Topic: Preparation and presentation of financial statements for central government

Search 500 + past questions and counting.

PSAF – Nov 2024 – L2 – Q1a – Financial Statements Preparation

Prepare the Statement of Financial Performance for Paja Teaching Hospital following IPSAS guidelines.

Question

Below is a Trial Balance of Paja Teaching Hospital (PTH) under the Ministry of Health for the year ended 31 December 2023.

Debit (GH¢000)	Credit (GH¢000)
Cash and Bank – GoG	3,400
Cash and Bank – IGF	72,200
Cash and Bank – Donor Funds	210,400
Undeposited Cash – IGF	4,000
Petty Cash	100
Investments	2,000
Debtors	661,400
Other Receivables	17,700
Withholding Tax
Trust Funds
Trade Payables
GoG Subsidy – Employee Compensation
GoG Subsidy – Goods & Services
Development Partners Programmes Receipt
Other Non-Operating Income
Medicines & Pharmaceuticals	433,900
Surgical	50,800
Medical	111,400
Investigation	140,900
OPD	238,400
Obstetrics and Gynaecology	135,300
Dental	8,300
Pediatrics	40,300
Ear, Nose & Throat	5,300
Eye Care	7,300
Mortuary	30,000
Ambulance Fees	300
Ophthalmology	3,000
Physiotherapy	3,300
Examination Fees	200
Dialysis	400
Feeding	30,400
Employee Compensation – GoG	3,912,500
Goods & Services – GoG	20,800
Employee Compensation – IGF	148,000
Goods & Services – IGF	978,500
Capital Expenditure – IGF	27,500
Goods & Services – Partners Fund	472,400
Accumulated Fund
Total	6,530,900

Additional Information:

The hospital previously used modified accrual accounting but switched to IPSAS accrual basis in 2023.
The hospital revalued legacy assets as follows:
- Motor Vehicles: GH¢50,250,000
- Buildings: GH¢120,540,000
- Medical Equipment & Other Equipment: GH¢31,500,000
- Land: GH¢15,000,000
Gavi supported the hospital with GH¢200,000,000 in 2023, but 20% was allocated for Q1 of 2024. The Global Fund committed GH¢250,000,000, but only GH¢200,000,000 was received.
NHIA rejected 10% of the hospital’s total claims of GH¢100,300,000.
Parliament approved a write-off of GH¢20,225,000 for unpaid hospital services.
The capital expenditure consists of:
- Medical Equipment: GH¢19,236,000
- Furniture & Fittings: GH¢8,264,000
Depreciation Policy (Straight-Line Basis):
- Building: 5%
- Motor Vehicle: 20%
- Medical Equipment: 10%
- Furniture & Fitting: 25%
Year-end inventory values:

Inventory Type	Cost (GH¢000)	Replacement Cost (GH¢000)	Net Realisable Value (GH¢000)
Medicines (for resale)	146,800	176,100	132,100
Medical Consumables (For use on clients)	29,400	33,800	30,800
Office Consumables	19,600	29,400	18,600

Required:

In compliance with IPSAS, the PFM Act, and the Government of Ghana Chart of Accounts, prepare:
a) A Statement of Financial Performance for Paja Teaching Hospital for the year ended 31 December 2023.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accrual Accounting, Expenditure, Financial Statements, IPSAS, Public Sector Accounting, Revenue, Statement of Financial Performance, Trial Balance
Level: Level 2

Topic: Preparation and presentation of financial statements for central government
Series: Nov 2024

PSAF – Nov 2016 – L2 – Q1a – Preparation and presentation of financial statements for central government

Prepare the Statement of Financial Performance and the Statement of Financial Position for the Consolidated Fund as of 31 December 2014 under accrual basis, in compliance with IPSAS.

Question

Below is the Trial Balance of the Consolidated Fund for the year ended 31 December 2014.

Additional Information:
i) It is the policy of Controller and Accountant General to adopt the accrual basis of preparing the public accounts of the Consolidated Fund for the first time in compliance with the Financial Administration Regulation 2004 and the International Public Sector Accounting Standards (IPSAS). The effective date is 31 December 2014.
ii) The current Chart of Accounts based on the GFS 2001 is used in the classification of revenues and expenditures.
iii) Consumption of fixed capital charged on cost for the year has been computed as GH¢156,000,000.
iv) Direct tax revenues due to government but were not received at 31 December 2014 amounted to GH¢49,000,000.
v) An established post salary in arrears as a result of salary increment in the fourth quarter of 2014 was GH¢56,000,000 and goods and services outstanding at the end of the year amounted to GH¢12,000,000.
vi) The grant shown in the trial balance as expenditure represents a statutory transfer to the District Assembly Common Fund (DACF). Any arrears in the DACF should be treated as payable. The current rate of transfer is 7.5% on the amount received.
vii) Public debt interest of GH¢14,000,000 was due to creditors but was not paid as at 31 December 2014.

