I took for granted that my previous studies would enable me to cruise through this activity. Turns out I was wrong. It actually took more time to familiarize myself with the various types of revenue, expenses, assets and liabilities and where they sit in the operating and financial activities of the company then it did to re-state the figures. There are certain elements that took me longer to figure out those including the tax benefit and how this has been applied in the comprehensive income statement and whether indeed it is correct.
The separating of the revenue into operating and financial also took me awhile to hunt through the notes and break down the components. In my comprehensive income statement, there was a random profit and loss from discontinued operations that wasn’t either a revenue or expense, I have applied this after the total operating expense. Fingers crossed this is also correct. The biggest confusion for me was the tax benefit that was applied in the net finance expense area that actually turned out not an expense. Some revision on this topic was certainly needed. I would certainly love some feedback for this area. It balanced in the end so let’s hope I have my theory correct.
The re-instating of the balance sheet was a little too easy for me and I was quite surprised that Jumbo Interactive had no financing debt. Could that be correct? Could a company operate all with no finance debt? It seems Jumbo Interactive does. It made sense the majority of Jumbo Interactive’s operating assets were intangible assets. Their whole company is based around supply software, online demand and internet sales. I haven’t started to ratio analysis but I am super curious what these ratios will tell. Honestly this company looks too good to be true. Certainly, good strategic planning and future planning has led to these outstanding results. From what I can see they have double and tripled their revenue and profits in the last four years. What a great few years for them. I think having a lockdown and people being confined to their houses gave Jumbo Interactive a niche in the market.
Fresh start accounting 