We are here with you hands in hands to facilitate your learning & don't appreciate the idea of copying or replicating solutions. Read More>>
+ Link For Assignments, GDBs & Online Quizzes Solution
+ Link For Past Papers, Solved MCQs, Short Notes & More
Dear Students! Share your Assignments / GDBs / Quizzes files as you receive in your LMS, So it can be discussed/solved timely. Add Discussion
How to Add New Discussion in Study Group ? Step By Step Guide Click Here.
MGT401 Assignment No 01 Solution & Discussion Due Date:04-12-2018
FINANCIAL ACCOUNTING II (MGT401)
ASSIGNMENT NO. 01
DUE DATE: 4
DEC, 2018MARKS: 30
After going through this activity, the students would be able to apply the analytical skills.
Topic: “Intangible assets” and “Property, Plant and Equipment”
Mark pharmaceuticals Ltd. (MPL) is a listed firm and famous for dealing in pediatric
medicines. Suppose you have been hired as financial manager of the company. The following
information is provided to you for the correct treatment as per IAS 38 (Intangible assets) for
the year ended June 30, 2018.
1. MPL has developed and patent two new vaccines A and B at a cost of Rs. 160 million
and Rs. 120 million respectively. Based on the market analysis, it is estimated that
Vaccines A would generate revenue of Rs. 300 million per annum for the next five
years and Vaccine B would generate a total revenue of Rs. 80 million for an indefinite
period of time.
2. An amount of Rs. 6 million paid for television advertising campaign that will cover a
period of 6 months from May 1, 2018 to October 31, 2018. The directors believe that
the campaign would help to boost sales growth (targeted at 8% for the next two years).
3. An amount of Rs. 5 million were spent on training of technical staff. The training
courses were conducted by leading experts ofpharmacy production and are expected to
improve the production quality significantly and reduce cost.
As per IAS38 (Intangible assets), you are required to explain how the above expenditure will
be accounted for in the financial statements of Mark pharmaceuticals Ltd. (MPL) for the year
ended June 30, 2018.
Mark pharmaceuticals Ltd. (MPL) has provided the following information about the assets of
the company at the end of year (June 30, 2018):
Land Acquired January 1, 2016 (at cost) 80,000
Office buildings erected on June 30, 2018 (at cost) 50,000
Fixture and fitting (at cost) 60,000
Accumulated depreciation of fixture and fitting on July 1,
Depreciation is calculated at 10% per annumon the basis of reducing balance method
for fixtures and fittings.
Buildings will be depreciated at 2% per annum on straight line basis.
You are required to prepare the notes to the financial statements of property plant and
equipment as per IAS 16 for the year ended on June 30, 2018.
Note: Thorough reading and understanding is required to answer the required questions.
24 hours extra / grace period after the due date is usually available to overcome uploading
difficulties. This extra time should only be usedto meet the emergencies and above mentioned
due dates should always be treated asfinal to avoid any inconvenience.
IMPORTANT INSTRUCTIONS/SOLUTION GUIDELINES/SPECIAL INSTRUCTIONS
If plagiarism found more than 20%,your assignment will be marked zerobecause
university is following no plagiarism policy. Plagiarism reports will be attached with
your assignment solution files to giveyou exact results of copied data.
Only to the point and relevant answers are required with proper logics.
OTHER IMPORTANT INSTRUCTIONS:
Make sure to upload the solution file before the due date on VULMS.
Any submission made via email after the due date will not be accepted.
Use the font style “Times New Roman”or “Arial” and font size “12”.
It is advised to compose your document in MS-Word format.
You may also compose your assignment in Open Office format.
Use black and blue font colors only.
Use APA style for referencing and citation. For guidance search “APA reference style”
in Google and read various websites containing information for better understanding or
RULES FOR MARKING
Please note that your assignment will not begraded or graded as Zero (0), if:
It is submitted after the due date.
The file you uploaded does not open or is corrupt.
It is in any format other than MS-Word orOpen Office; e.g. Excel, PowerPoint, PDF
It is cheated or copiedfrom other students, internet, books, journals etc.
Note related to load shedding: Please be proactive
As you know that Pre-Mid-Term semester activitieshave started and load shedding problem is
also prevailing in our country. Keeping in view the fact, you all are advised to post your
activities as early as possible without waiting for the due date. For your convenience; activity
schedule has already been uploaded on VULMS for the current semester, therefore no excuse
will be entertained after due date of assignments or GDBs.
.+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)
+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)+ Click Here to Search (Looking For something at vustudents.ning.com?) + Click Here To Join (Our facebook study Group)
we should be discuss & share working with each other.
Kindly Send me the solution please
Koi allah ka bata help ker du plzz..last date hai
In your solution we should be deducted 2 million instead of 6 million. because the year is ending 30-06-2018.
Part A(b) is incorrect as there should be prepaid expense adjustment.
Part B there is mistake in depreciation calculation.
Notes to the financial statements of property plant and equipment as per IAS 16 are not prepared.
MGT401 Assignment#01 Correct Solution