| Amcor Limited | 22743 Business Valuation and Financial Analysis | | | |

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group assignment 2 | Muhammad Farhan | 11340041 | Zahid Mahmood | 11473485 |

Table of Contents Executive Summary 3 Accounting Analysis 3 1. Accounting Policies and Standards 3 Revenue Recognition (AASB 118): 3 Property, Plant & Equipment (PPE) (AASB 116): 3 Intangible Assets (AASB 3, AASB 138): 4 Borrowing Costs (AASB 123): 4 2. Flexibility in Selecting the Key Accounting Policies 4 3. Accounting Strategy Employed by Management & Incentives 5 4. Quality of Disclosure: 5 5. Potential Accounting Numbers and Undoing Distortions 6 Financial Analysis 6

Executive Summary
Having considered the economic …show more content…

66). Property Plant and Equipment (excluding freehold land) are depreciated using straight line method based on their useful lives. At the end of each period, depreciation methods, residual values and useful lives are reassessed and assets are written down immediately if recoverable amount is less than carrying value. Based on the nature of operations, Property Plant and Equipment forms up 61.36 % of the total non-current assets for FY2012.
Intangible Assets (AASB 3, AASB 138): Amcor’s Intangible Assets are comprised of Goodwill and Other Intangible Assets (Product Development, Computer Software and Customer Relationships). Other Intangible Assets have been acquired separately (carried at cost less accumulated amortization and accumulated impairment losses) and those acquired in business combinations (initially recognized at fair value and then subject to amortization and losses). Goodwill is a large part of Amcor’s intangible assets with a total contribution of 21.6% to total non-current assets. It recognized when business combination take place. It is valued as the difference between the total cost of the acquisition and fair value of net identifiable assets acquitted. Goodwill has an indefinite life and hence is not subject to ammonization but tested for impairment whenever an event that indicates the change in recoverable