STEP 3: pv crystalox solar › 2019 › 12 … · Web viewI was initially thrilled when I received PV Crystalox Solar (PVCS) as my firm on Friday evening. I yelled to my husband

ACCT11059 ACCOUNTING, LEARNING & ONLINE COMMUNICATION

ASSIGNMENT ONESTEP 3: PV CRYSTALOX SOLAR

PVCS Annual Reports http://www.pvcrystalox.com/investor_relations/reports_and_presentations/reports_archive/

INITIAL IMPRESSIONS

I was initially thrilled when I received PV Crystalox Solar (PVCS) as my firm on Friday evening. I yelled to my husband “I got a Solar Company!” while fist-pumping the air. I am an unusual kind of fish as I love the renewable energy sector and am genuinely interested in its dynamic nature. I have previously worked in a sales capacity for Urth Energy, a renewable energy retailer and generator start-up, that unfortunately went into voluntary administration1 in 2017. I loved this work and enjoyed the challenge of finding greener energy options for my clients who were generally large manufacturing operations. I am very proud to have been instrumental in installing Australia’s largest roof-top solar system (3MW) for National Ceramics Industries Australia (NCIA).

There is a strange kind of rivalry in our household as my husband works as an operator at Origin Energy’s Eraring Power Station. We are two sides to the same coin and joke that combined we are carbon neutral. So, it was with a smile on my face that I clicked on the link to my company’s website. I posted a little about my initial findings on my blog2.

PV CRYSTALOX SOLAR

PV Crystalox Solar (PVCS) was established in the UK in 1982. According to the home page on its website3 PVCS is ‘a leading manufacturer of multicrystalline silicon ingots and wafers, the key component in solar power systems’, with production facilities in Germany and the UK PVCS serves cell producers in Japan, Taiwan, Canada and much of Europe. Ok, so contrary to my initial thoughts, PVCS manufactures components of

1 https://reneweconomy.com.au/solar-focused-retailer-urth-energy-goes-into-administration-19753/ 2 https://wordpress.com/view/thedailyamy.home.blog 3 http://www.pvcrystalox.com/home/

Amy McClelland 1

http://www.pvcrystalox.com/home/

https://wordpress.com/view/thedailyamy.home.blog

https://reneweconomy.com.au/solar-focused-retailer-urth-energy-goes-into-administration-19753/

https://reneweconomy.com.au/solar-focused-retailer-urth-energy-goes-into-administration-19753/

http://www.pvcrystalox.com/investor_relations/reports_and_presentations/reports_archive/



PV (photo-voltaic) cells rather than the entire cells themselves. I found this interesting because I had assumed that the cells were manufactured by one operation. So, what are multicrystalline silicon ingots and wafers? Having no idea, I turned to google.

After deep-diving into some very heavy scientific websites, I found that silicon ingots are large bricks of silicon formed by a smelting process and the wafers are a result of finely slicing these ingots. In very basic terms, the wafers absorb the photons in sunlight and can convert this into electricity. I found this interesting and was quite disappointed in myself that I hadn’t known this previously. It would have certainly been useful to know how the panels that I was selling were made. I now understood that the process to create these components was extremely complex, so it made sense that companies like PVCS exist to specialise in this.

Multicrystalline Ingot Multicrystalline wafer

Moving to the ‘About Us’ section of the website I felt the floor fall out from beneath my feet. I had felt like I was slipping into a groove and had a general grasp on my company until I read ‘The Group’s exit from PV manufacturing was finally completed with the termination of multicrystalline silicon wafer production in Germany during H1 2018 in accord with the announcement in the 2017 Annual Report.’ Wait, what?! Why wasn’t this mentioned on the home page? I obviously should have looked at the Annual Reports before spending so much energy looking into the specifics of silicon manufacturing.

Heading straight to the financial statements I saw the plant closures reflected in the Balance Sheets. In 2016 PVCS noted €1,780,000 in property, plant, and equipment which was reduced to €651,000 at the end of 2017 and then reduced further to only €51,000 in 2018. The accounts receivable section also reflects a decrease in operations as it heads on a downward trajectory over the 4 years.

A deeper look at the financial statements for 2018 and news articles illustrate just how dire the situation had become for PVCS. The Consolidated Income Statement shows a 76% fall in revenue from the 12 months to December 2018.

This downward trend could not continue for PVCS. It was decided in 2017 to close the UK manufacturing operations but when this was deemed insufficient it further ceased all PV manufacturing operations in their German facilities in 2018. It was initially

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hoped that a buyer could be found to continue silicon wafering production, but this did not eventuate.

PVCS is currently restructuring to offer wire-sawing services to other industries (more on this below).

As I am quite a visual learner, I decided to graph some of the financial figures, so I could better understand the business realities of the firm. The results were quite sobering and can be found below.

2015 2016 2017 2018€ 0

€ 500,000

€ 1,000,000

€ 1,500,000

€ 2,000,000

€ 2,500,000

Property Plant & Equipment

Series 1

2015 2016 2017 2018€ -

€ 10,000,000 € 20,000,000 € 30,000,000 € 40,000,000 € 50,000,000 € 60,000,000 € 70,000,000

PVCS Revenue

Revenue

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2015 2016 2017 20180

50

100

150

200

250

PVCS Wafer Shipments (MW)

Wafer Shipments (MW)

WHAT WENT WRONG?

The Chairman’s Introduction in the 2018 Annual Report4 explains that PVCS had been in ‘cash conservation mode’ since 2011 to protect shareholder value whilst preserving the Group’s production capabilities. An improvement in market conditions was hoped for but this did not eventuate. The Operational Review points to ‘a Chinese manufacturing overcapacity’ as being instrumental in a collapse in value for the wider PV industry.

