Professional Body: ICA (Ghana)

Search 500 + past questions and counting.

  • Filter by Professional Bodies

  • Filter by Subject

  • Filter by Series

  • Filter by Topics

  • Filter by Levels

  • 10 Marks

PSAF – Nov 2020 – L2 – Q3a – The Budgeting Process in the Public Sector

Explain the factors militating against the budgeting system in the public sector.

The budgeting process is a cycle of events which occur sequentially every
year and which results in the approved budgets in ministries and extra ministerial departments.

Required:
Explain five factors militating against the budgeting system in the public sector.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "PSAF – Nov 2020 – L2 – Q3a – The Budgeting Process in the Public Sector"

  • 6 Marks

BMIS – Nov 2019 – L1 – Q1a – The Business Organization and its Stakeholders

Explain three business types available to individuals venturing into business.

Kofi Stone, Ama Black and Adwoa Sika who were your students at the Ultimate Business School have decided to venture into business after their National Service which ends in the next three months. They have approached you for your advice on the type(s) of business(es) which they should invest in, considering the country’s economic environment.

Required:
Explain THREE (3) business types available to them. (6 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "BMIS – Nov 2019 – L1 – Q1a – The Business Organization and its Stakeholders"

  • 10 Marks

BMIS – Nov 2019 – L1 – Q1c – Organization culture in business

Explains centralization, decentralization, and three advantages of decentralization for a company.

At the last Management meeting of Cool Hearts Ltd, which is a fast-moving consumer product firm with outlets throughout the country, it came out that sales and other targets were being missed as a result of the failure of top managers to involve subordinates in decision-making. You have just joined the company as an Organizational Analyst and have decided to submit a proposed solution to the problem to your Board at its next meeting to be held in two weeks’ time.

Required:
Explain the following:
i) Centralization (2 marks)
ii) Decentralization (2 marks)
iii) THREE (3) advantages Cool Hearts Ltd would gain from decentralizing its operations. (6 marks)

 

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "BMIS – Nov 2019 – L1 – Q1c – Organization culture in business"

  • 4 Marks

BMIS – Nov 2019 – L1 – Q1b – Characteristics of a Private Limited Company

Explain two characteristics of a private limited liability company.

Explain TWO (2) characteristics of a Private Limited Liability Company. (4 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "BMIS – Nov 2019 – L1 – Q1b – Characteristics of a Private Limited Company"

  • 2 Marks

BMIS – Nov 2019 – L1 – Q2ai – Leadership Definition

Explain the term leadership in relation to its influence on group behavior.

Explain the term Leadership. (2 Marks)

 

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "BMIS – Nov 2019 – L1 – Q2ai – Leadership Definition"

  • 11 Marks

BMIS – Nov 2019 – L1 – Q2aii – Theories of Leadership

Explain the Trait, Style, and Contingency Theories of Leadership.

Explain the following Theories of Leadership:

  • Trait (3 Marks)
  • Style (3 Marks)
  • Contingency (3 Marks)

 

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "BMIS – Nov 2019 – L1 – Q2aii – Theories of Leadership"

  • 2 Marks

BMIS – Nov 2019 – L1 – Q2bi – Extrinsic Rewards

Explain extrinsic rewards in relation to employee motivation.

Explain the following in relation to the motivation of employees:
i) Extrinsic rewards (2 Marks)

 

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "BMIS – Nov 2019 – L1 – Q2bi – Extrinsic Rewards"

  • 2 Marks

BMIS – Nov 2019 – L1 – Q2bii – Intrinsic Rewards

Explain intrinsic rewards in relation to employee motivation.

Explain the following in relation to the motivation of employees:
ii) Intrinsic rewards (2 Marks)

 

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "BMIS – Nov 2019 – L1 – Q2bii – Intrinsic Rewards"

  • 5 Marks

BMIS – Nov 2019 – L1 – Q2c – Group Development Stages

Outline the stages of group development in an organizational context.

Outline the stages of group development. (5 Marks)

 

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "BMIS – Nov 2019 – L1 – Q2c – Group Development Stages"

  • 6 Marks

BMIS – NOV 2019 – L1 – Q3a – Mission Statement

Write a mission statement for Hard Leather Limited, a footwear manufacturing company with products for middle and upper classes.

a) Hard Leather Limited is a footwear manufacturing company with a wide range of products for middle and upper classes.

