Case Study - Financial Planning and IFRS Compliance for Café 14

Overview

Café 14, a small, independently-owned fast-food café in Muscat, Sultanate of Oman, aimed to expand its operations. To achieve this, they needed detailed business projections and IFRS-compliant financial statements to present to potential investors.

Problem Statement

The primary challenges faced by Café 14 included:

• Business Projections: Developing realistic financial projections for the next five years.
• IFRS Compliance: Preparing a full set of financial statements in accordance with IFRS.
• Financial Ratios: Calculating key financial ratios to present a clear financial picture to investors.

Technical Solution

To address these challenges, we provided:

• Business Projections: Detailed five-year financial projections, analyzing historical data and making informed assumptions.
• IFRS Compliance: Preparation of a full set of financial statements, including balance sheet, income statement, changes in equity, and cash flow statement, in line with IFRS.
• Financial Ratios: Calculation and analysis of key financial ratios like liquidity, profitability, and leverage.

Results

The outcomes of our intervention included:

• Accurate Business Projections: Café 14 now has a realistic set of financial projections for future expansion and financing.
• IFRS Compliant Financial Statements: Ensuring transparency and comparability, crucial for attracting investors.
• Informed Decision Making: Improved ability to communicate financial health using key financial ratios.
• Investor Confidence: Increased attractiveness for funding and growth opportunities.

Café 14 is now well-equipped to pursue growth ambitions and attract investment, highlighting the importance of financial expertise in business planning and decision making.

What we did