Batelco Case

Question 1: What are the main components of Batelco’s “Consolidated Financial Statements 2015”? Batelco’s Consolidated Financial Statements of 2015 comprises of the company’s statement of financial position, the company’s income statement and the statement of comprehensive incomes, the statement of changes in equity, the statement of company’s cash flows and the notes that incorporates the segment information. The consolidated financial statements of the Batelco’s Group in the year 2015 have been prepared in Bahrain Dinar. The amounts are stated in millions of Bahrain Dinar except on other situations that are otherwise noted. Assets and liabilities have been classified in the statement of financial position as the current or the non-current …show more content…
There was a decline of zero point one (0.1) (Klerks, et al 2010).
Question 9: Compute the debt ratio for Batelco as of December 31 2015. Comment on your answer
Debt ratio= total debt/total assets
• Total liabilities = 431,929
• Total assets = 1,004,982
• Debt ratio = 1,004,982/431,929 =2.3
The ratio is higher which indicates that the company is more leveraged with implication of great financial risks. Leverage is a significant tool that is used by the company to grow. References:

Batelco, 2015. Audited Financial Results for 2015, accessed [online] on 18th August 2016, < https://www.batelcogroup.com/media/60887/batelco_ar_2015_english.pdf>
Klerks, C., Sten-Van 'T Hoff, H. V., & Tressel, A. (2010). Introduction to the accounting process. Groningen, P. Noordhoff.
Warren, C. S., Reeve, J. M., & Fess, P. E. (2005). Financial accounting. Mason, Ohio, Thomson/South-Western.
Weygandt, J. J., Kieso, D. E., & Kimmel, P. D. (2003). Financial accounting. New York, NY,