terly basis for Fast 5 (current, PAS) SISTION 21 on the fo Regional Hospital is a medical facility financiminly by the Central Government through propriation from the consolidated Tund. The hospital is also permitted to retain internally berated funds to support its expenditure. Oso simally, it also benefits from donor support in Line with the provisions of the Financial Administration Act and the Financial Administration Regulation, the facility submits a set of annual financial statements to the sector Minister, the Controller and Accountant General and the Auditor General FT TOCC0660 The trial balance of the facility as at 31 December 2016 is as follows: GHS 000 GHS 000 51,335 7.347 35,900 12.032 2.293 -500 Appropriations from the Consolidated Fund Internally generated Funds Salaries and Wages - Drugs and other pharmaceutical products used Supplies of services - Training and conferences Travelling, transport, cleaning, etc Land Buildings (net book value] Purchased Equipment [net book values] - Donated equipment (net book value) Donor Funds Depreciation Inventories Payables Receivables- Bank Cash Interest on bank account balance Accumulated surplus Donated assets reserve Revaluation reserve 200 -10,000 42,500 8,010 -4,000 500 -1,580 * 466 BBO 2,018 1.400 88 - 53,740 4,000 3,120 120,987 120,987 Additional Information relating to the year ended 31 December 2016 1) The hospital accountant has completed the maiority of end of year adjustments, including depreciation and indexation on the assets held at the beginning of the year. Annual depreciation has been charged on assets held at the start of the year which included donated assets. 2) The following information has not yet been accounted for in the trial balance: GABIO 0 0000 2000 b) Ghana Approval Audi a standard appro Kamkam lo a ser The hospital purchased equipment at a cost of GHS200,000 on 1 April 2016 new equipment valuing GHS100,000 was donated to the hospital on 1 July These pieces of equipment were assessed to have useful life of ten years. The depreciation included in the trial balance does not include depreciation on new assets purchased and donated within the year. The figure includes a charge of GHS500,000 in respect of donated equipment existing at the beginning of the year The hospital has been made aware of a legal claim of GHS200,000 filed against it by a patient who suffered medical complications as a result of treatment received from the hospital. The legal advisers are uncertain about the outcome. GHS10,000 has so far been spent by the legal advisers in filing appearance but the hospital has not yet settled the bill with the legal advisorsex pcs k a m iv) The bank balance in the trial balance represents the balance extracted from the hospital's cash book. A bank statement for December 2016 which was received on 3rd January 2017 indicates that a cheque of GHS20,000 received from a corporate client and lodged on 24th December 2016 has been dishonoured. ro, 1 uss from sout "LA Rece The hospital prepares its financial statements using the accrual basis of accounting and adopts the format prescribed by IPSAS 1 'Presentation of financial statements' and adopted by Controller and Accountant General. Expenses are classified by nature' Required a) Prepare the Statement of Financial Performance and Statement of Changes in Net Equity for the year ended 31 December 2016 Prepare the statement of Financial Position as at 31 December 2016 Draft four accounting policies applied in preparing the financial statement ON 22 sector entities are required to present financial reports in compliance with the tional Public Sector Accounting Standards (IPSAS). However, Government Business ises (GBE) are to present the financial reports using IFRS due to their peculiar eristics that separate them from other public sector entities. nining whether and entity is GBE for financial report purposes, one must examine are and characteristic rather than the legal form. In the entity you work for, there is sy among top management about whether to use IPSAS or IFRS. VE characteristics of GBEs in accordance with IPSAS 1, Presentation of Financial terly basis for Fast 5 (current, PAS) SISTION 21 on the fo Regional Hospital is a medical facility financiminly by the Central Government through propriation from the consolidated Tund. The hospital is also permitted to retain internally berated funds to support its expenditure. Oso simally, it also benefits from donor support in Line with the provisions of the Financial Administration Act and the Financial Administration Regulation, the facility submits a set of annual financial statements to the sector Minister, the Controller and Accountant General and the Auditor General FT TOCC0660 The trial balance of the facility as at 31 December 2016 is as follows: GHS 000 GHS 000 51,335 7.347 35,900 12.032 2.293 -500 Appropriations from the Consolidated Fund Internally generated Funds Salaries and Wages - Drugs and other pharmaceutical products used Supplies of services - Training and conferences Travelling, transport, cleaning, etc Land Buildings (net book value] Purchased Equipment [net book values] - Donated equipment (net book value) Donor Funds Depreciation Inventories Payables Receivables- Bank Cash Interest on bank account balance Accumulated surplus Donated assets reserve Revaluation reserve 200 -10,000 42,500 8,010 -4,000 500 -1,580 * 466 BBO 2,018 1.400 88 - 53,740 4,000 3,120 120,987 120,987 Additional Information relating to the year ended 31 December 2016 1) The hospital accountant has completed the maiority of end of year adjustments, including depreciation and indexation on the assets held at the beginning of the year. Annual depreciation has been charged on assets held at the start of the year which included donated assets. 2) The following information has not yet been accounted for in the trial balance: GABIO 0 0000 2000 b) Ghana Approval Audi a standard appro Kamkam lo a ser The hospital purchased equipment at a cost of GHS200,000 on 1 April 2016 new equipment valuing GHS100,000 was donated to the hospital on 1 July These pieces of equipment were assessed to have useful life of ten years. The depreciation included in the trial balance does not include depreciation on new assets purchased and donated within the year. The figure includes a charge of GHS500,000 in respect of donated equipment existing at the beginning of the year The hospital has been made aware of a legal claim of GHS200,000 filed against it by a patient who suffered medical complications as a result of treatment received from the hospital. The legal advisers are uncertain about the outcome. GHS10,000 has so far been spent by the legal advisers in filing appearance but the hospital has not yet settled the bill with the legal advisorsex pcs k a m iv) The bank balance in the trial balance represents the balance extracted from the hospital's cash book. A bank statement for December 2016 which was received on 3rd January 2017 indicates that a cheque of GHS20,000 received from a corporate client and lodged on 24th December 2016 has been dishonoured. ro, 1 uss from sout "LA Rece The hospital prepares its financial statements using the accrual basis of accounting and adopts the format prescribed by IPSAS 1 'Presentation of financial statements' and adopted by Controller and Accountant General. Expenses are classified by nature' Required a) Prepare the Statement of Financial Performance and Statement of Changes in Net Equity for the year ended 31 December 2016 Prepare the statement of Financial Position as at 31 December 2016 Draft four accounting policies applied in preparing the financial statement ON 22 sector entities are required to present financial reports in compliance with the tional Public Sector Accounting Standards (IPSAS). However, Government Business ises (GBE) are to present the financial reports using IFRS due to their peculiar eristics that separate them from other public sector entities. nining whether and entity is GBE for financial report purposes, one must examine are and characteristic rather than the legal form. In the entity you work for, there is sy among top management about whether to use IPSAS or IFRS. VE characteristics of GBEs in accordance with IPSAS 1, Presentation of Financial