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.
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 Amount
Dividend Received 93,250
Loan payment 143,000
Amounts Recovered 194,000
Interest Expense 200,000
Court Administration Fees 240,000
Cost of Training 275,000
Bar License 300,400
Store Rent 300,750
Fines and Penalties 330,000
General Cleaning 350,000
Sanitation 370,000
Accumulated Fund (1/1/2020) 370,600
Basic Taxes and Rates 370,900
Allowances 390,470
Equity Investment Acquired 420,000
Royalties 430,000
Accountancy and Consultancies cost 470,000
Work-In-Progress 490,000
Herbalist License 530,370
Posts not on Establishment 580,000
Other Expenditure 600,000
Stool Land Revenue 600,000
Transport and Travelling cost 620,000
Utilities 630,000
Hostel License 630,920
Details Amount
Advances to Staff 660,000
Local Park Fees 720,400
Inventory and Consumables 800,000
Special Services 820,000
Property Rate 820,900
Social Benefit 840,300
Market Tolls 870,000
Consumption of Fixed Assets 960,000
Infrastructure, Plant and Equipment 980,000
Permit Fees 990,000
Proceeds from Sale of Equity 990,320
Established Posts 1,140,700
Development Bonds Issued 1,300,000
Business Income 2,300,600
Loans Received 2,330,000
Local Fund 2,930,000
Rent from Land and Building 6,120,800
Central Government Salaries 12,000,000
Cash and Cash Equivalent @ (1/1/2020) 12,300,240
Parish Development Facility 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
B. Prepare CORIS RA Statement of Financial Performance for the year ended December 31, 2020
Transcribed Image Text:CORIS RA is a govemment owned entarprise which is koislatad to ganeate is own income which t us o cover capisal and ncumant openditunes. The logislations also give the yovemmant the powan to onder CORIS RA o ansfar all or part of the income it gannatis to the comsolisnad fund sit dems fi Qubside of these powans, i a CORS RA with mondlysubvenions to cover its nacument penditunes baad on CORIS RA budigetay demands and the kopl locaions by the ovammant. For the 2017 and 2018, CORS RAusad the cnh bais to prpae is financial stamants, dihough some of the accouning bansacions were naconded using the accnul beis. t shouli be nosad that the yovemmant instrucaad all of its apancies to use an accnul bnis that is guidied and nacommanded by PSASa. You wene sekad by to govemmant to asist CORS RA with is accounting peocessn, which imvolvad the naconding, panaton and prepaion of accounáing bansacions and findl accounts a sipulatad bythe PSAS. Working with a boam ofqudifiad and parianced countenta, you wane able to prepare the fellowing accouning infomaion of CORS RAfor the yoar anding December 2020: Desails Amount Dividand csivad 93,250 Loan paymant 143,00 Amaunis Racovarad 194,000 nanest Epanse 200,0 Court Adminision Fos 240000 Costof Traning 275,000 Bar License 30040 Stone Rent 300,750 Fines and Panalies 330p00 Genenal Cloaning 350p00 Sanisaion 370,000 Accumulatad Fund (1//2020 370600 Seic Taos and Rates 370,00 Alowance 390,470 fquity inwamant Acquined 42000 Roydlin 430000 Accourtancy and Cansubancies coe 470,000 Workin-Progrss 40,000 Habalist License S30370 Posa mot on Esablahment Sa0000 oher Expenditune 600,000 Stol land Rovatue 600p0 Transport and Tiaedling cost 620p00 uslies 630,000 Hosad License 630,120 Desils Amaunt Advances to Sall 660p0 Local Pek Foes 720,400 Iitventory and Consumablies 20,00 Special Services 820,000 hoperiy Rate 820,900 Social Benefit 840,300 Maket Tolls 70pm Comsumpion of fisad ksses 960, 000 infuesauchune, Plant and fquipmert 980,000 Pemit Fas 990p00 hocosds from Sale of fquity 90,320 Esublished Pas 1140,200 Devdlopmant Bonds issuad 1,30000 Busines income 2,300600 Loans Racsivad 2,330000 Lal fund
Transcribed Image Text:2,930,000 Rent from Land and Bulding 6,120200 Gamtal Govemment Salaies 12,000p00 Canh and Canh Equivdant (1/1/2020) 12,300,240 Parish Devdlopment Faciliy 15,00060 NOTES 1. You are to ensune that CORIS RA adiopis and maintsin the acenual accouning beis whan propaing its financil sataments 2. As of December 31, 2000, the Eabliskad Pas had ousandng salaies of $180,000 p00m 3 dosing eventony and Cansumablies a a December 31, 2020 saood a $170,000 po00 Lhing the guiddines and fomas set out in the sicable PSAS, you ae lo: A Propare CORS RA Suamant of Canh Flow for the yoar andad December 31, 2020 8. Propars CORIS RA Stament of financial Parfomance for the yoar anded December 31, 2020

