EBITDA went from  1.0 times in 2012 to  0.4 times in 2013 to  0.6 times in 2014.

Links to Media Releases

Investor News

Spectris Wins Awards

Change to Board Members

Struggles my firms faces:

While Spectris sales in 2014 was driven by the UK and North America market it has an overall decrease in sales in the overseas market by  £24.1m. This has contributed to a 8% ( £17.6m) overall decrease in sales in 2014 for the company.

The future challenges for Spectris lie in the Eurozone and China markets.

There has been an overall decline of 6% in adjusted profit before tax from  £205.6m in 2013 to  £ £192.5m in 2014.

Although Cash Flow was strong with a conversion rate of 89% Spectris debt increased by $21,5m in 2014.

Strategies to Overcome Struggles:

1) Maintain focus on investment on key strategic growth initiatives.

2) Continue to invest in innovation and new product development, launching new products. This investment will further strengthen our market position.

3) Expand Omega engineering beyond the US market to become a global business.

4) Increase investment on Reliasoft engineering software

5) Increase investment in Test and Measure department to improve monitoring and analysis solutions in the coal, gas and mining sector.

The Outlook:

Spectris expects to deliver progress as they benefit for their investment in new products and from acquisitions made during 2014. Investments together with our broad end-market exposures and strong financial position  provide the Board of Spectris with confidence that the company is well positioned for 2015 and beyond.

Assets, Liabilities and Equity:

Assets

1) Property, plant and equipment (Non Current Asset)

(Also refered to as a tangible fixed asset, this represents the sum of Spectris total purchases).

2) Cash and Cash Equivalent (Current Asset)

(Short term life span)

3) Good Will (Intangible Non Current Asset)

(This is the amount that would be paid over and above the total value of Spectris Assets and Liabilities).

Liabilities

1) Short term Borrowings (Current Liabilities)

(This is the amount Spectris is due to pay within the year)

2) Deferred Tax Liability (Non Current Liability)

(This is the result of temporary differences between what Spectris can deduct for tax and accounting purposes. Deferred Tax Liability records the fact that the company will in the future pay more income tax because of a transaction that took place during the current year).

3) Retirement Benefit Obligations (Non Current Liability)

(This amount represents Spectris monetary obligations to its employees for pension entitlements).

Equity

1) Shared Capital

(Funds raised by issuing shares in return for cash)

2) Retained Earnings

(This is the portion of net income that Spectris retains rather that distributes to its shareholders in the form of dividends).

3) Translation Reserve

(This relates to the gain or loss during fluctuations in exchange rates).

My KCQ's

A couple of things that I noticed when reading through Spectris Annual Reports is how different reports can be in the real world compared to what we learn in books. For example:

a) I had no idea what Translation Reserve, deferred tax liability, retirement benefit obligations is or was. Does anybody else understand these terms?

b) The naming of each report is not just an income statement or balance sheet. It is all a Consolidated view of each report?

c) All of these reports are a lot more in depth than I had anticipated and attempting to understand the key elements and terms is still doing my head in.

d) In the Changes in Equity report I do not understand the differences between owners share base payments and share options exercised from own shares in relation to dividends. Does anyone have a similar Report and can explain these terms?

e) What does (treasury) purchased mean?

f) What does Derivative financial instruments mean in the Statement of Financial Position report?

g) What is a hedging reserve and a merging reserve in the Statement of Financial Position Report?

h) If anyone has a Statement of Cash Flow report like Spectris could they please explain?

Am I happy with my company?

Overall I am pretty satisfied with my chosen company. As Spectris is a UK based company I admit I did not understand all the lingo and terms used in their annual reports however by doing a little further investigation a few key areas became a little easier to interpret. 

As I have a small background into Quality Assurance i can say that i was able to relate somewhat to Spectris. It is for this reason that if I had the chance to change or stay with my chosen company, I would stick with Spectris.

My top 3 Blogs:

 Number 1 Blog Nick Gregory

I found Nick's blog be very informative, had lots of great links and was easy to read.  I liked how Nick mentioned shared his struggles with this assignment. Nick's blog helped me to understand that i am not the only one that is having troubles understanding Annual Reports. Each company has a very different outlook on the presentation of their reports.

Number 2 Blog Christian Testa 

Christian's Blog was simple but direct, informative and easy to read. Nick's Blog helped me when it came to putting information on a page as simply and as directly as possible.

Number 3 Blog Christyn Kelly

While Christyn's Blog was full of cats it was however extremely informative, very colorful and it made for a nice reading. Christyn also shared her thoughts, feelings and struggles with this assessment piece which i was able to identify with. Christyn's Blog helped me to ensure that i try hard not to miss anything.

Week 2. My Company

Good Morning.

This week is about our company and the company I have been assigned for this assignment is Spectris.

WHO WE ARE

Spectris is a leading UK based company founded in 1915 by Sir Richard Fairey originally as the Fairy Aviation Ltd with the objective of manufacturing SeaPlanes. Nowadays Spectris is a leading supplier of productivity-enhancing instrumentation and controls. We are made up of ten Board Members, have over 8000 employees and are in over 30 countries worldwide. 

our aim is to:

• Streamline Processes
• Save time
• Increase Yield
• Improve Quality
• Enhance Productivity

how we do this?

Measurement Analysis

Test and Measurement

In-line Instrumentation

Industrial Control

Our values

Absolute Integrity

Empowerment

Customer Focus

High performance

Restless Innovation

Welcome and Week I Introduction.

Welcome

Hi and welcome to my Accounting for Decision Making Journey. This term is shaping up to be a difficult one with working and studying full-time, moving and taking care of the family however i enjoy a challenge and I will do my best to persevere (just may need a gentle nudge and a wake up call every now and then). Please watch this space as there will be more to come on my wonderful adventures during this course jasonsaccountingjourney.blogspot.com

Week 1 Introduction

Hi my name Is Jason and i am currently residing in Roma with my wife and 2 kids (moving to Toowoomba in the next couple of weeks). While i am studying my Degree in Accounting I am also working full time as a Cafe Manager at the Roma Airport. I have been in the hospitality industry for the past 10 or so years beginning as a customer service attendant at the local Leonards Chicken shop in Cairns but then quickly moved through the ranks and in various hospitality industry till i gained my qualifications as a Chef. It was throughout my employment that i lost my passion for cooking but gained it back again with the love of identifying costings, troubleshooting, training, learning and development, quality assurance and advising and this is where i felt my career was heading. After helping a few friends out with their struggling business and chatting to my family it was confirmed that Accounting should be my future career, so here i am attempting to full fill this dream.

When not studying and working full time i like to play most sports (especially both indoor and outdoor cricket, AFL, Martial arts) go to the theatre with my wife and spending time with my kids. As mentioned earlier I am married with 2 children but I also have 2 step sons who i all adore greatly. My eldest step son actually works for XERO in New Zealand in digital marketing (so you never know what he may be able to help us out with).

This term is going to prove to be a little more difficult than last term as i am taking on more courses but my aim is to try and finish my degree sometime in 2018 (hopefully just before end of financial year so i can get a job). And in the meantime i will attempt to finally get out of the hospitality industry (i am so looking forward to when this becomes a reality) and enter the world of accounting in any area possible. While learning out of a text book will give me a good foundation and basic elements there is so much more to learn in the real world. I have gained a little work doing bookkeeping so this is a start and it can only go up from there. Till my next post where i let you all know about my company please take care and continue to hit the books. It may seem hard now but I have faith that we will all make it through and do OK.