Omantel clarifies FSA's decision on 2024 financial statements

Muscat: Omantel on Thursday issued a clarification on a recent directive by the Financial Services Authority (FSA) requiring the company to restate parts of its 2024 consolidated financial statements and remove certain provisions previously recorded by external auditors.

The FSA decision No. 25/2025, announced earlier this week, directed the telecoms company to adjust the way it applied two accounting standards — International Accounting Standard (IAS) 21 on foreign currency translation and IAS 29 on hyperinflationary economies — particularly in relation to its subsidiaries in Iraq.

According to Omantel, the first adjustment concerns the accounting treatment of exchange rate changes by its Iraqi operations, which had been recorded using the US dollar as a principal currency instead of the Iraqi dinar. The second involves the application of hyperinflationary reporting standards to Zain Iraq, a company within the Omantel Group.

In a statement, Omantel said the previous approach, detailed in note 21 of its 2024 financial statements, was based on professional judgment and consultations with its external auditors. The company added that the FSA has now instructed the group to restate its accounts in accordance with the regulator’s interpretation by December 31, 2025.

The telecom operator confirmed that the changes relate to the presentation of its financial statements and are not expected to impact cash flows or operational performance. The company said its external auditor will review and complete the required adjustments in line with the FSA’s instructions.

Omantel reaffirmed its commitment to transparency and regulatory compliance, stressing its adherence to international accounting standards and its keenness to safeguard shareholders’ rights.