About TMA:

The TMA covers the financial accounting concepts and practices in the Businesses. It is marked out of 100 and is worth 20% of the overall assessment component. It is intended to assess students’ understanding of some of the learning points within Books 1 to 5. This TMA requires you to apply the course concepts.

The TMA is intended to:

• Increase the students’ knowledge about the reality of the accounting as a profession.
• Assess students’ understanding of key learning points within Books 1 to 5.
• Develop the ability to understand and interact with the nature of the financial statements in reality.
• Develop students’ communication skills, such as memo writing, essay writing, analysis and presentation of material.
• Develop basic ICT skills such as using the internet.

The TMA:

The TMA requires you to:

• Review various study Books (from 1 to 5) of ‘Financial Accounting’ within it.
• Conduct a simple information search using the internet.
• Present your findings in not more than 1,600 words. The word count excludes headings, references, title page, and diagrams.
• You should use a Microsoft Office Word and Times New Roman Font of 14 points.
• You should read and follow the instructions below carefully. Each part of the process will carry marks for the assignment.

Criteria for Grade Distribution:

Criteria Content Using E-library & Referencing Structure and Presentation of ideas Total marks

Financial Reporting on the Internet

Marks 100 (5) (5) 100

TMA Questions Financial Reporting on the Internet (Case study: Omantel)

The internet is a good place to get information that is useful to you in your study of accounting. For example, you can find information about current events, professional accounting organizations, and specific companies that may support your study.

Oman Telecommunications Co (Omantel) is an Oman-based company focusing on operating, maintaining fixed and mobile telecommunication services. Its services target three consumer groups: residential, corporate and government.

Residential services include international and national calls and prepaid cards, while its internet services include internet log and surf and Ibhar, its broadband wireless service.

You can access on https://www.omantel.om/Investors/Presentations click on 2017 annual report.

OR

You can directly access the annual report on the below link:

https://www.omantel.om/wcm/connect/41b30b97-63bd-445e-82c3-c7388f7c2258/Omantel+Annual+Report+2017_Eng_for+web.pdf?MOD=AJPERES&CONVERT_TO=URL&CACHEID=ROOTWORKSPACE-41b30b97-63bd-445e-82c3-c7388f7c2258-m9c5bCx

Download 2017 Annual report in PDF format.

Instructions 

Use the 2017 Annual report of Omantel to answer the following questions:

1. A stakeholder is a party that has an interest in a company and can either affect or be affected by the business. Discuss at least two types of stakeholders and give examples from the Omantel annual report to justify your answer.

[Marks (Words): 10(300)]

2. PEST analysis (political, economic, socio-cultural and technological) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. Give examples from the annual report and discuss the impact of each of the elements in the PEST analysis on Omantel.

[Marks (Words): 10(300)]

3. IAS 16 Property, Plant and Equipment sets out the requirements for the recognition of the assets, the determination of their carrying amounts, and the depreciation charges and impairment losses in relation to them. Discuss the importance of two models under IAS 16 PPE and Identify the depreciation methods used by Omantel.

[Marks (Words): 10(100)]

4. Management makes many judgements and estimates in preparing accounts, some of which will have a significant effect on the reported results and financial position. Give examples of Omantel estimates and assumptions reported in consolidated financial statements.

[Marks (Words): 10(100)]

5. Transaction takes place when one party exchanges or promise to exchange good or service with another party for money. Identify the difference between revenue expenditure and capital expenditure and provide the example from Annual report of Omantel.

[Marks (Words): 10(100)]

6. Going concern is a basic underlying assumption in accounting. Explain why the going concern basis is important in understanding Omantel financial statement; Support your answer with evidence from Omantel annual report.

[Marks (Words): 10(100)]

7. There are different basis approaches to valuing inventory that are allowed by GAAP, explain the principal’s methods of valuation required by IAS2 inventories, provide some evidence from annual report of Omantel.

[Marks (Words): 10(100)]

8. The receivables allowance reduces the reported trade receivables balance to reflect uncertainties over collectability. Explain the concept of allowances for irrecoverable receivable and analyze the Omantel allowances for receivables information given in annual report.

[Marks (Words): 10(100)]

9. Revenue recognition is a generally accepted accounting principle (GAAP) that determines the specific conditions in which revenue is recognized or accounted for.  Classify the revenue recognition method(s) used by Omantel as discussed in annual report. Explain the rationale underlying the appropriateness of methods used by Omantel.

[Marks (Words): 10(100)]

10. Write a summary on Omantel financial condition, including information/data taken from financial statements and overall business condition. Your discussion should cover the basic elements of these statements.

[Marks (Words): 10(100)]

[Total Marks = 100]

In your answer, you should explain each point or inquire separately. Use the following headings (below) to make up the different sections of your work:

Cover               The PT3 form (available on LMS)

Contents        Title and contents page

TMA                Financial Reporting on the Internet (Case study: Omantel)

References   Recorded according to the Harvard style – Available on LMS