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 paying bonus 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 chemical material dropped to the sea. The settlement of which could threaten the financial stability of the company. The company decided to choose non-disclosure with the hope that its lawyer may win the case at court. d) In 2018 AXA Company faced serious liquidity problems. Management decided to window dress the financial statements in a manner that improved the company's current ratios in order to hide the liquidity problem of the situation. However, in 2019 the company came out of liquidity problem and stopped window dressing practice. You are required to identify and explain in brief the suitable qualitative characteristics of useful financial information for each case.
) 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 paying bonus 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
chemical material dropped to the sea. The settlement of which could threaten the
financial stability of the company. The company decided to choose non-disclosure with
the hope that its lawyer may win the case at court.
d) In 2018 AXA Company faced serious liquidity problems. Management decided to
window dress the financial statements in a manner that improved the company's
ratios
You are required to identify and explain in brief the suitable qualitative characteristics of
useful financial information for each case.
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