Required:
a) Prepare in a form suitable for publication and in accordance with the relevant Financial Laws and IPSAS:
i) Statement of Financial Performance of the Consolidated Fund for the year ended 31 December 2014.
ii) Statement of Financial Position of the Consolidated Fund as at 31 December 2014.
(Show all workings clearly)

b) Disclose any TWO significant accounting policies as part of the notes to your accounts, as much as the information provided will permit.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Policies, Accrual Basis, Consolidated Fund, Financial Performance, Financial Position, Ghana, IPSAS, Public Sector Accounting, Trial Balance
Level: Level 2

PSAF – Nov 2016 – L2 – Q4b – Public sector fiscal planning and budgeting.

Identify policies influencing resource allocation in a Local Government Authority.

Question

Resources of Local Government Authorities are very often limited. Therefore, there is the need for the limited resources to be efficiently allocated in order that a greater output is achieved from the limited resources.

Required:
Identify FOUR policies that would influence the allocation of resources in a Local Government Authority. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial management, ICAG, Level 2, Local Government, November 2016, Policies, professional program, Public Sector, Resource Allocation
Level: Level 2

Topic: Preparation and presentation of financial statements for central government
Series: NOV 2016

PSAF – May 2021 – L2 – Q2 – Preparation and presentation of financial statements for central government

Prepare a Statement of Financial Performance and Statement of Financial Position for the Consolidated Fund of Ghana for the year ended 31 December 2020.

Question

Below is the Trial Balance of the Consolidated Fund of Ghana for the year ended 31 December 2020.

Item Description	DR (GH¢ million)	CR (GH¢ million)
Cash and Bank	61,350
Established Post Salaries	13,524
Non-Established Post Salaries	4,016
Communications Service Tax		5,144
PAYE		6,940
Non-Tax Revenues		2,312
Travel and Transport	468
Administration Cost	6,704
Conferences and Seminars	2,510
Foreign Travel Cost	1,490
Stationery Inventories	20
Stationery Purchased	220
Vehicles Income Tax		2,316
Corporate Tax		4,626
Grants	1,150	2,516
Customs and Excise Duties		1,286
Subsidies for Consumption	1,282
Subsidies for Production	722
Value Added Tax		7,716
Social Benefits	760
State Protocol	100
Allowance	300
Domestic Debt Interest	2,906
External Debt Interest	3,482
Motor Vehicle	4,800	1,920
Equipment	8,400	1,680
Computers	18,400	5,240
Railway (Completed)	5,000
Work in Progress	400
Equity and Security Investment	1,960
Loans and Advances	1,120
Gold and Other Reserves	1,620
Judgement Debt	280
Treasury Bills		22,240
Domestic Debt		26,924
Payables		34,844
External Debt		45,726
Trust Fund and Deposits		4,470
Other Expenditure	1,800
Rent Receivable		1,600
Accumulated Fund		29,516

Total: 175,900, 175,900

Additional information:
i) It is the policy of the Controller and Accountant General to use Accrual Basis of Accounting in preparing the Public Accounts of the Consolidated Fund financial statements in compliance 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).

ii) Inventory in respect of stationery outstanding as at 31 December 2020 cost GH¢18 million and has a current Replacement Cost of GH¢12 million. Meanwhile, the Net Realisable value of the Inventories is estimated at GH¢14 million. No market exists for unused inventories.

iii) An Established Post Salary in arrears as a result of a salary increment in the fourth quarter of 2020 was GH¢56 million, and Public Debt Interest outstanding as at 31 December 2020 amounts to GH¢14 million.

iv) Consumption of Fixed Capital is charged on a Straight-Line Basis for the year as follows:

Asset	Useful life
Motor Vehicle	5 years
Equipment	10 years
Computers	5 years
Railway	20 years

v) The Multilateral Partners have extended their Debt Forgiveness policy to the Government, which has resulted in the External Debt write-off amounting to GH¢4 billion in the year. However, this transaction has not been accounted for in the books.

vi) In the year 2019, GH¢8 billion was spent in acquiring Equipment to boost Government projects. However, these transactions were recognised in the accounts as Goods and Services Expenditure in the year 2019. This error has since not been rectified.

