The Government of Ghana adopted the full acerual basis International Public Sector Accounting Standards (IPSAS) 3 years ago, as the basis of accounting for its financial statements. The ad account The following additional information is available: 1. Opening balances extracted from the ledger of the Consolidated Fund account consisted of the following: 2. The approved Finance and Appropriation Acts for 2017 are as follows: 3. During the year, the Parliament of Ghana approved a transfer of 10% of total tax revenue to the DACF. 4. As at 31t December, 2017, corporate tax assessments amounting to GHc25,000,000 was still outstanding to be paid by corporate entities to government. The GRA prudently estimates that GHc 5,000,000 of this amount is unlikely to be paid by the corporate entities as a result of bankruptey issues. 5. The total amount of VAT owed to government as at 31" December, 2017 stood at GHc 40,000,000. It is estimated that, 5% of the amount outstanding is unlikely to be paid by one firm that has folded up. 6. 5% of the bilateral grants already received is from the Government of Blue Land which is asking Ghana to allow only Blue Land nationals to prospect for petroleum in Ghana's Voltaian basin. The Government of Ghana is unsure whether or not to comply with this conditions. 7. Interest amounting to GHc30,000,000 was due but not paid by the Government of Ghana due to cash flow constraints during the year. 8. On 31k December 2017,50% of WIP: Infrastructure balance was transferred to Infrastructural Assets. 9. It is the policy of government to provide for consumption of fixed assets using the following rates as a policy: - Property, Plant and Equipment 20\% on cost - Infrastructural Assets 10% on cost There was no revaluation during the year. 10. Salaries and other emoluments outstanding during the year amounted to GHc 40,000,000 while payables in respect of the procurement of goods and services amounted GHc25,000,000. Included in administrative expenses is the payment in respect of rent for five (5) years covering the period covering 01/07/2017 to 30/06/2022. 11. At the close of 3115 December, 2017, a stock take disclosed the inventories of government stock to have the following values: Required: a) Prepare in accordance with the financial laws of Ghana, the Chart of Account of Government of Ghana and relevant acerual basis IPSASs suitable for publication, the following statements: i) Statement of Financial Performance of the Consolidated Fund Account for the year ended 31 December 2017. (15 marks) ii) Statement of Financial Position of the Consolidated Fund Account as at the year ended 31 December 2017. (15 marks) iii) Statement of Budget Comparison with Actuals for the year ended 31st December, 2017 (15 marks) iv) List five issues in respect of which there may be accounting policies to be presented as part of the notes to the financial statements for the year ended 31 December, 2018. (10 marks) v) Present a complete schedule of workings to support the figures in the statement of financial performance and statement of financial position as workings (15 marks) b) Outline five arguments for and against the adoption of accrual basis IPSAS by the Government of Ghana. (10 marks) c) Briefly explain the key recognition and disclosure requirements of IPSAS 24: Presentation of Budget Information in Financial Statements (10 marks) d) Briefly discuss the reporting requirements of IPSAS 22: Disclosure of Information about the General Government Sector. (10 marks) (Total: 100 marks) The Government of Ghana adopted the full acerual basis International Public Sector Accounting Standards (IPSAS) 3 years ago, as the basis of accounting for its financial statements. The ad account The following additional information is available: 1. Opening balances extracted from the ledger of the Consolidated Fund account consisted of the following: 2. The approved Finance and Appropriation Acts for 2017 are as follows: 3. During the year, the Parliament of Ghana approved a transfer of 10% of total tax revenue to the DACF. 4. As at 31t December, 2017, corporate tax assessments amounting to GHc25,000,000 was still outstanding to be paid by corporate entities to government. The GRA prudently estimates that GHc 5,000,000 of this amount is unlikely to be paid by the corporate entities as a result of bankruptey issues. 5. The total amount of VAT owed to government as at 31" December, 2017 stood at GHc 40,000,000. It is estimated that, 5% of the amount outstanding is unlikely to be paid by one firm that has folded up. 6. 5% of the bilateral grants already received is from the Government of Blue Land which is asking Ghana to allow only Blue Land nationals to prospect for petroleum in Ghana's Voltaian basin. The Government of Ghana is unsure whether or not to comply with this conditions. 7. Interest amounting to GHc30,000,000 was due but not paid by the Government of Ghana due to cash flow constraints during the year. 8. On 31k December 2017,50% of WIP: Infrastructure balance was transferred to Infrastructural Assets. 9. It is the policy of government to provide for consumption of fixed assets using the following rates as a policy: - Property, Plant and Equipment 20\% on cost - Infrastructural Assets 10% on cost There was no revaluation during the year. 10. Salaries and other emoluments outstanding during the year amounted to GHc 40,000,000 while payables in respect of the procurement of goods and services amounted GHc25,000,000. Included in administrative expenses is the payment in respect of rent for five (5) years covering the period covering 01/07/2017 to 30/06/2022. 11. At the close of 3115 December, 2017, a stock take disclosed the inventories of government stock to have the following values: Required: a) Prepare in accordance with the financial laws of Ghana, the Chart of Account of Government of Ghana and relevant acerual basis IPSASs suitable for publication, the following statements: i) Statement of Financial Performance of the Consolidated Fund Account for the year ended 31 December 2017. (15 marks) ii) Statement of Financial Position of the Consolidated Fund Account as at the year ended 31 December 2017. (15 marks) iii) Statement of Budget Comparison with Actuals for the year ended 31st December, 2017 (15 marks) iv) List five issues in respect of which there may be accounting policies to be presented as part of the notes to the financial statements for the year ended 31 December, 2018. (10 marks) v) Present a complete schedule of workings to support the figures in the statement of financial performance and statement of financial position as workings (15 marks) b) Outline five arguments for and against the adoption of accrual basis IPSAS by the Government of Ghana. (10 marks) c) Briefly explain the key recognition and disclosure requirements of IPSAS 24: Presentation of Budget Information in Financial Statements (10 marks) d) Briefly discuss the reporting requirements of IPSAS 22: Disclosure of Information about the General Government Sector. (10 marks) (Total: 100 marks)