B291 : TMA - Spring Assignment - Arab Open University

Assignment Task

About TMA:

The TMA covers financial accounting concepts and practices in businesses. It is marked out of 100. It is intended to assess students’ understanding of some of the learning points within Books 1 to 6. This TMA requires you to apply the course concepts.

The TMA is intended to:

• Increase the students’ knowledge about the reality of accounting as a profession.
• Assess students’ understanding of key learning points within Books 1 to 6.
• 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.

Instructions

1. A stakeholder is any person or entity that has an interest in the success or failure of a business or project. Discuss at least two types of stakeholders and give examples from the Maaden annual report to justify your answer. Also, explain the reason for their interest in the financial statements. Which financial statements do they prefer to analyze to understand a business’s long-term situation?

2. A key advantage of the accrual basis is that it matches revenues with related expenses, so that the complete impact of a business transaction can be seen within a single reporting period. Elaborate on the main points of this accounting system and give evidence from Maaden’s annual report 2021.

3. In a complex organization, accountants are inevitably forced to make numerous judgments and estimates when preparing a company's financial statements. Give three examples where Maaden used judgments and estimation and reported in consolidated financial statements.

4. In the annual report of Maaden, there are two years of financial statement data have been given i-e 2020 & 2021. There are four types of financial statements, namely income statement, balance sheet, cash flow statement, and statement of owners’ equity. Compare and contrast the balance sheet’s total assets with total liabilities and equity for 2020 and 2021. Write a summary of whether the Maaden is better or worse from 2020 to 2021 or no change.

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