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Pearson BTEC format: Annexure 5A
College of Banking and Financial Studies
Assignment Brief – BTEC
Higher National Diploma in Business (Level 5)
Student Name /ID Number
Unit Number and Title K/508/526 - Unit 13 - Financial
Reporting
Academic Year Fall 2020-21
Unit Assessor Dr. Roslin Lazarus /Ms.Komal Urvil Khakkar
Internal Verifier Mr. Vaheed Z Ubaidullah
Assignment Title Evaluation of financial reporting standards
Issue Date 13
th October 2020
Formative feedback date 12

th November 2020
Summative submission date One week from the time of
receiving formative feedback
Submission Format:
1. The submission is in the form of an individual written report.
This should be written in a concise, formal
business style using single spacing and font size 12.
2. You are required to make use of headings, paragraphs and
subsections as appropriate and all work must
be supported with research and references using the Harvard
referencing system. Provide working notes
wherever required.
3. The document must be submitted to Turnitin in word
document.
4. The recommended word limit is 2,500 words, although you
will not be penalised for exceeding the total
word limit.
5. The file must be saved in the format: Student ID-FR-
Formative-A1 for formative submission and
Student ID-FR-Summative-A1, for summative assignment.
6. In case of extenuating situations, the relevant college policies
apply.

Unit Learning Outcomes:
LO3: Evaluate financial reporting standards and theoretical
models and concepts
LO4: Evaluate international differences in financial reporting
2
Assignment Brief and Guidance:
Oman Construction Industry:
The building construction industry in Oman is expected to
record a CAGR of 5.8% to reach OMR 3.9 billion
by 2024. The residential construction industry in value terms
increased at a CAGR of 3.4% during 2015-
2019. The commercial building construction market in value
terms is expected to record a CAGR of 7.9%

over the forecast period. To cater to the demand from
construction industry, Oman construction chemical
industry offers various product solutions like adhesive and
bonding agents, concrete and mortar admixtures,
flooring, water proofing, protective coating, and other industrial
construction chemicals. Over the past few
years the construction industry is showing a declining trend of
revenue and government spending for various
projects and added adverse impact of COVID 19 in the year
2020. The Oman Growth Strategy 2040 shows
a positive outlook for the growth of the construction industry.
That will have a direct impact on the
construction chemical industry as well.
Gulf International Chemicals SAOG (GIC):
GIC was established in 1996 and is one of the most successful
companies in the construction chemicals
industry especially in GCC countries. The company’s head
office is based in Muscat, Sultanate of Oman.
GIC is registered in Muscat Securities Market and it is a
publicly owned company which pursues its interest
globally. The company develops, manufactures and markets
high quality specialized construction chemicals
that are used for every stage of construction and also provides

the necessary support and services for the
product application. GIC as the leader in innovation ensures
outstanding product quality with optimal
environmental friendliness. The company’s products are
marketed under the brand names TufBond and GIC.
The company manufactures all the products as per the Quality
Management System defined by ISO
9001:2000 and it is been awarded ISO 9001:2000 certificate by
Bureau Veritas with UKAS accreditation.
GIC’s products are periodically tested by independent
laboratories such as Bodycote (UAE and Oman) for
its compliance with international standards like ASTM, BS, EN,
etc.
The vision and mission statements of the company are as
follows:
GIC – Philosophy – Mission:
Providing
Solution
s not Products - GIC manufactures and supplies a proven range
of construction materials

for the building and construction industry, manufactured to
international standards. The quality of the
products and services will be maintained and assured by an
internal and external assessment programs.
Customer service and prompt attention to the requirement of
site support, technical information and delivery
3
are the corner stones by which the company will measure its
success.
Products:
GIC produces several construction and industrial chemical

products like adhesive and bonding agents,
concrete and mortar admixtures, concrete and repairs
admixtures, grouts and anchors, industrial flooring,
joint sealants, protective coatings, surface treatments, water
proofing etc. The product mix is designed for
Government, industrial as well as individual customers.
Flagship projects in Oman and UAE:
GIC caters to all the local markets (Oman and UAE) in Civil
Engineering and Construction field and Building
infrastructure and thus is a part of various prestigious Projects
like:
Grand Mosque (Muscat), IBRI stadium, RAFO Air base
Thumrait and Khasab, Mughal Garden (UAE), King
Abdul Aziz Road (UAE), Jumeirah Lake Tower (Dubai) and
many more.

