The Pineapple Industry Association (PIA) is a government owned enterprise which is legislated to generate its own income which it uses to cover capital and recurrent expenditures. PIA is an agent of the National Agriculture Association. The Young Farmers association controls 25% of PIA.

Outside of these powers, its government also provides Pineapple Industry with monthly subsidies to cover its recurrent expenditures based on Pineapple Enterprise budgetary demands and the legal allocations by the government.

Pineapple Enterprises uses ISPAP to prepare its financial statements. You were asked by the government to assist Pineapple Industry with its accounting processes, which involved the recording, generation and preparation of accounting transactions and final accounts as stipulated by the IPSASs

Required:

A) A Junior Accountant recently joined PIA, as the Senior Accounting Officer explain in detail about the budgetary process.