I was aware of China’s market dominance from my time working at Urth Energy. We sourced all of our Tier One panels from China as they were by far the cheapest but also came with the same production and quality guarantees as European made panels. I do not doubt that the oversupply from China was one of the challenges that PVCS faced but was curious about the other market forces in play.

I had previously wondered about the decision to base the majority of their manufacturing in Germany. Were operating costs lower or were there other factors that made it attractive? I once again turned to Google.

After a bit of a hunt around I found that Germany is committed to meeting Europe’s green energy targets and leads the field in transitioning to renewable energy. In 2018 renewable energy made up over 40% of Germany’s energy mix. Here is an interesting video5 outlining how they are managing this transition.

With this in mind, it is not surprising that Germany is second only to China in solar PV installations. Germany experienced a green revolution in 2011 that was propped up by government-guaranteed feed-in tariffs to customers. This led to a whopping 7000 kilowatts of new solar panels being installed in 2012 alone as customers were desperate to claim the €0.492 per kW hour feed-in tariff. Many new players joined

4 http://www.pvcrystalox.com/investor_relations/reports_and_presentations/reports_archive/ 5 https://youtu.be/Iz14z0UYq3c

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https://youtu.be/Iz14z0UYq3c




the field to meet the demand and a peak of 110,900 people were employed by the solar industry in Germany in 2011.

This boom, however, was short-lived. New (much lower) feed-in tariffs were introduced in 2012 to control the supply of solar energy entering the grid. This was catastrophic for the bloated German solar industry which went into freefall. Multiple module and wafer manufacturers restructured or entered insolvency6 including market leaders such as Q-Cells and Schott.

Anti-dumping7 measures were introduced by the EU in 2013 as damage control and this acted as a parachute to the failing market but there was no recovery. These measures aimed to place a cap on the minimum amount solar systems could be sold for, thus stemming the flood of Chinese panels entering the European market. Unfortunately, anti-dumping controls failed to bring consumers back as they now felt that prices were artificially inflated. By 2015 90% of jobs in the solar industry were lost in Germany and in 2017 only 600MW of new capacity was added, a drop of 90% from 2012.

I was initially quite baffled about the lack of reference to these factors in any of the Annual Reports, on PVCS’ website or in their press releases. It is irrefutable that PVCS was subject to the same market conditions that saw many of their competitors go bankrupt during this period so why have they not mentioned it? Is it because they wanted to convey an impression of optimism and solidity to their investors?

By maintaining that Chinese overcapacity was their key challenge investors could relax knowing that anti-dumping measures are now in place to counter this. By admitting to the catastrophic local market conditions, it would be difficult to persuade shareholders to stay the course. Is it this simple? It reminded me of Martin’s assertion that the firm’s annual report is a marketing document. By omitting certain facts and glazing over the truth PVCS had definitely put quite a bit of spin on their Annual Reports.

I couldn’t help but feel horrible for PVCS. The last 8 years must have been extraordinarily hard for them. After spending so much time looking into their operations, I felt real empathy for them and for the Directors who tried so hard to weather the storm.

Conversely, I also feel that the Directors had tried in part to deceive their shareholders by not reflecting the extent of their challenges in their Annual Reports, on their website or in any of their press releases. The home page of the PVCS website still reads as if they are one of the largest solar component manufacturers in the world, which simply isn’t the case.

PVCS Annual Reports are certainly marketing oriented. The actual financial statements are set up similarly to others I have seen which is expected, as they all have to conform to International Financial Reporting Standards, however, the images and verbiage used are very optimistic. 6 https://www.pv-magazine.com/2019/11/18/solar-will-power-ahead-to-offer-20-more-output-for-25-lower-module-costs-within-15-months/ 7 https://www.pv-magazine.com/2018/05/25/around-250-signatories-call-for-an-end-to-eu-anti-dumping-measures/

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https://www.pv-magazine.com/2018/05/25/around-250-signatories-call-for-an-end-to-eu-anti-dumping-measures/

https://www.pv-magazine.com/2018/05/25/around-250-signatories-call-for-an-end-to-eu-anti-dumping-measures/

https://www.pv-magazine.com/2019/11/18/solar-will-power-ahead-to-offer-20-more-output-for-25-lower-module-costs-within-15-months/

https://www.pv-magazine.com/2019/11/18/solar-will-power-ahead-to-offer-20-more-output-for-25-lower-module-costs-within-15-months/


GOING FORWARD

The restructure is still on shaky ground with a 94% fall in interim revenue8 to June 2019. This is to be expected as the remaining 20 staff of PVCS are focused on research and development and conducting cutting trials to establish new business. PVCS plans to offer silicon and non-silicon wafering (wire-sawing) services to PV manufacturers and other industries such as optical and ceramics industries. The Group’s ability to continue in business hinges on the success of this venture.

PVCS received a significant cash inflow of €28.8m in 2018 after a settlement agreement in their favour relating to an unfulfilled wafer contract against one of the world’s leading PV companies. This coupled with €27m net cash from operating, resulting in a year-end net cash amount of €54m which is €27.1m higher than the beginning of the year.

Rather than use this cash for business acquisition purposes it was decided that a Capital Return of £38.5m (€42.8m) should be distributed to shareholders. This meant a reduction of the firm’s capital reserves and a consolidation of the share price. I think that in light of the challenges that PVCS is facing that this was a very well thought out decision. A complete de-listing of the company and full share cancellation is also being considered for the future.

The Directors believe that operations can continue until March 2020. This is largely due to the decreased net cash demands since the restructure. Discussion of plans past this date are not evident but it is hoped that PVCS can form a solid customer base for their wire-sawing services. German companies are currently completing cutting trials to assess the cost-benefit of using PVCS manufacturing facilities for their operations.