Required:
a) Prepare in a form suitable for publication and in accordance with the relevant Financial Laws and IPSAS:

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) State and Explain FOUR (4) Conditions under which Revenue from The Sale of Goods shall be recognized in accordance with IPSAS 9: Revenue from Exchange Transactions. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accrual Accounting, Consolidated Fund, Financial Statements, Public Sector Accounting
Level: Level 2

Topic: Preparation and presentation of financial statements for central government
Series: MAY 2021

PSAF – May 2016 – L2 – Q3d – Preparation and presentation of financial statements for central government

This question covers the explanation of the features of the new Chart of Accounts used in the public sector.

Question

The new Chart of Accounts has been designed to reflect the generic organisational structure of Government and its requirements for financial reports. It is based on the Ghana Finance Statistics Manual, International Monetary Fund, and Government of Ghana Reporting requirements.

Required: Explain FOUR features of this new Chart of Accounts.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Chart of Accounts, Financial management, Financial Reporting, Government of Ghana, IMF, Public Sector
Level: Level 2

Topic: Preparation and presentation of financial statements for central government
Series: MAY 2016

PSAF – May 2016 – L2 – Q3b – Preparation and presentation of financial statements for central government

This question addresses how to ascertain the current market values of different public sector assets.

Question

In public sector accounting, assets and liabilities are valued at their current market values or at fair prices, which is defined as the amount of money that would have to be paid to acquire the asset on the valuation date.

Required: Explain how you would ascertain the current market values of the following public sector assets:

i) Securities;

ii) Motor Vehicles;

iii) Office buildings.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Asset Valuation, Motor Vehicles, Office Buildings, Public Sector, Securities
Level: Level 2

Topic: Preparation and presentation of financial statements for central government
Series: MAY 2016

PSAF – May 2016 – L2 – Q1 – Preparation and presentation of financial statements for central government

Prepare a statement of financial performance and a statement of financial position using IPSAS for the Department of Aviation Affairs.

Question

Stated below are the balances extracted from the books of the Department of Aviation Affairs for the year ended 31st December 2014.

Account Description	Amount (GH¢000)
Taxes	2,570.00
Wages	1,000.00
Fees, fines, licenses, penalties	104.00
Grants and other transfer payments	120.00
Finance costs	52.00
Supplies and consumables	170.00
Transfers from other government entities	250.00
Revenue from exchange transactions	60.00
Depreciation and amortization expense	66.00
Other revenue	150.00
Impairment of property, plant, and equipment	46.00
Other expenses	70.00
Cash and cash equivalents	255.00
Receivables	80.00
Investments (short-term)	45.00
Prepayments	47.00
Inventories	75.00
Intangible assets	190.00
Land and buildings	1,044.00
Payables (short-term)	1,420.00
Other non-financial assets	15,000.00
Investments (Long-term)	170.00
Receivables (Medium-term)	851.00
Short-term borrowings	700.00
Provisions (Current)	45.00
Superannuation	104.00
Payables (Medium-term)	240.00
Borrowings (Long-term)	665.00
Provisions (Long-term)	82.00
Employee Benefits (Medium-term)	150.00
Other non-financial assets	200.00
Current portion of borrowings	55.00
Employee Benefits (Short-term)	74.00
Capital contributed by other Government entities	194.00
Reserves	850.00

Required:
Use the International Public Sector Accounting Standards (IPSAS) to prepare a statement of financial performance for the year ended 31st December 2014, and a statement of financial position for the year ended 31st December 2014, including Net Assets / Equity.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Equity, Financial Statements, Net Assets, Public Sector, Statement of Financial Performance, Statement of Financial Position
Level: Level 2

Topic: Preparation and presentation of financial statements for central government
Series: MAY 2016

PSAF – March 2024 – L2 – Q2 – Preparation of Financial Statements for Central Government

Prepare the Statement of Financial Performance, Statement of Financial Position, and Statement of Budget Information for a central government department based on the given trial balance.

Question

The following Trial Balance was extracted from the records of the Department of Social Integration, a central government department, for the year ended 31 December 2023.

