Bibliography - Maryam Alkhoor



Financial Accounting for Companies BSB6400Individual Assignment 1Name:Maryam AlkhoorStudent ID:201000526Required A:Income Statement:Joelle Beauty SalonIncome StatementFor the year ended December 31, 2012BDBDServices revenue20,500ExpensesSalary expense(5,800)Rent expense(3,360)Utilities expense(550)Interest expense(350)Advertising expense(300)(10,360)Net income10,140Statement of Financial Position:Joelle Beauty SalonStatement of Financial PositionAs at December 31, 2012BDBDAssetsNon-current assetsEquipments4,000Furniture4,500Stationary808,580Current assetsCash22,000Trade receivable90Inventory450Supplies85023,390Total assets31,970LiabilitiesNon-current liabilitiesLoan4,000Current liabilitiesTrade payable2304,230EquityCapital27,740Total liabilities and equity31,970Statement of Change in Owner Equity:Joelle Beauty SalonStatement of Change in Owner’s EquityFor the year ended December 31, 2012BDTotal equity as of January 1, 201218,000Net income10,140Withdrawals(400)Total equity as of December 31, 201227,740Required B:Introduction about the company Naseej is a Bahraini joint stock company (closed) incorporated in the Kingdom of Bahrain on 5 August 2009. It considers as the first fully-integrated real estate and infrastructure development company in the Middle East. The company’s core activity is to undertake the design, construction, development, sale and purchase of real estate projects, plus providing mortgage facilitation and banking and financial services. The company is pursuing property development and investment opportunities that have more demand, like: affordable housing, light industrial, serviced apartments, workforce and student accommodation. Naseej involves around 100 employees in Bahrain, capitalised at US$ 286 million, and currently owns around 19 well-known shareholders in the middle east, such as Ithmaar Development Company, Gulf Finance House, Faisal Islamic Bank of Egypt, Eskan Bank, and much more. In the next years, Naseej will spread-over 11 middle east countries. Currently, Net profit is higher than forecasted, as it has just constructed 10 housing projects. Naseej is working to build over 4,000 affordable housing units over the next three years. In future, Naseej is planning to develop affordable housing projects by incorporating the LEED global green building standard, through using natural resources from renewable sources in building, which are last longer, requires less cost and maintenance than normal building materials. CITATION Com12 \l 1033 (2012)IFRS NumberExplanation7(Financial Instruments: Disclosures): This IFRS standard requires 2 main things; disclosure of information about the significance of financial instruments for an entity’s financial position and performance, plus disclosure about the nature and extent of risks arising from financial instruments. First, to know whether the company adopts the disclosure of financial instruments or not this can be evidenced from the balance sheet and income statement information. In the balance sheet and income statement of the company there is categorized financial information. For example, in balance sheet, financial assets and liabilities categorized; there are many types of assets, like: cash, cash equivalents, and equipments, and assets arranged orderly as first non-current then current assets, and this the same for liabilities. Also, assets arranged first then liabilities, and each asset, liability, and equity unit has specific statement with more explanation and details in the notes section, like: equipment and property unit has definition, analysis, and statement includes each type of equipments with details. Also, in the income statement, types of expenses and revenues were arranged properly, and there is net income (profit), everything is categorized. Moreover, there is reclassification for each class of assets and liabilities, measured from fair value, loans and receivables, total carrying amount, to amortized cost. Furthermore, in the balance sheet there is a held-to-maturity investment, as Naseej acquires a land at Shakhura to develop housing project with 57 villas over a period of 3 years. Also, investment property is not measured at fair value, so it has total investment income which represents the fair value. Second, disclosures of risks arising from financial instruments require: quantitative disclosures for each class of risks, and qualitative disclosure for each risk and how each risk managed. For example, Naseej has credit, market, and liquidity risks, and each risk has clear definition, analysis of how Naseej dealt-with and measured the risk and specific statements with details for each. Liquidity risk means that the company cannot satisfy its debts when it does not have lots of liquidity and cash, so to avoid its debts, Naseej placed a rate of assets with short-term placements with banks to improve liquidity, so we can see in the first months the company has debts and trade payables, but in the last months there is nothing (zero) which means Naseej satisfied its debts. The market risks consist of Currency& profit-rate-risk. In currency risk there were no fluctuations in assets and liabilities’ value as all amounts in BD currency. In profit-rate-risk, if there are changes in market-rate-risk so there will be changes in fair values, so Naseej managed this risk by profit-rate-risk placement with banks, because the market prices change continuously. Therefore, the company is complying with IFRS 7 to a large extent, and all of those disclosures will help financial users, suppliers, shareholders, and public to take a decision whether to invest in Naseej or not. CITATION IFR12 \l 1033 (2012)Required C: AppendixAppendix 1Appendix 2Appendix 3Appendix 4Appendix 5Appendix 6Appendix 7Appendix 8Required D:Bibliography BIBLIOGRAPHY 2012. Company Profile. naseej properties. [Online] 2012. . IFRS 7 — Financial Instruments: Disclosures. IASPlus. [Online] 2012. . ................
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