My research into the solar industry has shown me that it is ever-changing, so I do have some concerns that PVCS might struggle to re-enter the silicon wafer manufacturing market now that it has left. Wafer size9 is changing and there is an increasing move away from multicrystalline panels to monocrystalline as these are more efficient. The existing manufacturing operations that PVCS owns will be ill-equipped to cope with these changes.

8 https://www.morningstar.co.uk/uk/news/AN_1569495955708685400/pv-crystalox-revenue-slumps-still-considering-share-cancellation.aspx 9 https://www.pv-magazine.com/2019/08/16/big-news-as-zhonghuan-semiconductor-unveils-12-inch-super-wafer/

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https://www.pv-magazine.com/2019/08/16/big-news-as-zhonghuan-semiconductor-unveils-12-inch-super-wafer/

https://www.pv-magazine.com/2019/08/16/big-news-as-zhonghuan-semiconductor-unveils-12-inch-super-wafer/

https://www.morningstar.co.uk/uk/news/AN_1569495955708685400/pv-crystalox-revenue-slumps-still-considering-share-cancellation.aspx

https://www.morningstar.co.uk/uk/news/AN_1569495955708685400/pv-crystalox-revenue-slumps-still-considering-share-cancellation.aspx


Multicrystalline wafer Monocrystalline wafer

I am quite impressed with the fortitude that PVCS has shown in the face of many challenges. In a time where even market leaders have folded, this company has continually adjusted to survive. Based on this I believe that there is every chance it will be able to regroup and rebuild as a general wafer manufacturer for industries other than solar.

UNDERSTANDING THE FINANCIAL STATEMENTS

As someone who is right-brain dominant, I was very tentative about approaching the financial statements. My feelings of trepidation shot through the ceiling when I realised that my company was undergoing a complete metamorphosis. How could I possibly understand something so amorphic? I felt short-changed when I read about many of my peer’s firms which seemed to be going from strength to strength and their growth seemed quite linear.

It turns out that the Annual Report was quite accessible and easy to follow. PVCS’ financial statements were comparable with many of my peer’s financial statements with some minor exceptions such as subsidiaries’ details and the wording of some elements in the reports. I was reminded that all of the companies that we are researching are required to meet International Financial Reporting Standards.

I was surprised by how much I enjoyed finding meaning in the financial statements. The figures charted what had been happening in PVCS and I was able to prove that Assets = Equity + Liabilities with the balance sheet (€54,717,000 = €52,338,000 + €2,379,000). It hadn’t mattered up to this point how many times I had seen this formula, it was only when I performed the equation with these figures that I really knew it.

My understanding of the Statement of Changes in Equity remains quite sketchy and I must admit I didn’t gain much from looking at it for this part of the assignment. I am disappointed that this concept still eludes me but appreciate that I am on a learning journey and I will get there in the end!

To compensate for my lack of knowledge I have spent a LOT more time on this assignment than recommended. I found it really useful to learn about pressures in the wider industry in understanding the business realities of PVCS and feel that even though this was time-consuming, it was necessary.

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ONLINE COMMUNICATION

I am incredibly grateful for the support, feedback, and assistance from my peers during the past few weeks. Whether it is a comment on my blog, answers to my questions on Moodle forums/Facebook or chatting in PASS sessions I have felt buoyed up by everyone and able to face the (daunting) task of learning new information in a very new way. By starting my blog early and making the effort to follow and contact others I have been able to form some close partnerships that have helped in my study.

In particular, I found the PASS session with Danielle Bradley to be incredibly helpful. While I know that I still need to work on my KCQs she let me know where I was going wrong. I definitely find it easier to reflect on my reactions to information easier than explaining that information. I hope I managed to explain some of the concepts related to my firm here. Danielle’s advice to explain key concepts to my children was invaluable. There have been a LOT of dinner table conversations about solar manufacturing and financial statements at the McClelland household lately! Danielle also advised writing checklists for assignments to ensure that I cover all the requirements. I wrote about this on my blog10. I feel that this has meant my assignment is quite long, but I hope that it also means that I have covered all bases.

I have found the process of giving feedback has developed my self-confidence and cemented much of the information in my mind. Reading my peer’s work has opened up new ways of thinking about many concepts for me and helped me to see where I could improve my own writing or understanding.

In discussing my firm with others, I was able to get a clearer idea of how to present aspects of its business performance in my assignment.

Here is a snapshot of reactions and comments from others:

Hi Amy,I definitely commend you on your commitment with family life, business and study.I wish you all the best in your journey and look forward to conversing with you.Oh and thank you on your feedback earlier as well. It is greatly appreciated! – Rebecca Bamford

Hi Amy,It was great to hear about your experience with stage one of our assignment.numbers have never been something I’m good at, so this unit has scared me a little! But I look forward to hearing how you go over the next coming weeks. 🙂 – Jewel Westerhout

Hi Amy,I am so glad to hear from someone who is also studying a Bachelor of Property, I have found that most other students are studying different degrees so far. I look forward to reading your reflections and would love to keep in touch as well. Thank you for reaching out 🙂– Megan Main

So I just read it, and the only thing I wasn’t sure about was whether you should use the word ‘memorize’ or ‘memorise’ at the beginning. But on an actual note, I thought, (through reading the assignment document, the couple exemplars and the

10 https://thedailyamy.home.blog/2019/12/09/step-3-checklist-ass-1/

Amy McClelland 8

https://thedailyamy.home.blog/2019/12/09/step-3-checklist-ass-1/


study guide), that what you came up with was exactly what the assignment’s instructions was wanting and I couldn’t really find any faults (well i hope so at least, bc otherwise i guess i won’t be doing great on it myself haha). I thought it was great; I felt engaged reading it and I think the ratio of your ‘own-experiences | kcq’s | referring to the study guide/general discussion’ was good and made it a nice clean read. 🙂 – Eliza Kiah

And some of my own comments and feedback:

I found your initial impressions really interesting and appreciated the time you took to explain a lot of the key concepts relating to Kesko’s operations such as defining ‘trading sector’ and ‘divestments’.

