Question 1

1.List five organisations that influence the development of accounting practice in the public sector. (5 marks)

2. List and briefly explain three challenges which may be encountered by an entity in preparing a GRAP compliant Fixed Asset Register. (5marks)

3. Are the following statements true or false? Briefly explain. (4 marks)

3A.When a provision involves a present obligation and satisfies the rest of the definition, it is not recognised as a liability unless the exact amount of the obligation is known

3B.Budgeting and accounting systems operate independently from each other, thus the budgeting process need not be in line with the GRAP requirement

4.Give four examples of circumstances indicating that inventory is impaired and needs to be written down to its net realizable value.(5Marks)

5.Briefly discuss the correct accounting treatment of finance leases in the financial statements of the entity as lessee? (4marks )