Infrastructure and expansion:
GIC manufacturing base is spread over an area of 6000 sq.mt
and is setup in Oman at Rusayl Industrial Area.
The factory is geared up for production of powder products in
excess of 22,500 MT / annum and for
Admixture and other liquids; the factory has a capacity to
produce in excess of 10 million Liters / annum.
In addition to this, GIC Factory located at Sharjah Industrial
Area, UAE has a capacity to produce 27 million
liters of Admixtures per annum to cater the needs of Ready mix
concrete industry.
GIC Products are approved by various ministries in Oman and
enjoy a fair amount of confidence with all
leading Consultants and Specifiers. The retail segment in local
markets is well covered and caters through
nearly 35 outlets who stock / supply GIC Products to local

needs. GIC Products are available across Oman
to Salalah, Batinah regions, Sharqiya region, Dhakiliya region,
Muscat etc.The company has various on-
going projects in Oman and UAE currently.
International Presence:
GIC exports to various GCC countries like Dubai, Qatar,
Bahrain, Abu Dhabi and to South Africa and South-
East Asian Countries like Hong-Kong, Singapore etc. GIC has
established local representations in India for
more expansion and growth. Future markets are being explored
for the business prospects.
Registration information:
Gulf International Chemicals SAOG is a publicly owned
company founded in 1996 in the Sultanate of Oman

and registered with Ministry of Commerce and Industry under
Registration No. 1/53435/1. The objectives of
the company are to manufacture and market construction
chemicals and speciality chemicals in the Sultanate
4
as well as in regional markets. The company has manufacturing
facilities in Rusayl Industrial Estate in the
Sultanate of Oman and at Sharjah Industrial Area No. 17 in the
UAE. The company serves the construction
chemicals industry in the local markets as well as some
international markets.
During the year 2019, United Technical Services LLC, Sultanate
of Oman was incorporated as wholly owned

subsidiary. The Principal activities of the subsidiary being road
treatment chemicals and related products
manufacturing.
Compliance with IFRS:
The financial statements have been prepared in accordance with
International Financial Reporting Standards
(IFRSs), the applicable disclosure requirements of the Capital
Market Authority (CMA) and the relevant
requirements of the Commercial Companies Law of 2019.
Required:
In the capacity of a Undergraduate research student of a leading
business school in the Sultanate, write a
detailed report based on the published annual report of GIC for
the year 2019, with the assumption that GIC

is seriously considering establishing a joint stock company with
majority controlling interest in Singapore
and India as a part of its expansion plan. Your report should
critically evaluate the application of IFRS in
application to specific countries (Oman, Singapore, and India)
and differences in financial reporting
based on models and theories, given GIC’s investment strategies
and current market operations.
References:
Muscat Securities Market. (2020). Retrieved 1 October 2020,
from https://www.msm.gov.om/snapshot.aspx?s=GICI
Gulf International Chemicals (SAOG) - About Us. (2020).
Retrieved 1 October 2020, from
https://www.gicoman.com/aboutus_gic_approvals.shtml

Oman Construction Market | Growth, Trends, and Forecast
(2019 - 2024). (2020). Retrieved 1 October 2020, from
https://www.mordorintelligence.com/industry-reports/oman-
construction-market
Attachments:
1. Company Report
1_GICI_CompanyRep
ort_09002020_21.pdf
2. Balance Sheet
2_GICI_BalanceSheet
_09002020_21.pdf
https://www.msm.gov.om/snapshot.aspx?s=GICI

https://www.gicoman.com/aboutus_gic_approvals.shtml
https://www.mordorintelligence.com/industry-reports/oman-
construction-market
5
3. Income Statement
3_GICI_IncomeState
ment_09002020_21.pdf
4. Cash Flow Statements
4_GICI_CashFlowStat
ements_09002020_21.pdf