You provided an excellent overview of what the firm does and its history. I was impressed by the way you were able to make sense of the financial statements and apply them to the business realities of your firm whilst also relating them to personal or everyday experiences.

Your writing is easy to follow and well-structured and a good mix of financial information and personal thoughts and reactions.

I am trying to find some constructive feedback to give you, but I am actually struggling as I think you have addressed all of the criteria. I did find a typo (GRC instead of GFC) but that’s it! I hope you do well in this assignment. Your time management has been incredible and you have obviously put a lot of time into this. – (to Rebecca Bamford)

Hi Megan.I am also studying a Bachelor of Property (although this is my first Term). I have a background in Real Estate, Property Development and sales and I live near you in Lake Macquarie! Sounds like we have a lot in common.I really enjoyed reading your reflections and will follow your journey on this blog. You should be proud that you have gotten so much accomplished around your full-time job.Would love to keep in touch.Amy- (to Megan Main)

Wow, your company sounds incredibly interesting! My company was also involved in arbitration (but a successful one). I can’t wait to read more about Phosphagenics as you complete your assignment. – (to Brennan Leggett)

Your explanation of SDL was really concise and easy to read. I look forward to seeing your draft assessment. - (to Evan Redward)

STUDIOSITY

I was impressed with the speed of the Studiosity response to my assignment. I received feedback in 2 hours and it seems very comprehensive.

After reading about my peer’s experiences with Studiosity for this assignment I wasn’t surprised that I was picked up for non-academic writing. In particular, my lack of citations and use of the first person was mentioned. As reflective writing was encouraged, I am not too concerned with this in this instance.

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I was also encouraged to reduce many of my complex sentences. I am aware that I have a habit of waffling on and need to be more concise.

I played about with my structure quite a lot in this assignment and decided to use some sub-headings to make it easier to follow. My lack of a formal structure was picked up on and I agree that the general structure could well be improved.

I will definitely use Studiosity in future to proof-read my assignments. This in conjunction with the feedback from my peers and family is invaluable in picking up the flaws that I haven’t seen.

TOP 3 BLOGS

I have enjoyed following many blogs and deciding on a top 3 was quite difficult. I have chosen the three that have taught me the most.

Rebecca Bamford: An Investment in Knowledge Always Pays the Best Interest

Becx blog looks incredible with an Aboriginal art background and regular posts. She is a Mum, mature age student and proud Indigenous woman. I was very touched by her goal to help other people in the Indigenous community find employment or enter higher education. I felt an affinity with Becx because we face the same challenges of finding new career paths, juggling kids and study. The thing that has most impacted me about Becx is the incredible quality of her work and her time management. All of her assignments have been detailed, thorough and interesting. She has a very good grasp on how to write KCQs and I feel like I have a lot to learn from her.

Check out Becx blog here: https://becxsstudy.school.blog/about/

Evan Redward: Mind the Numbers

Evan’s blog looks professional and is easy to navigate with tabs to each assignment. Evan posts regularly and is incredibly well organised. His content is always thoughtful, informative and well written. Much like Becx, I have been very impressed with the quality of Evan’s KCQs and his assignments in general. I think Evan’s blog has stood out for me because it is so incredibly polished. It is definitely different in style to my own blog and demonstrates how tech-savvy and business-minded he is. I am impressed that he is capable of producing such high-quality work around his commitments as an Emergency Services Officer and Firefighter (especially with the current catastrophic fire conditions).

You can find Evan’s blog here: https://mindthenumbers.home.blog/author/unilife86/

Daniella Davenport: From Student to Accountant

There is something about Danii’s blog that I find very calming. I realise that sounds a bit weird, but I find myself physically relaxing when I enter her world. The images she uses on her home page (sunlight through a forest canopy and her family etched in a sunset) create a very chilled vibe which appeals to me. The layout of her blogs makes me feel like she is very organised and this is only reinforced as I read her KCQs and financial statements. Danii has a real talent for making sense of the information she has encountered in this unit and I can see her aptitude for

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https://mindthenumbers.home.blog/author/unilife86/

https://becxsstudy.school.blog/about/


accounting. I have to commend Danii for her ability to produce such high-quality work around volunteering, working and being a Mum to her 3 kids.

Danii’s blog can be found here: https://daniellas.school.blog

STEP 4: COMPANY SPREADSHEET

My company spreadsheet can be viewed on my blog https://thedailyamy.home.blog/2019/12/04/pvcs-company-spreadsheet-step-4/

STEP 5: CHAPTERS 2 & 3 (SECTION 3.1 AND 3.2) REFLECTION

In Chapter 2 Martin refers to accounting as a game. I had to question whether I believed this. Games have rules, and generally, see the participants striving to achieve an advantage over their opponents. I think that this is a pretty concise representation of what I am learning about accounting.

Just like games, accounting has a set of rules that need to be followed. The rulebook for the game of accounting is Generally Accepted Accounting Principles (GAAP) and the players are only required to meet all of the GAAP rules if they are certain types of businesses. Only companies/departments that produce general purpose financial statements need to follow the rule book. The rule book is HUGE and simply cannot be followed by everyone involved in the game of running a business. I thought of this as simplifying the rules of a board game for very young children. If you were to try to get 5-year-olds to follow all of the rules of Monopoly the game would soon grind to a halt and not much would get done. No one is any worse off for not playing the full set of rules and the game will run much more smoothly.

