Mandulum Ltd is a reporting entity which operates in the power bike manufacturing industry in Australia. During the 2022 reporting year, the firm purchased 19% of equity shares in Lumber Ltd and appointed one of its personnels to the board of Lumber Ltd. Due to the complementary nature of Mandulum's operation to that of Lumber Ltd, the firm has been providing technical assistance to Lumber Ltd for the successful implementation of its filtration systems. In the context of Research and Development (R&D), the board of directors of Mandulum Ltd approved a project for the development of an advanced power bike for its customers. The project was completed after five (5) years of its inception. The following Year Research expenditure Development expenditure Total As the advanced power bike is the expected revenue from the sales were projected as follows: Year 2023 2024 2025 2026 2027 Expected Revenue 13 000 16 000 18 540 25 700 26 400 Mandulum Ltd uses a discount rate of 14%. All revenue predictions are deemed to be 'probable'. In spite of the promising prospects of the advanced power bike, the firm has a huge concern for its potential adverse effect on the environment. In view of this, the firm has decided to implement a return after use policy. The policy aims at ensuring the proper disposal of the advanced power bike after its useful life. This policy is part of the firm's financial information relates to the development the advanced power bike Research expenditure Development expenditure Total As the advanced power bike is the expected revenue from the sales were projected as follows: Year 2023 2024 2025 2026 2027 Expected Revenue 13 000 16 000 18 540 25 700 26 400 Mandulum Ltd uses a discount rate of 14%. All revenue predictions are deemed to be 'probable'. In spite of the promising prospects of the advanced power bike, the firm has a huge concern for its potential adverse effect on the environment. In view of this, the firm has decided to implement a return after use policy. The policy aims at ensuring the proper disposal of the advanced power bike after its useful life. This policy is part of the firm's financial information relates to the development the advanced power bike 2018 10 000 10 000 2019 12 000 14 500 26 500 2020 16 300 16 300 2021 15 100 15 100 2022 18 900 18 900 expected to help Mandulum regain its leadership position in the power bike industry, Student Subject Outline - MPA814 ADVANCED CORPORATE REPORTING, Semester 2, 2023 p. 13

current sustainable business strategy which has been implemented to reduce the improper disposal of its products after use by customers. Required: With reference to the case of Mandulum Ltd, provide appropriate responses to the following questions: A. (i) With regards to the provisions of AASB 128, present a critical analysis with justifications of at least three points o f how Mandulum Ltd is expected to treat its investment in Lumber Ltd at. (7 marks) (ii) Based on your response in (i), present a commentary with justifications on how the investment in Lumber Ltd would be accounted for in the books of Mandulum Ltd. (5 marks) (iii) If Mandulum Ltd.'s investment in Lumber Ltd. is deemed to be immaterial, present a commentary with justifications on the appropriate disclosure requirements. (4 marks) B. (i) With regards to the provisions of AASB 138, present a critical analysis with justifications on how Mandulum Ltd should account for its R&D activities. (4 marks) (ii) What proportion of R&D expenditure should be expensed and/or capitalised at the end of the financial year 2022. (10 marks) N.B: Show all workings C. (i) With reference to the United Nations' Sustainability Development Goals (specifically goal 12), present a critical evaluation of the appropriateness of the return after use policy of Mandulum Ltd and highlight at least two potential strengths and two potential weaknesses of the policy. (10 marks) (ii) Premised on the potential weaknesses highlighted in (i), present a critical analysis with justification of a specific idea that would help to enhance the sustainable business strategy of Mandulum Ltd. (6 marks) (iii) With reference to the United Nations' Sustainability Development Goals (specifically goal 12), present a critical discussion of two disclosure elements that should be highlighted in Mandulum's sustainability report for 2023 regarding the advanced power bikes

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12:35 pm Sun 15 Oct 14 of 18 ... online.melbournepolytechnic.edu.au CASE STUDY OF MANDULUM LTD TOTAL MARKS - 60 (30% of the final mark) Mandulum Ltd is a reporting entity which operates in the power bike manufacturing industry in Australia. During the 2022 reporting year, the firm purchased 19% of equity shares in Lumber Ltd and appointed one of its personnels to the board of Lumber Ltd. Due to the complementary nature of Mandulum's operation to that of Lumber Ltd, the firm has been providing technical assistance to Lumber Ltd for the successful implementation of its filtration systems. In the context of Research and Development (R&D), the board of directors of Mandulum Ltd approved a project for the development of an advanced power bike for its customers. The project was completed after five (5) years of its inception. The following financial information relates to the development the advanced power bike Year Research expenditure Development expenditure Total 2018 10 000 2019 12 000 2020 2021 2022 14 500 10 000 26 500 16 300 16 300 15 100 18 900 15 100 18 900 As the advanced power bike is expected to help Mandulum regain its leadership position in the power bike industry, the expected revenue from the sales were projected as follows: 69% 12:35 pm Sun 15 Oct 14 of 18 ... online.melbournepolytechnic.edu.au CASE STUDY OF MANDULUM LTD TOTAL MARKS - 60 (30% of the final mark) Mandulum Ltd is a reporting entity which operates in the power bike manufacturing industry in Australia. During the 2022 reporting year, the firm purchased 19% of equity shares in Lumber Ltd and appointed one of its personnels to the board of Lumber Ltd. Due to the complementary nature of Mandulum's operation to that of Lumber Ltd, the firm has been providing technical assistance to Lumber Ltd for the successful implementation of its filtration systems. In the context of Research and Development (R&D), the board of directors of Mandulum Ltd approved a project for the development of an advanced power bike for its customers. The project was completed after five (5) years of its inception. The following financial information relates to the development the advanced power bike Year Research expenditure Development expenditure Total 2018 10 000 2019 12 000 2020 2021 2022 14 500 10 000 26 500 16 300 16 300 15 100 18 900 15 100 18 900 As the advanced power bike is expected to help Mandulum regain its leadership position in the power bike industry, the expected revenue from the sales were projected as follows: 69%