Below is the complete set of Financial Statements of Take-Home University (THU), a Public University of Ghana, issued on 1st May 2020. Statement of Financial Performance for the Year Ended 31 December, 2018 Revenue GOG grant Internally Generated Funds Donations and other income Expenditure Compensation for employees Goods and services Social benefit Interest Capital expenditure (CAPEX) Other expenses Net Operating Result Deficit Notes 2 3 4 5 6 1,540,000,000 14,427,492,000 9,278,258,000 25,245,750,000 8,385,270,000 2,238,083,000 1,720,000 1,720,000 25,542,515,000 79,100,000 36,248,408,000 (11,002,658,000) Statement of Financial Position as at 31 December 2018 Current Assets Cash and cash equivalent Receivable (468,050 -10,000) Inventory Liabilities and Fund Payable 20% Loan Accumulated fund 294,233,000 458,050,000 155,254,000 907,537,000 Notes 3 7 696,325,000 8,600,000 704,925,000 8 202,612,000 907,537,000

Cash Flow Statement for the Year ended 31st December 2018 Cash Inflows GOG grant Internally Generated Funds Donations and other income Cash Outflows Compensation of employees Goods and services Social benefit Interest Capital expenditure (CAPEX) Other expenses Increase in Cash and Cash Equivalent Cash and Cash Equivalent as 1/1/18 Cash and Cash Equivalent as 31/12/18 NOTES TO THE FINANCIAL STATEMENTS Accounting policy 1,540,000,000 14,427,492,000 9,278,258,000 25,245,750,000 6,385,270,000 1,989,112,000 1,720,000 1,720,000 15,542,500,000 79,100,000 23,999,422,000 1,246,328,000 -952,095,000 294,233,000 a) Basis of accounting The financial statements are prepared on accrual basis of accounting. b) Inventory valuation Inventory is valued at lower of cost and net realisable value. c) IPSAS The financial statements are prepared in compliance with the IPSAS and all relevant financial legislations. Internally Generated Fund Fees income Consultancy fees Admission forms 1. Employees Compensation Allowance Establish post Non establish post Books and Research allowance Project work allowance Superannuation End of service benefits Books and Research allowance arrears 4,575,622,000 655,600,000 9,196,270,000 14,427,492,000 856,670,000 5,312,430,000 1,253,600,000 150,765,000 48,500,000 278,500,000 298,040,000 186,765,000 8,385,270,000 4

2. Use of Goods and Services Legal cost Consultancy cost Seminar cost Training and Workshop Cost Utilities Increase in Provision for doubtful debt Opening inventory Closing inventory Capital expenditure Property, plant and equipment Work in Progress Other expenses Trial balance Sponsorship Payables Payables Consultancy cost Book & Research All. Interest payable Tax withholding 3. Accumulated Fund Balance at start Net operating result Required: 25,059,000 800,000,000 500,000,000 104,000,000 560,053,000 5,060,000 399,165,000 (155,254,000) 2,238,083,000 17,292,500,000 8,250,015,000 25,542,515,000 71,000,000 8,100,000 79,100,000 182,840,000 234,500,000 186,765,000 1,720,000 90,500,000 696,325,000 11,205,270,000 (11,002,658,000) 202, 612,000 a) Using the Qualitative Characteristics (QCs) of General-Purpose Financial Report as a Framework, evaluate the information usefulness of the set of financial statements presented by the THU. b) Based on the relevant IPSASs, explain the significant observations you have made about the financial statements of THU and suggest improvement, if any.