Accounting Cycle of the Qatar Red Crescent Society - Essay Example

The organization is not a branch or part of the government’s structure. The organization delivers fast humanitarian help and support to communities within Qatar community. The same organization equips the residents with international law with priority for humanitarian goals (Bibalex, 2014). In addition, the entity effectively delivers emergency medical care. The recipients of the medical care include all Qatar residents during earthquakes and other unexpected disasters. The other activities of the Qatar Red Crescent nonprofit organization include healthcare and disaster preparedness.

The company trains red cross–type volunteers to help during unexpected emergencies (Qatar Red Crescent, 2010). External Report The company’s external report (Table 1) shows how Qatar Red Crescent Society generated its different sources of income. In terms of Qatari Riyal, the company’s top 2009 four sources are Restricted Donations (35,096,421), unrestricted donations (13,782,297), Other Income (4,496,145), and Dividends Income (4,076,075). The total income generated for 2009 is QAR 64,188,922.

The government contribution significantly increases the company’s total income in 2009 (Qatar Red Crescent, 2010). Analyzing, the company’s 2009 income source report is favorably higher than the prior 2008 income source report. The 2009 restricted donations figure is 45 percent higher than the 2008 restricted donations figure. The 2009 Unrestricted donations amount is 54 percent higher than the prior year’s restricted donations figure. The 2009 total revenue output is 32 percent higher than the 2008 total revenue output (Qatar Red Crescent, 2010).

Further, the financial report complies with established accounting process standards. The external auditor, Deloitte & Touche, reports the financial reports are true and fair. The company complies with established Qatar IFRS accounting process requirements. The financial reports adhere to the provisions of Qatar’s association articles (Qatar Red Crescent, 2010). Furthermore, Qatar companies comply with IFRS accounting standards. To ensure all parties can understand the messages (contents) of the Qatar companies, all companies are required to comply with international financial report requirements (IFRS).

The Qatar government requires all companies in Qatar to present IFRS-based company reports. Auditors affirm to the users of the financial reports whether IFRS standards are violated (Ramady, 2012). In addition, IFRS accounting process standards are implemented in many countries. The European Union member countries implement IFRS accounting standards. Most Middle East countries adhere to IFRS accounting process requirements. Consequently, someone in London can understand the financial reports of a Qatar-based company (Mirza, 2010).