Arab Open University B291: TMA – Fall Semester 2022-2023 About TMA: The TMA covers the financial accounting concepts and practices in the businesses. It is marked out of 100 and is worth 20% of the overall assessment component. It is intended to assess st

Arab Open University
B291: TMA – Fall Semester 2022-2023
About TMA:
The TMA covers the financial accounting concepts and practices in the businesses. It is marked out of 100 and is worth 20% of the overall assessment component. It is intended to assess students’ understanding of some of the learning points within Books 1 to 5. This TMA requires you to apply the course concepts.
The TMA is intended to:
Increase the students’ knowledge about the reality of the accounting as a profession.
Assess students’ understanding of key learning points within Books 1 to 5.
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.
The TMA:
The TMA requires you to:
Review various study Books (from 1 to 5) of ‘Financial Accounting’ within it.
Conduct a simple information search using the internet.
Present your findings in not more than 1,600 words. The word count excludes headings, references, title page, and diagrams.
You should use a Microsoft Office Word and Times New Roman Font of 14 points.
You should read and follow the instructions below carefully. Each part of the process will carry marks for the assignment.
Criteria for Grade Distribution:
Criteria
Content
Using E-library & Referencing
Structure and Presentation of ideas
Total marks
Financial Reporting on the Internet
Marks
100
(5)
(5)
100
The TMA Questions
Financial Reporting on the Internet
The internet is a good place to get information that is useful to you in your study of accounting. For example, you can find information about current events, professional accounting organizations, and specific companies that may support your study.
MEPCO is considered to be one of the largest producers of paperboard in the Middle East, with a production capacity of half a million metric tons. The company produces a diverse range of CONTAINERBOARD grades (High Performance Fluting, Test Liner, Semi-Chemical Fluting, Kraft Liner Board, Dual Use & White Top Test Liner) along with other grades of INDUSTRIAL PAPER (Core board, Plasterboard Liner, & Absorbent Kraft) on three paper machines.
MEPCO’s strategic location and proximity to Jeddah sea port provides the company with the ability to deliver its products to a wide array of markets within a very short lead time. The company is present mainly in the Middle East, North & East Africa along with the Indian Subcontinent and a few European Markets.
MEPCO is intensely investing in research and development, to provide a wide range of prime quality and innovative products to its loyal partners and customers. MEPCO core values are to provide high-quality products for its clients, and to contribute environmental preservation and to meet the market needs. Since the beginning MEPCO has been conscious of preserving our environment. Recycling waste paper and transforming it into its various state of the art products. Concern for the environment is extend to all aspects related to the production
process, starting from water treatment, utilizing renewable chemical additives, and ending with an endless effort to keep our world green. (extracted from MEPCO website)
You can access on Middle East Paper Company - Annual Reports (mepco.biz) click on 2020 annual report. (Download annual report and board of directors’ report) (2 reports)
Download 2020 Annual report in PDF format.
Instructions
Use the 2020 Annual report of MEPCO to answer the following questions:
A stakeholder is a party that has an interest in a company and can either affect or be affected by the business. Discuss at least two types of stakeholders and give examples from the MEPCO annual report 2020 to justify your answer.
[Marks (Words): 10(300)]
PEST analysis (political, economic, socio-cultural and technological) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. Give examples from the MEPCO annual report 2020 and discuss the impact of each of the elements in the PEST analysis on MEPCO.
[Marks (Words): 10(300)]
IAS 16 Property, Plant and Equipment sets out the requirements for the recognition of the assets, the determination of their carrying amounts, and the depreciation charges and impairment losses in relation to them. Discuss the importance of two models under IAS 16 PPE and Identify the depreciation methods used by MEPCO.
[Marks (Words): 10(100)]
Management makes many judgements and estimates in preparing accounts, some of which will have a significant effect on the reported results and financial position. Give examples of MEPCO estimates and assumptions reported in consolidated financial statements.
[Marks (Words): 10(100)]
Transaction takes place when one party exchanges or promise to exchange good or service with another party for money. Identify the difference between revenue expenditure and capital expenditure and provide the example from Annual report of MEPCO 2020.
[Marks (Words): 10(100)]
Going concern is a basic underlying assumption in accounting. Explain why the going concern basis is important in understanding MEPCO financial statement; Support your answer with evidence from MEPCO annual report 2020.
[Marks (Words): 10(100)]
There are different basis approaches to valuing inventory that are allowed by GAAP, explain the principal’s methods of valuation required by IAS2 inventories, provide some evidence from annual report of MEPCO 2020.
[Marks (Words): 10(100)]
The receivables allowance reduces the reported trade receivables balance to reflect uncertainties over collectability. Explain the concept of allowances for irrecoverable receivable and analyze the MEPCO allowances for receivables information given in annual report.
[Marks (Words): 10(100)]
Revenue recognition is a generally accepted accounting principle (GAAP) that determines the specific conditions in which revenue is recognized or accounted for. Classify the revenue recognition method(s) used by MEPCO as discussed in annual report. Explain the rationale underlying the appropriateness of methods used by MEPCO.
[Marks (Words): 10(100)]
Write a summary on MEPCO financial condition, including information/data taken from financial statements and overall business condition. Your discussion should cover the basic elements of these statements.
[Marks (Words): 10(100)]
[Total Marks = 100]
In your answer, you should explain each point or inquire separately. Use the following headings (below) to make up the different sections of your work:
Cover
The PT3 form (available on LMS)
Contents
Title and contents page
TMA
Financial Reporting on the Internet
References
Recorded according to the Harvard style - Available on LMS