1) Global Business Network LLC, is a Oman based consultancy firm in Muscat. The company has thefollowing cases related to the financial reporting;a) Omantel company showed an increase in earnings per Share (EPS) from OMR. 0.350 to OMR.0.650 in 2019. However, the company forgot to disclose this information in its annual report.b) Oman Flour Company provides its top managers with bonus on the basis of reported profit.During 2018 the management showed a decline in the final profit. In order to continue payingbonus the company attempt to adopt different accounting policies that resulted in higher profits.c) In 2019, Zain Oil company was being sued for damages the seaside because its chemicalmaterial dropped to the sea. The settlement of which could threaten the financial stability of thecompany. The company decided to choose non-disclosure with the hope that its lawyer may winthe case at court.d) In 2018 AXA Company faced serious liquidity problems. Management decided to window dressthe financial statements in a manner that improved the company's current ratios in order to hidethe liquidity problem of the situation. However, in 2019 the company came out of liquidity problemand stopped window dressing practice.You are required to identify and explain in brief the suitable qualitative characteristics of usefulfinancial information for each case.

NOTE : As per BARTLEBY guidelines, when multiple independent questions are given, then first…

1) Global Business Network LLC, is a Oman based consultancy firm in Muscat. The company has the following cases related to the financial reporting; a) Omantel company showed an increase in earnings per Share (EPS) from OMR. 0.350 to OMR. 0.650 in 2019. However, the company forgot to disclose this information in its annual report.

1) Global Business Network LLC, is a Oman based consultancy firm in Muscat. The company has the following cases related to the financial reporting; a) Omantel company showed an increase in earnings per Share (EPS) from OMR. 0.350 to OMR. 0.650 in 2019. However, the company forgot to disclose this information in its annual report.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 2C: It is the end of 2019 and you are an accountant for Stone Company. During 2019, sales of the...

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