In line with government policy to improve emergency health care in the country, the government has...
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In line with government policy to improve emergency health care in the country, the government has acquired 275 ambulances for distribution to each constituency in the country. The cost of the ambulance includes: Purchase price Freight Charges Delivery and handling charges Installation and assembling of auxiliary parts Training of experts Cost of presidential commissioning Test running of the vehicles Branding of the vehicles with national emblems Professional fees Insurance Cost of distribution of ambulances Borrowing cost GHS 75,000,000.00 7,500,000.00 8,200,000.00 30,000,000.00 500,000.00 200,000.00 150,000.00 300,000.00 120.000.00 450,000.00 340,000.00 600,000.00 Additional information: 1. The borrowing cost is in respect of a loan that was contracted from the African Development Bank to purchase the ambulances. 2. The Government of Ghana has adopted the benchmark approach provided in IPSAS 5 3. 50% of the professional fees is in respect of allowances paid to in-house technical experts in respect of the acquisition while the remaining relates independent technical experts. Required recognition and justify the exclusion of cost excluded from the determination of PPE cost In reference to IPSAS 17-Property, Plant, and Equipment and IPSAS 5, determine the cost of initial (5 Marks) In line with government policy to improve emergency health care in the country, the government has acquired 275 ambulances for distribution to each constituency in the country. The cost of the ambulance includes: Purchase price Freight Charges Delivery and handling charges Installation and assembling of auxiliary parts Training of experts Cost of presidential commissioning Test running of the vehicles Branding of the vehicles with national emblems Professional fees Insurance Cost of distribution of ambulances Borrowing cost GHS 75,000,000.00 7,500,000.00 8,200,000.00 30,000,000.00 500,000.00 200,000.00 150,000.00 300,000.00 120.000.00 450,000.00 340,000.00 600,000.00 Additional information: 1. The borrowing cost is in respect of a loan that was contracted from the African Development Bank to purchase the ambulances. 2. The Government of Ghana has adopted the benchmark approach provided in IPSAS 5 3. 50% of the professional fees is in respect of allowances paid to in-house technical experts in respect of the acquisition while the remaining relates independent technical experts. Required recognition and justify the exclusion of cost excluded from the determination of PPE cost In reference to IPSAS 17-Property, Plant, and Equipment and IPSAS 5, determine the cost of initial (5 Marks)
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In accordance with IPSAS 17Property Plant and Equipment and IPSAS 5 the cost of initial recognition of the ambulances and justification for the exclus... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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