5. Stockholder Equity
5_GICI_StockHolderE
quity_09002020_21.pdf
6. Notes to accounts
6_GICI_Notes_09002
020_21.pdf
7. Cooperate Governance Report
7_GICI_CooporateGo
vernanceReport_09002020_21.pdf
8. Auditors Report Corporate Governance
8_GICI_AuditorsRepo

rtCooporateGovernance_09002020_21.pdf
9. Management Discussions
9_GICI_Management
Dicussion_09002020_21.pdf
10. Auditors Report
10_GICI_AuditorsRep
ort_09002020_21.pdf

6
Learning Outcomes and Assessment Criteria
Learning Outcome Pass Merit Distinction
LO3: Evaluate financial
reporting standards and
theoretical models and
concepts.
P5 Explain the benefits of
International Accounting
Standards (IAS) and
International Financial
Reporting Standards

(IFRS)
P6 Evaluate the models
of
financial reporting and
auditing
M3 Critically evaluate
financial reporting and
auditing through the
coherent application of
theories and models to
support judgements and
conclusions.
D3 Critically evaluate
the application of IFRS
in application to specific
countries and

differences in financial
reporting based on
models and theories.
LO4: Evaluate
international differences
in financial
reporting
P7 Evaluate the
differences an
importance of financial
reporting across different
countries.
M4 Critically evaluate the
factors that influence

international differences
in financial reporting.
PLEASE READ THIS PAGE CAREFULLY TO ENSURE YOU
COVER WHAT IS REQUIRED
TO SATISFY THE GRADE

7
LEARNER ASSESSMENT SUBMISSION AND
DECLARATION
When submitting evidence for assessment, each learner must
sign a declaration confirming that the
work is their own.
Please list the evidence submitted for each task. Indicate the
page numbers where the evidence can be
found or describe the nature of the evidence (e.g. video,
illustration).

Question references Evidence submitted Page numbers or
description
LO3
LO4
Additional comments to the Assessor:
Learner declaration
I certify that the work submitted for this assignment is my own.
I have clearly referenced any sources
used in the work. I understand that false declaration is a form of
malpractice.
Learner signature: Date:

8
ASSESSMENT RECORD SHEET – FORMATIVE FEEDBACK
Programme BTEC HND BUSINESS LEVEL 5 Learner name
Assignment title
Evaluate financial reporting

standards
Assessor name
Dr.Roslin/Ms.Komal
Khakhar
Unit no. and title 13/Financial Reporting
Targeted learning
aims/assessment
criteria
LO3 and LO4
First Submission
Deadline
Date submitted
Targeted

criteria
Criteria
achieved
Assessment comments
P5
P6
P7
M3
M4
D3
General comments

Assessor
declaration
I certify that the evidence submitted for this assignment is the
learner’s own. The
learner has clearly referenced any sources used in the work. I
understand that false
declaration is a form of malpractice.
Assessor signature Date
Date of feedback to
learner

Resubmission
authorisation
by Lead Internal Verifier*
Date
* All resubmissions must be authorised by the Lead Internal
Verifier. Only one resubmission is possible per assignment,
providing:
● The learner has met initial deadlines set in the assignment, or
has met an agreed deadline extension.
● The tutor considers that the learner will be able to provide
improved evidence without further guidance.
● Evidence submitted for assessment has been authenticated and
accompanied by a signed and dated declaration of authenticity
by the learner.
**Any resubmission evidence must be submitted within 15
working days of receipt of results of assessment.

