1) A stakeholder is any person or entity that has an interest in the success or

failure of a business or project. Discuss at least two types of stakeholders and

give examples from the Ooredoo annual report to justify your answer. Also,
explain the reason for their interest in the financial statements.

There are different stakeholders within each company. Two stakeholder types are
going to be illustrated as follows:

A. The first type of stakeholders is Investors; in Ooredoo, they are the shareholders.
Investors provide the capital for the company.
• Investors take the risk of investing their funds into the company and assume all
the risk, in hopes that the return on investment (dividends) will compensate them.
o Shareholder is interested in the financial statements because the ability to
assess the risk and ROI in the company and take decisions accordingly.
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 1,792,730
o ROI = = = 0.021016 = 2.10 %
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 85,299,475

The following table shows the Major shareholders of Ooredoo.

B. The second type of stakeholder is the management of Ooredoo, who is the board
of directors. Ooredoo separates between positions of the Chairman of the Board
and any other executive position in the company. The reason that managers use
and analyze financial statements is that it provides the opportunity to:
• Asses the company's performance
• Formulate a strategy and setting a benchmark
• To assess investment opportunities.
• Credit Risk Management
o Board’s salaries for the year 2017= QR11,600,000.
The board of directors of Ooredoo is composed of:
2) A key advantage of the accrual basis is that it matches revenues with related
expenses so that the complete impact of a business transaction can be seen
within a single reporting period. Elaborate the main points of this
accounting system and give the evidence from Ooredoo annual report 2018.

• Accrual accounting method provides a descriptive financial picture of a

business's income and expenses. It is more financially accurate than other
systems, which can lead to better loan rates for a business, making the
company more appealing to investors. Accrual accounting is a method where
revenue or expenses are recorded when a transaction occurs rather than when
payment is received or made. It follows the matching principle, which states
that revenues and expenses should be recognized in the same period and also
recognizes the economic events in certain periods regardless of when actual
cash transactions occur.

Based on the notes of consolidated financial statements of Ooredoo:

• Financial assets
o Ooredoo company initially recognizes loans and receivables and deposits on the
date that they originated. Any other financial assets are recognized initially on
the date that Ooredoo becomes a party to the contractual provisions of the
instrument.
o Ooredoo derecognized a financial asset when the contractual rights to the cash
flow from the expired asset, or it transfers the rights to receive the contractual
flow of cash on the financial asset in a transaction in which all the risks and
rewards of ownership of the financial asset are transferred.
o Financial liabilities and assets are offset, and the net amount is presented in the
consolidated statement of financial position when Ooredoo has a legal right to
offset the amounts and intends either to settle the liability and realize the asset
simultaneously or to settle on a net basis.
• Financial liabilities
Ooredoo initially recognizes debt securities issued and subordinated liabilities on the
date that they originated. All other financial liabilities are recognized on the date that
the Ooredoo becomes a party to the contractual provisions of the instrument. In
addition, financial liabilities include loans and borrowings and trade payables and
accruals.
➢ References:

https://accounting-simplified.com/purpose-of-financial-statements.html

https://www.accountingtools.com/articles/2017/5/7/accrual-basis

https://investinganswers.com/dictionary/a/accrual-accounting

https://www.investopedia.com/terms/a/accrualaccounting.asp

https://www.ooredoo.com/en/investors/financial_information/annual-reports/