So how do we know who has to follow the GAAP rules? The Corporations Act only requires certain types of companies/departments to follow the GAAP and these are known as reporting entities. Generally, a firm is considered a reporting entity if it is of a certain type or size and it has expanded to outside investors. This makes sense to me. I don’t need to know the complete financial details of my local fruit shop when deciding whether to spend my money there each week. The financial situation of the fruit shop is of no consequence to me unless it affects the price or quality of the produce provided. Conversely, if I was to spend my money investing in Woolworths Group shares, I would need to see the full financial statements to make an informed decision. These statements would need to follow a set of rules to be reliable.

Unlike most games, the rules of accounting are always changing and there are both written and unwritten rules. I struggled with this concept initially. How is it possible to have so many rules that no one knows them all? Also, how can there still be instances where no rules exist? Before this unit, I had thought of accounting as being very black and white. I feel quite frustrated that this isn’t the case and I am having trouble pinning it down to say quite what it is. I am beginning to see accountants as being quite a crafty bunch and can appreciate how they can manipulate financial statements to present the model of business as they choose. In this way, I definitely agree that accounting is a game where one can use the rules to their advantage.

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https://thedailyamy.home.blog/2019/12/04/pvcs-company-spreadsheet-step-4/

https://daniellas.school.blog/


The concept of accrual accounting was new to me. I had heard the term accrual before but had never understood what it meant. I now understand it to refer to recognising a transaction as occurring in real-time, irrespective of when the cash for that transaction exchanges hands. I can see that accrual accounting would definitely make business analysis, budgeting & planning easier. If a business was to invest in updated machinery that will last for several years, then the cost for that machinery should be spread over this time. The revenue generated from this purchase could then be matched against this investment giving a clearer picture of the state of the business than cash accounting would allow. I imagine that committing to accrual accounting in a small business would be incredibly hard due to the extra resources required.

Having just completed Steps 3 and 4 of this assignment I am pretty familiar with my company’s Annual Reports and Financial Statements. Like many of my peers, the first thing that struck me was the size of the Annual Report. It was only as I dug a bit deeper into the business and financial realities of PVCS that I could assess the quality of these statements.

Martin states that the quality of the information in financial statements can be determined by their relevance, faithful representation, comparability, verifiability, timeliness, and understandability. Assessing these characteristics can provide a representation of whether we are being shown a true or manipulated model of a business. I have committed these 6 qualitative indicators to memory as I can see that they will definitely be invaluable as I head into the world of business.

At the conclusion of Chapter 2, I agree with Martin that accounting is a game. Being so new to this game I am still quite confused by the rules though!!

Moving onto Chapter 3 I was relieved to see we were about to learn more specifics about financial statements. On starting ACCT11059 the thing that worried me the most was making sense of these. I run a small business, a home-based family daycare centre, which requires very little book work. I keep a record of all my purchases and income and present these to my accountant in a spreadsheet at tax time. My little spreadsheet looks nothing like anything I have seen in any Annual Reports! I hoped that Martin would demystify these in this chapter.

Let’s start with the balance sheet. Containing a firm’s assets, liabilities, and equity, a balance sheet shows a firm’s financial position on one day. To keep the balance sheet uncluttered, notes relating to items are appended to the footnotes section of the report. I can see the benefit in completing regular balance sheets to get a quick overview of a firm’s health so why are they generally only completed once a year? Do some firms complete them monthly or quarterly?

Unlike Ryman Healthcare, the company I was given (PVCS) was a single entity so reading the financials was somewhat more straightforward for me than for some of my peers. All assets, liabilities, and equity in the balance sheet are fully owned by PVCS. One of my favourite bloggers, Rebecca Bamford was given Kesko Oyj which is a Finnish conglomerate with multiple subsidiaries. I was incredibly impressed with her ability to understand the complexities of this set-up and also very relieved that I wasn’t faced with the same task!

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Moving onto the Income Statement I am introduced to the way that revenue and expenses are reported. By subtracting the expenses from the revenue, we have the ‘bottom line’ which is largely what equity investors are interested in. I was relieved to see that we now had all of our accounting principle friends together. The crew of 5 can all be found in the balance sheet and income statement so why can’t we stop there?

It turns out that we need more statements to fully understand the changing nature of our businesses. Let me introduce you to the Statement of Changes in Equity. Now, the SOCIE and I have met before but we aren’t really on speaking terms. I struggle to understand so much about it including why it is set out so differently to the other statements and what all of the items included in it are. If the SOCIE and I were at a party I would probably hide behind the potted palm rather than pour it a mimosa. The only reason it would even be invited is because it is related to my friends the Income Statement and Balance Sheet. I know that I need to improve this relationship to truly understand how shareholder’s equity is affected over time. I am relieved that Martin does not expect us to know too much about the SOCIE at this stage as it is a very weak point for me.

Happy to move on, let’s look at the Statement of Cash Flow. I am now in much more familiar territory. Cash is an essential requirement of any business and is a commodity that we all deal with every day. In very basic terms, the Statement of Cash Flow allows investors to see how cash is generated and where it is being spent. Of course, this is essential in evaluating how efficiently the company is performing. I wondered why we weren’t required to put the Cash Flow Statement in our company spreadsheet? I must admit that I haven’t had a chance to read ahead into our second assignment. Perhaps this is something we will have to do then.

I found Chapters 2 and 3 to be quite weighty so I read them several times, took many notes and discussed the concepts with my family. Although still unsure about some things I feel like I am on my way to understanding this game and in turn better understanding the world of business. Onwards and upwards!

STEP 6: PEER FEEDBACK SHEETS

Here are the peer feedback sheets that I have completed at the time of submission. I am continuing to complete feedback sheets as I think the exercise is really helpful to both me and my peers.