9
ASSESSMENT RECORD SHEET - RESUBMISSION –
SUMMATIVE FEEDBACK
Deadline Date submitted
Targeted
criteria
Criteria
achieved
Assessment comments
P5
P6

P7
M3
M4
D3
General comments
Learner
Declaration
I certify that the evidence submitted for this assignment is my

own. I have clearly
referenced any sources used in the work. I understand that false
declaration is a form of
malpractice.
Learner signature Date
Assessor
declaration
I certify that the evidence submitted for this assignment is the
learner’s own. The learner
has clearly referenced any sources used in the work. I
understand that false declaration
is a form of malpractice.
Assessor signature Date
Date of feedback to

learner
A1
by Anas Sulaiman Abdulrahim Murad AL ZADJALI
Submission date: 05-Apr-2021 10:49PM (UTC+0400)
Submission ID: 1551179972
File name: ST10299-FR-A1.docx (48K)
Word count: 1690
Character count: 10821
1
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SIMILARITY INDEX

17%
INTERNET SOURCES
7%
PUBLICATIONS
64%
STUDENT PAPERS
1 63%
2 1%
3 <1%
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Exclude quotes Off
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A1
ORIGINALITY REPORT

PRIMARY SOURCES
Submitted to College of Banking and Financial
Studies
Student Paper
www.oomco.com
Internet Source
www.scribd.com
Internet Source
Asif Chaudhry, Danie Coetsee, Erwin Bakker,
Santosh Varughese et al. "2015 Interpretation
and Application of International Financial
Reporting Standards", Wiley, 2014
Publication
CBFS
STUDENT NAME: Anas Alzadjali
ID: ST10299

Evaluation of the financial reporting standards
Introduction:
The purpose of this report is to analyze the implementation of
International Financial Reporting Standards (IFRS) in various
countries including Oman, Singapore and India and the
differences in financial reporting in terms of investment
strategies in Gulf International Chemicals SAOG (GIC)) and its
market performance. Gulf International Chemicals SAOG (GIC)
has been established in Oman since 1996 and is a construction
chemical company. As headquartered in Oman, the company
operates as a public-owned firm and is part of MSM. Gulf
International Chemicals SAOG (GIC) cooperates with the
production and sale of premium quality construction chemicals

including adhesives and bonding agents, concrete and mortar
installations, concrete and repair connectors, grouts and
anchors, industrial flooring etc. Gulf International Chemicals
SAOG (GIC) compiles the financial statements in accordance
with International Financial Reporting Standards (IFRS) and the
relevant disclosure requirements as set by the Capital Market
Authority (CMA) and the applicable Companies Companies Act
2019
Discussion:
L03: Evaluation of the financial reporting standards and
theoretical models and concepts:
Financial reporting standards refer to a set of principles and
standards that define accounting policies and operating
guidelines and serve as its basis. The inclusion of financial
reporting standards helps to increase the visibili ty of financial
reporting globally. The adoption of international financial
reporting standards is essential in facilitating cross-border
transactions and ensuring free international flow of funds. Lack
of internationally accepted financial reporting standards can
make it challenging to undertake transit activities that lead to
increased costs, risks and expertise in the creation of financial
statements. This also affects investor decision-making and
increases the level of risk. This can affect investors in the
search for investment opportunities globally and can make it
difficult for international operations to operate. The basis of the

calculation will be different if it is different financial reporting
standards apply and this may affect financial performance and
financial position. For example, a company can target profits
using one set of country reporting and loss rates using another
(IFRS, 2020)
i. Benefits of International Accounting Standards (IAS) and
International Financial Reporting Standards (IFRS): Global
Accounting Standards are beneficial because they help to ensure
transparency, increased accountability and efficiency in the
global financial market. This allows investors and business
owners to make economically sound decisions regarding
investment and risk. It also improves the distribution of capital.
The use of IAS in GIC will go a long way in improving
performance and increasing responsiveness.
ii. The inclusion of benefits of IFRS standards to improve
accountability by reducing the information gap between funders
and providers This standard provides the necessary information
to keep managers accountable for their actions. This standard is
important for regulators around the world. These levels lead to
better economic performance by allowing awareness of the
opportunities and risks that exist globally, which facilitates fair
budgeting. The use of a single, reliable accounting language
reduces financial costs and global costs.

