Chapter
1: A way of viewing business
What is accounting about? Initial reactions are that I wouldn’t say it
was simply the manipulation of numbers nor would I say it was about computer
software. Thinking about the statement, ‘businesses experience their own
realities of what is really happening’, this makes me think of the culture
within businesses and how this single factor can bring with it, for example, a
high over turn of staff. It could also bring stagnant ideas from people who
might lead to ‘old ways of thinking’ and I’m not sure businesses like this
cannot survive in an evolving world.
What is captured in a firm’s reports and
why it is captured appeals to me. I wonder what things get left out and for
what reason. And, what gets put in for purposes of ‘looking good’.
I am still lacking in an understanding of
the terminology used in accounting but understanding this would surely help me
understand why certain things are captured and others not.
Understanding the reports appeals highly to
me. I am interested in Business; hence the study, and I have just moved
organisations so this subject appeals greatly to me. Does this happen? Will this course teach that or are we to find
out that annual reports are a constructed reality that does not allow insights
to the business? What will the outcomes
be of this subject?
‘Imagining Business’. What does this mean?
The value of businesses, who decides
this?
Real value to others. Does the tobacco company, with its multi
million dollar business create value?
The addicted smoker may say yes, they ‘need’ and value their
cigarettes. What value has this product
served society? Does value mean monetary value?
I suppose this is dependent upon the person’s perception for certainly,
money is valuable to the majority. Is this sill so at the expense of millions
of people’s lives?
Do people learn enough about a business
from reading the annual reports to then invest in the company? To put trust in
the company? Or is the investment something you would do should you know for
certain that the company is moving forward and creating monetary value?
The CEO and CFO of my previous work were
Accountants and both really wonderful people. It is interesting that so many
Accountants are in charge of business, which absolutely makes sense.
Talking of businesses in a fast moving
world. This reminds me of my previous CFO telling me after reviewing the
success of a program, ‘numbers don’t lie, so I know the program is doing well’. This does make sense, as it is certainly true
that people lie, and that people manipulate the truth for better outcomes. Numbers
don’t lie (or do they?).
Disputes.
How often do these occur? Clearly,
enough to warrant legal documentation to assist where conflict arises. A
financially successful business can break down from a dispute.
Actual recordings. How many firms omit certain things? What type
of things? How can we trust that what we read is based on an overall view of
the business?
When I read the information about
processing, I am very eager to learn more about double entry accounting and
believe learning a ‘process’ will be good as I know I can follow processes.
The debits and credits feels a bit foreign and
challenges me. I have been able to learn
it and have answered several questions correctly through peer wise but it
certainly makes me think. This concept going
to take time to settle.
Remaining aware of the central concepts of
accounting is important and reading through Chapter One, I’m grateful of being
reminded of that. It is clearly an important point being made and I am
concentrating on reflecting on the concepts to really understand them. I
appreciate the examples given that apply them to real situations.
I like being reminded of the fluidity of
accounting, business and value.
Reading this again (as I’ve read it several
times now), I have a clearer understanding of revenue and expenses. Particularly that cash provided from
shareholders goes straight to equity and does not register as far as revenue;
it is simply an increase in equity. I have spent some time trying to understand
that equity investors are merely moving money around by investing. This is
something with which I must remember.
I feel I have gained many insights after
reading the chapter and makes me feel as though I have certainly learned many
things.
Chapter
3: Introducing financial statements
I’m very eager to get a better idea of the
reports and more concepts. The introduction to this chapter makes me feel
expectant.
Wishing that there was a concrete way in
which financial statements are made but I’m sure I will have a better
understanding once we learn more.
Reading further, regarding the marketing, I
understand that the annual report of my company is very much marketing. As I do
not understand the financial statements greatly, I’ve centred my KCQs about the
annual report predominantly on the language, which I understand to be ‘interpretive’.
Reading about the parent company, I’m aware
my company, Downer EDI is a parent company to many other companies and I’m now
keen to look back at just how many. I’m keen also to see the financial
statements as I feel knowing some of this information; I’ll be more ready to
‘read’ them.
If a firm does not have to disclose all of
it’s expenses, doesn’t that make it difficult to understand what is really
happening?
A lot of the information is starting to
have an application as I read on about equity statements. I’m feeling like I
can apply this information.
Wow, being introduced to those financial
statements is intimidating. It seems there is much to remember! The information
does make sense though.
A lot of the information on ratios is
interesting but I’m not sure at this point it makes ‘complete’ sense to me. The
issues about solvency and do interest me and it’s interesting to know when
someone is in a situation where they need to sell their assets. I’m sure we’ll
understand more of this in the future.
It is a good point regarding Ryman
Healthcare being unable to control housing prices and the people over a certain
age wishing to live in residential settings. It reminds me that business is
fluid and keeping ahead of trends is essential for success as many things are
beyond our control.
The dividends section does make sense to me
but I still feel I’d have no idea on which company to buy shares in if I had
the money to invest.
Cash flow does make sense to me so I’m
pleased. I get the sense that the information is all in the Chapters provided
however, I like to read, watch the lecture and then read again. I then like to
answer Peerwise Questions and apply the knowledge that brings it all together
for me (usually).
At this stage, I’m certainly keen to learn
more.
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