Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please answer must including Risk analyse and risk treatment plan as well. Base on AUSTRALIAN firm. thanks Assessment scenario CBOS Limited is an ASX-listed pharmaceutical
please answer must including Risk analyse and risk treatment plan as well. Base on AUSTRALIAN firm. thanks
Assessment scenario CBOS Limited is an ASX-listed pharmaceutical company. It invests heavily in research and has been a world leader in developing pharmaceutical remedies for a number of common sicknesses. Competition between pharmaceutical companies is strong, with huge financial rewards for those who can get innovations to market first. However, the process to get a new product onto the market is long, with extensive trials and testing to be undertaken before approval is granted. After this, CBOS registers their new products for patents to ensure that the competition doesn't copy their hard work. CBOS has a manufacturing facility in Perth that it uses for its patented products, while it outsources manufacturing of its generic products (such as paracetamol and aspirin) to a joint venture company in Thailand (sales from which represent 50% of profits). Key financial information for the last three years is given on the next page. Assessment questions Carol King, a management accountant at CBOS, has been tasked with updating the company's risk management processes. As a part of this task Carol must: 1. Identify financial risks that CBOS Limited is currently experiencing on the risk analysis sheet. 2. Plot each financial risk on the CBOS Limited risk matrix. 3. Explain how you will mitigate each financial risk on the risk treatment plan. 4. Is there any other financial risk that CBOS Limited may experience? This risk is not given in the assessment scenario, or shown in the financial information. You need to use your own knowledge to identify and explain one other financial risk this company may face. CBOS Group Limited Key Financial Informtion Income statement Sales Rovendo Other Revenue Total Revenue Cost of Goods Sold Depreciation Share of Profits of Associates Interest Expense Profit Before Tax Income Tax Expense Continuing Operations After Tax Discontinued Operations After Tax Outside Equity Interest NPAT 30-Jun-2018 6954,844 1.627 6.956,471 6,168.241 31,947 4,114 26,872 186,437 55,931 128.535 NA 1,971 1.30.5116 30-Jun-2017 30-Jun-2016 6,99.802 6,441,517 1,900 2.288 6,971.70Z 6,192,813 6,280.976 5,866,338 23,612 22,566 2,713 3,494 21,217 18,600 172,260 168,199 51,678 50,400 121.117 117,0.19 VA NA -396 0 120,582 117,739 30-Jun-2017 145.264 916.846 522,702 Balance Sheet Cash at Bank Trade Doblors Lisaatory Other Current Assets Total Cuent Assets Share Investments Property & Plant Equip.cat Intangible Assets Other Non-Current Assets Tutal Non Curent Assets Total Assets 30-Jun-2018 144,735 905.911 532,732 17,292 1.600,670 12,012 111,674 300,983 916.678 1,343,347 1,627.515 67,230 105,907 1,093,176 65,484 1,332,297 2,959,812 30-Jun-2016 109,906 1,206,13 528,744 7,893 1,853,046 63,412 89.544 891,716 49,415 1,094,087 2,947,133 Trade Creditors Interest Bearing Debt Current Liabilities) Provisions Cument Linbilities Other Cument Liabilities Total Current Liabilities Interest Bearing Dehr Non-Current Libilities) Provisions (Non-Current Liabilities) Other Non Current Liabilities Total Non-Cumunt Liabilities Total Liabilities Ner Assets (TA - T1.) 