iii. Evaluate the models of financial reporting and auditing:
Some of the models and theories of financial reporting are:
· Equity theory:
Equality theory has key ideas to offer and these are Proprietary
Theory, Theory Theory, Fund Theory, Residual Equity Theory
and Enterprise Theory.
· Proprietary theory has emphasized the accounting process in
firms focused on shareholder perspective. The calculation of
doctrine is as follows:
Assets – Liabilities = Proprietor’s Equity
· In view of the residual equity, it is necessary to make an
accounting based on the opinion of the remaining shareholders.
This is in line with regular shareholders about future concerns.
· The business idea keeps the business unit as the center of
accounting process on behalf of the owner. Accounting statistics
according to this view
Asset = Equities or
Assets = Liabilities + Shareholders’ Equity
· The basis of the fund study is the accounting process for a
group of assets and liabilities associated with the restriction of
donkeys as a fund. Accordingly, funds / resources and limits on

their use are included in the business unit. Its accounting
equation is as follows:
Assets = Restriction of Assets
· Legitimacy theory:Legitimacy means the idea that a business
action is expected, efficient and appropriate for a community-
developed, values, beliefs, norms and definitions. Company
disclosure policies may affect external views regarding the
company. Firms will achieve strategic legitimacy and change
the legitimacy and perceptions held by the outside world. This
concept is often used for the purpose of providing insight into
the disclosure of a social, environmental and company report.
This view is appropriate as a framework for disclosing financial
reporting and stakeholder engagement (Manukriti, 2014)
L04: Evaluate international differences in financial reporting:
iv. Analysis of the differences an importance of financial
reporting across different countries (Oman, Singapore and
India):
As mentioned in the case presented, GIC has plans to expand in
India and Singapore so comparisons between the financial
reporting standards of the three countries namely Oman, India
and Singapore are important. The accounting model used in
countries including the US, India, Canada, the Netherlands and
Australia is Anglo American model while countries like France,
Germany, Italy use the Continental European model. While the

Anglo Saxon model is characterized by greater administrative
power, in addition to investment, regulatory output and short-
term crisis, the Continental European model has greater
shareholder power, conflict of interest, has limited financial
resources and facilitates cash flow..
Singapore: The accounting standards used in Singapore are by
the Singapore Financial Reporting Standard (SFRS) and are the
basis of this Financial Reporting Standard International
Financial Reporting Standards (IFRS). The adoption of this
SFRS has been binding on factories since 2003. The key
principles on which SFRS is based are Accrual Based
accounting. The Singapore Financial Reporting Standard
(SFRS) differs from International Financial Reporting Standards
(IFRS) in several respects. SFRS differs from IFRS in respect of
accounting for foreign exchange. While IAS 12 stipulates that a
deferred tax calculation is required for a temporary change from
a non-derivative foreign exchange, SFRS does not require an
accounting for a non-deductible foreign exchange if the entity is
able to manage the deferral period for minor variances. The
Singapore Financial Reporting Standard (SFRS) FRS 16 allows
for a single asset review of the assets that occurred in the period
1984 to 1996 without requiring continued use of the revaluation
model. A single review review refers to a situation in which a
PPE item is reviewed simultaneously from 1984 to 1996.

India: The Financial Reporting Standard used in India is the
Indian Accounting Standards and compliant with IFRS
standards according to the board. IFRS standards are not
required for financial reporting in local Indian companies and
are not officially committed to IFRS standards. Ind AS and
IFRS differ in various aspects. India items include balance
sheet, profit and loss statement, cash flow statement, equity
variance statement, statement of financial statements and
disclosure of accounting policies. In contrast, IFRS financial
statements components include a statement of financial
position, a profit and loss statement, a variance in the equity
statement for a period of time and a statement of cash flows for
a period. While India does not have a specific balance sheet and
only includes guidelines, IFRS has appropriate guidance
regarding the format of the balance and requires the entity to
represent liabilities and assets and classify them as current or
non-current assets (ICAI, 2020)
While India does not have a specific income or loss statement
format and includes only guidelines, IFRS includes two types of
presentation: single-format format or double-format format. One
statement contains only profit and loss but two statements
include the classification of various income statement items
such as operating and non-operating expenses, gains and losses.
India also differs from IFRS in terms of accounting policies and
variations in accounting estimates. India allows for variance in

