Government Agencies – NBC Institute

PSAF – May 2022 – L2 – SA – Q3 – Government Revenue

Identify the powers and functions of state boards of internal revenue and other agencies in revenue generation.

Question

Revenue generation is an important role carried out by some agencies of government with a view to meeting the expenditure of government, required for taking care of the welfare of the citizens. Revenue Mobilisation, Allocation and Fiscal Commission Act 1989 specifically mentioned some powers and functions of the Commission.

Required:
a. Identify FOUR powers and responsibilities of State Board of Internal Revenue Service in Nigeria. (4 Marks)
b. Explain FOUR specific functions of the Department of Petroleum Resources (DPR). (4 Marks)
c. Highlight SIX powers entrusted to the Revenue Mobilisation, Allocation and Fiscal Commission. (6 Marks)
d. Explain THREE sources of revenue payable to the federation account in Nigeria. (6 Marks)

Answer

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Tags: Fiscal Policy, Government Agencies, Petroleum Revenue, Revenue Generation, Taxation
Level: Level 2

Topic: Government Revenue
Series: MAY 2022

PSAF – Apr 2022 – L2 – Q2a – Preparation and presentation of financial statements for central government

Prepare the financial statements for a public transport corporation in compliance with IPSAS and relevant legislations.

Question

Citizen Transport Corporation (CTC) is a Public Transportation company in Ghana, which seeks to provide reliable and affordable means of transport for commuters within villages, towns, and cities as well as provide intercity movement and transport consultancy services.

The following financial information relates to CTC, as at 31 December, 2020:

Additional information:

CTC uses an accrual accounting basis in the preparation of its Financial Statements in line with the Public Financial Management Act, 2016 (Act 921), Public Financial Management Regulation 2019 L.I 2378, and the International Public Sector Accounting Standards (IPSAS).
The loan in the trial balance represents funds advanced by the Government from the Consolidated Fund to CTC to procure a fleet of buses in 2010. The repayment of the Loan was scheduled to end in 2015. However, due to liquidity challenges facing the corporation, the Loan is still outstanding. On the basis of this, the Minister of Finance after assessing the liquidity profile of CTC, made a specific provision for Bad Debt on Loans Receivable by waiving 50% of the loan outstanding. This was made in line with Section 53 of the Public Financial Management Act 2016, (Act 921).
Provision is to be made for Interest on the remaining Loan.
Salaries and other emoluments outstanding during the year amounted to GH¢12,500,000 while that of use of goods and services other than workshop and seminars amounted to GH¢15,750,000.
Inventories included in use of goods and services available at the end of the year were as follows:

Spare Parts	GH¢’ 000
Historical Cost	900,000
Replacement Cost	802,000
Net Realisable Value	995,000

In 2019, CTC bought a Machinery amounting to GH¢30,000,000. This amount was wrongly recognized in the 2019 Financial Statement as an expense instead of an Asset. However, this Machine is still in use.
CTC uses a straight-line basis in depreciating their Capital Assets. Assets and their useful life details are provided below:

Assets	Useful Life
Plant and Machinery	15 years
Motor Vehicle	20 years
Building	30 years
Software	10 years

CTC plans to change its accounting policy in the recognition, measurement, presentation, or disclosure of inventory in the financial statements. This will be done in line with IPSAS 3: Accounting policies, Changes in Estimate, and Errors.

Required:
In compliance with IPSAS and relevant legislations, prepare for CTC:

a) Statement of Financial Performance for the year ended 31 December 2020. (9 marks)

b) Statement of Financial Position as at 31 December 2020. (7 marks)

c) Explain TWO (2) Guiding Principles for formulating accounting policy. (2 marks)

d) Explain TWO (2) Conditions that mandate a change in accounting policy. (2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accrual Accounting, Financial Statements, Government Agencies, IPSAS, Public Sector
Level: Level 2

Topic: Preparation and presentation of financial statements for central government
Series: APR 2022

PSAF – May 2022 – L2 – SA – Q3 – Government Revenue

Identify the powers and functions of state boards of internal revenue and other agencies in revenue generation.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Fiscal Policy, Government Agencies, Petroleum Revenue, Revenue Generation, Taxation
Level: Level 2

Topic: Government Revenue
Series: MAY 2022

PSAF – Apr 2022 – L2 – Q2a – Preparation and presentation of financial statements for central government

Prepare the financial statements for a public transport corporation in compliance with IPSAS and relevant legislations.