Additional Information:

The Department prepares its financial statements in compliance with the International Public Sector Accounting Standards, the Public Financial Management Act 2016, Act 921, and the Chart of Accounts of the Government of Ghana.
Included in printing materials and stationery is a closing inventory valued at cost of GH¢380,000. The estimated net realizable value and replacement cost of the inventory are GH¢320,000 and GH¢330,000 respectively. The printing is not for commercial purposes.
In June 2023, the government conducted a massive recruitment into the civil services, of which 20 employees were posted to the Department. However, they have not been paid salaries for the period. The amount owed to these employees is GH¢2,500,000 and this should be reflected in the financial statement of the period.
The Department currently pays rent for two of its Regional Offices, and at the end of the year rent of GH¢200,000 was outstanding. Further, the Department also rented part of its premises at the Headquarters. At the end of the financial year, an amount of GH¢150,000 was received to cover 2024 rent. Meanwhile, GH¢20,000 rent has not been received from tenants for the year 2023. These transactions have not been accounted for.
Depreciation of fixed assets is charged on a straight-line basis as follows:

Assets	Estimated useful life (in years)
Motor vehicle	5 years
Furniture	4 years
Computers	3 years
Premises	20 years

It was revealed that computer accessories costing GH¢340,000 acquired in 2022 were accounted for as goods and services. However, the Auditor for the 2023 financial year recommended that the transaction should be accounted for as a non-current asset. The recommendation is yet to be implemented.
The budget extract of the Department for 2023 is as follows:

Item	GH¢’000
Approved budget allocation	20,000
Internally generated fund	3,000
Donor support	1,000
Compensation for employees	10,000
Use of Goods and Services	6,000
Other expenses	5,500

Required: Prepare in compliance with the International Public Sector Accounting Standards, the Public Financial Management Act 2016, and the Chart of Accounts of Ghana: a) A Statement of Financial Performance for the year ended 31 December 2023.

b) A Statement of Financial Position as at 31 December 2023.

c) A Separate Statement of Budget Information in comparison with the Actuals for the year ended 31 December 2023.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Budget Information, Financial Statements, IPSAS, Public Sector Accounting, Trial Balance
Level: Level 2

Topic: Preparation and presentation of financial statements for central government
Series: MAR 2024

PSAF – March 2024 – L2 – Q1 – Accrual Basis Challenges and Measurement Objectives

Discuss the challenges in adopting accrual basis accounting and the objectives and bases of measurement in public sector financial reporting.

Question

a) Changing from cash accounting to accrual accounting is necessary to improve financial reporting and transparency in the public sector. However, it is not going to be without systemic and structural challenges.

Required:
i) Explain FIVE (5) challenges involved in adopting Accrual Basis Accounting. (5 marks)
ii) Explain FIVE (5) measures Ghana can put in place to successfully implement Accrual Basis Accounting. (5 marks)

b) Measurement of assets is a very important aspect of financial reporting. Preparers of financial statements should always consider the objective of measurement to ensure that the financial statements provide information that is useful to users for accountability and decision-making purposes.

Required:
i) Explain the objectives of measurement in financial reporting of public sector entities. (4 marks)
ii) Explain FOUR (4) bases of measurement of assets and provide in each situation where it is applied in financial reporting. (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Standards, Accrual Basis Accounting, Financial Reporting, Measurement of Assets, Public Financial Management
Level: Level 2

PSAF – May 2019 – L2 – Q4a – Preparation and presentation of financial statements for central government

Prepare the Statement of Financial Performance for the Consolidated Fund for the year ended 31 December 2018.

Question

Additional Information:
i) The Controller and Accountant General uses the modified accrual accounting concept in the preparation of its accounts.
ii) Established Post salaries of GH¢2,937,000 were outstanding as of 31/12/2018.
iii) Interest on domestic and external loans is provided for at 20% and 15%, respectively.
iv) The Central Government depreciates assets on a cost basis using the schedule below:

Class of Assets	Number of Years
Building	50 years
Plant, Machinery, Furniture, and Fittings	20 years
Transport Equipment	7 years
Computer Software and License	5 years

v) Provisions:
Specific provision for bad debt is made for loans receivables and investments as and when their non-recoverability is determined, and where a request is made for write-off to parliament. This provision is set at 3% and 5%, respectively.

