Greetings fellow students,
So, I have 3 days to complete my assignment and I simply can not get my head around restating my Company's balance sheet.
My NOA keeps falling short and I don't know why. I have looked at all the financial notes linked to the operational costs and can't see a reason to change the way I've separated the costs.
Would anyone be willing to help me on this? :(
Thursday 24 April 2014
Sunday 6 April 2014
ASS #2
Is anyone feeling as anxious as I am about completing assignment two?
Can anyone provide any helpful tips?
I think with this one, a slow and steady approach will win the race...
Can anyone provide any helpful tips?
I think with this one, a slow and steady approach will win the race...
Wednesday 19 March 2014
Chapter 8 - Study Guide
I have just finished all 3 of my SPA's, what a great feeling!
Upon reading chapter 8, I was surprised to know that if a Company enters an investment contract with another business, the institutional investor can usually terminate the agreement at any time.
It was to my understanding that like a personal contract for a loan, gym membership etc... you would have to commit to the contract for an initial period of time...
I found this interesting, anyone else?
Upon reading chapter 8, I was surprised to know that if a Company enters an investment contract with another business, the institutional investor can usually terminate the agreement at any time.
It was to my understanding that like a personal contract for a loan, gym membership etc... you would have to commit to the contract for an initial period of time...
I found this interesting, anyone else?
Wednesday 5 March 2014
Layout of financial statements
Although I'm becoming more familiar with how to read financial statements, I'm finding my company's income statement includes too many categories in revenue and expenditure.
Has anyone else seen a similar scenario with their company statements?
Has anyone else seen a similar scenario with their company statements?
Saturday 1 March 2014
eBet - Gaming Solutions Company
Hi all,
The proposed company for my assignment is eBet. I'm not too familiar with financial lingo and this caused some confusion in completing step 2 of the assignment. Thankfully there is Google, which I used throughout my research to clarify financial jargon.
A brief overview of the company:
From the information provided on the webpage under the company tab, I discovered eBet is a gaming solutions company listed on the Australian Securities Exchange. Their primary service is providing gaming systems and machines to business which offer gambling services. Electronic gaming machines, Licensed Monitoring Operator and gaming management systems summarizes the main products that eBet provides.
eBet appear to be a sustainable and profitable business however, I do have some concerns with the overall operations of the company, the level of Government control over the business and how this could impact profitability in the future.
While 2006-2009 financial year were stable, the 2010-2011 period resulted in the company impairing some of its gaming assets worth 5.77 million due to uncertainty in the gaming industry.
Directly after the 2010-2011 tax period, the 2011-2012 period achieved a profit increase of 136% and a debt decrease from 3.917 million to just $446,000. In this case, I believe the decision to sell some of their assets lead to this positive result.
Please see article:
I have had extreme difficulty finding any correspondence relating to the financial position for the 2012-2013 period but, from what I can gather from the financial statement for that year, it doubled it's share prices and profit.
Although 2011-2013 ended on a positive note for eBet, the current financial year is at an all time low. The company has generated only 2% growth and made a net profit of 1.14 million (7.4 cents per share) thus far.
I believe the implementation of the mandatory pre-commitment scheme enforced by the Labour party may have contributed to part of this extensive loss.
Please see article:
http://australiansmall-capcompanies.blogspot.com.au/2014/02/ebet-first-half-falls-short.html
The current party in power, the Liberal team, support and have implemented the voluntary pre-commitment scheme. This change will assist eBet in achieving a positive financial result. However, this may not be the only change made towards the gaming industry.
Please see articles:
http://www.theglobalmail.org/feature/the-house-wins-gaming-reforms-ditched/764/
http://www.liberal.org.au/helping-problem-gamblers
Some of the business decisions made by eBet I found questionable. For example, eBet decided to go into partnership with WMS (a gaming solutions company) in order to eliminate costs and risk from the business.
It became evident this partnership was ineffective to the business when reviewing the 2012-current financial results. The sale of WMS machines were causing a loss to the business (-22%).
In February 2014, eBet announced that the agreement between the company and WMS had changed and support of sales and marketing costs towards WMS will cease while technical services would continue.
Please see articles:
The proposed company for my assignment is eBet. I'm not too familiar with financial lingo and this caused some confusion in completing step 2 of the assignment. Thankfully there is Google, which I used throughout my research to clarify financial jargon.
