ACCT90012

Corporate Reporting

Group Assignment 2024 Semester 2

This assignment should be completed in groups of three to five students.

Assignment Details – See LMS

1. BACKGROUND

Noumi Limited, is an Australian producer of dairy and plant-based beverages that

has faced significant financial challenges over the fiscal years ending 30 June 2022,

2023, and 2024.

In FY22, Noumi recorded a net loss of AUD 161.1 million, driven by operational

struggles in its Dairy and Nutritional’s division and global supply chain issues.

Revenues dipped to AUD 522.3 million due to the challenges of cost inflation and

weak international demand.

By FY23, Noumi saw some recovery. Revenue increased by 5.6% to AUD 551.6

million, largely due to improved performance in both its Plant-based Milks and Dairy

divisions. The company narrowed its net loss to AUD 46.9 million, showing a 71%

improvement from FY22. Noumi's adjusted operating EBITDA grew by over 300%,

reaching AUD 30.4 million, signalling better cost control and a focus on higher-

margin products. However, Noumi continued to face cost pressures, including high

farmgate milk prices and subdued overseas demand.

In FY24, the company continued to face financial difficulties, reporting a net loss of

AUD 98.3 million. The larger loss was attributed to increasing cost pressures and

market challenges, despite Noumi’s ongoing efforts to optimize operations and

expand its product lines, such as its flagship Milklab plant-based milk. Nonetheless,

Noumi's operating performance reflected growth in some product categories,

particularly in its Plant-based Milk division.

NOUMI 2023 ANNUAL REPORT

https://noumi.com.au/wp-content/uploads/Annual-Report-2023.pdf

2. ASSIGNMENT QUESTIONS

During the semester you have been exposed to the following accounting

pronouncement and standards:

1. Conceptual Framework for Financial Reporting

2. AASB 13: Fair Value Measurement

3. AASB 15: Revenue from Contracts with Customers

4. AASB 16: Leases

5. AASB 116: Property, Plant and Equipment

6. AASB 136: Impairment of Assets

7. AASB 138: Intangible Assets

8. AASB 9: Financial Instruments

9. AASB 10: Consolidated Financial Statements

10. AASB 3: Business Combinations

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2. ASSIGNMENT QUESTIONS continued

1. Review the 30 June 2023 Financial Statements of Noumi Limited and for each

accounting standard studied this semester, briefly explain, how the standard

has been applied by Noumi. 10. Marks. Word Limit: 1000.

2. Review the 30 June 2023 Financial Statements of Noumi Limited and for the

two most important accounting standards (you will need to use your

judgement here) studied this semester, discuss the extent to which these

standards have provided useful information to the users of Noumi’s financial

statements. 5. Marks. Word Limit: 500.

3. Discuss the following statement “The financial statements of Noumi Limited

have not served its financial users well. There is so much more information

users needed to know about this organisation that were just not presented in

its financial statements”. In your discussion include specific examples of

other information that you believe would have been helpful to users of the

financial statements. 5. Marks. Word Limit: 500.

4. ASSESSMENT CRITERIA

Responses will be assessed using the following guisdelines:

Completeness: Captures all the material issues and concerns within the case.

Given the word limits, no major issues or considerations are missed.

Technical accuracy: Recommended solutions are consistent with Lectures,

Australian Accounting Standards, and textbook guidance.

Research: The paper demonstrates an effective approach to researching key

assignment questions and topics. The research relates to the question raised and

acknowledges sources. Arguments are logical.

Business writing: The writing is concise and provides specific examples and

evidence from the case provided.

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