Required:
a) Prepare the Statement of Financial Performance of the Consolidated Fund for the year ended 31/12/2018.
(10 marks)

b) Prepare the Statement of Financial Position for the Consolidated Fund as at 31/12/2018.
(7 marks)

c) State and explain THREE (3) Accounting Policies that usually accompany Consolidated Fund Financial Statements.
(3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Central Government, Consolidated Fund, Financial Performance, Statement Preparation
Level: Level 2

Topic: Preparation and presentation of financial statements for central government
Series: MAY 2019

PSAF – Nov 2024 – L2 – Q1a – Financial Statements Preparation

Prepare the Statement of Financial Performance for Paja Teaching Hospital following IPSAS guidelines.

Question

Below is a Trial Balance of Paja Teaching Hospital (PTH) under the Ministry of Health for the year ended 31 December 2023.

Debit (GH¢000)	Credit (GH¢000)
Cash and Bank – GoG	3,400
Cash and Bank – IGF	72,200
Cash and Bank – Donor Funds	210,400
Undeposited Cash – IGF	4,000
Petty Cash	100
Investments	2,000
Debtors	661,400
Other Receivables	17,700
Withholding Tax
Trust Funds
Trade Payables
GoG Subsidy – Employee Compensation
GoG Subsidy – Goods & Services
Development Partners Programmes Receipt
Other Non-Operating Income
Medicines & Pharmaceuticals	433,900
Surgical	50,800
Medical	111,400
Investigation	140,900
OPD	238,400
Obstetrics and Gynaecology	135,300
Dental	8,300
Pediatrics	40,300
Ear, Nose & Throat	5,300
Eye Care	7,300
Mortuary	30,000
Ambulance Fees	300
Ophthalmology	3,000
Physiotherapy	3,300
Examination Fees	200
Dialysis	400
Feeding	30,400
Employee Compensation – GoG	3,912,500
Goods & Services – GoG	20,800
Employee Compensation – IGF	148,000
Goods & Services – IGF	978,500
Capital Expenditure – IGF	27,500
Goods & Services – Partners Fund	472,400
Accumulated Fund
Total	6,530,900

Additional Information:

The hospital previously used modified accrual accounting but switched to IPSAS accrual basis in 2023.
The hospital revalued legacy assets as follows:
- Motor Vehicles: GH¢50,250,000
- Buildings: GH¢120,540,000
- Medical Equipment & Other Equipment: GH¢31,500,000
- Land: GH¢15,000,000
Gavi supported the hospital with GH¢200,000,000 in 2023, but 20% was allocated for Q1 of 2024. The Global Fund committed GH¢250,000,000, but only GH¢200,000,000 was received.
NHIA rejected 10% of the hospital’s total claims of GH¢100,300,000.
Parliament approved a write-off of GH¢20,225,000 for unpaid hospital services.
The capital expenditure consists of:
- Medical Equipment: GH¢19,236,000
- Furniture & Fittings: GH¢8,264,000
Depreciation Policy (Straight-Line Basis):
- Building: 5%
- Motor Vehicle: 20%
- Medical Equipment: 10%
- Furniture & Fitting: 25%
Year-end inventory values:

Inventory Type	Cost (GH¢000)	Replacement Cost (GH¢000)	Net Realisable Value (GH¢000)
Medicines (for resale)	146,800	176,100	132,100
Medical Consumables (For use on clients)	29,400	33,800	30,800
Office Consumables	19,600	29,400	18,600

Required:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accrual Accounting, Expenditure, Financial Statements, IPSAS, Public Sector Accounting, Revenue, Statement of Financial Performance, Trial Balance
Level: Level 2

Topic: Preparation and presentation of financial statements for central government
Series: Nov 2024

PSAF – Nov 2016 – L2 – Q1a – Preparation and presentation of financial statements for central government

Prepare the Statement of Financial Performance and the Statement of Financial Position for the Consolidated Fund as of 31 December 2014 under accrual basis, in compliance with IPSAS.

Question

Below is the Trial Balance of the Consolidated Fund for the year ended 31 December 2014.

b) Disclose any TWO significant accounting policies as part of the notes to your accounts, as much as the information provided will permit.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Policies, Accrual Basis, Consolidated Fund, Financial Performance, Financial Position, Ghana, IPSAS, Public Sector Accounting, Trial Balance
Level: Level 2

PSAF – Nov 2016 – L2 – Q4b – Public sector fiscal planning and budgeting.

Identify policies influencing resource allocation in a Local Government Authority.

