I have previously placed on my blog the KCQs for chapter 2 and 3 of the study guide, my recommendations of my top 3 blogs and also a blog post regarding an initial review and some background information of the company that I was assigned for this assignment being, GVC Holdings PLC.
Here is a link to the above mentioned blog posts:
https://tegantudehope.wixsite.com/tegansblog/post/chapter-2-and-3-kcqs https://tegantudehope.wixsite.com/tegansblog/post/i-recommend-these-blogs https://tegantudehope.wixsite.com/tegansblog/post/initial-review-of-gvc-holdings-plc
Firstly, I found the Annual Reports and Financial Statements on GVC Holdings PLCs website (website link below) and did some reading regarding what the company’s products are, what was some recent news for the company was, what other environmental and social responsibility awareness and initiatives the company had on their website and as it was a sports betting and gaming group I wondered if such a large company would have some kind of responsible gambling retort or game plan as I imagined that would be a draw back for this company. I was a little nervous regarding understanding the financial statements let alone putting them in an excel spreadsheet. I have not had experience with financial statements previously and this felt like a potentially huge task. I found myself breaking the steps down and doing one tiny step at a time, which assisted with not getting overwhelmed.
Now I can say that I have watched the video regarding entering your financial statements into the excel spreadsheet and I very much enjoyed following along, I found this video to be extremely informative and helpful, coming away feeling like I actually can understand and learn how to not only read these financial statements but also make links to the information in the statements to other information contained in other parts of the Annual Report such as the Chief Executives Review or Business Review and looked forward to looking into the footnotes to see what kind of additional information may be hidden in the different financial statements.
On inputting the financial statements into the excel worksheet the key concepts and questions that I found myself asking are below.
Firstly, as my company GVC Holdings PLC was incorporated in the Isle of Man, I wondered if there would be a currency/country issue with the assignment but was extremely relieved to have noted in my website research that in the period between 1 January and 30 June 2020 the company had actually moved its principle place of management to the U.K and when looking at the financial statements I saw both the pound symbol (2016 – 2017) and the euro symbol (2018-2019), which I have reflected in the excel spreadsheet. I also found it interesting I saw reference within the statements to the Isle of Man Companies Act 2006.
I noted that in the Consolidated Statement of Changes in Equity for the 2016-2017 year, I noticed the company mentioned the acquisition of bwin.party which was later detailed on page 103 of the Annual Report detailing the initial loan of €400m and the subsequent changes regarding early pays out and bridging loans. I also found an interesting reference to provision of litigation for this bwin.party and another entity on page 105 which I just found interesting to read about, I did not know that Financial Statements and Annual Statements would be so interesting with the types of details such as the above provided.
I also found mention in the 2019 Consolidated Income Statement a reference to results of joint ventures and associates which I did wonder if that was the MGM Resorts in America which I remembered from my review of their website.
The accounting concepts I was trying to remember for this exercise were:
Assets = Liabilities + Equity
Assets + Expenses = Equity + Revenue + liabilities
Profit is transferred to equity accounts at the end of a set period.
Increases in Assets/expenses = debits
Increases in equity/liabilities = credit
Paying dividends decreases assets in cash
I now attach a link to a blog post of my company spreadsheet. I have to say from seeing the other videos listed on the moodle site and with the mention of ratios and the Du Pont approach, the questions I am asking my self now are how do they work in with this week’s learning’s. I am looking forward to the next steps of the assignment to learn how they come together with the current chapters and spreadsheet.
I thank you for reading my blog and welcome all comments and feedback on my spreadsheet and blog as well as anything that I can amend or improve on.
References
Investopedia. 2020. What Does Public Limited Company (PLC) Mean?. [online] Available at: <https://www.investopedia.com/terms/p/plc.asp> [Accessed 28 July 2020].
GVC Holdings PLC;: Corporate Website. 2020. Home. [online] Available at: <https://gvc-plc.com/> [Accessed 28 July 2020].
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