Rmit - Acct 2060 Introductory Accounting Assignment

ACCT 2060 Introductory Accounting
Assignment - Semester 1, 2012

Part A

Question 1

In the course of the financial year, Blackmores’ principal operating activities focused on the development and marketing of natural health products such as vitamins, herbal and mineral nutritional supplements. They sell and have operations in the natural health and dietary market throughout Australia, New Zealand and Asia region.
(Reference: Blackmores’ Annual Report 2011, Pg. 37)

Question 2

Mr Marcus C. Blackmore AM is the Chairman of Blackmores’ Group.
(Reference: Blackmores’ Annual Report 2011, Pg. 35)

He held 4,479,278 fully-paid ordinary shares in the company at the end of their 2011 financial year.
(Reference: Blackmores’ Annual Report 2011, Pg. 36)

Question 3

1) Consolidated Income Statement 2) Consolidated Statement of Comprehensive Income 3) Consolidated Statement of Financial Position 4) Consolidated Statement of Changes in Equity 5) Consolidated Statement of Cash Flows

(Reference: Blackmores’ Annual Report 2011, Pg. 51 - 55)

Question 4

The entire Note 3 deals with Significant Accounting Policies.
(Reference: Blackmores’ Annual Report 2011, Pg 60)

Blackmores uses the straight-line method to depreciate property, plant and equipment.
(Reference: Blackmores’ Annual Report 2011, Pg 62)

The underlying assumption of this method is that the usefulness of assets is being divided evenly over its useful life.
(Reference: Investopedia ULC 2012)

Question 5

Corporate governance is defined as the system by which companies are directed and controlled.
(Reference: Accounting - An introduction, 4th edition, Pg. 42)

Principles of Blackmores’ corporate governance as follows: 1) Lay solid foundations for management and oversight 2) Structure the Board to add value 3) Promote ethical and responsible decision-making 4) Safeguard integrity in financial reporting 5) Make timely and balanced disclosure 6) Respect the rights of shareholders