The TMA covers financial accounting concepts and practices in 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 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.
Access the Saudi Aramco home page or You can directly access the annual report on the below link: https://www.aramco.com/en/investors/reports-and-presentations
Use the 2021 Annual report of Aramco to answer the following questions:
1- Stakeholders can affect or be affected by the organization's actions, objectives and policies. List the different types of stakeholders and give examples from the Aramco annual report to justify your answer. Also, explain the reason for their interest in the financial statements.
2- Key performance indicators tied to the financials are usually focused on revenue and profit margins. Discuss and highlight Key Financial indicators of Aramco from the Annual report, Support with quantitative data followed by your discussion, which includes your judgment that a business is better off or worse than the previous years. (your discussion should be based on the information provided in Annual Report).
3- IAS 16 Property, plant and equipment identifies and describes two different models of accounting for tangible non-current assets. Discuss the importance of these two models for Aramco and describe the depreciation methods used by Aramco.
4- In preparing financial statements in accordance with IFRS, there are certain accounting policies that may require a judgment or estimation in their application. Give examples of Aramco estimates and assumptions reported in consolidated financial statements.
5- Contingent Liabilities are those obligations that are contingent on events that have not yet taken place. Discuss the contingent liabilities and also provide the contingent liabilities example from the Annual Report of Aramco.
6- Explain why the going concern basis is important in understanding Aramco's financial statement; Support your answer with evidence from Aramco's annual report.
7- Classify the revenue recognition method(s) used by Aramco as discussed in the annual report. Explain the rationale underlying the appropriateness of methods used by Aramco.
8- Corporate governance is the system of rules, practices, and processes by which a company is directed and controlled. Justify your answer and provide an example from the Annual Report of Aramco.
9- Who is the external auditor of Aramco? Write a summary of the report of the eternal auditor on the presentation of financial statements.
10- Explain the meaning of horizontal analysis and vertical analysis. Describe the importance of horizontal and vertical analysis of financial statements on Aramco. Give example from the report.