Required: Write a mission statement for the company. (5 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "BMIS – NOV 2019 – L1 – Q3a – Mission Statement"

  • 6 Marks

CR – May 2021 – L3 – Q2a(i) – Impairment of Assets and CGU Valuation

Evaluate the acceptability of accounting practices used for CGU impairment test, focusing on discount rates and foreign exchange issues under IAS 36.

  • Gyamfi Ltd (Gyamfi) is an international company with a presence in Ghana, providing spare parts for the automotive industry. It operates in various jurisdictions, each with different currencies. In 2020, Gyamfi faced financial difficulties partly due to the COVID-19 pandemic, resulting in a decline in revenue, a reorganization, and restructuring of the business. As a result, Gyamfi reported a loss for the year.

    Gyamfi conducted an impairment test for goodwill, but no impairment was recognized. The company applied a single discount rate to all cash flows for all cash-generating units (CGUs), regardless of the currency in which the cash flows were generated. The discount rate used was the weighted average cost of capital (WACC), and Gyamfi used the 10-year government bond rate of its jurisdiction as the risk-free rate in the calculation.

    Additionally, Gyamfi built its impairment model using forecasts denominated in the parent company’s functional currency, arguing that any other approach would be unrealistic and impracticable. Gyamfi claimed that the CGUs had different risk profiles in the short term, but there was no basis for claiming that their risk profiles were different over a longer business cycle.

    Impairment of Non-Current Assets:
    Gyamfi also tested its non-current assets for impairment. A building located overseas was deemed impaired due to flooding in the area. The building was acquired on 1 April 2020 for 25 million dinars when the exchange rate was 2 dinars to the Ghana Cedi. The building is carried at cost. As of 31 March 2021, the building’s recoverable amount was determined to be 17.5 million dinars. The exchange rate on 31 March 2021 was 2.5 dinars to the Ghana Cedi. Buildings are depreciated over 25 years.

    The tax base and carrying amounts of the non-current assets before the impairment write-down were identical. The impairment of the non-current assets is not deductible for tax purposes. No deferred tax adjustment has been made for the impairment. Gyamfi expects to make profits for the foreseeable future and assumes the tax rate is 25%. No other deferred tax effects need to be considered besides the ones relating to the impairment of the non-current assets.

    Requirements (as per question):
    i) Evaluate the acceptability of the accounting practices under IAS 36: Impairment of Assets (6 marks).

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CR – May 2021 – L3 – Q2a(i) – Impairment of Assets and CGU Valuation"

  • 5 Marks

CR – May 2021 – L3 – Q2a(ii) – Impairment of Overseas Building and Deferred Tax

Recommend the accounting treatment for impairment and deferred tax for an overseas building under IAS 36 and IAS 12.

ii) Recommend the accounting treatment of the above transaction to the directors of Gyamfi for the year ended 31 March 2021, including financial statements extracts in accordance with relevant International Financial Reporting Standards.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CR – May 2021 – L3 – Q2a(ii) – Impairment of Overseas Building and Deferred Tax"

  • 9 Marks

CR – May 2021 – L3 – Q2b – Disposal Group

Discuss the accounting treatment for Berko Ltd.’s sale of shares in Jamila Ltd in the consolidated financial statements.

Berko Ltd acquired all the equity shares in Jamila Ltd on 1 January 2018 for a consideration of GH¢1,250 million. The carrying amount and fair value of the identifiable net assets at acquisition were GH¢1,230 million. On 31 December 2020, Berko Ltd was in the process of selling its entire shareholding in Jamila Ltd, and so it was decided that Jamila Ltd should be treated as a disposal group held for sale in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations at that date. The carrying amounts of Jamila Ltd’s net assets before classification as held for sale at 31 December 2020 in the individual statement of financial position are as follows:

GH¢’million
Property, plant, and equipment 836
Intangibles (excluding goodwill) 428
Current assets (at recoverable amount) 584
Non-current liabilities (322)
Current liabilities (254)
Total net assets 1,272

The group has a policy of revaluing its property, plant, and equipment in accordance with IAS 16: Property, Plant, and Equipment. There have been no revaluations or any other gains or losses included within Jamila Ltd’s different components of equity since the date of acquisition as the carrying amount was deemed to be a close enough approximation to its fair value. However, on 31 December 2020, property with a carrying amount of GH¢330 million was considered to have a fair value of GH¢340 million. No adjustment has yet been made for this fair value. The total fair value less costs to sell the disposal group at 31 December was estimated to be GH¢1,220 million. There have been no previous impairments to the goodwill of Jamila Ltd.