accounting policy in the case of a different accounting policy as
required by law, adhering to accounting standards, if it is
subject to changes that may result in a financial statement. IFRS
IAS 8 states that variance in accounting policy can be made in
two cases which means that it is mandatory for IFRS, resulting
in an appropriate financial statement relating to the current
financial position of the entity. India requires that the amounts
reported are the same as those included in the financial
statements. IFRS requires an entity to analyze the nature of a
functional currency
Therefore, GIC should take into account this diversity as it
expands the international market of Singapore and India. This
will help to create a more accurate financial statement and a
more accurate comparison of financial performance.
Conclusion:
The inclusion of financial reporting standards helps to increase
the visibility of financial reporting globally. The adoption of
international financial reporting standards is essential in
facilitating cross-border transactions and ensuring free
international flow of funds. IFRS acts as a common
international language and helps to conduct business across
international borders by creating comprehensible and
comparable accounts. It is the result of the rise of overseas
stocks and is important for companies like GIC operating in

various countries.
References:
1. IFRS (2018) Conceptual framework for financial reporting
[Online] Accessed from: https://www.ifrs.org/-
/media/project/conceptual-framework/fact-sheet-project-
summary-and-feedback-statement/conceptual-framework-
project-summary.pdf [Accessed on: 4th November 2020]
2. Amidu (2017) 7 advantages of IFRS and IAS [Online]
Accessed from: https://medium.com/@amiduedson/7-
advantages-of-ifrs-and-ias-3f7118820183 [Accessed on: 4th
November 2020]
3. GMS (2018) Singapore Accounting Standards [Online]
Accessed from: https://www.guidemesingapore.com/business-
guides/taxation-and-accounting/accounting-standards/singapore-
accounting-
standards#:~:text=In%20Singapore%2C%20accounting%20stand
ards%20are,principals%20of%20Singapore%20accounting%20st
andards. [Accessed on: 4th November 2020]
4. IFRS (2020) India [Online] Accessed from:
https://www.ifrs.org/use-around-the-world/use-of-ifrs-
standards-by-jurisdiction/india/ [Accessed on: 5th November
2020]
5. IAS Plus (2020) Financial reporting framework in the
Sultanate of Oman [Online] Accessed from:
https://www.iasplus.com/en/jurisdictions/asia/oman [Accessed

on: 6th November 2020]
6. Manukriti (2014) Top 5 theories of equity [Online] Accessed
from: https://www.accountingnotes.net/equi ty/top-5-theories-of-
equity/5352 [Accessed on: 7th November 2020]
7. Maria (2009) Legitimacy theory and financial reporting
[Online] Accessed from:
https://www.fep.up.pt/conferencias/10seminariogrudis/D%C3%
A2maso,%20Goreti%20(Santar%C3%A9m);%20Louren%C3%A
7o,%20Isabel%20(ISCTE),%20Legitimacy%20Theory%20and%
20Internet%20Financial%20Reporting.pdf [Accessed on: 7th
November 2020]
8. PwC (2016) Comparison between Singapore Financial
Reporting Standards and International Financial Reporting
Standards [Online] Accessed from:
https://www.pwc.com/sg/en/illustrative-annual-report-
2006/assets/3-comparison.pdf [Accessed on: 7th November
2020]
9. ICAI (2020) Conceptual Framework for Financial Reporting
under Indian Accounting Standards (Ind AS) [Online] Accessed
from: https://resource.cdn.icai.org/60915asb49580.pdf
[Accessed on: 7th November 2020]
10. IFRS (2020) Why global accounting standards? [Online]
Accessed from: https://www.ifrs.org/use-around-the-world/why-
global-accounting-standards/ [Accessed on: 4th November
2020]

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