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	2022	2021
	$000	$000
Dividends received from equity investments	14200	7500
Service Charge on loans to beneficiaries	70,400	60,500
Gross margin on sale of sugar canes	367308	255400
Interest on Loans to Members	7,400	8,400
Interest on investments	14,700	15,000
Miscellaneous Income	60	70
Membership Fees	100020	80000
Grants Received	50000	60000
Grants to farmers	350000	0
Donations received	10000	20875
Penalties and Fines for breach of Association rules	330	700
Cost of Seminars for Farmers	7000	6000
Royalties for use of lands	4000	3500
Warehouse Storage	6000	5500
General Cleaning & Sanitation 500 1,500 Property Rates 1,000 1,000	500	1500
Property Rates	1000	1000
Depreciation of Fixed Assets 700 700 Accounting and Consultation Cost 5,000 4,50	700	700
Accounting and Consultation Cost	5000	4500
Advances to Staff 680 1840 6 Salaries to Staff (Gross) 200,000 1 25,000	680	18406
Salaries to Staff (Gross)	200000	125000
Staff Contribution to Social Security & Other Statutory Contributions	1000	750
CGEs Contribution to Social Security & Other Statutory Contributions	3500	108625
Gain on Sale of Equipment	2000	0
Proceed on the Sale of Equipment	12800	0
Plant, Property and Equipment (at cost, after disposal)	450000	480000
Accumulated Depreciation	47700	47000
Short -term investments	70000	30000
Trade and Other Payables	5160	6700
Cash and Cash Equivalent	2500	1500
Inventory at year end	181018	102414
Receivables	6500	10500
Development Bond Issued	150000	200000
Contribution from Other Government Entities	75000	75000
Contribution from Non - controlling entities	25000	25000

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. (50 marks)