RELEVANCE:
In recent years, the economy of Oman has a number of reforms, the more the market economy. In particular, the extensive financial impetus for the Sultanate of Oman, is the beginning of a positive trend. The size of the Sultanate of Oman is much larger etattentes of individual players also increase, which soddisfanolt may be that a good corporate governance.
The importance of good corporate governance has always been recognized by the industry to improve business competitiveness, to improve the performance of companies and better relations with all interested parties (1). Oman also in industries wichtigstenGovernance principles on reform of the Sultanate OmanLes prisoners now have more and more, which have been previously made. This necessitàSiat unDhere alla proper and uniform accounting standards, such as reducing the introduction of the scheme, and the difference not only increases the transparency in the exchange of information with interested parties, but also strengthens the role of directors have extensive play with the objectives of the company amid the challenges and implications indésirablesADES.
In this case, the corporate governance is a code of conduct for companies die morals, ethics, values, attitudes and behaviornt, the behavior of the company and its management. Corporate responsibility with the operators of the mind and the soul of a society.
The Council should as a guardian to raise awareness of the vision and mission, and development of systems for the efficient organization and stakeholders satisfaction. Therefore, the Corporate Governance is a system of accountability to all shareholders in order to maximize and piùil welfare of shareholders (2), wherediscussion on communication and transparency of corporate governance issues at the time in politics and the practice of accounting records and such matters as the rules for the trust that the management and dissemination of effective and good corporate governance for the promotion of a healthy investment climate.
Therefore, the investigation into the practices of standards is an important issue and relevant to the well Enternehmensführung in this environment are the rulesand techniques as a response to the call for better accounting and financial information, or as a mirror image of society, the Entwicklungenion expectations of firms and the behavior of a vehicle etPas of social and political life of the monitoring and control society (3).
STUDIO:
The old form of selective reporting and conservatives for more transparency and disclosure freiwilligen in accordance with the development of the time. There are alternatives to 'empresasentidades adoption of new rules for corporate social responsibility, where responsibility is largely a matter of information, transparency and the activities of which unentreprise firm power (4) ie the disclosure in a simple, clearly readable and comparable basis for the accounting, which can be provided if the company accounting standards and uniform distribution of information relating to the rules must be seguite. Therefore, the rules for the wide dissemination contabilidadasegurar responsibility for the company, in May etre coûtprimaire ions and as a necessary requirement for good corporate governance.
A review of the practice of accounting standards and their problems in the Sultanate of Oman, to help the industry, the current practice of Rechnungslegungsstandards, in turn, to develop best practices to ensure the smooth management of an investment in health.
In this contesto will untentar here for the rules and Prapratiques in the Sultanate of Oman, to strengthen and improve their standards of good governance. Data were collected from annual reports (published in 2001-'02), Oman ten companies of various kinds, which are among the largest companies in the business. The sample consisted of 4 to 6 am pm in private companies. The percentage of simple method is used to analyze the data. VONS Elautenticidad data will be verIFIC with the views of the management of the company has achieved and matters of corporate governance. For businesses, the idea of 'importance of standards for good corporate governance in the context of Oman is also investigated.
In Oman:
In all countries, the level of istruzionezione and business competitiveness will be enhanced when they understand and compare their results, the simple and understandable, and comparábolaSensibilisierung is an important tool. Princel'objectif disclosure have been met and the benefits of the dissemination of good corporate governance improves when the communication is done on a uniform and consistent application of accounting rules. The development and consistent application of accounting principles and is an essential part of corporate governance and the various organizations to reinforce the wisdom to normasel more efficient corporate governance under del'évolution the business environment. Management of the company is nowalso feeling pressure to reform of procedures and transparency of warning from lenders, regulators, analysts and, especially, have a seat on the Council to achieve the quality of the information las ° Note that the efficiency, its responsibility for good corporate governance.