Required:
Recommend to the directors of Berko Ltd how the above transaction should be accounted for in the consolidated financial statements as at 31 December 2020 including financial statement extracts in accordance with relevant International Financial Reporting Standards.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CR – May 2021 – L3 – Q2b – Disposal Group"

  • 5 Marks

CR – May 2021 – L3 – Q3a – Defined Benefit Scheme Accounting

Recommend the correct accounting treatment of defined benefit scheme transactions for Meagya Ltd.

Meagya Ltd is a government business entity in Ghana. Meagya Ltd operates a defined benefit scheme which at 31 December 2019 was in deficit by GH¢120 million. Details for the current year are as follows:

GH¢’million
Current service cost 55
Cash contribution to the scheme 100
Benefits paid in the year 80
Net loss on curtailment 11
Gain on remeasurement of liability at 31 December 2020 9

The rate of interest applicable to corporate bonds was 5% at 31 December 2019. The cash contributions for the scheme have been correctly accounted for in the financial statements for the year ended 31 December 2020. This is the only adjustment that has been made in respect of the scheme.

Required:
Recommend the correct accounting treatment of the above transactions to the directors of Meagya Ltd in the financial statements for the year ended 31 December 2020, including financial statements extracts in accordance with IAS 19: Employee Benefits.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CR – May 2021 – L3 – Q3a – Defined Benefit Scheme Accounting"

  • 5 Marks

CR – May 2021 – L3 – Q3b – Related Party Disclosures for Government Entities

Advice on related party disclosure requirements for government-controlled GHBank Ltd.

GHBank Ltd is a government-controlled bank. GHBank Ltd was taken over by the government of Ghana during the recent financial sector clean-up by the Bank of Ghana. GHBank Ltd does not directly trade with other government-controlled banks but has underwritten the development of the nationally owned postal service and the newly created railway ministry. The directors of GHBank Ltd are concerned about the volume and cost of disclosing its related party interests because they extend theoretically to all other government-controlled enterprises and banks. The directors require general advice on the nature and importance of the disclosure of related party relationships and specific advice on the disclosure of the above relationships in the financial statements.

Required:
Advise the directors of the company on how to deal with the above transaction in the financial statements in accordance with IAS 24: Related Party Disclosures. (5 marks)

 

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CR – May 2021 – L3 – Q3b – Related Party Disclosures for Government Entities"

  • 10 Marks

CR – May 2021 – L3 – Q3c – Ethical Dilemmas and Actions for a Finance Director

Discuss the ethical dilemmas and potential actions a finance director must take to avoid breaching IFAC's Code of Ethics.

You are the Finance Director of a limited liability company. The company started trading with a handful of employees but now has a workforce of 200. You are aware that staff purchases of goods manufactured by the company are authorised by production managers and then processed outside the accounting system. The proceeds from these sales are used to fund the company’s annual Christmas party, organised for Directors of the company.

Required:
Discuss the possible actions that you will take in order not to breach the fundamental principles of the IFAC’s Code of Ethics. (10 marks)

 

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CR – May 2021 – L3 – Q3c – Ethical Dilemmas and Actions for a Finance Director"

  • 15 Marks

CR – May 2021 – L3 – Q4a – Corporate Reconstruction for Kanzo Ltd

Prepare a statement of financial position and related computations after reconstruction or liquidation for Kanzo Ltd.

Kanzo Ltd (Kanzo) is a company located in the Savannah Region. The company was strategically located to produce cashew nuts and to take advantage of available tax incentives. However, the company has incurred trading losses for many years now. The Directors are considering the alternatives of liquidation and capital reduction. The company’s Statement of Financial Position as at 31 December 2020 is as follows:

Non-current assets GH¢’million
Property, plant and equipment 3,250
Patent 350
Total Non-current assets 3,600
Current assets GH¢’million
Inventories 1,000
Accounts receivables 500
Total Current assets 1,500
Total assets GH¢’million
Total Assets 5,100
Equity & Liabilities GH¢’million
Ordinary share capital (@GH¢1) 2,000
Retained earnings (750)
Total Equity 1,250
Non-Current liabilities GH¢’million
20% Preference shares 1,100
25% Debentures (unsecured) 1,000
Total Non-Current liabilities 2,100
Current liabilities GH¢’million
Accounts payables 1,000
Bank overdraft (secured on property, plant & equipment) 750
Total Current liabilities 1,750

| Total Equity & Liabilities | 5,100 |

Additional Information:

