BE210-TMA: The Financial Accounting Case Assignment

Financial Accounting Case- BE210-TMA
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PART (1): VIVA CASE STUDY
1] What are the main components of the VIVA’s “Consolidated annual financial statements and independent auditor’s report 31 December 2014”? The financial statements of VIVA are prepared in conformity with which standards?
In year ended 31 December 2014, the main consolidated financial statements include the statement of financial position, statement of profit or loss and comprehensive income, statement of changes in equity and statement of cash flows in the financial.
Viva prepared the statement of accounts in accordance with the International Financial Reporting Standards (IFRS). Kuwait companies with global operations comply with IFRS required disclosures when preparing books of accounts (Alanezi & Albuloushi, 2011, p. 149). Currently, when reporting the interim financial statements in the year 2015, would be prepared in accordance with IAS 34.
2] Compare the EBITDA (KD million) & Net Profit (KD million) for the years of 2012, 2013 &2014 of VIVA, mentioning the increase OR decrease in both.
201220132014KD millionKD millionKD millionEBITDA22.765.6112.6Net Profit 3.924.240.3
The earnings before interest, taxes, depreciation, and amortization (EBITDA), indicates the difference between revenue and expenses but excluding the taxes, depreciation interest payments and amortization charges. The EBITDA helps to determine the level of profitability in a business entity. The net profit is the EBITDA less the interest, taxes, depreciation interest payments and amortization charges, In the years 2012 to 2014 the EBITDA increased from 22.7 Kuwait Dinar (KD), million to 112.6 KD million, and the Net profit increased from 3.9 KD million to 40.3 KD million in the same period.
3] Go through “Independent auditor’s report to the shareholders” and answer the following questions:
a. Who is responsible for the preparation of financial statements?
The management is responsible for preparation of the financial statements complying with the International Financial Reporting Standards (IFRS), and provisions Companies law No 25 of 2012 (VIVA, 2014). This is consistent with the Kuwait’s government requirement to comply with the Commercial Companies Law and an organization’s Articles of Association (Alanezi & Albuloushi, 2011, p. 151).
b. What’s the independent auditor’s name and what’s their responsibility?
There are two independent auditors
KPMG Safi Al-Mutawa & Partners
(Al Hamra Tower, 25th Floor)
(Abdulaziz Al Saqr Street,)
And
Deloitte & Touche, Al-Wazzan & Co.
(Ahmed Al-Jaber Street, Sharq)
(Dar Al-Awadi Complex, Floor 7 & 9)
The auditors’ responsibility is to express their opinion that the financial statements comply with the International Standards on Aiding and give reasonable assurance that they are free from material misstatements (VIVA, 2014, p.22). Kuwait requires companies to have two external auditors after the adoption of global accounting standards (Alfraih & Alanezi, 2015, p. 5).
4] What were VIVA’s total assets at 31 December 2013 and...