Feedback From: Amy McClelland

Feedback To: Rebecca Bamford

My Comments

Step 1

KCQs

You have a real grasp of how to write effective KCQs. Your writing is relatable and interesting.

Step 2 Your Moodle Profile includes a good general description, links, email and

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photo. Your WordPress Blog is beautiful, easy to navigate and a great representation of you, your culture and your goals. I enjoyed reading about your background in the construction industry and your ambition to empower other people in your community to find employment or higher education. You are an incredible multi-tasker; juggling family and study commitments and are inspirational to other student Mums like me.

Introductory words in Description box

Photo and description

Link to your blog/Set up blog

Step 3 I found your initial impressions really interesting and appreciated the time you took to explain a lot of the key concepts relating to your firm’s operations such as defining ‘trading sector’ and ‘divestments’.

You provided an excellent overview of what Kesko Oyj does and its history. Kesko’s operations are certainly complex as it is involved in so many different industries, but you dealt with this in a methodical manner demonstrating your thorough understanding. I was impressed by the way you were able to make sense of the financial statements and apply them to the business realities of your firm whilst also relating them to personal or everyday experiences.

Your writing is easy to follow and well-structured and a good mix of financial information and personal thoughts and reactions.

When reflecting on the advice given to you by Studiosity you were able to identify what was relevant to the assignment’s expectations and what wasn’t. You used the Studiosity feedback in conjunction with previous information garnered from lectures, PASS sessions and interactions with course coordinators to make judgements about editing your assignment. You are obviously taking advantage of all the support services offered to ensure the best learning experience.

Your comments on other’s blogs that I have seen are insightful, constructive and warm. Personally, I have found your feedback invaluable in improving my own work and in making my learning journey much more enjoyable.

Background information on company

Comments/KCQs

Comments on other’s blogs

Step 4 Your financial statements are well formatted and easy to follow. You provided links to your Annual Reports for reference and the information in your statements clearly reflects the information I found within. The time you took to double, and triple check your information is indicative of the precision and effort that you put into all of your work. You also used formulas to check your totals as advised. I immediately noticed the use of a decimal place in your statements and wondered about this, but it all made sense when I saw your company did the same. You also clearly explained the reasons behind this. Once again you used the resources of Facebook and PASS to resolve any issues you have had.

Input company’s financial statements

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Step 5 I thought ‘Snap!’ when I saw that you also have had a sick child in the midst of this assignment. Your resolution to power through Step 5 in spite of this is impressive.

Once again, I struggled to find any areas to improve in your KCQs. Your reading of Chapter 2 & 3 has obviously cemented many of the concepts introduced earlier in your understanding.

Your writing was honest and comprehensive.

KCQs

Step 6

Individual feedback with others

I found your peer feedback sheets to be very constructive and thorough. I personally received a feedback sheet from you and this has been invaluable in improving my work.

You have also been very active on our Facebook page, PASS sessions, Moodle forums and blogs and are consistently helpful, engaging and perceptive in your interactions.

Overall ASS#1 I really struggled to find areas to improve in your Ass #1 as you demonstrated a clear understanding of your firm and covered all of the criteria. Your time management is to be applauded as you completed all the tasks well before due date. You should be very proud.


Feedback To: Megan Main

My Comments

Step 1

KCQs

I think you related the concepts well to your personal experiences and wrote clearly and concisely. You were honest in identifying areas that you were unsure of and demonstrated an openness to learning more.

Step 2 Your blog is beautifully presented and easy to navigate. You have provided a good introduction in your About Me and Welcome posts and I like that you included a picture of yourself. You are one of the only people I have seen who has a contact tab and I saw that you have included your phone number and email address. I thought this was a nice touch. Links to and from your Moodle and WordPress blogs are provided.




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Step 3 I enjoyed watching the video and thought your ‘Know my firm?’ post provided a good introduction to Power Assets. Your Step 3 paints a very thorough picture of what Power Assets is, what their strategy is and the challenges they face.

You explained your concepts very well. This is something that I struggle with.

I enjoyed following you as you worked out how the elements in the financial statements related to each other, and then applied this to the business realities of Power Assets.

Did you find any new articles or blogs etc in your research of Power Assets? If so, it would be interesting to add them here.

I noticed a couple of typos and grammatical mistakes, but these are easily fixed. I know you found Studiosity to be useful for this, but I would also recommend using Grammarly. I have found it to be invaluable in picking up the things that Studiosity and I have missed.

You explained why you chose your favourite blogs and gave good reasons for this.


Comments/KCQs


Step 4 Your company spreadsheet looks good and seems to reflect the information that I found in the Annual Reports. I see that you have used formulas throughout to check your totals. Input company’s financial statements

Step 5 Again, I am really impressed with your KCQs and could learn from your ability to write them so well. You have explained the concepts, related them to personal experiences and reflected on your reactions and ongoing thoughts about them. I want to give you some constructive feedback about this step but am drawing a blank.

KCQs

Step 6


I haven’t yet read any of your feedback sheets but have viewed a lot of your general online communication with others on our blogs. You are consistently insightful, warm and engaging.

Overall ASS#1 You have obviously made your studies a priority (even around your full-time job) and this is evident in the quality of your work. You seem to be learning these concepts on a deeper level and can find meaning relating to these concepts in your own experiences.

I know you were initially concerned about blogging and online

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communication with others, but you pushed through this and have created a beautiful blog and are forming supportive peer partnerships. Well done!


Feedback To: Evan Redward

My Comments

Step 1

KCQs

I enjoyed reading your Step 1 and thought you covered the KCQs very well. I like how you related the concepts covered in Chapters 1 & 2 to your experiences in the workplace.

