ASS#2 - Step 2 - Restating your firm's spreadsheet - Statements of changes in equity
KCQ - answers

• My company SEEK have purchased shares on-market for employee share option schemes & treasury shares. I know that purchased shares are not a transaction with shareholders, I believe they would be classified as financial comprehensive income as they're purchased for the economic benefit of a firm at a future date. 

• Tax associated with employee share scheme - Upon closer inspection this amount doesn't even show on the annual report, I just read the heading. Silly me!

• Conversion of preference shares to ordinary shares. 
  They are fixed-income security shares that the investor can choose to convert into a certain amount of shares of a company. These include a previously determined timespan or certain date that needs to mature before the conversion. This option gives the investor security, and allows for the investor to cash in on a price rise in shares whilst avoiding the price drop. Conversion of preference shares to ordinary shares therefore means that the investor has decided to convert these shares, which is a transaction with shareholders in the statement of changes in equity spreadsheet. 

• Non-controlling interests acquired on acquisition. "An ownership stake in a company where the investor has absolutely no influence over how the company is run.  The majority of investor positions are deemed to be a non-controlling interest because their ownership stake is so insignificant relative to the total number of outstanding shares. For smaller companies, any position that holds less than 50% of the outstanding voting shares is deemed to be a non-controlling interest."
• Excerpt - Investopedia"http://www.investopedia.com/terms/s/sharepurchaseright.asp"

ASS#2 - Step 2 - Restating your firm's spreadsheet - Statements of changes in equity
KCQ - mostly questions

After submitting my SPA#1 earlier than the due date last week, I felt relieved that it was over, accomplished and finished. Done and dusted! Now to tackle ASS#2.
Therefore today I got stuck into trying to tackle what I feel is going to be the most difficult part of the assignment, which is the restating my firm's spreadsheet.

I'm really glad that we've been provided examples and have quite thorough instructions on what needs to be done and how to do it, but I may be missing the brief as I'm finding it quite difficult.

1) I'm having difficulties deciphering which are the operating and which are the financial comprehensive income from my statement of changes in equity.
- Is anybody else having issues here?

• My company SEEK have purchased shares on-market for employee share option schemes & treasury shares. Would these be transactions with shareholders?
• Tax associated with employee share scheme other operating income?
• Conversion of preference shares to ordinary shares. This is where Martin claimed that preference shares should be excluded from equity and placed as a liability instead. However, what about 'conversion of preference shares to ordinary shares', where does this fit in? Is it essentially the same thing and should be still included as a liability?
• Non-controlling interests acquired on acquisition. I seem to think of this as other financial comprehensive income

I would greatly appreciate other students weigh in on these questions, and also to hear about your experiences with your firms reports. I'm sure that some people are finding it a breeze, but I also wonder if the difficulty of these restatements vary with the complexity of your firm's annual report. For example, my company has very little to know plant & equipment, however a lot of shares, acquisitions of other companies, tax debts due to those other companies etc. ASS#1 now seems like it was an absolute breeze, oh how I wish we were again simply transferring information from the annual report straight to the spreadsheet. However, that seemed difficult once too.

Okay! Please submit your opinions or your findings of your company. I feel like I'm brimming with questions and no one to answer them.