Question

Required:
Identify FOUR policies that would influence the allocation of resources in a Local Government Authority. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial management, ICAG, Level 2, Local Government, November 2016, Policies, professional program, Public Sector, Resource Allocation
Level: Level 2

Topic: Preparation and presentation of financial statements for central government
Series: NOV 2016

PSAF – May 2021 – L2 – Q2 – Preparation and presentation of financial statements for central government

Prepare a Statement of Financial Performance and Statement of Financial Position for the Consolidated Fund of Ghana for the year ended 31 December 2020.

Question

Below is the Trial Balance of the Consolidated Fund of Ghana for the year ended 31 December 2020.

Item Description	DR (GH¢ million)	CR (GH¢ million)
Cash and Bank	61,350
Established Post Salaries	13,524
Non-Established Post Salaries	4,016
Communications Service Tax		5,144
PAYE		6,940
Non-Tax Revenues		2,312
Travel and Transport	468
Administration Cost	6,704
Conferences and Seminars	2,510
Foreign Travel Cost	1,490
Stationery Inventories	20
Stationery Purchased	220
Vehicles Income Tax		2,316
Corporate Tax		4,626
Grants	1,150	2,516
Customs and Excise Duties		1,286
Subsidies for Consumption	1,282
Subsidies for Production	722
Value Added Tax		7,716
Social Benefits	760
State Protocol	100
Allowance	300
Domestic Debt Interest	2,906
External Debt Interest	3,482
Motor Vehicle	4,800	1,920
Equipment	8,400	1,680
Computers	18,400	5,240
Railway (Completed)	5,000
Work in Progress	400
Equity and Security Investment	1,960
Loans and Advances	1,120
Gold and Other Reserves	1,620
Judgement Debt	280
Treasury Bills		22,240
Domestic Debt		26,924
Payables		34,844
External Debt		45,726
Trust Fund and Deposits		4,470
Other Expenditure	1,800
Rent Receivable		1,600
Accumulated Fund		29,516

Total: 175,900, 175,900

iv) Consumption of Fixed Capital is charged on a Straight-Line Basis for the year as follows:

Asset	Useful life
Motor Vehicle	5 years
Equipment	10 years
Computers	5 years
Railway	20 years

Required:
a) Prepare in a form suitable for publication and in accordance with the relevant Financial Laws and IPSAS:

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) State and Explain FOUR (4) Conditions under which Revenue from The Sale of Goods shall be recognized in accordance with IPSAS 9: Revenue from Exchange Transactions. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accrual Accounting, Consolidated Fund, Financial Statements, Public Sector Accounting
Level: Level 2

Topic: Preparation and presentation of financial statements for central government
Series: MAY 2021

PSAF – May 2016 – L2 – Q3d – Preparation and presentation of financial statements for central government

This question covers the explanation of the features of the new Chart of Accounts used in the public sector.

Question

Required: Explain FOUR features of this new Chart of Accounts.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Chart of Accounts, Financial management, Financial Reporting, Government of Ghana, IMF, Public Sector
Level: Level 2

Topic: Preparation and presentation of financial statements for central government
Series: MAY 2016

PSAF – May 2016 – L2 – Q3b – Preparation and presentation of financial statements for central government

This question addresses how to ascertain the current market values of different public sector assets.

Question

Required: Explain how you would ascertain the current market values of the following public sector assets:

i) Securities;

ii) Motor Vehicles;

iii) Office buildings.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Asset Valuation, Motor Vehicles, Office Buildings, Public Sector, Securities
Level: Level 2

Topic: Preparation and presentation of financial statements for central government
Series: MAY 2016

PSAF – May 2016 – L2 – Q1 – Preparation and presentation of financial statements for central government

Prepare a statement of financial performance and a statement of financial position using IPSAS for the Department of Aviation Affairs.

Question

Stated below are the balances extracted from the books of the Department of Aviation Affairs for the year ended 31st December 2014.

