Question 22. In some instances it can be difficult to determine if a revenue transaction is non-exchange or exchange revenue. What shall a public sector entity do to determine the correct accounting treatment in cases of uncertainty (following IPSAS 23 'Revenue from Non-exchange Transactions')?

a- Treat the revenue as non-exchange when there are uncertainties

b- Examine the substance of the transaction to determine if it is exchange or non-exchange revenue

c- Treat the revenue as non-exchange when there are uncertainties and disclose in the notes the nature of the uncertainties

d- Treat the revenue as exchange revenue and disclose in the notes the nature of the uncertainties

Question 19. Which of the following statements is true in regards to RPG 1 'Reporting on the long-term sustainability of an entitys finances'?

a- Provides mandatory requirements for an entity to report on the long-term sustainability of a public sector entitys finances.

b- Entities that elect to apply RPG 1 are required to also comply with RPG 2 and 3 in order to state IPSAS compliance.

c- The non-mandatory RPG 1 recognises that long-term fiscal sustainability information is broader in scope than information in financial statements, and focuses on the three dimensions of service, revenue and debt.

d- When an entity reports on its long-term fiscal sustainability, RPG 1 discusses two inter-related dimensions, by reference to their capacity and vulnerabilities, namely; capacity and demographics.