Pensions – NBC Institute

PT – Nov 2019 – L2 – Q5d – Pension and Retirement Benefits

Briefly explain the 3-Tier Ghana National Pension Scheme Mechanism.

Question

Explain briefly the 3-Tier Ghana National Pension Scheme Mechanism.
(5 marks)

Answer

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Tags: Ghana National Pension Scheme, Pensions, Social Security, Taxation
Level: Level 2

Topic: Overview of the Ghanaian Tax System and Fiscal Policy
Series: NOV 2019

PT – May 2020 – L2 – Q5d – Overview of the Ghanaian Tax System and Fiscal Policy

This question asks to explain the key features of the 3-Tier Ghana National Pension Scheme, which applies to both public and private sector workers.

Question

What are the features of the 3-Tier Ghana National Pension Scheme?
(5 marks)

Answer

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Tags: National Pension Scheme, Pensions, Retirement Benefits, Social Security
Level: Level 2

Topic: Ghana National Pension Scheme
Series: MAY 2020

CR – Dec 2022 – L3 – Q1 – Consolidated Financial Statements

Prepare the consolidated financial statement for Blackstars Ltd, accounting for business combinations and pensions.

Question

Blackstars Ltd is a very successful SME business operating in a very good commercial location in Accra. The following statements of financial position are as at 30 June 2022:

	Blackstars Ltd	Meteors Ltd	Satellite Ltd
Assets:
Tangible non-current assets	GH¢1,024m	GH¢352m	GH¢224m
Investment in Meteors Ltd	GH¢320m	–	–
Investment in Satellite Ltd	GH¢48m	–	–
Current assets	GH¢435m	GH¢152m	GH¢104m
Total assets	GH¢1,827m	GH¢504m	GH¢328m
Equity and liabilities:
Share capital	GH¢760m	GH¢208m	GH¢184m
Revaluation reserve	GH¢72m	–	–
Retained earnings	GH¢312m	GH¢168m	GH¢75.2m
Total equity	GH¢1,144m	GH¢376m	GH¢259.2m
Non-current liabilities	GH¢512m	GH¢24m	GH¢12.8m
Current liabilities	GH¢171m	GH¢104m	GH¢56m
Total equity and liabilities	GH¢1,827m	GH¢504m	GH¢328m

Additional information:

On 1 July 2019, Blackstars Ltd acquired 10% holding of Meteors Ltd when the fair value of the net assets was GH¢260 million at a purchase consideration of GH¢24 million. On 1 July 2021, Blackstars Ltd further acquired 70% holding in Meteors Ltd when the fair value of the net assets was GH¢368 million at a purchase consideration of GH¢296 million.
The estimated fair value of the initial 10% investment in the shares of Meteors Ltd was GH¢32 million at 30 June 2021.
Blackstars Ltd wishes to use the full fair value method of accounting for the acquisition of Meteors Ltd. At 1 July 2021, the estimated value of the non-controlling interests was GH¢76 million.
The difference between the carrying amount of Meteors Ltd’s net assets and their fair value at the date of acquisition was due to land valued at cost, which on 1 July 2021 had a fair value of GH¢20 million in excess of its carrying value. There has been no subsequent significant change in that value.
On 1 July 2021, Blackstars Ltd acquired 25% holdings in Satellite Ltd when the fair value of the net assets was GH¢160 million for a purchase consideration of GH¢48 million.
On 1 July 2021, the fair value of Satellite Ltd’s land was GH¢12.8 million in excess of its carrying value. There has been no subsequent significant change in that value.
Goodwill arising on acquisition is tested for impairment at each year end. The recoverable amount of goodwill in Meteors Ltd at 30 June 2022 was GH¢24 million. There has been no impairment of the investment in Satellite Ltd.
During the year, the Directors of Blackstars Ltd decided to form a defined benefit pension scheme for its employees. The company contributed cash amounting to GH¢200 million to the scheme but the only accounting entry for this has been to include it in receivables at 30 June 2022. At 30 June 2022, the following details relate to the pension scheme:

	GH¢’million
Present value of obligation	253.6
Fair value of plan assets	241.6

Required:
Prepare the consolidated statement of financial position of the Blackstars Ltd group as at 30 June 2022.
(Total: 20 marks)

Answer

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Tags: Business Acquisition, Consolidated Financial Position, Fair Value, Goodwill, Pensions, Step Acquisition
Level: Level 3

Topic: Consolidated Financial Statements
Series: DEC 2022

PT – Nov 2019 – L2 – Q5d – Pension and Retirement Benefits

Briefly explain the 3-Tier Ghana National Pension Scheme Mechanism.

Question

Explain briefly the 3-Tier Ghana National Pension Scheme Mechanism.
(5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Ghana National Pension Scheme, Pensions, Social Security, Taxation
Level: Level 2

Topic: Overview of the Ghanaian Tax System and Fiscal Policy
Series: NOV 2019

PT – May 2020 – L2 – Q5d – Overview of the Ghanaian Tax System and Fiscal Policy

This question asks to explain the key features of the 3-Tier Ghana National Pension Scheme, which applies to both public and private sector workers.

Question

What are the features of the 3-Tier Ghana National Pension Scheme?
(5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: National Pension Scheme, Pensions, Retirement Benefits, Social Security
Level: Level 2

Topic: Ghana National Pension Scheme
Series: MAY 2020

CR – Dec 2022 – L3 – Q1 – Consolidated Financial Statements

Prepare the consolidated financial statement for Blackstars Ltd, accounting for business combinations and pensions.

Question

Blackstars Ltd is a very successful SME business operating in a very good commercial location in Accra. The following statements of financial position are as at 30 June 2022:

	Blackstars Ltd	Meteors Ltd	Satellite Ltd
Assets:
Tangible non-current assets	GH¢1,024m	GH¢352m	GH¢224m
Investment in Meteors Ltd	GH¢320m	–	–
Investment in Satellite Ltd	GH¢48m	–	–
Current assets	GH¢435m	GH¢152m	GH¢104m
Total assets	GH¢1,827m	GH¢504m	GH¢328m
Equity and liabilities:
Share capital	GH¢760m	GH¢208m	GH¢184m
Revaluation reserve	GH¢72m	–	–
Retained earnings	GH¢312m	GH¢168m	GH¢75.2m
Total equity	GH¢1,144m	GH¢376m	GH¢259.2m
Non-current liabilities	GH¢512m	GH¢24m	GH¢12.8m
Current liabilities	GH¢171m	GH¢104m	GH¢56m
Total equity and liabilities	GH¢1,827m	GH¢504m	GH¢328m

Additional information:

On 1 July 2019, Blackstars Ltd acquired 10% holding of Meteors Ltd when the fair value of the net assets was GH¢260 million at a purchase consideration of GH¢24 million. On 1 July 2021, Blackstars Ltd further acquired 70% holding in Meteors Ltd when the fair value of the net assets was GH¢368 million at a purchase consideration of GH¢296 million.
The estimated fair value of the initial 10% investment in the shares of Meteors Ltd was GH¢32 million at 30 June 2021.
Blackstars Ltd wishes to use the full fair value method of accounting for the acquisition of Meteors Ltd. At 1 July 2021, the estimated value of the non-controlling interests was GH¢76 million.
The difference between the carrying amount of Meteors Ltd’s net assets and their fair value at the date of acquisition was due to land valued at cost, which on 1 July 2021 had a fair value of GH¢20 million in excess of its carrying value. There has been no subsequent significant change in that value.
On 1 July 2021, Blackstars Ltd acquired 25% holdings in Satellite Ltd when the fair value of the net assets was GH¢160 million for a purchase consideration of GH¢48 million.
On 1 July 2021, the fair value of Satellite Ltd’s land was GH¢12.8 million in excess of its carrying value. There has been no subsequent significant change in that value.
Goodwill arising on acquisition is tested for impairment at each year end. The recoverable amount of goodwill in Meteors Ltd at 30 June 2022 was GH¢24 million. There has been no impairment of the investment in Satellite Ltd.
During the year, the Directors of Blackstars Ltd decided to form a defined benefit pension scheme for its employees. The company contributed cash amounting to GH¢200 million to the scheme but the only accounting entry for this has been to include it in receivables at 30 June 2022. At 30 June 2022, the following details relate to the pension scheme:

