Arab Open University

Faculty of Business Studies

TMA: Tutor Marked Assignment
Academic Year: 2018/19
Semester: First
1. Program: BA in Business Studies

2. Track: Accounting

3. Course Code: BE210 (BE210/4)

4. Course Title: Introduction to Financial Accounting

5. General Course Coordinator, GCC: Prof. Ahmad Al-Omari

6. Cut-off date: To be determined and announced by Dean’s office.

7. TMA Grade Distribution:

Content Deductions:
Criteri Kuwait Format & Presentation; Referencing; Total marks
a Telecommunications Word count and E-library
Company (VIVA) <1 0> each ; in total maximum
Marks 100 deductions <0 4 > 100

About TMA:
The TMA covers the financial accounting concepts and practices in the businesses; as you work, you will
gain confidence in your ability to use the financial statements of real company. 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 chapters 1 to 4. 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 chapters 1 to 4.
 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 requires you to:

1 Faculty of Business Studies – Arab Open University
 1- Review various study chapters (from Chapter 1 to 4) of the textbook “Horngren’s Financial and
Managerial Accounting, The Financial Chapters, 5th edition” and apply some of the concepts
within it.
2- Conduct a simple information search using the internet.
3- Present your findings and your answers within the specified word count.
4- You should use a Microsoft Office Word and Times New Roman Font of 12 points.
5- You should read and follow the instructions below carefully. Each part of the process will carry
marks for the assignment.

General instructions for students:

Plagiarism: It’s imperative that you write your answers using your own words. Plagiarism will be
penalized depending on its severity and according to AOU plagiarism policy.

Word count: Your answers are expected to be within the specified word count. A 10% deviation
from word count limit is acceptable. Not adhering to specified word count could result in the
deduction of up to 4 marks of your total TMA mark.

Referencing: You are expected to use the Harvard referencing style for in-text referencing and list
of reference at the end. Failing to do so could result in the deduction of up to 4 marks of your total
TMA mark.

E-library: You are expected to use E-library sources to support your answers. A minimum of 3
sources is required. Failing to do so could result in the deduction of up to 4 marks of your total
TMA mark.

Format and Presentation: In your answer, you should explain each point or inquire separately.

Use the following headings (below) to make up the different sections of your answer:
PT3 form (Cover) Available on LMS
Contents Title and contents page
TMA Kuwait Telecommunications Company (VIVA)
Reference list Recorded according to the Harvard style - Available on LMS
Failing to do so could result in the deduction of up to 4 marks of your total TMA mark.

The TMA Questions

Kuwait Telecommunications Company (VIVA)

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Kuwait Telecommunications Company (VIVA) is Kuwaiti Shareholding Company incorporated pursuant
to Amiri Decree No. 187 on 22 July 2008 to operate and manage a mobile phone network in Kuwait as
per Law no. 2 of 2007. Accordingly, VIVA was launched in December 2008 and was listed on Kuwait
Stock Exchange during December 2014.

You can download the 2017 annual report for Kuwait Telecommunications Company (VIVA) directly
from the following web page:

https://www.viva.com.kw/viva-publish-1.0/pdf/VIVA_Annual_Report_2017_EN_UPDATED.pdf

Instructions:

Use the 2017 annual report to answer the following questions:

1- What are the financial statements of Kuwait Telecommunications Company (VIVA)?
[10 marks]
2- What is the basis of preparation of the financial statements 2017?
[5 marks]
3- List five business activities of Kuwait Telecommunications Company (VIVA)?
[5 marks]
4- What is the name of the Parent Company of Kuwait Telecommunications Company (VIVA)?
[5 marks]
5- Go through the “INDEPENDENT AUDITORS’ REPORT TO THE SHAREHOLDERS” and answer
the following questions:
a. Who is responsible for the preparation and fair presentation of the financial statements?

b. What is the name of the independent auditors?

c. What is the basis for opinion of the independent auditor, and determine the auditor’s
responsibilities for the audit of the financial statements?
[15 marks]

6- What are the total assets of Kuwait Telecommunications Company (VIVA) at December 31,
2017 and at December 31, 2016? Write Kuwait Telecommunications Company (VIVA)’
accounting equation at December 31, 2017 & December 31, 2016, by filling
“Assets=Liabilities + Stockholders’ Equity”.
[marks 10]

7- Identify Revenue for the years 2017 and 2016. Did Revenue increase or decrease in 2017
compared with 2016? Comment.
[15 marks]

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8- Identify Net Profit (Net Income) for the years 2017 and 2016. Did Net Profit increase or
decrease in 2017 compared with 2016. Based on this, was the year 2017 better or worse than
the year 2016? Comment.
[15 marks]

9- Compute Kuwait Telecommunications Company (VIVA)’ current ratio at December 31, 2017
and December 31, 2016. Did the company’s ability to pay current debts improve or deteriorate
or did it remain the same. Comment briefly on your findings.
[10 marks]
10- Compute the debt ratio for Kuwait Telecommunications Company (VIVA) as of December 31
2017 and December 31, 2016. Comment on your answer.
[10 marks]
[End of TMA Questions]