1. Global Business Network LLC, is a Oman based consultancy firm in Muscat. The company has the following cases related to the financial reporting;

a)Omantel company showed an increase in earnings per Share (EPS) from OMR. 0.350 to OMR. 0.650 in 2019. However, the company forgot to disclose this information in its annual report.

b) Oman Flour Company provides its top managers with bonus on the basis of reported profit. During 2018 the management showed a decline in the final profit. In order to continue paying bonus the company attempt to adopt different accounting policies that resulted in higher profits.

c) In 2019, Zain Oil company was being sued for damages the seaside because its chemical material dropped to the sea. The settlement of which could threaten the financial stability of the company. The company decided to choose non-disclosure with the hope that its lawyer may win the case at court.

d) In 2018 AXA Company faced serious liquidity problems. Management decided to window dress the financial statements in a manner that improved the company's current ratios in order to hide the liquidity problem of the situation. However, in 2019 the company came out of liquidity problem and stopped window dressing practice. You are required to identify and explain in brief the suitable qualitative characteristics of useful financial information for each case.

2. Read the following case carefully and answer the given questions. You have recently become Head of Finance at Oman Catering Company Muscat, a company which deals in the specialized area of food and dining. Its expertise lies in the industrial catering and related services, mainly for Government institutions, Commercial Establishments and hotels. Your previous employer was Renaissance Catering Company Sohar, where, as finance manager, you had the opportunity to work on areas relating to financial accounting, procurement, contracts, and bids. One of Oman Catering Companys major contracts is with Renaissance Catering Company. The contract is now up for renewal, and Oman Catering Company is preparing a competitive bid for this contract. You have been asked to lead the team responsible for bidding for this contract. You also suspect that your knowledge and experience of Renaissance Catering Company were good reasons for appointing you to the position at Oman Catering Company. You do not want to let your new employer down. The loss of such a major contract would have a significant effect on the financial performance of Oman Catering Company and its performance-related bonus scheme for management

. a) Identify the professional code of ethics related this case and explain how it is related?

b) Specify the threat associated with this case. Justify it.

c) How do you manage the situation?