Question

Abdullah completed his higher education in Accountancy from abroad. After his graduation, Abdullah joined a professional company as a trainee. During his one-year training, he gained practical knowledge by working with professionals and interacting with many other companies, attending workshops and seminars. To serve his homeland and community, he comes back to Oman and gets appointed by Multinational Telecom Industry in Oman as senior financial officer.

During his job, he has observed that accounting practices are being influenced by different systems in different companies across the globe. It makes Abdullah concerned that a multinational company follows one particular practice in one region and the same company adopts different practice in other region. Abdullah knows that accountancy is a profession that is institutionally controlled and highly self-regulated with professional standards.

a. Accountancy is one of the oldest and most established professional services, and has been identified as a growing sector of developing economies. Being an accounting student, in your opinion, why a company’s accounting practices are influenced and follow different protocols in various countries? What could be the possible reasons, explain it with suitable examples.

b. Accounting system has evolved with the passage of time. Early accounting used to record the financial activities and presently, accounting not only does the same but also provides useful information to users. How would legal, social and economic environment will affect the accounting system among Telecom companies in Oman?

Answer 1