Account Description	Amount (GH¢000)
Taxes	2,570.00
Wages	1,000.00
Fees, fines, licenses, penalties	104.00
Grants and other transfer payments	120.00
Finance costs	52.00
Supplies and consumables	170.00
Transfers from other government entities	250.00
Revenue from exchange transactions	60.00
Depreciation and amortization expense	66.00
Other revenue	150.00
Impairment of property, plant, and equipment	46.00
Other expenses	70.00
Cash and cash equivalents	255.00
Receivables	80.00
Investments (short-term)	45.00
Prepayments	47.00
Inventories	75.00
Intangible assets	190.00
Land and buildings	1,044.00
Payables (short-term)	1,420.00
Other non-financial assets	15,000.00
Investments (Long-term)	170.00
Receivables (Medium-term)	851.00
Short-term borrowings	700.00
Provisions (Current)	45.00
Superannuation	104.00
Payables (Medium-term)	240.00
Borrowings (Long-term)	665.00
Provisions (Long-term)	82.00
Employee Benefits (Medium-term)	150.00
Other non-financial assets	200.00
Current portion of borrowings	55.00
Employee Benefits (Short-term)	74.00
Capital contributed by other Government entities	194.00
Reserves	850.00

Answer

Find Related Questions by Tags, levels, etc.

Tags: Equity, Financial Statements, Net Assets, Public Sector, Statement of Financial Performance, Statement of Financial Position
Level: Level 2

Topic: Preparation and presentation of financial statements for central government
Series: MAY 2016

PSAF – March 2024 – L2 – Q2 – Preparation of Financial Statements for Central Government

Prepare the Statement of Financial Performance, Statement of Financial Position, and Statement of Budget Information for a central government department based on the given trial balance.

Question

The following Trial Balance was extracted from the records of the Department of Social Integration, a central government department, for the year ended 31 December 2023.

Additional Information:

The Department prepares its financial statements in compliance with the International Public Sector Accounting Standards, the Public Financial Management Act 2016, Act 921, and the Chart of Accounts of the Government of Ghana.
Included in printing materials and stationery is a closing inventory valued at cost of GH¢380,000. The estimated net realizable value and replacement cost of the inventory are GH¢320,000 and GH¢330,000 respectively. The printing is not for commercial purposes.
In June 2023, the government conducted a massive recruitment into the civil services, of which 20 employees were posted to the Department. However, they have not been paid salaries for the period. The amount owed to these employees is GH¢2,500,000 and this should be reflected in the financial statement of the period.
The Department currently pays rent for two of its Regional Offices, and at the end of the year rent of GH¢200,000 was outstanding. Further, the Department also rented part of its premises at the Headquarters. At the end of the financial year, an amount of GH¢150,000 was received to cover 2024 rent. Meanwhile, GH¢20,000 rent has not been received from tenants for the year 2023. These transactions have not been accounted for.
Depreciation of fixed assets is charged on a straight-line basis as follows:

Assets	Estimated useful life (in years)
Motor vehicle	5 years
Furniture	4 years
Computers	3 years
Premises	20 years

It was revealed that computer accessories costing GH¢340,000 acquired in 2022 were accounted for as goods and services. However, the Auditor for the 2023 financial year recommended that the transaction should be accounted for as a non-current asset. The recommendation is yet to be implemented.
The budget extract of the Department for 2023 is as follows:

Item	GH¢’000
Approved budget allocation	20,000
Internally generated fund	3,000
Donor support	1,000
Compensation for employees	10,000
Use of Goods and Services	6,000
Other expenses	5,500

b) A Statement of Financial Position as at 31 December 2023.

c) A Separate Statement of Budget Information in comparison with the Actuals for the year ended 31 December 2023.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Budget Information, Financial Statements, IPSAS, Public Sector Accounting, Trial Balance
Level: Level 2

Topic: Preparation and presentation of financial statements for central government
Series: MAR 2024

PSAF – March 2024 – L2 – Q1 – Accrual Basis Challenges and Measurement Objectives

Discuss the challenges in adopting accrual basis accounting and the objectives and bases of measurement in public sector financial reporting.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Standards, Accrual Basis Accounting, Financial Reporting, Measurement of Assets, Public Financial Management
Level: Level 2

PSAF – May 2019 – L2 – Q4a – Preparation and presentation of financial statements for central government

Prepare the Statement of Financial Performance for the Consolidated Fund for the year ended 31 December 2018.

Question

Class of Assets	Number of Years
Building	50 years
Plant, Machinery, Furniture, and Fittings	20 years
Transport Equipment	7 years
Computer Software and License	5 years

Required:
a) Prepare the Statement of Financial Performance of the Consolidated Fund for the year ended 31/12/2018.
(10 marks)

b) Prepare the Statement of Financial Position for the Consolidated Fund as at 31/12/2018.
(7 marks)

c) State and explain THREE (3) Accounting Policies that usually accompany Consolidated Fund Financial Statements.
(3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Central Government, Consolidated Fund, Financial Performance, Statement Preparation
Level: Level 2