Question 1: Collect a current annual report (2009) of an Australia listed company.

Select the firm that reported the following assets. Select BOTHtypes of assets.

• Property, plant and equipment and
• Intangible assets (select only one intangible asset e.g. goodwill or development expenditure or Licenses or brand names or patent etc).

Required:

1.1) Provide the name of the company. Briefly summarise the business nature and its financial profile.

1.2) Briefly summarise accounting treatments that are required by the AASB 116 (Property, plant and equipment) and 138 (intangible assets) and other relevant accounting standards.

1.3) Briefly summarise how the selected items are disclosed in terms of accounting methods, disclosures in note to financial statement and etc.

1.4) Critically evaluate whether the accounting method or disclosure is consistent with the requirements of the AASB 116 and 138 and other relevant accounting standards, that is whether the company is providing relevant and reliable financial information for the users of general-purpose financial reports (GPFRs).

Additional information:

• All sales were on credit
• Loans payable of $150 000 were paid back during the year
• Equipment which cost $30 000 was sold during the year, accumulated depreciation of the equipment was $7 000. The sale of equipment created a loss on sale of $4 000
• The land was revalued upwards by $50 000
• The capital shares were issued during the year
• Dividends were paid at the end of the year

Required:

Prepare the statement of cash flows for Altman Manufacturing Ltd for the year ending 30 June 2009, in accordance with AASB 107. Cash flow from three activities with a reconciliation of net cash provided by operating activities and net profit are required with necessary calculation or worksheet.