Question $1$

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 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 $2022.$

Details

$20222021$

Amount $$000$ Amount $$00014,2007,500$

$70,40060,500$

$255,400$

$367,308$

$7,4008,400$

$14,70015,0006070100,02080,00060,000$

$50,000$

$350,000010,00020,875$

Dividends received from equity investments

Service Charge on loans to beneficiaries

Gross margin on sale of sugar canes

Interest on Loans to Members Interest on investments Miscellaneous Income Membership Fees

Grants Received Grants to farmers

Donations received

Penalties and Fines for breach of Association rules

Cost of Seminars for Farmers Royalties for use of lands

Warehouse Storage

General Cleaning & Sanitation Property Rates

Depreciation of Fixed Assets Accounting and Consultation Cost Advances to Staff

Salaries to Staff $($Gross$)$

Staff Contribution to Social Security & Other Statutory Contributions

CGE$$s Contribution to Social Security & Other Statutory Contributions

Gain on Sale of Equipment

Proceed on the Sale of Equipment

Plant, Property and Equipment $($at cost$,$

after disposal$)$

Accumulated Depreciation

Short$-$term investments

Trade and Other Payables

Cash and Cash Equivalent

Inventory at year end

Receivables

Development Bond Issued

Contribution from Other Government

Entities

Contribution from Non$-$controlling

entities $25,00025,000$

$330$

$7,0006,0004,0003,5006,0005,500$

$5001,5001,0001,0007007005,0004,50068018406200,000125,000$

$700$

$1,000$

$750$

$3500108,6252,000012,8000450,000480,000$

$47,70047,00070,00030,0005,16067002,5001,500181,018102,4146,50010,500150,000200,00075,00075,000$

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.