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.
