Annual Report 2013 Financial Position Findings

Important Findings that should be highlighted.

• In my understanding of the financial position and the balance sheet the following accounts should be looked at.
• Cash and Cash Equivalents has increased by $411 794

(When looking at Note 6 it is clearly seen that in particular the cash on hand has increased. This is a good sign even though revenue decreased when a business has cash on hand it means that they have sufficient funds to pay for current liabilities. This was really interesting to show that overall the company must being going good with cash flow.)

• Trade and other receivables has increased by $2,212

(With trade receivables this is the money that clients owe to Advanced Share Registry. As it overall has not changed much over the two years I don't think this is a great concern for the 2013 financial year. However, when we look into Note 7 in the Annual Report I can see that the current trade receivable actually increased by $32,612, however Advanced Share Registry had to write off $16,341 as a impairment loss during the financial year 2013. This can be concerning as this means the client was unable to make payment. In my opinion I think that a business should try and minimize this as much as possible by watching who is entering into a service with.

Key Concept Question: What is you thoughts on Impairment Trade Receivables?

• No new Property, plant and equipment has been purchased in the 2013 financial year.
• Trade Creditors has increased by $42,806

This is the bills unpaid by Advanced Share Registry. 

Key Concept Question: As Advanced Share Registry has more cash on hand I don't understand why they wouldn't pay more creditors off? As Creditors has increased by $42,806.

• Current Liability Provisions which is Annual Leave and Dividends increased by $18,887

Key Concept Question: What is everyone's understanding of Provision of Dividends? I think it is dividends that are to be paid to employees only because my amount in my account is no where close to there whole dividend that is supposed to be paid?

• Non-current liability provision is long service leave which increased by $16,961 in 2013. 

Key Concept Question: Finding the understanding of deferred tax assets and liabilities confusing? Anyone understand this?

EQUITY ACCOUNTS

• Retained Earnings is the profit after tax less any dividends paid. A positive retained earnings means that the company is making a profit and able to pay fully franked dividends to shareholders. This is very important for shareholders. Advanced Share registry looks reasonable over the last two years.
• Issued Capital refers to the investment into Advanced Share Registry which is normally when shares are raised and owned by investors and even employees. This increased in the 2013 financial year as employee performance share rights were allotted.
• Rights reserve increased by $10,570.

Key Concept Question: Anyone have a clear understanding of rights reserved in equity? 

From what I understand is that it is to do with the employee performance rights shares which to me are the number of shares under the rights agreement and when a employee meets the performance they can buy the shares under market value or for nil value as that is what is outlined in the Annual Report 2013. Please let me know if you agree?

Overall Summary Assets and Liabilities: My concerns are that there is more cash in the bank to pay off creditors and yet creditors has increased?  Found it interesting to know that with profits slightly decreasing the company was able to have approximately an extra $400,000 in cash on hand.