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from capital expenditure to payables in the third picture is the same as the one in the last picture QUESTION TWO Below is the complete

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from capital expenditure to payables in the third picture is the same as the one in the last picture

QUESTION TWO 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 Notes GOG grant Internally Generated Funds Donations and other income 1,540,000,000 14,427,492,000 2 9,278,258,000 25,245,750,000 Expenditure Compensation for employees Goods and services 3 8,385,270,000 2,238,083,000 4 Social benefit 1,720,000 Interest 1,720,000 25,542,515,000 Capital expenditure (CAPEX) 5 Other expenses 6 79,100,000 36,248,408,000 (11,002,658,000) Net Operating Result - Deficit Statement of Financial Position as at 31 December 2018 Notes Current Assets Cash and cash equivalent 458,050,000 Inventory 294,233,000 Receivable (468,050 -10,000) 155,254,000 907,537,000 Liabilities and Fund Payable 20% Loan 7 696,325,000 8,600,000 704,925,000 202,612,000 907.537.000 Accumulated fund 8 Cash Flow Statement for the Year ended 31st December 2018 Cash Inflows GOG grant Internally Generated Funds Donations and other income 1,540,000,000 14,427,492,000 9,278,258,000 25,245,750,000 Cash Outflows Compensation of employees Goods and services Social benefit Interest Capital expenditure (CAPEX) Other expenses 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 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 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 4,575,622,000 Consultancy fees 655,600,000 Admission forms 9.196,270,000 14,427,492,000 Employees Compensation Allowance 856,670,000 Establish post 5,312,430,000 Non establish post 1,253,600,000 Books and Research allowance 150,765,000 Project work allowance 48,500,000 Superannuation 278,500,000 End of service benefits 298,040,000 Books and Research allowance arrears 186,765,000 8,385,270,000 Use of Goods and Services Legal cost 25,059,000 Consultancy cost 800,000,000 Seminar cost 500,000,000 Training and Workshop Cost 104,000,000 Utilities 560,053,000 Increase in Provision for doubtful debt 5,060,000 Opening inventory 399,165,000 Closing inventory (155,254,000) 2,238,083,000 Capital expenditure Property, plant and equipment 17,292,500,000 Work in Progress 8,250,015,000 25,542,515,000 Other expenses Trial balance Sponsorship 71,000,000 8,100,000 79,100,000 Payables Payables Consultancy cost Book & Research ALL Interest payable Tax withholding 182,840,000 234,500,000 186,765,000 1,720,000 90,500,000 696,325.000 17,292,500,000 Capital expenditure Property, plant and equipment Work in Progress 8,250,015,000 25,542,515,000 Other expenses Trial balance Sponsorship 71,000,000 8,100,000 79,100,000 Payables Payables Consultancy cost Book & Research ALL Interest payable Tax withholding 182,840,000 234,500,000 186,765,000 1,720,000 90 500 000 696,325,000 7 Accumulated Fund Balance at start Net operating result 11,205,270,000 (11,002,658,000) 202, 612,000 Required: 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. (10 marks) b) Based on the relevant IPSASs, explain the significant observations you have made about the financial statements of THU and suggest improvement, if any. (10 marks) (Total 20 marks)

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