ACCM4300 2013

Financial Reporting Assignment 2 Submitted by Group Rita Sharma ID 104136 Zeeshna Ali Anjum ID 104219

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Question 1.What is the segments what are the business segments of Amcor Ltd? Provide a brief description on their main business activities. ? Answer: There are three business segments of Amcor limited are below: 1. Amcor Flexibles Flexibles is one of the worlds largest suppliers of flexible packaging and folding carton packaging for tobacco. It has three operating divisions: Flexibles Europe & Americas, Flexibles Asia Pacific and Global Tobacco Packaging. The business has approximately 20,300 co-workers and 125 sites, and supplies a wide range of products to the food, beverage, healthcare and tobacco packaging end markets. These products include packaging for fresh foods such as meat, fish, bread, produce and dairy, processed foods such as confectionery, snack foods, coffee and ready meals, as wells high value-added resin and aluminium based packaging for industrial, hospital, pharmaceutical and personal and home care end markets. 2. Rigid Plastic Rigid Plastics employs approximately 6,300 co-workers at 65 sites, including 29 on or near site manufacturing facilities in 12 countries. Rigid Plastics is one of the worlds largest producers of polyethylene terephthalate (PET) containers, used for a broad range of predominantly food and beverage applications. The business also supplies PET containers to the pharmaceutical, personal care, household chemical and agri-chemical industries. 3. Australasia and Packing Distribution Australasia and Packaging Distribution is a diverse packaging business that includes the fibre, glass, beverage can and recycling operations within Australia and New Zealand, and distribution and corrugated manufacturing sites in North America, Europe and Asia. The business employs approximately 6,000 co-workers across 139 sites. Products include corrugated boxes, point of purchase displays, folding cartons, paper, carton board, recycling services, aluminium beverage cans, plastic and metal closures, glass wine and beer bottles and multiwall sacks. The North American distribution business unit is a major supplier of packaging products and equipment, industrial and janitorial supplies to businesses in the region.

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Question.2 Show composition of Amcor Ltd revenue in year for the year ended 30 June, 2012. Amcor Rigid plastic Amcor Australiasia and packaging Distribution 2012 Amcor Flexible Other investment

Consolidated

$ Million

2012

2012

2012

2012

Reportable Segment Revenue

Revenue from External CustomerInter segment revenue

3261.3 ---3261.3

2867.6 4.6 2872.2

6064.0 13.9 6077.9

-------------

12192.9 18.5 12211.4

Question.3 As a global leader in packaging industry Amcor Ltd has an important role in creating a sustainable future. Discuss Amcor Ltd. approach to sustainable future and their key activities for sustainability in 2011/12 year. Answer: Amcor Ltd approach to sustainable future As a global leader in the packaging industry, Amcor has a vital role to play in creating a sustainable future. For several years, Amcor has been internationally recognized as a sustainability leader, with inclusion in the Dow Jones Sustainability Index (Asia Pacific index), the FTSE4Good Index and the Carbon Disclosure Leadership Index (Materials sector, Australian and New Zealand Region). In 2012 Amcors approach to sustainability was recognized at the Ethical Investor Australian Sustainability Awards where Amcor received the Environment Award. Amcors approach to sustainability is driven by the companys operating model, our risk management framework and our key stakeholder interests.

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Five key areas are that need to look forward; Economy, Marketplace, Environment, Workplace and Community These areas are broadly consistent with international frameworks and benchmarks such as the Global Reporting Initiative, the Dow Jones Sustainability Index and the ISO 26000 Guidance on Social Responsibility. As such, there approach to sustainability can be benchmarked against our corporate peers.

Implementing of Amcor approach Amcors Group Sustainability team coordinates the development and implementation of Group-wide approach to sustainability in collaboration with the Sustainability Leadership Council (SLC). The SLC consists of the Sustainability Leaders from each of Amcor's Business Groups around the world. The Sustainability Leaders develop and implement sustainability action plans appropriate for their region or market, that are in alignment with the Group-wide approach and with their own business strategies, plans and objectives.

Integrating their approach to sustainability with business processes and routine management systems is critical to implementation. They are continually improving the process for identifying sustainability challenges and opportunities via our Enterprise Risk Management program and during the FY2011/12 year, they incorporated Environmental Action performance reporting into their Quarterly Business Review process. Importantly, Amcors Sustainability Leaders work with our Research and Development, Procurement, Operations and Sales and Marketing functions to ensure that our approach to sustainability contributes to the innovation and customer value propositions that drive our business growth opportunities During the 2011/12 year, Amcors approach to sustainability was recognized at the Ethical Investor Sustainability Awards. Amcor received the Environment Award and was commended for "using the principles of environmental sustainability to reposition its product in customers and suppliers minds".