A brief overview of the company:
From the information provided on the webpage under the company tab, I discovered eBet is a gaming solutions company listed on the Australian Securities Exchange. Their primary service is providing gaming systems and machines to business which offer gambling services. Electronic gaming machines, Licensed Monitoring Operator and gaming management systems summarizes the main products that eBet provides.
eBet operates
both locally and globally with over 800 customers currently in contract with
the company and over 55,000 gaming machines in operation in Australia, New
Zealand and Asia.
Please see webpage:
http://www.ebetgroup.com/about-overview.php
My personal feelings towards gambling are negative due to my past experiences working in bars in the gaming division where I noticed a select few who would spend all their money to gain nothing, in most cases.
I struggle to agree with creating profit from an industry which causes addiction, alters the relationship and bond between families, causes loss of employment, bankruptcy and homelessness. My personal feelings towards gambling are negative due to my past experiences working in bars in the gaming division where I noticed a select few who would spend all their money to gain nothing, in most cases.
eBet appear to be a sustainable and profitable business however, I do have some concerns with the overall operations of the company, the level of Government control over the business and how this could impact profitability in the future.
While 2006-2009 financial year were stable, the 2010-2011 period resulted in the company impairing some of its gaming assets worth 5.77 million due to uncertainty in the gaming industry.
Directly after the 2010-2011 tax period, the 2011-2012 period achieved a profit increase of 136% and a debt decrease from 3.917 million to just $446,000. In this case, I believe the decision to sell some of their assets lead to this positive result.
Please see article:
I have had extreme difficulty finding any correspondence relating to the financial position for the 2012-2013 period but, from what I can gather from the financial statement for that year, it doubled it's share prices and profit.
Although 2011-2013 ended on a positive note for eBet, the current financial year is at an all time low. The company has generated only 2% growth and made a net profit of 1.14 million (7.4 cents per share) thus far.
I believe the implementation of the mandatory pre-commitment scheme enforced by the Labour party may have contributed to part of this extensive loss.
Please see article:
http://australiansmall-capcompanies.blogspot.com.au/2014/02/ebet-first-half-falls-short.html
The current party in power, the Liberal team, support and have implemented the voluntary pre-commitment scheme. This change will assist eBet in achieving a positive financial result. However, this may not be the only change made towards the gaming industry.
Please see articles:
http://www.theglobalmail.org/feature/the-house-wins-gaming-reforms-ditched/764/
http://www.liberal.org.au/helping-problem-gamblers
In February 2014, eBet announced that the agreement between the company and WMS had changed and support of sales and marketing costs towards WMS will cease while technical services would continue.
http://australiansmall-capcompanies.blogspot.com.au/2014/02/ebet-steps-back-from-wms-gaming-machines.html
http://australiansmall-capcompanies.blogspot.com.au/2014/02/ebet-first-half-falls-short.html
http://australiansmall-capcompanies.blogspot.com.au/2014/02/ebet-first-half-falls-short.html
To conclude this post, I feel that the company financial performance is dependent on the value of the Australian dollar, which Government is in power and what rules they enforce around the gaming industry.
Please feel free to leave any comments, feedback or questions.
Thanks,
Erikai
Wednesday 26 February 2014
Definition of Goodwill in accounting
What a great Tute we had today, thanks Maria.
When I think of Goodwill I automatically think of attributes such as honesty, integrity and loyalty.
Goodwill in accounting terms represents what you paid as an investor towards shares within a company to what profit you receive.
As outlined in the documentary about the collapse of ABC learning centres, their Goodwill figures were beyond correction which contributed to the company going into receivership.
For a brief overview of the ABC Learning Centre's collapse and access to order your own copy of the DVD we watched in class, click on the link below:
http://www.cpaaustralia.com.au/cpa-program/information-for-academics/abc-learning-collapse-case-study
When I think of Goodwill I automatically think of attributes such as honesty, integrity and loyalty.
Goodwill in accounting terms represents what you paid as an investor towards shares within a company to what profit you receive.
As outlined in the documentary about the collapse of ABC learning centres, their Goodwill figures were beyond correction which contributed to the company going into receivership.
For a brief overview of the ABC Learning Centre's collapse and access to order your own copy of the DVD we watched in class, click on the link below:
http://www.cpaaustralia.com.au/cpa-program/information-for-academics/abc-learning-collapse-case-study
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