The balance sheet analysis of the OMV AG. The description, economic environment and accounting information of the company

Project Report , 2017 , 19 Pages , Grade: 1

Business economics - Accounting and Taxes

The aim of this paper is to discover potential sources and methods how earnings management could happen within OMV.

To discover the methods, the authors will briefly look at the outline of the company and its history. The main part of this work will be dealing with accounting policies of the company as well as the CEO change in 2015. The CEO change will be the focus of our research in discovering potential methods and tools for earnings management.

In detail, the authors will focus our work on the years 2014, 2015 and 2016. All the information will be taken from the official annual reports of OMV, which are all available for the public.

Table of Contents

1. Table of Contents

2. Introduction

3. Company description
3.1. History of the company
3.2. Owners’ structure
3.3. Company structure and business areas
3.4. Subsidiaries and shareholdings

4. Economic Environment
4.1. Branch description in general
4.2. Oil price
4.3. Gas price
4.4. Political instability in countries where OMV is involved
4.5. Gas crisis related to the conflict between Russia and Ukraine

5. Accounting information
5.1. Key accounting policies
5.2. Accounting flexibility
5.3. Likely earnings management motivations
5.4. Accounting strategy and disclosure quality

6. Red flags in the annual report of OMV
6.1. The use of Impairment and deferred taxes for real earnings management
6.1.1. Impairment of “Oil and gas assets”
6.1.2. The importance of deferred taxes for real earnings management
6.1.3. Assets and liabilities held for sale and their effect on earnings
6.1.4. Misstatements in the annual report of
6.2. Other possible red flags which are an indicator for real earnings management

7. Conclusion and final statement

8. Sources

9. List of tables

• College: Vienna University of Economics and Business
• Grade: 1
• Authors: Daniel Schreiber (Author), Jasmin Karner (Author), Andreas Schlager (Author)
• Publication Year: 2017
• Pages: 19
• Catalog Number: V373554
• ISBN (eBook): 9783668518742
• ISBN (Book): 9783668518759
• Language: English