Question 11

1.Explain the reasons for using current value accounting instead of historical basis of accounting. (3).

2.Define equity with reference to the annual financial statements of an entity other than a municipality.(3).

3.Define Municipal Finance Management Act (MFMA) requirements with regards to the drafting and presentation of financial statements. ( 6)

4.List three organisations that influence the development of accounting practice in the public sector. Explain their roles (4).

5.In what circumstances is an asset (or liability) classified as current? (4