Assessment two! 

So this week I am in Brisbane visiting my mum and have the opportunity to go do so many things and visit all my friends, but of course I am at home working on the next assessment for this course.
Restating Financial Statements.

WHY DO WE NEED TO RESTATE THEM????

I spent about 3 days looking at the assessment sheet wondering what on earth that meant and why our first statement on the financials wasn't good enough.
I know that this helps demonstrate our understanding of the concepts and relationships between all the figures but it wasn't until I actually started working on the restating that I understood why were completing what seemed like a pointless task. Upon restating the financials, I started to see things I never noticed last time. The biggest thing I noticed was that in the way I presented the Statement of Financial Position initially it seemed like as the years progressed that the company was making more and more money. However, in restating this I have seen that they did indeed make more profit, but there assets were almost outweighed by their liabilities. So in reality, the company was better off in 2011 when they actually had the greatest amount of assets and equity.

Im sure as I progress through this assignment Ill be able to see similar examples to this which is motivating now because I do understand the benefit of this assignment.