SQU Intermediate Accounting Paper
- May 15, 2022/ Accounting Essay
Company Name: Oman Cement Company SAOG (OCC)
Muscat Security Market has 114 listed companies which are divided into three sectors, financial, services and industrial.The students are required to choose one company from industrial sector and get a copy the financial statements (Income Statement, and Balance Sheet) of 2020.
answer the following questions by using the financial statements and by checking the integrated notes from the financial annual report:
- Identify the basis (standards & regulations) of preparing the financial statements of the company (1 Mark)
- Identify the type of financial statement used by the company _ Consolidated, Unconsolidated or combined and briefly discuss.(1 Mark)
- According to the conceptual framework, the basic measurements to recognize/report the elements in the financial statements are Historical cost and current value. Which measurement method is used to determine the cost of Property, Plant & Equipment accounts? (2 Mark)
- What is the CASH amount reported in the Balance Sheet and what are the components?
- Identify the depreciation method and time periods (useful life) used by the organization on arriving at the Net Book Value of its Non-Current Assets (2 Mark)
- How to determine Fixed Assets cost (what is included in the calculation of the cost of Fixed Assets?)(1 Mark)
- What is the book value of each Fixed Assets at the end of the year? Compare it with the Book Value of previous year.(2 Mark)
- Check if the Fair Value Method is used by your companies. If yes, when and what it is used for?(2 Mark)
- According to the company policies, when Property, Plant & Equipment are derecognized?(1 Mark)
- What are the types of inventory and their respective amount? (2 Mark)
- Inventory valuation is used to calculate the cost of goods sold and cost of ending inventory. The most widely used methods are FIFO, and average cost method. You are required to find out the inventory system applied and the method of inventory valuation used. (2 Mark)
- How Trade Receivable provision (allowance) is estimated?(1 Mark)
- How much is the Net Trade Receivable (Net Realizable value)?(1 Mark)
- What type of Payable Accounts (current liability) your company has?(1 Mark)
The financial statements of the companies are available in the annual report of the listed companies in the Muscat Securities Market (MSM) website. Follow the below steps:
- Log to the Muscat Stock Exchange website
- Press Securities then Companies
- Choose Industrial Sector from All Sectors list
- Find the company selected by your lecture from the industrial sector
- choose Financial report from Actions column
- Choose the annual report of the year identified by your lecturer in English language
Terms and conditions:
- To answer most of the questions, you will need to use the Financial Notes. Hence you are required to give the notes number along with your answer. (Answers will not be marked if note number is not provided)
- The writing font shall be of size 14 and the writing type shall be Arial.
- General Appearance: the assignment should include the following parts:
- Introduction: brief about the company nature and type of business. (maximum:1 page)
- The questions and answers
- Financial statements (Income Statement and Balance Sheet).