Omantel Responds to FSA’s Decision on 2024 Financial Statements: Implications for Investors and Business Owners in Oman
مسقط: Omantel issued a statement on Thursday clarifying a recent directive from the Financial Services Authority (FSA) that mandates the company to restate certain portions of its 2024 consolidated financial statements. This directive also calls for the removal of specific provisions previously recorded by external auditors.
The FSA’s decision No. 25/2025, announced earlier this week, instructs the telecommunications provider to revise its application of two accounting standards: International Accounting Standard (IAS) 21, concerning foreign currency translation, and IAS 29, which addresses hyperinflationary economies, particularly regarding its subsidiaries in Iraq.
Omantel noted that the first adjustment pertains to how exchange rate fluctuations were recorded by its Iraqi operations. The company had used the US dollar as the primary currency instead of the Iraqi dinar. The second adjustment relates to the application of hyperinflationary reporting standards to Zain Iraq, a subsidiary in the Omantel Group.
In its statement, Omantel explained that its prior approach, outlined in note 21 of its 2024 financial statements, was based on professional judgment and consultations with external auditors. The FSA has now required the company to restate its accounts according to the regulator’s interpretation by December 31, 2025.
The telecom operator assured that these changes will only affect the presentation of its financial statements and are not anticipated to influence cash flows or operational performance. The company indicated that its external auditors will review and implement the necessary adjustments in accordance with the FSA’s directives.
Omantel reiterated its commitment to transparency and regulatory compliance, emphasizing its adherence to international accounting standards and its dedication to protecting shareholders’ interests.
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اخیر directive from the Financial Services Authority (FSA) for Omantel to restate parts of its 2024 financial statements signals a critical moment for transparency and regulatory compliance in Oman. While this adjustment may not affect operational performance, businesses should consider how adherence to changing regulations can create both opportunities for enhanced credibility و risks related to investor confidence. Smart investors and entrepreneurs should now focus on aligning their financial practices with international standards, thus positioning themselves strategically in a competitive market environment.
