Homework Help is Here – Start Your Trial Now!
Business
Accounting
C. Using the contents presented in the Units supported by information in the relevant IPSASs, give a comprehensive definition (with examples) of revenue and expenditure appropriate for a Central Government

C. Using the contents presented in the Units supported by information in the relevant IPSASs, give a comprehensive definition (with examples) of revenue and expenditure appropriate for a Central Government

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

C. Using the contents presented in the Units supported by information in the relevant IPSASs, give a comprehensive definition (with examples) of revenue and expenditure appropriate for a Central Government. 

CORIS RECREATION ASSEMBLY CORIS RA is a government owned enterprise which is legislated to generate its own income which it uses to cover capital and recurrent expenditures. The legislations also give the government the powers to order CORIS RA to transfer all or part of the income it generates to the consolidated fund as it deems fit. Outside of these powers, its government also provide CORIS RA with monthly subventions to cover its recurrent expenditures based on CORIS RA budgetary demands and the legal allocations by the government. For the 2017 and 2018, CORIS RA used the cash basis to prepare its financial statements, although some of the accounting transactions were recorded using the accrual basis. It should be noted that the government instructed all of its agencies to use an accrual basis that is guided and recommended by IPSASS. You were asked by to government to assist CORIS RA with its accounting processes, which involved the recording, generation and preparation of accounting transactions and final accounts as stipulated by the IPSASS. Working with a team of qualified and experienced accountants, you were able to prepare the following accounting information of CORIS RA for the year ending December 2020: Details Amount Dividend Received 93,250 Loan payment Amounts Recovered 143,000 194,000 200,000 240,000 275,000 Interest Expense Court Administration Fees Cost of Training Bar License 300,400 300,750 330,000 Store Rent Fines and Penalties General Cleaning 350,000 370,000 370,600 Sanitation Accumulated Fund (1/1/2020) Basic Taxes and Rates 370,900 390,470 420,000 Allowances Equity Investment Acquired Royalties Accountancy and Consultancies cost Work-In-Progress 430,000 470,000 490,000 530,370 Herbalist License Posts not on Establishment 580,000 Other Expenditure 600,000 600,000 620,000 630,000 630,920 Stool Land Revenue Transport and Travelling cost Utilities Hostel License
Transcribed Image Text:CORIS RECREATION ASSEMBLY CORIS RA is a government owned enterprise which is legislated to generate its own income which it uses to cover capital and recurrent expenditures. The legislations also give the government the powers to order CORIS RA to transfer all or part of the income it generates to the consolidated fund as it deems fit. Outside of these powers, its government also provide CORIS RA with monthly subventions to cover its recurrent expenditures based on CORIS RA budgetary demands and the legal allocations by the government. For the 2017 and 2018, CORIS RA used the cash basis to prepare its financial statements, although some of the accounting transactions were recorded using the accrual basis. It should be noted that the government instructed all of its agencies to use an accrual basis that is guided and recommended by IPSASS. You were asked by to government to assist CORIS RA with its accounting processes, which involved the recording, generation and preparation of accounting transactions and final accounts as stipulated by the IPSASS. Working with a team of qualified and experienced accountants, you were able to prepare the following accounting information of CORIS RA for the year ending December 2020: Details Amount Dividend Received 93,250 Loan payment Amounts Recovered 143,000 194,000 200,000 240,000 275,000 Interest Expense Court Administration Fees Cost of Training Bar License 300,400 300,750 330,000 Store Rent Fines and Penalties General Cleaning 350,000 370,000 370,600 Sanitation Accumulated Fund (1/1/2020) Basic Taxes and Rates 370,900 390,470 420,000 Allowances Equity Investment Acquired Royalties Accountancy and Consultancies cost Work-In-Progress 430,000 470,000 490,000 530,370 Herbalist License Posts not on Establishment 580,000 Other Expenditure 600,000 600,000 620,000 630,000 630,920 Stool Land Revenue Transport and Travelling cost Utilities Hostel License
Details Amount 660,000 720,400 Advances to Staff Local Park Fees Inventory and Consumables Special Services 800,000 820,000 820,900 840,300 870,000 Property Rate Social Benefit Market Tolls Consumption of Fixed Assets Infrastructure, Plant and Equipment 960,000 980,000 Permit Fees 990,000 990,320 1,140,700 Proceeds from Sale of Equity Established Posts Development Bonds Issued 1,300,000 2,300,600 2,330,000 2,930,00 6,120,800 Business Income Loans Received Local Fund Rent from Land and Building Central Government Salaries 12,000,000 12,300,240 15,000,600 Cash and Cash Equivalent @ (1/1/2020) Parish Development Facility NOTES 1. You are to ensure that CORIS RA adopts and maintain the accrual accounting basis when preparing its financial statements 2. As of December 31, 2020, the Established Post had outstanding salaries of $180,000,000.00 3. Closing Inventory and Consumables as at December 31, 2020 stood at $170,000,000.00 Using the guidelines and formats set out in the applicable IPSASS, you are to: A. Prepare CORIS RA Statement of Cash Flow for the year ended December 31, 2020 B. Prepare CORIS RA Statement of Financial Performance for the year ended December 31, 2020 C. Using the contents presented in the Units supported by information in the relevant IPSASS, give a comprehensive definition (with examples) of revenue and expenditure appropriate for a Central Government. I D. The IPSASS indicated some benefits of Cash Flow Information. State any two of these benefits to an entity and also the general public.
Transcribed Image Text:Details Amount 660,000 720,400 Advances to Staff Local Park Fees Inventory and Consumables Special Services 800,000 820,000 820,900 840,300 870,000 Property Rate Social Benefit Market Tolls Consumption of Fixed Assets Infrastructure, Plant and Equipment 960,000 980,000 Permit Fees 990,000 990,320 1,140,700 Proceeds from Sale of Equity Established Posts Development Bonds Issued 1,300,000 2,300,600 2,330,000 2,930,00 6,120,800 Business Income Loans Received Local Fund Rent from Land and Building Central Government Salaries 12,000,000 12,300,240 15,000,600 Cash and Cash Equivalent @ (1/1/2020) Parish Development Facility NOTES 1. You are to ensure that CORIS RA adopts and maintain the accrual accounting basis when preparing its financial statements 2. As of December 31, 2020, the Established Post had outstanding salaries of $180,000,000.00 3. Closing Inventory and Consumables as at December 31, 2020 stood at $170,000,000.00 Using the guidelines and formats set out in the applicable IPSASS, you are to: A. Prepare CORIS RA Statement of Cash Flow for the year ended December 31, 2020 B. Prepare CORIS RA Statement of Financial Performance for the year ended December 31, 2020 C. Using the contents presented in the Units supported by information in the relevant IPSASS, give a comprehensive definition (with examples) of revenue and expenditure appropriate for a Central Government. I D. The IPSASS indicated some benefits of Cash Flow Information. State any two of these benefits to an entity and also the general public.
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Financial Information
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS