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- Review various study chapters (from Chapter 1 to 4) of the textbook ‘Horngren's Financial and Managerial Accounting" and apply some of the concepts within it.
2- Conduct a simple information search using the internet.
3- Present your findings in not more than 1,300 words.
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.
The TMA Questions
Kuwait Food Company (Al Americana)
Kuwait Food Company (Al Americana) is a Kuwaiti Public Shareholding Company (the Parent Company) incorporated in the State of Kuwait on 29 December 1963. (Al Americana, Annual Report 2015).
You can download the 2015 annual report for Al Americana directly.
https://www.americana-group.net/Investors/Annual-Reports.aspx
Instructions:
Use the annual report to answer the following questions:
1- What are the main components of Al Americana's "Consolidated Financial Statements 2015"?
2- What are the standards and requirements that govern the preparation of the consolidated financial statements 2015?
3- Kuwait Food Company (Al Americana) is a Kuwaiti Public Shareholding Company (the Parent Company), what is the principal activities of the Parent Company and its subsidiaries?
4- What are the subsidiaries of the Group included in these consolidated financial statements?
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 these consolidated financial statements?
b. What are the names of the independent auditors, what is their responsibility, and what are the standards that govern their audit?
6- What are Al Americana's total assets at 31 December 2014 and at 31 December 2015? Write Al Americana's accounting equation at 31 December 2015, by filling "Assets=Liabilities Stockholders' Equity".
7- Identify Revenues (Sales) for the years 2015 and 2014. Did Revenues (Sales) increase or decrease in 2015 compared with 2014? Comment.
8- Identify Net Profit (Net Income) attributable to shareholders of the parent company for the years 2015 and 2014. Did Net Profit Increase or decrease in 2015 compared with 2014. Based on this, was the year 2015 better or worse than the year 2014? Comment.
9- Compute Al Americana's current ratio at December 31, 2015 and December 31, 2014. Did the company's ability to pay current debts improve or deteriorate or did it remain the same. Comment briefly on your findings.
10- Compute the debt ratio for Al Americana as of December 31 2015 and December 31, 2014. Comment on your answer.