Step 2 Your Moodle Profile includes a good general description, link to your blog and email but no photo. I enjoyed reading your Welcome post on your blog and was quite blown away by how polished your blog appears. I love how your assignments are easily accessed from the toolbar. The only thing I struggled with was the 3-column layout of the posts on each page as I had to look at time stamps to read the blogs in the correct order. I wasn’t too surprised when I read that you have had some previous experience writing travel blogs. I only wish I was as tech savvy! I really liked your quote about balance. I hope you have managed to find some work / life balance around your work and study commitments.




Step 3 I enjoyed reading the background posts on SDL which were well written and comprehensive.

I know that you weren’t initially thrilled with the company you were given but you really rose to the challenge and presented a thorough representation of what the firm does, it’s history and financials. Is this information going to be condensed into your Step 3? I see that much of it was uploaded since your draft so am assuming it will make it into your final submission.

Your Annual Reports were easy to access, and you covered your KCQs well. I liked the addition of videos to explain much of what SDL does. This in conjunction to your explanations made it easier for me to come to grips with the obscure services that SDL provides. Well done.

I have seen that you are active on our Unit Facebook page and have


Comments/KCQs


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also commented on other student’s blogs (including my own). Your comments are always supportive and insightful, and you are obviously making good use of the support available to you. I too have struggled to get to the Zoom sessions due to other commitments and think it is one of the challenges of juggling work and study.

Step 4 I was sorry to read about the challenges of the changing financial reporting standards for your company. That must have made it so hard! I appreciate the link to the KPMG explanation of IFRS15 as it was all a bit over my head. I see that you used a decimal place in your financial statements to reflect the way they are displayed in your Annual Reports. That makes sense. I would have liked to have an actual link to your Excel Spreadsheet so that I could see how you used formulas. This would also allow me to provide feedback on your formatting.


Step 5 I found the way you related Bill Bryson’s book to the concepts in Chapters 2 & 3 interesting. I am also a Bill Bryson fan so will be looking for this one! I would have liked a little more info on the key concepts covered in the Chapters. Having said that I haven’t finished my Step 5 yet, so I commend you for having anything down on paper. You demonstrate a real interest in concepts of accounting and have an aptitude for making sense of these with anecdotes.

KCQs

Step 6


I have read your peer feedback sheets and found them to be very constructive and comprehensive. You have obviously spent a lot of time reviewing the posts and assignments of your peers in order to provide helpful feedback.

Overall ASS#1 I enjoy following your blog and assignments and will continue to do so. I think that you have a good grasp of writing KCQs and I look forward to seeing your final assignment once all of the information you have gathered is put together. You have demonstrated an aptitude for this Unit and excellent time management skills. Well done.


Feedback To: Daniella Davenport

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My Comments

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Step 1

KCQs

I really enjoyed reading your Step 1. It was well written, engaging and gave a great overview of your thoughts as you started this unit. You related the key concepts to your personal experiences really well, explained these concepts and you were honest in your reactions. I was impressed that you read Martin’s thesis. I thought this section was very well structured.

Step 2 Your blog is one of my favourites so it’s not surprising that I have many positive things to say about it!

Your blog is very attractive with nice images chosen and is easy to navigate. I also found the content to be well written and concise.

I thought your Intro gave a great overview of who you are, and this was also used in your Moodle Profile.




Step 3 You provided a very thorough overview of Melbourne IT’s history, what they do and also their strategy going forward. I was interested to read about the merger with ARQ, the consequences of this merger and the reasons behind it. You have demonstrated a good understanding of the financial statements and used them to make predictions about the firm’s future prospects.

I only picked up one spelling mistake “The Director helped his position’ instead of held.

I am trying to find an area that I can help you improve in Step 3, but I am coming up blank. The only thing I can see that could be added is maybe a snapshot of the wider industry? Are there any news articles, blogs, videos etc that discuss this?

I enjoyed reading your blog comments. Thank you for choosing The Daily Amy as your favourite blog!


Comments/KCQs


Step 4

Not providedInput company’s financial statements

Step 5 Your Step 5 was insightful, well written and honest. I like how you made sense of many of the concepts by relating to personal anecdotes and recollections of media reports. I too have found the workload in this subject to be enormous and am impressed with your ability to produce such high-quality work around your kids, other subjects and

KCQs

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employment.

You and your husband will be a force to be reckoned with as an accountant / mortgage broker power couple!

Step 6


I have noticed that since the beginning of this unit you have been active on the unit Facebook page, Moodle forums and other student’s blogs. I have found all of your interactions with others to be supportive, constructive and thoughtful.

Overall ASS#1 I am very impressed with the quality of your work. In particular I think you have a good understanding of how to write KCQs (something that I am still struggling with) and excellent time management skills. You should be very proud of yourself!


Feedback To: Jewel Westerhout

My Comments

Step 1

KCQs

I liked the way you recognised areas that might challenge you in learning accounting and how you provided a good overview of your background. You write well reflectively but, like me, could improve your KCQs by explaining the concepts in your own words.

Step 2 Your introduction is good on both your Moodle and WordPress blogs and you have included a photo. I couldn’t find a link to your Moodle profile on your Accounting is Accrual World blog.

You have demonstrated your technical ability with your blog which is easy to navigate. I like that you have provided tabs at the top. I tried to do this to my own blog and wiped out all of my information. Abort, abort! Ha. I also like that you have included a Contact Me tab.

I am not a huge fan of the pink background but see that others really like it, so it might just be personal preference. I think it made the text a little hard to read but this might be compounded by the fact that my 40-year-old eyes might need glasses!