	GH¢’million
Present value of obligation	253.6
Fair value of plan assets	241.6

Required:
Prepare the consolidated statement of financial position of the Blackstars Ltd group as at 30 June 2022.
(Total: 20 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Acquisition, Consolidated Financial Position, Fair Value, Goodwill, Pensions, Step Acquisition
Level: Level 3

Topic: Consolidated Financial Statements
Series: DEC 2022

Question Tag: Pensions

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PT – Nov 2019 – L2 – Q5d – Pension and Retirement Benefits

Briefly explain the 3-Tier Ghana National Pension Scheme Mechanism.

PT – May 2020 – L2 – Q5d – Overview of the Ghanaian Tax System and Fiscal Policy

This question asks to explain the key features of the 3-Tier Ghana National Pension Scheme, which applies to both public and private sector workers.

CR – Dec 2022 – L3 – Q1 – Consolidated Financial Statements

Prepare the consolidated financial statement for Blackstars Ltd, accounting for business combinations and pensions.

PT – Nov 2019 – L2 – Q5d – Pension and Retirement Benefits

Briefly explain the 3-Tier Ghana National Pension Scheme Mechanism.

PT – May 2020 – L2 – Q5d – Overview of the Ghanaian Tax System and Fiscal Policy

This question asks to explain the key features of the 3-Tier Ghana National Pension Scheme, which applies to both public and private sector workers.

CR – Dec 2022 – L3 – Q1 – Consolidated Financial Statements

Prepare the consolidated financial statement for Blackstars Ltd, accounting for business combinations and pensions.

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PT – Nov 2019 – L2 – Q5d – Pension and Retirement Benefits

Briefly explain the 3-Tier Ghana National Pension Scheme Mechanism.

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PT – May 2020 – L2 – Q5d – Overview of the Ghanaian Tax System and Fiscal Policy

This question asks to explain the key features of the 3-Tier Ghana National Pension Scheme, which applies to both public and private sector workers.

You're reporting an error for "PT – May 2020 – L2 – Q5d – Overview of the Ghanaian Tax System and Fiscal Policy"

CR – Dec 2022 – L3 – Q1 – Consolidated Financial Statements

Prepare the consolidated financial statement for Blackstars Ltd, accounting for business combinations and pensions.

You're reporting an error for "CR – Dec 2022 – L3 – Q1 – Consolidated Financial Statements"

PT – Nov 2019 – L2 – Q5d – Pension and Retirement Benefits

Briefly explain the 3-Tier Ghana National Pension Scheme Mechanism.

You're reporting an error for "PT – Nov 2019 – L2 – Q5d – Pension and Retirement Benefits"

PT – May 2020 – L2 – Q5d – Overview of the Ghanaian Tax System and Fiscal Policy

This question asks to explain the key features of the 3-Tier Ghana National Pension Scheme, which applies to both public and private sector workers.

You're reporting an error for "PT – May 2020 – L2 – Q5d – Overview of the Ghanaian Tax System and Fiscal Policy"

CR – Dec 2022 – L3 – Q1 – Consolidated Financial Statements

Prepare the consolidated financial statement for Blackstars Ltd, accounting for business combinations and pensions.

You're reporting an error for "CR – Dec 2022 – L3 – Q1 – Consolidated Financial Statements"

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