B291There are many people who enthusiasm for the money related data which created from the budget summaries.

 

Q1

There are many people who enthusiasm for the money related data which created from the budget summaries. There are numerous clients of the fiscal summary, for example,  financial specialists, government the loan bosses, speculators ,Talal Bin Saeed Bin Marhoon Al Mamari who is the CEO at the Omantel organization, providers, the outer reviewers, and clients.

a)     The leading body of the board: each individual in the organization also Talal Bin Saeed Bin Marhoon Al Mamari (CEO)  use or enthusiasm for the budget summary as they look to be protect that the fiscal summary are issued and made without misquote and guarantee that the advantages, liabilities , income, costs and value are issued at the reasonable esteem and arranged without any misrepresentation or mistakes. Talking about the financial statement, Talal Bin Saeed Bin Marhoon Al Mamari enthusiasm for the organization's budget report since they look for protect that the Omantel accomplish flourishing in making high productivity which is sufficient to state that the Omantel organization have great executives who used sound judgment aided the superior of the organization through high pay.

b)    Suppliers just as the fundamental loan bosses are charge of distributing and giving the Omantel all required crude materials so as to make the completed items or benefits and giving the Omantel the required money which is required to make the administration. They use their thought and put them into the budget summary extraordinarily the announcement of money related position to safeguard that the Omantel have great dimension of liquidity which give the Omantel to reimburse its liabilities and short run liabilities.

c)     The budget summary is regarded as demonstrate for the outside auditors (EY).Consequently , budget reports are utilized by them to protect that the fiscal summary is issued at exact sum.

 

 

 

Q2

1-    Political And legal Factor: The Omani Government offers great services also it offers solid help to Omantel .  The Omani Commercial Companies Law of 1974 and heartfelt global discretionary relations influence on them, the yearly allocations of 10% of the net gain for the year are made to this hold till the gathered parity of the save is like 33% of the measure of paid capital of Omani organization. The diverse fundamental administrative adjusting in the past  influenced obviously on the telecom advertise in Oman such as the new Access and Interconnect law in its new type, and how it reflected in raising  weight on far reaching market esteem and execution.

2-    Economic Factors: when we talk about the economic elements in Omantel, we have to say that The fiscal business for of Omantel affected in passive and negative route by negative financial circumstances, and any decrease of generosity of the organization may have negative impact on money related circumstance of the organization. Oman is considered as one the greatest oil exporting countries in the world market, and this has a great impact in improving the world market oil petrol industry, all that is because of the stable price of oil.

3-    Socio-cultural: It is noticeable that due to the great increase in number of population in Oman reflected on the bad need to increase and improve the Omani services for all people, as well as increasing services in Omantel organization.  With the great technology increase and the increase of information and data, there was a bad need for increasing devices and broadband services as well.

4-    Technological: In order to develop and improve Omantel organization, there should be an improvement in information technology field so as to improve the technological market as well to meet all need and to satisfy all needs of customers. Also there should be a kind of improving high tech in the internet area and the OTT has a great effective impact on it.

 

 

Q3

There was a Cost and Revolution model created by IAS 16. According to cost of non-current asset, there isn't any favoritism in cost type here, this resulted in small numbering and calculations. The present market value that is associated with non-current resources by taking advantage of the supply of unrest, which results in a more accurate picture of the organization than costing. Looking to the sort of held for sale of Property, plant and equipment, furthermore, impalpable resources are not devalued or amortized. We can consider assets and liabilities as present items according to the balance sheet statement.

Q4

The estimates and judgments speak to material part in getting ready united budget summaries especially merged proclamation of money related position so as to plan solidified fiscal report in pertinence with generally accepted accounting principles (GAAP) to introduce right amounts. We can say that the income statement and the balance sheet are influenced by judgment and estimates, such as the consolidated financial position assets are influenced by judgment polices and estimates strategies. Polices have a great influence on the expenses according to income statement. To decide the goodwill, provision for income taxes, an allowance for doubtful receivables  and  impairment, they rely upon judgments  and estimates.

 

Q5

Capital expenditures are fixed assets; in the future it is anticipated to become useful productive assets. Revenue expenditures are costs that have acquired to create something like overall gain in working periods such as expense of sold products. They differ from each other a lot for example they differ in time, the expense of the organization will convey the Capital uses as well as deterioration, in specific period. In short time, Income consumptions are coordinated to organization's cost. They differ also in Consumption. As per anticipated existence of the fixed resource , A capital use is determined, and Revenue consumption is determined all through brief period.  Also they differ in Estimate as capital consumptions might be higher than income uses in money related sum.

 

Q6:

Going Concern presumption demonstrate that the organization activity will last for a long time in future and will increase in the market in such a way of nonstop activity, the organization must achieve a net income every year, if the organization doesn't accomplish a net income surely it will not be able to continue in progress in market. Also the organization going on depends on the material objects.  The profit of  Omante in 2017 was 106779 RO and the current  organization ratio refers to the organization ability to pay its short period liability was fine as it was 64% in 2017.

 

Q7:

1-First-in-First out (FIFO): the cost of services and products which have been bought first to determine the cost of services and products which have been sold. The products cost which have been bought in the beginning is done to show the the residual inventory value.

2- Last-in-First out (LIFO):  the firm looks to characterize the expense of products sold through expense of administrations which have been purchased at the most recent time, and since it try to quantify the leftover stock through expense of administrations which have been obtaining at the beginning time period.

3- Weighted Average: the expense of products sold is relying upon the normal expense of all units bought all through the period. As stock turns over expediently this methodology will more exceedingly similar FIFO than LIFO.  Cost is determined on the FIFO or weighted normal cost, that contains use occurred in purchasing stock and conveying it to its present site and circumstance.

Q8:

According to prudence basis, Allowance for receivables are considered as the possibility loss since they are considered for in a split second. When the organization or the company does not repay, here the accountant will stay basic debt. Irrecoverable debt is considered as the debt which the firm can not collect it. The best way to deal with debts is to dispense with debts of some specific people or companies from the company accounts and to treat them as cost in the income statement. Some certain debts are considered as accounts as they haven't been gathered in a complete way. We can see that, on page 124, the company estimates an allowance for doubtful receivables that was because of the last collecting history and the financial charts from delayed debts.

 

Q9:

Accountants can count the benefit as well as the loss in some situations like when they want to move risks from the organization to the customers: there are two ways, money basis, in IFRS 15, Omantel recognize revenue by delivering services and products to clients though paying to the organization itself.  In income statement, Recording revenue can be done through delivering products to clients and customers even if they paid for the service before or after receiving it. In p.75 they record the revenue through some specific lines, according to the services offered through the internet and GSM. They record revenue through credit cards and phones according to the actual suing of these cards and payphones.

Q10:

In Omantel, in page 6, managers and directors wanted to control and measure the firm profit, so they created matching between consolidated balance, the consolidated cash flow, sheet and consolidated income statement in both years 2017 and 2019. They noticed an improvement in the revenue , in 2016 it was 519.3 million then  (44.7%) as it reached to be RO 751.7 million, this reflects the great noticeable improvement in the organization performance and this leads directly to the great improving of the financial side of the organization. Omantel has improved its position in 2017 by 4.5 % .

   

References

Heidelberg, D.(2013) Regionalizing_Oman_Political_Economic_and_Social_Dynamics

https://www.researchgate.net/publication/262809437_

Thomas R. Ittelson,(2009),Financial Statements: A Step-by-Step Guide to Understanding and Creating Financial Reports.