In the Sultanate of Oman, but the conclusion was in accordance with international accounting standards adopted by the International Accounting Standards Committee (IASC), published by the Standing Interpretations Committee of IASC and the requirements of the Companies Act of the Sultanate of Oman and the requirements for disclosure under the Reg.ELN for disclosure issued by the Autorité des Marchés Sultanatd'Oman capital, communication is insufficient and a negative phenomenon in a country that has yet to be strengthened, because they can not wait for the market of the GDR in sufficient, because the more transparent assetsties of a society in accordance with the principles of sound, which provides that such evidence will be evaluated (5).
International accounting standards in place for industry representation of Oman financierss (CIN 1), Inventories (IAS 2), cash flow (IAS 7), the gain or loss for the period Phone (IAS 8), fundamental errors and changes in accounting IAS (9) Events after the balance sheet date (IAS 10), contracts for construction (IAS 11) Income taxes (IAS12) Segment (IAS 14), the impact of changing prices (IAS 15), property, plant and equipment (IAS 16) Rentals (IAS 17) Revenue (IAS 18); employment benefits (IAS 19), government accounting. Grants and Govt. Assistance (IAS 20), the effect of changes in exchange rates (IAS 21), Business Combinations (IAS 22); Borrdebido costs (IAS 23) to related parties (IAS 24), pension benefits (IAS 26) , the consolidated accounts (IAS 27) Investmentsin associates (IAS 28), the hyperinflationary economies (IAS 29), banks and other financial institutions (IAS 30), notammentipaciones in coenUnternehmen (IAS 31) Financial Instruments: Disclosure and Presentation (IAS 32) Earnings per share (IAS 33) financial information (IAS 34), Activities to cease (IAS 35) Impairment of Assets (IAS 36), procurement, assets and liabilities (IAS 37) Intangible assets (IAS 38) Financial Instruments: rilevazione and Measurement (IAS 39) Investment Property (IAS 40), Agriculture (IAS 41).
Although the international accounting industrieOman hatDiePrincipi, in practice, some of which are not exempt from criticism, as some weaknesses. The practice standards in the industries of Oman and the differences are as follows enhance good corporate paragarantizar.
TIPS:
The data from primary and secondary screening of companies are carefully examined in order to EtilMessung the problems of protection and the practice of business. Some of the main results are as follows:
i) The percezionezione the importance of corporate governance, with the exception of one private company has developed its position, all other (90% of the sample) have expresadolas standards of corporate governance.
ii) The practice of politics have been reported in the annual reports: a majority empresasder sample (80%), twenty five measures for the disseminationtion and others are also more than twenty twenty-five rules adopted by the selection of firms. All have dealt with winds of fünfundzwanzig accounting.
iii) the inventory Valuatien practical: The sample of companies have such low costs or the value of implementing clear what the average évaluationinventaire methods.
Iv) the practice of preparing the Treasury: All companies that have cash flows and changes in equity statements.
v) Depreciation on practices of the company: The study showed that most companies in the sample (90%), according to the straight line method for calculating depreciation and the remainder by the method of reduction. The investigation revealed that all firms in the sample publicic follow a straight line method of depreciation idea.
vi) The practice of the construction: The sample consisted of a construction company, which continues on to thepercentage method.
vii) research and development: None of the companies, expenditure on research and development.
viii) The other rules: The study has shown that the Practical relativased fundamental errors and changes, the impact of changes lalesPreise, associations of enterprises, the economy of hyperinflation, the financial statements of banks and other financial institutions and l ' agriculture, were not disclosed by any of the selected companies and institutions are not sono of this activity.
From analysis of procedures and general discussion, in accordoe important issues in accounting, as part of Oman are identified and will be here shortly.
QUESTIONS:
i) the dissemination of the policy, most companies in the sample, which is required. The points raised in the principles of proper accounts or the notes are more or less evenly in all matters relevant to the study, but the treatment of certain items, not allyou other problems.
