Bank Muscat is the chief financial services giver situated in Coursework

Bank Muscat is the chief financial services giver situated in Sultanate Oman in southwest Asia - Coursework Example The bank through its products and services to the customers has maintained a top position in the best banks in the region, for over six years. It has also received other rewards in the last several years to recognize its exemplary products and services (BANK MUSCAT 2012). The biggest achievements of Bank Muscat in the last few years are attributed to their strategic capabilities in the market. In addition, the bank’s exploitation of their market strengths results to well deserved competitive advantage over the other financial service providers (ALLARD 2004). Reports indicate that the bank’s capabilities lie in their ability to implement high levels of accounting standards, corporate governance, mergers and acquisitions, partnership and alliances, revolutionary products, and regulatory compliance. The accounting standards represent the principles that guide accounting practices. The International Accounting Principles (IAP) are accounting standards that are widely accept ed as apt to the field of accounting (GROSSMAN & LIVINGSTONE 2009). The Bank Muscat ensures that they maintain high levels of these standards that entail how the bank prepares and presents its business income and expenses, its assets and liabilities (STICKNEY 2010). As a result, the customers are attracted by the transparency provided by the bank regarding their operations. An increase in the number of customers served daily enhances the competitive advantage of the bank. As a result, an increase in the customer base enhances profitability for the bank in the long-run (ALLARD 2004). Corporate governance is the set of systems and principles used to govern an organization such as Bank Muscat. It offers the rules of how the organization can be controlled in order to achieve their objectives (BESLEY & BRIGHAM 2011). Furthermore, Bank Muscat has received several awards in the implementation of corporate governance. This is because corporate governance is done in a manner that adds value of the bank and proves beneficial to the stakeholders in the long-term (STEGER & AMANN 2008). The bank’s stakeholders include the shareholders, customers, management, and other individuals involved in the welfare of the organization. In 2012, Bank Muscat received the prestigious Hawkamah Bank Corporate Governance Award. The award honors the bank’s efforts of improving their corporate governance practices further than the legal and regulatory obligations imposed by their relevant jurisdictions. This entailed the introduction of an exceptional approach to various corporate governance areas and the corporate social responsibility. As a result, the employees work to their full potential thus providing excellent services to their customers. This leads to the creation of customer loyalty thus maintaining the banks competitive advantage over their competitors (EVANS 2002). Mergers and acquisitions, partnerships and alliances, are key Bank Muscat capabilities that have led to improved competitive advantage over competitors (BRUIJN 2002, COYLE 2000). It entails a corporate strategy that brings separate entities together to form larger business organizations (AMERICAN BAR ASSOCIATION 2006). It also involves the assimilation of smaller businesses to a large corporation to minimize competition. Bank Muscat has exercised the mergers and acquisition activity to continue amassing customers and increasing profitability

No topic Assignment Example | Topics and Well Written Essays - 500 words - 4

No topic - Assignment Example Debits and credits provide a systematic method of recording transactions to enhance consistency and matching principles of accounting. If transactions are recorded in their respective accounts and in the right manner, consequently, financial statements will be consistent. In accounting, debits and credits are a systematic way of recording different financial transactions in books of account. Credits and debts represent two sides of the same account. When a transaction occurred, financial accountant must record this transaction in two respective accounts. In one account, the financial accountant record on the left side of that account, this is called a debit (Kieso, 2010, p. 178) In the other account, a record is made on the credit side of that account to meet standard accounting requirements. For example, if the company purchases a machine for $100,000 on credit from General motor company then recording made will have both a credit and a debit entry as follows: When the business makes payment for this asset, then debit entry on the asset account must be made to reflect the payment. Assuming payment was done in cash, then transaction will be recorded as follows. Debits and credits have no effects on accounting equations since each entry balance either one side or both sides of accounting equation. Debits do not always increases; it as well decreases in some books of account such as capital and liabilities. Credits as well do not only decreases, but also increase revenues, liabilities and capital books of account. In companies, investors are the key external users of financial statement. This statement provides a summary of financial performance of the company for a certain accounting period. Very importantly, financial statement determines the financial position of the business. Investors extract important information from financial statement that helps them in drawing important investment decision