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4. Question: What are Australian accounting standards and interpretations issued but not yet (30 June 2012) adopted by Amcor Ltd? Answer: New accounting standards and interpretations not yet adopted the following newer amended accounting standards and interpretations issued by the AASB have been identified as those which may have a material impact on the consolidated entity in the period of initial application. They are available for early adoption at 30 June 2012, but have not been applied in preparing the consolidated Financial statements: AASB 9 Financial Instruments, AASB 2009-11Amendments to Australian Accounting Standards arising formats 9 (December 2009) and AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) address the classification and measurement of financial instruments may affect the consolidated entitys accounting forts financial instruments. The new accounting standard and amendments are mandatory forth consolidated entitys 30 June 2016 consolidated financial statements. The potential effect of the new and amending standards on the financial results of the consolidated entity upon adoption has yet to be determined. AASB 10 Consolidated Financial Statements, AASB 11 Joint Arrangements, AASB 12 Disclosure of Interests another Entities, AASB 127 Separate Financial Statements, AASB 128 Investments in Associates and Joint Ventures and AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangement Standards (August 2011) together represent a suite of six related standards covering the accounting and disclosure requirements for consolidated financial statements, associates, joint arrangements and off balance sheet vehicles, with mandatory adoption to be applied by the consolidated entity for the financial year ending 30 June 2014. The potential effect of the amending standards on the financial results of the consolidated entity upon adoption has yet to be determined. AASB 13 Fair Value Measurements and AASB 2011-8Amendments to Australian Accounting Standards arising formats 13 (September 2011) combines guidance for all fair value measurements required in other standards. These standards do not require fair value measurements additional to those already required or permitted by other Australian accounting standards, and FINANCIAL REPORTING Page 5

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therefore this standard is not expected to have an impact on the financial results of the consolidated entity on adoption. The new accounting standard and amendments are to be first applied by the consolidated entity forth financial year ending 30 June 2014. AASB 119 Employee Benefits (September 2011) has been amended for disclosure,

presentation and accounting changes to defined benefit plans and other employee benefits. The accounting change eliminates the option to defer the recognition of actuarial gains and losses (the corridor method), requiring measurements to be presented in other comprehensive income. AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) makes amendments to other accounting standards and interpretations as a result of the revised standard. The consolidated entitys accounting policy for defined benefit plans is to recognize actuarial gains and losses in other comprehensive income and therefore the accounting change introduced by the amendment will have no financial impact upon the consolidated entity. The amendments will become mandatory for the consolidated entitys 30 June 2014consolidated financial statements and it will impact the disclosures and presentation of defined benefit plans other consolidated entity AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key

Management Personnel Disclosure Requirements makes amendments to AASB 124 Related Party Disclosures to remove individual key management personnel(KMP) disclosure requirements on the basis they are noting line with International Financial Reporting Standards, with the current requirements considered to be more in the nature of governance disclosures that are better dealt with as part ofthe Corporations Act 2001. The amendment will become mandatory for the consolidated entitys 30 June 2014financial statements and as it relates to disclosures only, the amendment will not have any financial impact on the consolidated entity.

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5. Question: What are the earning per share and how the calculations were done?

Calculations for 2012: Profit for the financial period 436.8 Million

Profit attributable to: Owners of Amcor Limited No controlling interest All shares shown in million Weighted average number of ordinary shares for basic earnings per share 1,213.7 Effect of employee options and performance rights Weighted average number of ordinary shares and potential ordinary shares 1,231.8 18.1 412.6 Million 24.2 Million

Basic EPS (in cents)

= 412.6/1213.7 = 34.0 Cents per share

Diluted EPS (in cents)

= 412.6/1231.8 = 33.5 Cents per share

The formula to calculate earnings per share is:

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6. Question: Provide a description on paid and proposed dividend for year ended 30 June 2012 for Amcor Ltd.

Retained Earnings $ Million Retained earnings at the beginning of the period Net profit attributable to members of the owners of Amcor Ltd No controlling interest buy-out Actuarial losses on defined benefit plans, net of tax Total Ordinary dividends: Interim paid Final paid Total Dividend paid Retained earnings at the end of the period

2012 633.2 412.6 (0.3) (106.4) 939.1 (217.3) (221.1) (438.4) 500.7

2011 695.2 356.7 0.3 (2.3) 1,049.9 (208.7) (208.0) (416.7) 633.2

Dividends recognized in the 2012 by the consolidated entity are: Amount In $ Millions Per share $ million Date of payment 2012 Cents per Share 2012 Interim dividend per fully paid share 2012 Final dividend per fully paid share 18.0 19.0 Paid date Amount

$ 217.3 $ 229.3

29 Mar 2012 25 Sep 2012

The company normally pays dividends in late March/early April and late September/early October. Shareholders should retain all remittance advices relating to dividend payments for tax purpose. Final dividend called as proposed dividend.

Final dividend increased to 19 cents per share. The dividend increased 5.7% to 37 cents per share.

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References:
http://www.amcor.com/about_us/media_centre/news/175716331.html http://www.amcor.com/about_us/Sustainability/sustainability_approach/Our_approach_to_Sustainability.html http://www.amcor.com/investor-relations/reports/current_annual_report.html http://www.financeformulas.net/Diluted-EPS.html http://www.financeformulas.net/Earnings_Per_Share.html

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