Statement of Shareholders' Equity
• Using the most recent copy of your company's Annual Report and Financial Statements (this may be for 2013), find the Statement of Changes in Shareholders' Equity and paste it as an image into your report.
• Study the statement very carefully and explain in as much detail as you can what each entry in the Statement means and what impact each has on the Ordinary Shareholders.
• Using a spreadsheet, reformulate the Statement of Changes in Shareholders' Equity following the pro forma on page 262 of Penman.( I will attached the page 262 of Penman)
Note: the requirement is to reformulate the Statement of Changes in Shareholders' Equity for 5 years.
2- Reformulated financial statements
Reformulation looks like a mechanical exercise, but it requires a good knowledge of the business, an understanding of how the firm makes money. It requires you to evaluate management reports and the financial statements.
Download the financial statements from the company’s website or from data analysis libraries. Read the notes to the financial statements to discover more detail.
Build a detailed spreadsheet using your company’s financial data for at least 5 years (preferably more) to produce reformulated balance sheets, income statements and cash flows.
Produce comparative common-size and trend statements, based on your reformulated statements.
The company is Rolls-Royce