Task 2 (2. hamare purchased l imet1 June 2017 curing the following Duty C The was expected to have w e of 10 years and rule of C10,000. Pramone's policy to charge yr depreciation in the year of on and ne depreciate your own he ar the wo ) Pharaone has a policy of g end ered been nec 31 December 2018. Apoi mare value o Pr e mi date was 8,600. Pamere supe r use of the under the towed a s ever we wel het The mang s ie and residual value of the equipment remained the same Pharmane entered a fase agreement of a building which ha of 8 years. Lease payments are c .00 m. payable t te the beginning of each Le Comment On January 2019, PhamaOne borrowed C2,800,000 to finance the production of a new Laboratory which was expected to take a yow to build. Work commenced during 2019. The loan facility was drawn and incurred in January 2019, and was utilised as follows, with the remaining funds invested temporal: 400.000 1 January 2019 1 July 2019 400.000 The loan mate was 8% and PharmaOne can invest surplus funds at 4%. On 31 December 2019, PharmaOne had a cash-generating unit (CGU) with a total coming amount of C32,200.000 that includes three identifiable intangible assets: (1) patent of C12,400.000. (2) copyright of C11.800.000, and (3) trademark of C8.000.000 in addition to allocated goodwill of C800.000. Annual Impairment review has indicated that the copyright's fair value less costs to sell is C12,000,000 which exceeds the carrying value. Pharma One's management also concluded that the value in use cannot be determined individually for both the patient and trademark and their fair value less costs to sell cannot be measured by The impairment test of the CGU showed a recoverable amount of C26.400.000 PharmaOne maintains an effective inventory management system that mitigates the risk of Creating inventory gluts. On 31 December 2019, the warehouse included a total of four produced drugs for which the following details are available: Units Cost Expected selling price Abutable selling costs 590 Drug A Drug B Drug C Drug D 12.000 48.000 13.000 2,000 210 650 320 932120 720 5 of 9 Recently, the focus of Pharaone been placed on the discovery of a vaccine to prevent the Novel Coronavirus disease (COVIO-19). The company incurred several related costs during Quarter 1 of 2020 as follows: 10 January 31 January 2020 Exploratory phase of vaccine development, including conting paid to 1 February-31 March 31 March 2020- 1 February 2020 development Clinical stage of acne development (in-process) Equipment Bured that will have made future we in future and development projects (Use Once the clinical stage is complete. Pharma One expected to go through a norous regulatory and approval www before the commencement of wine mancung PharmaOne ocurr e estimated We of any pointangible resulting from ne vaccine development Required Assuming the role of reporting consultant (a) Advise PharmaOne on the above cursu r ing your advice where appropriate with varejo entries and numerical details. No Round the rest C (Wordcount 890 words -10%) () Prepare the relevant extracts from the financial statements of PharmaOne for the year ended 31 December 2019 and the vant extracts for the first quarter ended 31 March 2020. Nos show your workings. Se e NOT permitted Pound to the a 11:06 Done BU8402 Financial Reporting -... Task 23.30 IFRS and has a year and ) Dec Pharmaine purchased a piece of equipment on June 2017 he i g List price of ligt de of d The equipment we expected to have a w C10.000. Pharmame's counting policy ed to charge the year of Plane has a policy of king al met been necessary 1 December 2011. A specific that date was CITE.GOD. Puner t on though remaining and value of the w e we of year. Le paymene DD perum the begin och The following an extract from the legement Task 2 (2. hamare purchased l imet1 June 2017 curing the following Duty C The was expected to have w e of 10 years and rule of C10,000. Pramone's policy to charge yr depreciation in the year of on and ne depreciate your own he ar the wo ) Pharaone has a policy of g end ered been nec 31 December 2018. Apoi mare value o Pr e mi date was 8,600. Pamere supe r use of the under the towed a s ever we wel het The mang s ie and residual value of the equipment remained the same Pharmane entered a fase agreement of a building which ha of 8 years. Lease payments are c .00 m. payable t te the beginning of each Le Comment On January 2019, PhamaOne borrowed C2,800,000 to finance the production of a new Laboratory which was expected to take a yow to build. Work commenced during 2019. The loan facility was drawn and incurred in January 2019, and was utilised as follows, with the remaining funds invested temporal: 400.000 1 January 2019 1 July 2019 400.000 The loan mate was 8% and PharmaOne can invest surplus funds at 4%. On 31 December 2019, PharmaOne had a cash-generating unit (CGU) with a total coming amount of C32,200.000 that includes three identifiable intangible assets: (1) patent of C12,400.000. (2) copyright of C11.800.000, and (3) trademark of C8.000.000 in addition to allocated goodwill of C800.000. Annual Impairment review has indicated that the copyright's fair value less costs to sell is C12,000,000 which exceeds the carrying value. Pharma One's management also concluded that the value in use cannot be determined individually for both the patient and trademark and their fair value less costs to sell cannot be measured by The impairment test of the CGU showed a recoverable amount of C26.400.000 PharmaOne maintains an effective inventory management system that mitigates the risk of Creating inventory gluts. On 31 December 2019, the warehouse included a total of four produced drugs for which the following details are available: Units Cost Expected selling price Abutable selling costs 590 Drug A Drug B Drug C Drug D 12.000 48.000 13.000 2,000 210 650 320 932120 720 5 of 9 Recently, the focus of Pharaone been placed on the discovery of a vaccine to prevent the Novel Coronavirus disease (COVIO-19). The company incurred several related costs during Quarter 1 of 2020 as follows: 10 January 31 January 2020 Exploratory phase of vaccine development, including conting paid to 1 February-31 March 31 March 2020- 1 February 2020 development Clinical stage of acne development (in-process) Equipment Bured that will have made future we in future and development projects (Use Once the clinical stage is complete. Pharma One expected to go through a norous regulatory and approval www before the commencement of wine mancung PharmaOne ocurr e estimated We of any pointangible resulting from ne vaccine development Required Assuming the role of reporting consultant (a) Advise PharmaOne on the above cursu r ing your advice where appropriate with varejo entries and numerical details. No Round the rest C (Wordcount 890 words -10%) () Prepare the relevant extracts from the financial statements of PharmaOne for the year ended 31 December 2019 and the vant extracts for the first quarter ended 31 March 2020. Nos show your workings. Se e NOT permitted Pound to the a 11:06 Done BU8402 Financial Reporting -... Task 23.30 IFRS and has a year and ) Dec Pharmaine purchased a piece of equipment on June 2017 he i g List price of ligt de of d The equipment we expected to have a w C10.000. Pharmame's counting policy ed to charge the year of Plane has a policy of king al met been necessary 1 December 2011. A specific that date was CITE.GOD. Puner t on though remaining and value of the w e we of year. Le paymene DD perum the begin och The following an extract from the legement