ACCT2060 Accounting for Organisations and Society
The enforceability of the Copyright Law in Australia with regard to illegally downloading music
August 7, 2017The Debate on what caused Rome to fall the most
August 7, 2017ACCT2060 Accounting for Organisations and Society
Individual Assignment Semester 2, 2014
This assignment, which is worth 20% of the total assessment for this course, is based on the consolidated financial statements of Mayne Pharma Group Limited (‘Mayne Pharma’). In order to complete this assignment, you will need to access the 2013 annual report for Mayne Pharma, available at www.maynepharma.com > Investor Relations > Results & Reports.
You must adhere to the following requirements in completing this assignment:
- Your assignment must be appropriately referenced using the Harvard Style referencing system. Both in-text citations, as well as a reference list at the end of your assignment, are required. You should refer to the referencing guidelines provided at https://www.dlsweb.rmit.edu.au/bus/public/referencing/index.html
- Note that when citing an annual report, either by paraphrasing or using direct quotes, you must reference the annual report (in your reference list) according to the following format: Name of company. (Year of publication) Title of annual report (in italics). Place of publication: Publisher.
(To cite an annual report in-text, you will generally have to use the organisation’s name, as an author name is usually not present.)
Penalties for inadequate or incorrect referencing will apply.
- This assignment is to be completed as an individual assignment. All electronically submitted assignments will be automatically forwarded to Turnitin and subjected to an assessment of authenticity/originality, so please ensure your submission is your own individual work – severe penalties will apply for work that is not original/individual. Please refer to the Academic Integrity presentation available at ‘Assessment’ on the course Blackboard site.
- Do not include the wording of the assignment questions in your submission – if you do so, Turnitin will recognise this as plagiarism.
- Your assignment must be submitted both in hard copy as well as electronically (via the course Blackboard site, at ‘Assessment’) by the due date. Submission date will be considered as the date of submission of either the hard or electronic copy, whichever is submitted later. Assignments submitted in hard copy only (that is, without an electronic submission) will not be marked and will be awarded zero. (Local lecturing staff will advise the assignment due date.)
- Late submissions will be marked as if submitted on time, then the mark awarded will be reduced by 10% (of total available marks) for each day or part-day that the assignment is late. For example, if your assignment is one day late then you will be penalised 10% of 20 marks which is 2 marks. Assignments that are late by 7 days or more will not be marked and will be awarded zero unless a formal extension of time has been granted.
- Extensions of time will only be granted in cases of exceptional and genuine hardship (which does not include inconvenience, poor planning, pressure from work or work commitments), and all applications must be accompanied by appropriate documentation. Applications for extensions of 7 calendar days or less (from the original due date) should be made via the Application for Extension of Time for Submission of Assessable Work form and forwarded to the Course Convenor (at [email protected]) at least one working day before the due date for submission. Applications for extensions of more than 7 days should be made (on-line) at least 2 working days prior to the due date using the Special Consideration process.
REQUIRED:
Refer to the 2013 annual report for Mayne Pharma to answer the following questions.
(Note: You will not be able to obtain all answers from the annual report, itself. You will need to refer to other sources (such as your textbook or other books) as well.)
This assignment is scored out of 30 marks and will be scaled to a mark out of 20.
Question 1 (3.5 marks)
(a) What type of business structure is Mayne Pharma? (Sole proprietor, partnership, private company or public company?) (0.5 mark)
(b) Identify 3 features of Mayne Pharma’s financial statements that support your choice. (1.5 marks)
(c) Refer to Mayne Pharma’s 2013 statement of financial position and identify the 2 items that have the same dollar value. (0.5 mark)
(d) Explain why these 2 items have the same dollar value. (0.5 mark)
(e) Why are Mayne Pharma’s financial statements referred to as “consolidated” statements? (0.5 mark)
Question 2 (6 mark)
(a) Name the 3 components of Equity shown on Mayne Pharma’s 2013 statement of financial position and explain how each has arisen. (You must be specific – do not simply provide a general description of equity components.) (3 marks)
(b) What was the dollar amount of Mayne Pharma’s total equity in 2012 and in 2013? (0.5 mark)
(c) Which financial statement explains the change in total equity between 2012 and 2013? (0.5 mark)
(d) Explain this change in your own words. (2 marks)
Question 3 (4.5 marks)
(a) What is the dollar amount shown on Mayne Pharma’s 2013 statement of financial position for ‘Inventories’? (0.5 mark)
(b) Refer to Note 1 (Significant Accounting Policies) and explain the valuation method used by Mayne Pharma for each type of inventory held. (2 marks)
(c) What is the dollar amount shown on Mayne Pharma’s 2013 statement of financial position for ‘Trade and Other Receivables’? (0.5 mark)
(d) Now refer to Note 10 (Trade and Other Receivables) and identify the amount that was actually owed to Mayne Pharma, in relation to trade and other receivables, as at 30 June 2013. (0.5 mark)
(e) Why does this amount differ from the amount shown on the 2013 statement of financial position? (1 mark)
Question 4 (6 marks)
(a) What is the dollar amount shown on Mayne Pharma’s 2013 statement of financial position for ‘Property, Plant and Equipment’ (PPE)? (0.5 mark)
(b) Refer to Note 14 (Property, Plant and Equipment) and list the 4 different classes of PPE carried by Mayne Pharma. (0.5 mark)
(c) Identify the depreciation method and estimated useful life adopted by Mayne Pharma for each class of PPE (see Note 1 – Significant Accounting Policies). (2 marks)
(d) How much depreciation expense was recorded for ‘Plant and Equipment’ in 2013 (see Note 14)? (0.5 mark)
(e) What is the total amount of depreciation that has been recorded for ‘Plant and Equipment’ since it was acquired (see Note 14)? (0.5 mark)
(f) What is the difference between “depreciation”, “amortisation” and “impairment”? (2 marks)
Question 5 (3 marks)
(a) In general terms (that is, not with reference to Mayne Pharma) explain what “goodwill” represents and how it is calculated. (1 mark)
(b) Refer to Note 15 (Intangible Assets and Goodwill) and identify the 4 classes of identifiable intangible assets held by Mayne Pharma and the net carrying amount for each as at 30 June 2013. (1 mark)
(c) What does “net carrying amount” refer to (i.e. how has it been calculated)? (1 mark)
Question 6 (2 marks)
(a) In general terms, what are “provisions”? (1 mark)
(b) What types of current and noncurrent provisions has Mayne Pharma recorded in 2013 (see Note 19 – Provisions)? (1 mark)
Question 7 (5 marks)
(a) What is the total number of shares that have been issued by Mayne Pharma as at 30 June 2013 (see Note 20 – Contributed Equity)? (0.5 mark)
(b) How much profit was earned by Mayne Pharma’s shareholders, on a per share basis, in 2013? (0.5 mark)
(c) How much of this profit did the shareholders actually receive (in cash), on a per share basis, in 2013? (0.5 mark)
(d) What is the reported dollar amount for Mayne Pharma’s ‘Net cash flows from operating activities’ for 2013? (0.5 mark)
(e) Explain (in general terms) 3 possible reasons why this figure is so much higher than Mayne Pharma’s net profit after tax for 2013. (1 mark)
(f) Now refer to Note 24 (Notes to the Consolidated Statement of Cash Flows) and identify the 3 largest contributors to this difference. (1 mark)
(g) Observe that Mayne Pharma has reported negative ‘Net cash flows from investing activities’ for 2013. Explain whether, in your opinion, these negative net cash flows represent a potential problem for Mayne Pharma. (1 mark)
