Research - Al-Maha petroleum products

Learning outcomes:

- Demonstrate the impact on the financial statements and the implication for different users of accounts of alternative ways of treating controversial accounting items.

- Critically evaluate the usefulness of accounting standards and the process by which they are agreed.

- Analyse and critically evaluate key notions of corporate governance focusing on accounting theories and policy aspects of financial reporting.

Assignment
You are required to answer ALL the questions:

Q.1
Lee G.A. (1981) as cited by Rutherford (1985) in 'The True and Fair View Doctrine: A Search for Explanation', suggested a definition for the concept of 'True and Fair View' as:

"it is generally understood to mean a presentation of accounts, drawn up according to accepted accounting principles, using accurate figures as far as possible, and reasonable estimates otherwise; and arranging them to show, within the limits of current accounting practice, as objective a picture as possible, free from willful bias, distortion, manipulation, or concealment of material facts"."

Source: Vladu A. B., Matig D. And Salas 0. A. (2012), "True and fair view and creative accounting conceptual delimitations based on Papineau's tree methodology" Annales Universitatis Apulensis Series Oeconomica, 14(1), 2012. Pp 104-115.
Critically evaluate this statement, showing:
- The history and significance of the concept of "true and fair view",
- The usefulness of accounting standards/principles and the process by which they are agreed.
- The explanation of the relationship between the concept of "true and fair view" and "creative accounting".

Q.2
"Intangible assets are identifiable, non-monetary assets, so they may not affect the financial
statements".
Critically assess this statement, showing:
- How intangible assets can be valued;
- How the financial statements may be affected.
- Examples to illustrate your points. (20 Marks)

Q.3
Examine the annual report of a large publicly listed company to ascertain the information disclosed on matters relating to corporate governance (with reference to the Code of corporate governance for public listed Omani companies).
Write a report based on your findings where you:
- Analyse and critically evaluate the key notions of corporate governance in general.
- Critically evaluate the use of the Code of Corporate Governance for public listed Omani companies, with reference to the "UK Combined Code".
- Critically evaluate the significance and usefulness of the information disclosed.