I need the answer for Q8

ACCG308 Corporate Accounting and Reporting Session 1, 2014 Group Report (13%) Due: by 4pm Monday 12 May 2014 (week 9) Submission instructions: Each group must submit both a hard copy of the report at BESS (Ground floor, E4B) and a soft copy to Turnitin via iLearn by the deadline. Please do not submit the report to your tutor. The following must be attached to the hard copy of the group report: a) A Coversheet, which is available at: http://www.businessandeconomics.mq.edu.au/faculty_docs/postgraduate/student_support/Gr oup_cover_sheet.pdf b) A Feedback Sheet, which is provided at the end of this document. No extension will be granted. Late submission (i.e., submitted after the deadline) will be penalized by deducting 20% of the total available marks from the total awarded mark for each 24-hour period or part thereof that the submission is late. For example, if a report is 25 hours late, a 40% penalty will apply. You should carefully read the three sections on the following pages: Section A - Report Topic and Questions (on page 2) Section B - Report Requirements (on page 3) Section C - Marking Criteria and Feedback Sheet (on pages 4 and 5) 1 Section A - Report topic and questions Report topic: Corporate Takeover This report relates to the takeover of Internode Pty Ltd (the target company) by iiNet Ltd (the acquiring company). As a group, you are expected to undertake wide research to answer the following questions related to the takeover. Report questions: Part 1 - Background of the takeover (200 - 300 words) 1. Provide background information of the takeover, such as the acquisition date, reasons for the takeover, etc. 2. Describe the operations of iiNet and Internode just before the takeover. Were the operations of the two companies similar, compatible, complementary or different? Part 2 - Details of the takeover (800 - 1000 words) 3. What was the purchase consideration offered by iiNet, the acquiring company? What was the reason for iiNet to structure the takeover offer this way? How were the transaction costs associated with the acquisition accounted for? 4. Did goodwill or a gain arise as a result of the acquisition? How was it calculated and accounted for? 5. Name the relevant accounting standards that require additional disclosures by iiNet as a result of the takeover and briefly discuss the disclosure requirements. 6. In the same year (i.e., year ended 30 June 2012), iiNet also acquired the TransAct Group. What were the key differences between this acquisition and that of Internode? Part 3 - Impacts of the takeover (500 - 600 words) 7. What was the impact of the announcement of the acquisition of Internode on iiNet's share price? What were the reasons for these reactions? 8. How did the acquisition of Internode affect iiNet? You should briefly discuss the impacts in different aspects, e.g., how iiNet's liquidity and solvency was affected. Overall, do you think the acquisition was beneficial to iiNet? Provide your reasons. 2 Section B - Report Requirements a) Word limit The report should contain no more than 2200 words, inclusive of references. Please stay within the word limit; otherwise a penalty will apply. b) Referencing It is extremely important that you are familiar with the university policy on plagiarism that is included in the unit guide. This is a research report. You must re-write material in your own words and not just copy and paste from the internet or any other resources. You must properly reference all material in the main text and provide a reference list at the end of the report. It is recommended that you use the Harvard referencing style, the guide (produced by Macquarie University) to which is provided as a separate file under the Group Report section on iLearn. c) Submission to Turnitin You are required to submit the report electronically to Turnitin, which is also located under the Group Report section on iLearn. You should upload your report (a Word file) to Turnitin once only by the deadline. Turnitin is an internet database that identifies work containing unoriginal material. Your report will be scanned using the Turnitin software and if you have copied material from the internet or other sources improperly, you will be penalised. The scanning will also tell us if you have copied from another group. Staff in the unit will perform a check on the similarity of your report to others. If there is group-to-group copying, ALL students in the groups will receive zero marks for the whole report and may be reported to authorities for misconduct. d) Research The textbook (i.e., Jubb et al. text) gives a reasonably thorough introduction to takeover rules. However, you must read more widely by consulting the internet, newspapers, business magazines, the affected companies' annual reports, etc. You cannot expect to receive a high mark unless you include evidence of wide research. e) Teamwork In week 3 or 4 of tutorials your tutor should have assigned you to a group of no more than five students. This is a group report, which means every group member must contribute to the report. In usual circumstances, all students in the same group will receive the same mark, and therefore it is your responsibility to ensure that workload distributed to each group member is reasonable and that all members make continuous progress in the report. It is suggested and expected that you start working on the report early, develop a timeline and use it to constantly monitor group progress. Group members should communicate on a regular basis. Early warnings should be given to group members who are not making progress in the report. If the problem is persistent, it should be reported to your tutor as early as possible and resolved at least one week before the due date. Please clearly indicate the agreed percentages of contribution by each group member on the Feedback Sheet. If you fail to do so, all students will receive the same mark. 3 Section C - Marking Criteria and Feedback Sheet Marking Criteria Your group report will be given a mark out of 100, which will be later converted to a 13% weighting for the unit. Feedback on your performance and marks for your report will be provided in week 13 tutorials. Marks will be given based on the following criteria: a) Quality of arguments and explanations - 80 marks In answering the eight questions in this report, you have to demonstrate resourcefulness and an apparent degree of self-motivation in sourcing relevant material. Also, you need to demonstrate the ability to provide accurate information, clear explanations and convincing arguments. b) Writing skills - 15 marks The following generic skills are assessed: Report layout Clear expression Structure and organisation of the report Grammar, spelling and punctuation. c) Referencing - 5 marks Five marks will be given to reports that have made correct references throughout the report. If improper referencing is made, zero marks will be awarded for referencing. 4 ACCG308 Group Report Feedback Sheet Tutorial day & time:_______________________ Student Name Student ID Tutor's name: Individual Contribution (Out of 100%)* Signature *Agreed by all group members. If a clear case has been made that some students contribute less than their peer group members, their marks will be reduced to reflect their effort in the group report. For example, if an individual has contributed half as much as other group members and the group mark is 90, then that student will be awarded a mark of 45. Marker's feedback Marking Criteria Quality of arguments and explanations Marks awarded Marker's comments /80 Writing skills Report layout Clear expression Structure and organisation of the report Grammar, spelling and punctuation. Referencing Total /15 /5 /100 Deductions (late, over word count, etc.) Final raw mark /100 5