  • In the event of a forced sale, the assets would probably raise the following amounts:
Asset GH¢’million
Property, Plant and Equipment 1,500
Inventories 400
Accounts receivable 450
  • The company is developing a new product, expected to generate profit before interest and tax of GH¢500 million per annum in anticipation of an immediate capital injection of GH¢2,000 million.
  • The Ordinary share capital should be written down to 200 million shares of GH¢1.00 each. In addition, they have agreed to provide the immediate capital injection.
  • The 20% preference shares are to be converted into 500 million ordinary shares valued at GH¢1 per share.
  • It is proposed for GH¢650 million of the 25% Debentures to be converted into ordinary shares at GH¢1 per share and the remainder to be converted into GH¢350 million 20% Debentures.
  • Accounts payables to accept immediate payment of 50% and a moratorium of six (6) months in payment of the remaining balance. New supplies would be paid for on delivery.
  • Property, plant and equipment are to be revalued at GH¢2,250 million, inventories at GH¢800 million, and Accounts Receivables at GH¢450 million.
  • The accumulated losses and intangible assets are to be written off.
  • The corporate tax rate is 25%.
  • Liquidation expenses will amount to GH¢10 million.

Required:
i) Prepare a Statement of Financial Position after reconstruction on the assumption that the capital injection took place. (6 marks)
ii) Compute the expected profit after tax and the earnings per share after the reconstruction. (2 marks)
iii) Prepare a statement of distribution if the company were to be liquidated now. (2 marks)
iv) Describe the steps the Directors of Kanzo Ltd should follow to appraise the proposed scheme of reconstruction with an emphasis on the interest of shareholders. (5 marks)

 

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CR – May 2021 – L3 – Q4a – Corporate Reconstruction for Kanzo Ltd"

  • 10 Marks

R – Nov 2020 – L2 – Q1a – Consolidated Statement of Profit or Loss

Prepare a consolidated statement of profit or loss for Kingdom Ltd and Paradise Ltd for the year ended 31 December 2019.

Prepare the consolidated statement of financial position for Kingdom Ltd group as at 31
December 2019 (10 Marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "R – Nov 2020 – L2 – Q1a – Consolidated Statement of Profit or Loss"

  • 5 Marks

CR – May 2021 – L3 – Q4b – Control Assessment of Tema Ltd

Discuss the control of Accra Ltd over Tema Ltd in accordance with IFRS 10.

Accra Ltd, a government business entity, acquires 40% of the voting rights of Tema Ltd. The remaining investors each hold 5% of the voting rights of Tema Ltd. A shareholder agreement grants Accra Ltd the right to appoint, remove and set the remuneration of management responsible for key business decisions of Tema Ltd. To change this agreement, a two-thirds majority vote of the shareholders is required.

Required:
In accordance with IFRS 10: Consolidated Financial Statements, discuss whether Accra Ltd controls Tema Ltd. (5 marks)

 

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CR – May 2021 – L3 – Q4b – Control Assessment of Tema Ltd"

  • 20 Marks

CR – May 2021 – L3 – Q5 – Financial performance of Shop First Ltd

Analyze the financial performance of Shop First Ltd for 2020 and discuss the effects of discontinued operations and contingencies.

Shop First Ltd operates supermarket chains across the sixteen (16) regions of Ghana. The firm has been in commercial operation for more than two decades, growing its operations through an effective supply chain and financial management. However, in the last few years, keen competition and worsening general economic performance have steadied the consistent growths experienced over the years, resulting in the entity disposing off part of its operations. Below are the financial statements of Shop First Ltd:

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CR – May 2021 – L3 – Q5 – Financial performance of Shop First Ltd"

Elevate your professional expertise across key business domains with our comprehensive training programs

Our offerings

Contact Info

  • +233203701923
    +233543919232
  • info@nbcinstitute.com

Customer

Get In Touch

Follow us on our social media and get daily updates.

Facebook-f Twitter Linkedin-in Envelope
error: Content is protected !!
Oops!

This feature is only available in selected plans.

Click here to view all plans

Click on the login button below to login if you’re already subscribed to a plan or click on the upgrade button below to upgrade your current plan.

Login
Upgrade Plan

If you’re not subscribed to a plan, click on the button below to choose a plan

Subscribe to a plan