he Cane Growers Enterprise (CGE) is a government owned enterprise which is legislated to generate its own income which it uses to cover capital and recurrent expenditures. CGE is an agent of the National Agriculture Association. The Young Famers association controls 25% of CGE. Outside of these powers, its government also provides CGE with monthly subventions to cover its recurrent expenditures based on CGE budgetary demands and the legal allocations by the government. CGE uses ISPAP to prepare its financial statements. You were asked by to government to assist CGE with its accounting processes, which involved the recording, generation and preparation of accounting transactions and final accounts as stipulated by the IPSASs. Collaborating with a team of qualified and experienced accountants, you were able to prepare the following accounting information of GCE for the year ended December 2022. (see Image) Notes 1. Dividend receivable as at 31 December 2021 was $5,000,000 and Dividend receivable as at 31 December 2022 was $2,000,000. 2. CGE receives an annual transfer of $30,000,000 from the National Agricultural Association for the operating of the industry. 3. Service Charge Outstanding as at 31 December 2022 was $500,000. 4. Interest outstanding from Loans to Members as of 31 December 2021 was $2,000,000. Interest receivable at 31 December 2022 was $6,000,000. 5. All membership fees were paid in full. In 2022, twenty (20) members prepaid their membership for eight ( 8) months at $15,000 per month. 6. Twenty percent (20%) of the grants were not received at the end of each year. 7. To secure adequate storage in 2022, payments of $3,000,000 were made in advance. 8. Bond issued in 2021 was issued for $200,000,000. There was a repayment of $50,000 in 2022. 9. All statutory contributions were paid at year end. Required: Prepare the Statement of Financial Performance, Statement of Financial Position and Cash flow for 2022 in line with ISAPS. Expenses should be classified by nature. No comparative data required for the Cashflow.
The Cane Growers Enterprise (CGE) is a government owned enterprise which is legislated
to generate its own income which it uses to cover capital and recurrent expenditures. CGE is
an agent of the National Agriculture Association. The Young Famers association controls
25% of CGE.
Outside of these powers, its government also provides CGE with monthly subventions to
cover its recurrent expenditures based on CGE budgetary demands and the legal allocations
by the government.
CGE uses ISPAP to prepare its financial statements. You were asked by to government to
assist CGE with its accounting processes, which involved the recording, generation and
preparation of accounting transactions and
Collaborating with a team of qualified and experienced accountants, you were able to
prepare the following accounting information of GCE for the year ended December 2022.
(see Image)
Notes
1. Dividend receivable as at 31 December 2021 was $5,000,000 and Dividend
receivable as at 31 December 2022 was $2,000,000.
2. CGE receives an annual transfer of $30,000,000 from the National Agricultural
Association for the operating of the industry.
3. Service Charge Outstanding as at 31 December 2022 was $500,000.
4. Interest outstanding from Loans to Members as of 31 December 2021 was
$2,000,000. Interest receivable at 31 December 2022 was $6,000,000.
5. All membership fees were paid in full. In 2022, twenty (20) members prepaid their
membership for eight ( 8) months at $15,000 per month.
6. Twenty percent (20%) of the grants were not received at the end of each year.
7. To secure adequate storage in 2022, payments of $3,000,000 were made in advance.
8. Bond issued in 2021 was issued for $200,000,000. There was a repayment of
$50,000 in 2022.
9. All statutory contributions were paid at year end.
Required:
Prepare the Statement of Financial Performance, Statement of Financial Position and
flow
data required for the Cashflow.
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