CORIS RA is a government owned enterprise which is legislated to generate its own income which...

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CORIS RA is a government owned enterprise which is legislated to generate its own income which it uses to cover capital and recurrent expenditures. The legislations also give the government the powers to order CORIS RA to transfer all or part of the income it generates to the consolidated fund as it deems fit. Outside of these powers, its government also provide CORIS RA with monthly subventions to cover its recurrent expenditures based on CORIS RA budgetary demands and the legal allocations by the government. CORIS RECREATION ASSEMBLY For the 2017 and 2018, CORIS RA used the cash basis to prepare its financial statements, although some of the accounting transactions were recorded using the accrual basis. It should be noted that the government instructed all of its agencies to use an accrual basis that is guided and recommended by IPSASS. You were asked by to government to assist CORIS RA with its accounting processes, which involved the recording, generation and preparation of accounting transactions and final accounts as stipulated by the IPSASS. Working with a team of qualified and experienced accountants, you were able to prepare the following accounting information of CORIS RA for the year ending December 2020: Details Dividend Received Loan payment Amounts Recovered Interest Expense Court Administration Fees Cost of Training Bar License Store Rent Fines and Penalties General Cleaning Sanitation Accumulated Fund (1/1/2020) Basic Taxes and Rates Allowances Equity Investment Acquired Royalties Accountancy and Consultancies cost Work-In-Progress Herbalist License Posts not on Establishment Other Expenditure Stool Land Revenue Transport and Travelling cost Utilities Hostel License Amount 93,250 143,000 194,000 200,000 240,000 275,000 300,400 300,750 330,000 350,000 370,000 370,600 370,900 390,470 420,000 430,000 470,000 490,000 530,370 580,000 600,000 600,000 620,000 630,000 630,920 Details Advances to Staff Local Park Fees Inventory and Consumables Special Services Property Rate Social Benefit Market Tolls Consumption of Fixed Assets Infrastructure, Plant and Equipment Permit Fees Proceeds from Sale of Equity Established Posts Development Bonds Issued Business Income Loans Received Local Fund Rent from Land and Building Central Government Salaries Cash and Cash Equivalent @ (1/1/2020) Parish Development Facility Amount 660,000 720,400 800,000 820,000 820,900 840,300 870,000 960,000 980,000 990,000 990,320 1,140,700 1,300,000 2,300,600 2,330,000 2,930,000 6,120,800 12,000,000 12,300,240 15,000,600 NOTES 1. You are to ensure that CORIS RA adopts and maintain the accrual accounting basis when preparing its financial statements 2. As of December 31, 2020, the Established Post had outstanding salaries of $180,000,000.00 3. Closing Inventory and Consumables as at December 31, 2020 stood at $170,000,000.00 Using the guidelines and formats set out in the applicable IPSASS, you are to: A. Prepare CORIS RA Statement of Cash Flow for the year ended December 31, 2020 (8 marks) B. Prepare CORIS RA Statement of Financial Performance for the year ended December 31, 2020 (8 marks) C. Using the contents presented in the Units supported by information in the relevant IPSASS, give a comprehensive definition (with examples) of revenue and expenditure appropriate for a Central Government. (2 marks) D. The IPSASS indicated some benefits of Cash Flow Information. State any two of these benefits to an entity and also the general public. (2 marks) CORIS RA is a government owned enterprise which is legislated to generate its own income which it uses to cover capital and recurrent expenditures. The legislations also give the government the powers to order CORIS RA to transfer all or part of the income it generates to the consolidated fund as it deems fit. Outside of these powers, its government also provide CORIS RA with monthly subventions to cover its recurrent expenditures based on CORIS RA budgetary demands and the legal allocations by the government. CORIS RECREATION ASSEMBLY For the 2017 and 2018, CORIS RA used the cash basis to prepare its financial statements, although some of the accounting transactions were recorded using the accrual basis. It should be noted that the government instructed all of its agencies to use an accrual basis that is guided and recommended by IPSASS. You were asked by to government to assist CORIS RA with its accounting processes, which involved the recording, generation and preparation of accounting transactions and final accounts as stipulated by the IPSASS. Working with a team of qualified and experienced accountants, you were able to prepare the following accounting information of CORIS RA for the year ending December 2020: Details Dividend Received Loan payment Amounts Recovered Interest Expense Court Administration Fees Cost of Training Bar License Store Rent Fines and Penalties General Cleaning Sanitation Accumulated Fund (1/1/2020) Basic Taxes and Rates Allowances Equity Investment Acquired Royalties Accountancy and Consultancies cost Work-In-Progress Herbalist License Posts not on Establishment Other Expenditure Stool Land Revenue Transport and Travelling cost Utilities Hostel License Amount 93,250 143,000 194,000 200,000 240,000 275,000 300,400 300,750 330,000 350,000 370,000 370,600 370,900 390,470 420,000 430,000 470,000 490,000 530,370 580,000 600,000 600,000 620,000 630,000 630,920 Details Advances to Staff Local Park Fees Inventory and Consumables Special Services Property Rate Social Benefit Market Tolls Consumption of Fixed Assets Infrastructure, Plant and Equipment Permit Fees Proceeds from Sale of Equity Established Posts Development Bonds Issued Business Income Loans Received Local Fund Rent from Land and Building Central Government Salaries Cash and Cash Equivalent @ (1/1/2020) Parish Development Facility Amount 660,000 720,400 800,000 820,000 820,900 840,300 870,000 960,000 980,000 990,000 990,320 1,140,700 1,300,000 2,300,600 2,330,000 2,930,000 6,120,800 12,000,000 12,300,240 15,000,600 NOTES 1. You are to ensure that CORIS RA adopts and maintain the accrual accounting basis when preparing its financial statements 2. As of December 31, 2020, the Established Post had outstanding salaries of $180,000,000.00 3. Closing Inventory and Consumables as at December 31, 2020 stood at $170,000,000.00 Using the guidelines and formats set out in the applicable IPSASS, you are to: A. Prepare CORIS RA Statement of Cash Flow for the year ended December 31, 2020 (8 marks) B. Prepare CORIS RA Statement of Financial Performance for the year ended December 31, 2020 (8 marks) C. Using the contents presented in the Units supported by information in the relevant IPSASS, give a comprehensive definition (with examples) of revenue and expenditure appropriate for a Central Government. (2 marks) D. The IPSASS indicated some benefits of Cash Flow Information. State any two of these benefits to an entity and also the general public. (2 marks)

Answer rating: 100% (QA)

a Note Use the indirect method CORIS Recreation Assembly Statement of Cash Flows For the Year Ended December 31 2020 Operating Activities Cash flows from operating activities Net income 2300600 Adjust... View the full answer