1,105.617 153,852 41,762 108.053 1,409.285 454,950 6.096 68,365 329,411 1.939,606 1,005,320 1,146,649 146,789 38,195 107,190 1,438,823 415,105 1,407,381 97,904 32,5.16 90,128 1,627,949 238,279 4.279 S3,966 296,524 1.924,473 1,022,660 60,242 480,704 1,919,527 1,040.285 Share Capital Reserves Retained Earnings Total Equaly 812,074 -35,987 229.233 1,005,520 812,074 -25.792 254,003 1,040.285 812,074 -2020 230,906 1,022,660 Risk analysis Risk Matrix Risk treatment plan Risk Matrix Sheet VOZNO-ZURI Z-- -- 1 LIKELIHOOD (0- Never 10-Definite) Assessment scenario CBOS Limited is an ASX-listed pharmaceutical company. It invests heavily in research and has been a world leader in developing pharmaceutical remedies for a number of common sicknesses. Competition between pharmaceutical companies is strong, with huge financial rewards for those who can get innovations to market first. However, the process to get a new product onto the market is long, with extensive trials and testing to be undertaken before approval is granted. After this, CBOS registers their new products for patents to ensure that the competition doesn't copy their hard work. CBOS has a manufacturing facility in Perth that it uses for its patented products, while it outsources manufacturing of its generic products (such as paracetamol and aspirin) to a joint venture company in Thailand (sales from which represent 50% of profits). Key financial information for the last three years is given on the next page. Assessment questions Carol King, a management accountant at CBOS, has been tasked with updating the company's risk management processes. As a part of this task Carol must: 1. Identify financial risks that CBOS Limited is currently experiencing on the risk analysis sheet. 2. Plot each financial risk on the CBOS Limited risk matrix. 3. Explain how you will mitigate each financial risk on the risk treatment plan. 4. Is there any other financial risk that CBOS Limited may experience? This risk is not given in the assessment scenario, or shown in the financial information. You need to use your own knowledge to identify and explain one other financial risk this company may face. CBOS Group Limited Key Financial Informtion Income statement Sales Rovendo Other Revenue Total Revenue Cost of Goods Sold Depreciation Share of Profits of Associates Interest Expense Profit Before Tax Income Tax Expense Continuing Operations After Tax Discontinued Operations After Tax Outside Equity Interest NPAT 30-Jun-2018 6954,844 1.627 6.956,471 6,168.241 31,947 4,114 26,872 186,437 55,931 128.535 NA 1,971 1.30.5116 30-Jun-2017 30-Jun-2016 6,99.802 6,441,517 1,900 2.288 6,971.70Z 6,192,813 6,280.976 5,866,338 23,612 22,566 2,713 3,494 21,217 18,600 172,260 168,199 51,678 50,400 121.117 117,0.19 VA NA -396 0 120,582 117,739 30-Jun-2017 145.264 916.846 522,702 Balance Sheet Cash at Bank Trade Doblors Lisaatory Other Current Assets Total Cuent Assets Share Investments Property & Plant Equip.cat Intangible Assets Other Non-Current Assets Tutal Non Curent Assets Total Assets 30-Jun-2018 144,735 905.911 532,732 17,292 1.600,670 12,012 111,674 300,983 916.678 1,343,347 1,627.515 67,230 105,907 1,093,176 65,484 1,332,297 2,959,812 30-Jun-2016 109,906 1,206,13 528,744 7,893 1,853,046 63,412 89.544 891,716 49,415 1,094,087 2,947,133 Trade Creditors Interest Bearing Debt Current Liabilities) Provisions Cument Linbilities Other Cument Liabilities Total Current Liabilities Interest Bearing Dehr Non-Current Libilities) Provisions (Non-Current Liabilities) Other Non Current Liabilities Total Non-Cumunt Liabilities Total Liabilities Ner Assets (TA - T1.) 1,105.617 153,852 41,762 108.053 1,409.285 454,950 6.096 68,365 329,411 1.939,606 1,005,320 1,146,649 146,789 38,195 107,190 1,438,823 415,105 1,407,381 97,904 32,5.16 90,128 1,627,949 238,279 4.279 S3,966 296,524 1.924,473 1,022,660 60,242 480,704 1,919,527 1,040.285 Share Capital Reserves Retained Earnings Total Equaly 812,074 -35,987 229.233 1,005,520 812,074 -25.792 254,003 1,040.285 812,074 -2020 230,906 1,022,660 Risk analysis Risk Matrix Risk treatment plan Risk Matrix Sheet VOZNO-ZURI Z-- -- 1 LIKELIHOOD (0- Never 10-Definite)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started