The requirement for disclosure of the report eche the facts must be disclosed, what tangible or intangible, provided by lel'organisation where OFE influence the general staff, the lack of guidelines. Therefore, the existence of the rule is questionable.
ii) certain rules, such as the valuation of inventories and depreciation, the treatment of substitution is allowed. This kind of flexibility creates problems egr assessing the quality and reliability of financial enterprises and the different methods by different companies have different lvous or ZeitenEnte, the possibility of inter-dependence, intra-European trade and industry, or the comparison between the periods were affected. The lack of comparability of financial information, it is less useful and creates confusion in the minds of investors.
iii) For contracts for the construction, the rule is the adoption of the procedure, or the contratto the percentage of the method of using the contract before the conclusion, also attracts the limitation of comparability.
iv) The hybrid accounts that the accounting of revenue from the company liquidity and cost accounting (mercantile basis), followed by companies to manipulate their reports.
v) The standardization process is closed and narrow and the execution is not enough, what the different procedures for laDivulgazione and empireslice, is the main objective of the accounting standards for the implementation of good GogouGovernance.
vi) The introduction of IAS in their entirety, without its relevance in the context of industrial Ománambiente the lack of attention to domestic problems and indigenisation.
The following suggestions are based on discussions with the companies above questions and to improve the utility of standards for corporate governance unbuon.
TIPS:
I) iImportieren of the proposal, the rules to improve the quality of reports on corporate governance, therefore, values, with particular attention to local conditions, namely the improvement of pertinenciaindigenisation appropriate practices or existing industrial phenomenon in Oman.
ii) the Authority for the financial markets in Italy, in consultation with other professionals and regulatory authorities should évolutionOnar a mechanism for the applicationion of alternatives to a standard. The use of uniform accounting standards and to improve the comparability of the quality dimension of the budget and reports.
iii) the creation of harmony between the laws applicable to the Company Law, the Law on the income of banking regulations, etc., which have a significant impact on the various elements of financial statements give a true picture of the draft leggellschaft.
Iv) The formulation of standards and the ginstitution of the place that accounts for the evolution of prices, inflation in the economy, accounting, accounting for joint ventures, earnings per share, investments in subsidiaries, the accounting standards and therefore useful for user -friendliness and internationally acceptable.
In short, despite all industries OL'homme under the international accounting standard and PPRATICHE, to give the exact image of the economy, but much remains to be done for the promotion of good corporate governance and a good climate for investment. The other countries of the Middle East, which is the policy of liberalization and the capital market losal because of globalization must be aware that reducing the diversity of approaches in each Upas accounting standards, which Entwicklungten all communities and the general rules enormous the highest priority for achieving the objectives, Oman would be very difficult for investors confidence in the Government of company.
************************************************** *********** * The article is in the accounting, trade and finance: the Islamic perspective of the Fifth International Conference in Brisbane, Australia Laufee 15-17, June 2004.
References:
1. Tiwary, Ojha, Arun Kumar, "Corporate Governance in India: what it means and what bfumo?", The Gazette of Commerce in India, New Delhi, October-December 1998, p.154.
2nd Chandratre, KR, "The role of the conBoard of Governors in a new dimension of corporate governance and forthcoming changes in company law, the Secretary Chartered Secretary Chartered Institute of India, Delhi Nouvelleest, May 97, p. 505
3rd RITicker, "The responsibility of enterprises, institutions and governance functions of the accounting principles in Michael Bromwich and Anthony G. Hopwood (Eds.), configuration, accounting standards, an international perspective, Pitman Books Ltd., Londra, 1883, p. 27 Cities in Lele RK, Jawahar Lal, "Theory", Himalaya Publishing House, New Delhi, 96 p. 56
4th Sir Adrian Cadbury, "Changes in corporate governance, Secretaryríay Company, is secretary general of 'Institute in India, New Delhi, 97 May, p. 497.
5th The report of the Cadbury Committee on "Financial aspects of corporate governance, the Secretary of GSOCIETÀ, Secretary-General of India, New Delhi, 97 May, p. 573.
6. Verma, Garg, Singh, "The proliferation of standards-Vis เ characteristics of firms: a study of companies in this sector in India", The Gazette of Commerce in India, New Delhi, October-December 1998, p. 131