Essays on Advanced Accounting: BARWA Real Estate Company Research Paper

The paper "Advanced Accounting: BARWA Real Estate Company" is a wonderful example of a research paper on finance and accounting.
BARWA Real Estate Company is a Qatari Shareholding Company whose line of business is real estate investment. The company’s reported segments are based on business lines. The company has three main business segments, which include the real estate segment, the business services segment, which provides business support services, and the financial institution and other services segment, which comprises financial institutions such as banks. The real estate segment is responsible for developing, selling, and leasing villas, condominiums, and plots of land.

The real estate segment is the most important business segment in terms of revenue and income since it brings in approximately 90% of the revenue. In 2011, the real estate segment brought in 3.7 billion QAR against a total of 4.2 billion QAR. In 2011, the percentage proportion was the same, with real estate revenue amounting to 7.7 billion QAR against a total of 8.6 billion QAR. In 2009, real estate revenue amounted to 2.8 billion QAR against a total of 2.9 billion QAR. The financial institution and other services segment is the second most important segment with regard to revenue. The revenue it accrued accounted for 5 – 10% of the total revenue from 2009 to 2011. Its accrued revenue of 0.3 billion QAR against total revenue of 4.1 billion QAR in 2009 accounted for 7% of the total revenue. The business services segment is the least important segment in terms of revenue. It brought in 2.5 – 5% of the revenue in the years from 2009 to 2011.
Real estate is also the most important segment with regard to assets. It accounts for approximately 90% of the total assets of the company. For example, in 2009, real estate accounted for 32 billion QAR worth of assets, against a total asset base of 35 billion QAR. Financial institution and other services are the second most valuable segment with regard to assets, with its asset value amounting to 2.4 billion QAR against a total asset worth of 35 billion QAR in 2009. This is approximately 7% of the company’s total asset value. Finally, the business services segment is the least significant segment in terms of assets. Its asset value in 2009 was 0.4 billion QAR, against the company’s total asset value of 32 billion QAR. This is roughly 1% of the company’s total asset value.

BARWA Real Estate Company provides enterprise-wide disclosures along with disclosures of its operating segments. This is evidenced by the 2011 financial disclosures in which the company made the operating segment disclosures along with the enterprise-wide disclosures. However, the operating segment disclosures are less inclusive in comparison to the enterprise-wide disclosures since they include only values relating to revenues and income, finance cost, depreciation, assets, and liabilities.

BARWA Real Estate Company provides disclosures for the major companies with which it conducts business. These include Barwa Bank Q.S.C., Marafeq Qatar Company, Nuzul Holding Company, Emdad Leasing Equipment Company, and Al Imtiaz Investment Company. Other major ones are Al Damaan Islamic Insurance Company, Asas Real Estate Company, Smeet Investment Company, Regency Residential U.K Limited, Bin Laden Group, Tanween Company, Lusail Golf Development Company, and Ottoman Gayrimenkul A.S. However, the disclosures that BARWA provides regarding these companies are limited to total assets, total liabilities, and total income.

References

BARWA Group (2012). Annual Reports. Retrieved 2 Jan 2012, from http://www.barwa.com.qa/investor-relations/annual-reports.aspx