Chapter 2 &3 KCQ's

Hey everyone, hope we are all getting there with Assignment 1, here are my Chapter 2 & 3 KCQ's from the Study Guide.

Chapter 2 – Understanding the Game

After reading this chapter it really installed into myself the concept of understanding the game and in particular of the accounting industry. It’s installed in you from school to learn the rules, what can be shared and what’s kept private. These lessons are then taken into adult and work life in cases of employee’s bank details, wages, identification and government regulations. I have been a manager at different businesses throughout my working career, mainly in the hospitality industry and I have had to deal with different personal information. I’ve learnt to understand what can be shared to different organizations such as bank and government regulations like ATO and what must be kept private, not sharing personal information to other employees for instance.

I also bought property with my fiancé for 4 years where we had to provide financial information to a mortgage broker and bank for a home loan. This information was shared between the three parties but was not accessible to other parties such as real estate agents.

Generally accepted accounting principles GAAP are a not a set of rules I have heard of before reading this chapter, however I have heard of ASIC and ASX. I think it’s a good idea that one set of rules cover the whole industry and country which I know varies in hospitality when different rules vary from state to state.

I found the key concept of you cannot have a rule for everything quite interesting and true in many ways. As stated in the chapter, yes there are certain rules an accountant or a manager of a business must follow but with everything in life initiative and own personal knowledge comes into effect. When everyone in the business brings their own personal previous knowledge to the table, tasks are made a lot easier to complete. I have also noticed this within my studies and particularly this unit as feedback from peer students can help you to become a more knowledgeable student not just in this subject but throughout your studies.

The key concept I may have taken more knowledge on when taking on my company would have to be relevance and faithful information. As I was new to this exercise of financial statements and reports I personally didn’t think of whether relevant or faithful information would come into the equation.

Chapter 3 – Introducing the Financial Statements

Since undertaking the exercise of breaking down my company’s financial statements the balance sheet started to make a lot more sense from when I first hear about the word back at the start of the unit, I understand there is still a lot more I can indulge in and learn but I believe I have the general knowledge on what and how a company’s balance sheet is presented. As I found in my own company the balance sheet covered not just Qube Logistics but also another company could Patrick Terminals in which Qube Logistics has a 50% share in.

Since getting my head around a company’s financial statements and it’s structures such as balance sheets, changes in equity and income statements I am already nervous and somewhat scared of understanding ratios and cash flows. However, with the support from fellow students in my cohort, lecturer Maria Tyler and Unit Co-Ordinator Martin Turner I believe I can get my head around and have the basic knowledge of the some of the key concepts mentioned in this chapter.