Question

The following financial information relates to CTC, as at 31 December, 2020:

Additional information:

CTC uses an accrual accounting basis in the preparation of its Financial Statements in line with the Public Financial Management Act, 2016 (Act 921), Public Financial Management Regulation 2019 L.I 2378, and the International Public Sector Accounting Standards (IPSAS).
The loan in the trial balance represents funds advanced by the Government from the Consolidated Fund to CTC to procure a fleet of buses in 2010. The repayment of the Loan was scheduled to end in 2015. However, due to liquidity challenges facing the corporation, the Loan is still outstanding. On the basis of this, the Minister of Finance after assessing the liquidity profile of CTC, made a specific provision for Bad Debt on Loans Receivable by waiving 50% of the loan outstanding. This was made in line with Section 53 of the Public Financial Management Act 2016, (Act 921).
Provision is to be made for Interest on the remaining Loan.
Salaries and other emoluments outstanding during the year amounted to GH¢12,500,000 while that of use of goods and services other than workshop and seminars amounted to GH¢15,750,000.
Inventories included in use of goods and services available at the end of the year were as follows:

Spare Parts	GH¢’ 000
Historical Cost	900,000
Replacement Cost	802,000
Net Realisable Value	995,000

In 2019, CTC bought a Machinery amounting to GH¢30,000,000. This amount was wrongly recognized in the 2019 Financial Statement as an expense instead of an Asset. However, this Machine is still in use.
CTC uses a straight-line basis in depreciating their Capital Assets. Assets and their useful life details are provided below:

Assets	Useful Life
Plant and Machinery	15 years
Motor Vehicle	20 years
Building	30 years
Software	10 years

CTC plans to change its accounting policy in the recognition, measurement, presentation, or disclosure of inventory in the financial statements. This will be done in line with IPSAS 3: Accounting policies, Changes in Estimate, and Errors.

Required:
In compliance with IPSAS and relevant legislations, prepare for CTC:

a) Statement of Financial Performance for the year ended 31 December 2020. (9 marks)

b) Statement of Financial Position as at 31 December 2020. (7 marks)

c) Explain TWO (2) Guiding Principles for formulating accounting policy. (2 marks)

d) Explain TWO (2) Conditions that mandate a change in accounting policy. (2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accrual Accounting, Financial Statements, Government Agencies, IPSAS, Public Sector
Level: Level 2

Topic: Preparation and presentation of financial statements for central government
Series: APR 2022

Question Tag: Government Agencies

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PSAF – May 2022 – L2 – SA – Q3 – Government Revenue

Identify the powers and functions of state boards of internal revenue and other agencies in revenue generation.

PSAF – Apr 2022 – L2 – Q2a – Preparation and presentation of financial statements for central government

Prepare the financial statements for a public transport corporation in compliance with IPSAS and relevant legislations.

PSAF – May 2022 – L2 – SA – Q3 – Government Revenue

Identify the powers and functions of state boards of internal revenue and other agencies in revenue generation.

PSAF – Apr 2022 – L2 – Q2a – Preparation and presentation of financial statements for central government

Prepare the financial statements for a public transport corporation in compliance with IPSAS and relevant legislations.

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PSAF – May 2022 – L2 – SA – Q3 – Government Revenue

Identify the powers and functions of state boards of internal revenue and other agencies in revenue generation.

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PSAF – Apr 2022 – L2 – Q2a – Preparation and presentation of financial statements for central government

Prepare the financial statements for a public transport corporation in compliance with IPSAS and relevant legislations.

You're reporting an error for "PSAF – Apr 2022 – L2 – Q2a – Preparation and presentation of financial statements for central government"

PSAF – May 2022 – L2 – SA – Q3 – Government Revenue

Identify the powers and functions of state boards of internal revenue and other agencies in revenue generation.

You're reporting an error for "PSAF – May 2022 – L2 – SA – Q3 – Government Revenue"

PSAF – Apr 2022 – L2 – Q2a – Preparation and presentation of financial statements for central government

Prepare the financial statements for a public transport corporation in compliance with IPSAS and relevant legislations.

You're reporting an error for "PSAF – Apr 2022 – L2 – Q2a – Preparation and presentation of financial statements for central government"

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