MGT401 Assignment No 01 Solution & Discussion Due Date:04-12-2018

[+M.Tariq Malik]

MGT401 Assignment No 01 Solution & Discussion Due Date:04-12-2018

FINANCIAL ACCOUNTING II (MGT401) 
ASSIGNMENT NO. 01
DUE DATE: 4
TH
DEC, 2018MARKS: 30 
Learning Outcomes 
After going through this activity, the students would be able to apply the analytical skills. 
Assignment 
Topic: “Intangible assets” and “Property, Plant and Equipment” 
Part A: 
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. 
Requirement: 
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.

 

Part B: 
Mark pharmaceuticals Ltd. (MPL) has provided the following information about the assets of 
the company at the end of year (June 30, 2018): 
Debit 
(Rs.) 
Credit 
(Rs.) 
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, 
2016 
10,000 
Notes:
 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. 
Required: 
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.
IMPORTANT: 
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: 
DEADLINE: 
 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. 
FORMATTING GUIDELINES: 
 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. 
REFERENCING GUIDELINES: 
 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 
visit: 
http://linguistics.byu.edu/faculty/henrichsenl/apa/APA01.html 
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 
etc. 
 It is cheated or copiedfrom other students, internet, books, journals etc. 
Note related to load shedding: Please be proactive 
Dear students! 
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.

[+M.Tariq Malik]

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[bagankhan]

dear bilal is suggested answer or conform ,,

 

[Asfa ahmed]

dear bilal plz share full working so we can learn the whole assignment .it will be helpful for all ur course fellows .jazak Allah

[Saima]

aoa.plz ap assignment file send kr den complete

[Hina Tahir]

please upload the solution 

[Asfa ahmed]

dear hina do u get the solution of this assignment?plz share with me at [e-mail] thnx

[Hina Tahir]

still i dont have any solution idea

[Imran Ajab]

This calculation is not complete.

[UAF]

This is wrong answer.

[Fahad]

Is that complete solution ?

[bagankhan]

dear please if you have complete solution please send me at [e-mail]

[Imran Ajab]

in 2nd part-B you just make notes on Office Building & Fixture & Fitting.