Statement of Finanancial Position Equity and Liabilities Share capital OMR'000 20000 Bank loan OMR'000 Assets 18000 Motor Vehicles at NBV* (Cost: OMR 25 000 000) 7000 Inventory : Unsold cars Inventory : Spare parts 10000 Other assets 35000 8000 5000 2000 35000 Net Profits *NBV: Net Book Value. The company management has been decided the following 'creative accounting measures: 5 a) Currently, MDL depreciates motor vehicles by straight-line method over 5 years. However, the company has decided to change its depreciation policy as straight-line method over 8 years. b) Inventory: Unsold cars - Increase by OMR 600 000 to represent low provision for damaged cars. c) Inventory: Spare parts - Decrease by OMR 250 000 to represent obsolete spares