Question

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.
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 Amount
Dividend Received 93,250
Loan payment 143,000
Amounts Recovered 194,000
Interest Expense 200,000
Court Administration Fees 240,000
Cost of Training 275,000
Bar License 300,400
Store Rent 300,750
Fines and Penalties 330,000
General Cleaning 350,000
Sanitation 370,000
Accumulated Fund (1/1/2020) 370,600
Basic Taxes and Rates 370,900
Allowances 390,470
Equity Investment Acquired 420,000
Royalties 430,000
Accountancy and Consultancies cost 470,000
Work-In-Progress 490,000
Herbalist License 530,370
Posts not on Establishment 580,000
Other Expenditure 600,000
Stool Land Revenue 600,000
Transport and Travelling cost 620,000
Utilities 630,000
Hostel License 630,920
Details Amount
Advances to Staff 660,000
Local Park Fees 720,400
Inventory and Consumables 800,000
Special Services 820,000
Property Rate 820,900
Social Benefit 840,300
Market Tolls 870,000
Consumption of Fixed Assets 960,000
Infrastructure, Plant and Equipment 980,000
Permit Fees 990,000
Proceeds from Sale of Equity 990,320
Established Posts 1,140,700
Development Bonds Issued 1,300,000
Business Income 2,300,600
Loans Received 2,330,000
Local Fund 2,930,000
Rent from Land and Building 6,120,800
Central Government Salaries 12,000,000
Cash and Cash Equivalent @ (1/1/2020) 12,300,240
Parish Development Facility 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
B. Prepare CORIS RA Statement of Financial Performance for the year ended December 31, 2020

CORIS RA is a govemment owned entarprise which is koislatad to ganeate is own income which t us
o cover capisal and ncumant openditunes. The logislations also give the yovemmant the powan to
onder CORIS RA o ansfar all or part of the income it gannatis to the comsolisnad fund sit dems fi
Qubside of these powans, i a CORS RA with mondlysubvenions to cover its
nacument penditunes baad on CORIS RA budigetay demands and the kopl locaions by the
ovammant. For the 2017 and 2018, CORS RAusad the cnh bais to prpae is financial stamants,
dihough some of the accouning bansacions were naconded using the accnul beis. t shouli be nosad
that the yovemmant instrucaad all of its apancies to use an accnul bnis that is guidied and
nacommanded by PSASa. You wene sekad by to govemmant to asist CORS RA with is accounting
peocessn, which imvolvad the naconding, panaton and prepaion of accounáing bansacions and
findl accounts a sipulatad bythe PSAS. Working with a boam ofqudifiad and parianced
countenta, you wane able to prepare the fellowing accouning infomaion of CORS RAfor the yoar
anding December 2020: Desails Amount Dividand csivad 93,250 Loan paymant 143,00 Amaunis
Racovarad 194,000 nanest Epanse 200,0 Court Adminision Fos 240000 Costof Traning
275,000 Bar License 30040 Stone Rent 300,750 Fines and Panalies 330p00 Genenal Cloaning 350p00
Sanisaion 370,000 Accumulatad Fund (1//2020 370600 Seic Taos and Rates 370,00 Alowance
390,470 fquity inwamant Acquined 42000 Roydlin 430000 Accourtancy and Cansubancies coe
470,000 Workin-Progrss 40,000 Habalist License S30370 Posa mot on Esablahment Sa0000 oher
Expenditune 600,000 Stol land Rovatue 600p0 Transport and Tiaedling cost 620p00 uslies
630,000 Hosad License 630,120 Desils Amaunt Advances to Sall 660p0 Local Pek Foes 720,400
Iitventory and Consumablies 20,00 Special Services 820,000 hoperiy Rate 820,900 Social Benefit
840,300 Maket Tolls 70pm Comsumpion of fisad ksses 960, 000 infuesauchune, Plant and fquipmert
980,000 Pemit Fas 990p00 hocosds from Sale of fquity 90,320 Esublished Pas 1140,200
Devdlopmant Bonds issuad 1,30000 Busines income 2,300600 Loans Racsivad 2,330000 Lal fund

2,930,000 Rent from Land and Bulding 6,120200 Gamtal Govemment Salaies 12,000p00 Canh and
Canh Equivdant (1/1/2020) 12,300,240 Parish Devdlopment Faciliy 15,00060 NOTES 1. You are to
ensune that CORIS RA adiopis and maintsin the acenual accouning beis whan propaing its financil
sataments 2. As of December 31, 2000, the Eabliskad Pas had ousandng salaies of
$180,000 p00m 3 dosing eventony and Cansumablies a a December 31, 2020 saood a
$170,000 po00
Lhing the guiddines and fomas set out in the sicable PSAS, you ae lo:
A Propare CORS RA Suamant of Canh Flow for the yoar andad December 31, 2020
8. Propars CORIS RA Stament of financial Parfomance for the yoar anded December 31, 2020

Accepted Answer

The cash flow statement is prepared at the end of the period to know the cash position. It reflects…