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Step 3 I am glad that you received a company that you were happy with. I was also happy with my company and this made the assignment much more enjoyable. I haven’t heard of Stella Holdings. Do they make any brands that I would have heard of? I haven’t seen anyone else include a timeline of major milestones for their firm and thought this was a good idea.

I would have liked more information on Stella Holdings including the challenges they are facing, the areas of business that seem critical and their strategy going forward.

I would also have liked to read about any concerns or questions that you had while looking at the financial statements and researching your company.

I found that writing a checklist of areas that need covering was really helpful in completing Step 3. I posted my checklist here https://thedailyamy.home.blog/2019/12/09/step-3-checklist-ass-1/

I see that you haven’t selected your top 3 blogs yet.

Did you submit to Studiosity? I would be interested ti hear about what you thought of it.


Comments/KCQs


Step 4

Not providedInput company’s financial statements

Step 5 You write honestly here about not understanding the financial statements as well as you would like. I would have liked a bit more information on the particular concepts that are causing you concern. You provided a good explanation of accrual accounting, but I would have liked to see you do the same with some more concepts.

KCQs

Step 6


I have seen that you are active on our Unit Facebook page, Moodle and have commented on my own and other’s blogs. You have been honest about your experiences and supportive of others. I haven’t seen your peer feedback forms yet so can’t comment on these.

Overall ASS#1 Overall, I think you have done a good job with this assignment. You could improve your KCQs by explaining the concept, discussing your reactions and any thoughts, questions or concerns relating it. I find KCQs difficult but found Danielle Bradley’s checklist and the video on Moodle to be really helpful. I like how your personality shines through on your blog and in your writing. I look forward about reading more

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https://thedailyamy.home.blog/2019/12/09/step-3-checklist-ass-1/


about Stella Holdings as you continue your assignment. Well done.

The peer feedback sheets that I have received at the time of submission:

Feedback From: Rebecca Bamford

Feedback To: Amy McClelland

My Comments

Step 1

KCQs

Your ability to analyse the reference material and convert these thoughts into the KCQ’s are comprehensive. You keep your reader engaged with your honesty.

Step 2 Blog page is beautifully presented, easy to navigate and had no problem accessing at all. Your humorous and honest views on life have me totally engrossed. I really like how your positive outlook clearly shines through your words. It makes your blog posts more enjoyable to read. I have learnt a lot about you in your introduction (where your located, employment background and what you hope to achieve out of your course). I love the personal touches (family photo). I commend you on returning to study with work and family in toe. I wish you all the best on this journey.




Step 3 Your initial first impressions about your company was totally opposite to what I had seen so far. An introduction to a company that has had to restructure due to deteriorating market conditions and therefore revenue decrease had me intrigued.

I really like the use of the meme’s to begin with. It sets it apart from any other blog page I’ve seen to date. You clearly have a very good understanding about your company which allowed the reader to get a deeper understanding as well. I thought the use of graphs to show the decline in company value was a great idea. I can see your previous work history within the renewable energy sector has obviously been advantageous in your understanding of this company. I commend you on your use of personal and workplace experiences within your KCQ’s and encourage you to continue this. It not only complies with some of the key points on How to write KCQ’s but your quirkiness in your delivery keeps


Comments/KCQs


Amy McClelland 23


the reader engaged as well. I thought the idea of inserting links (to other websites, documents) throughout your KCQ’s was a great idea (unfortunately could not access any of them???). Finally, I found your essay was not too lengthy and was clear and concise. I think you will do fine in the module. Look forward to seeing the rest of your work!

I liked your review about your Studiosity experience. You clearly identified where there is room for improvement and have taken it all on board. I had a similar experience with regards to my structure of my essay. I commend you on trying to take advantage of whatever support services there are on offer. Hope this makes your university journey a little easier.

Step 4 I like your comment about how you made good use of the video Maria supplied as I too did the same (played and paused). I liked the idea of downloading file to access spreadsheet. I think it looks much neater. You have clearly taken everything on board that was mentioned in the video. The use of formulas and copying cells to allow them to be your second check is excellent. Unfortunately, I was not able to access any annual reports but taking into consideration the high calibre of your work I’ve seen from you to date, it would mirror what is shown in the report. Well done!


Step 5

KCQs

Step 6


Your feedback you have provided is positive and motivating. I’ve seen you comment on other peer blog pages. I commend you on your use of the unit facebook page and online PEER sessions.

Overall ASS#1 You clearly have a high standard of work and I think you shall do very well in this module. Great to see you are utilising the online communication tools available to assist you (PEER, Facebook, Peer blog pages).

Through your KCQ’s you have shown that you have a deep understanding of your firm as well as the concepts from the study guide.

Feedback From: Karissa Cause

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Feedback To: Amy McClelland

My Comments

Step 1

KCQs

I really enjoyed reading your step 1 reflections. I think you have done an amazing job here.

Step 2

Your blog is set out great. Love the little quirky content on here that you have posted recently.




Step 3 I loved your enthusiasm with the company you received. It really shows that this is a topic you are interested. You have gone into a lot of depth with the information and reflections of your company. The links and photos you have included is great too. I thoroughly enjoyed reading about your company.

Your top three blogs have been justified extremely well.


Comments/KCQs


Step 4


Step 5 I felt as though you have put a great deal of thought into writing your reflections for this step. I really enjoyed how you were honest with the concepts that you felt you still did not have a full grasp on. KCQs

Step 6


Overall ASS#1 Overall, I think you should be extremely happy with the assessment you are going to submit. You have put a great deal of time into it and can not see anywhere you need to make improvements. Your blog is definitely a favourite.

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Documents

STEP 3: pv crystalox solar › 2019 › 12 … · Web viewI was initially thrilled when I received PV Crystalox Solar (PVCS) as my firm on Friday evening. I yelled to my husband