FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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A. Prepare CORIS RA Statement of
B. Prepare CORIS RA Statement of Financial Performance for the year ended December 31, 2020
Transcribed Image Text:CORIS RECREATION ASSEMBLY
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
Amounts Recovered
143,000
194,000
200,000
240,000
275,000
Interest Expense
Court Administration Fees
Cost of Training
Bar License
300,400
300,750
330,000
Store Rent
Fines and Penalties
General Cleaning
350,000
370,000
370,600
Sanitation
Accumulated Fund (1/1/2020)
Basic Taxes and Rates
370,900
390,470
420,000
Allowances
Equity Investment Acquired
Royalties
Accountancy and Consultancies cost
Work-In-Progress
430,000
470,000
490,000
530,370
Herbalist License
Posts not on Establishment
580,000
Other Expenditure
600,000
600,000
620,000
630,000
630,920
Stool Land Revenue
Transport and Travelling cost
Utilities
Hostel License
Transcribed Image Text:Details
Amount
660,000
720,400
Advances to Staff
Local Park Fees
Inventory and Consumables
Special Services
800,000
820,000
820,900
840,300
870,000
Property Rate
Social Benefit
Market Tolls
Consumption of Fixed Assets
Infrastructure, Plant and Equipment
960,000
980,000
Permit Fees
990,000
990,320
1,140,700
Proceeds from Sale of Equity
Established Posts
Development Bonds Issued
1,300,000
2,300,600
2,330,000
2,930,00
6,120,800
Business Income
Loans Received
Local Fund
Rent from Land and Building
Central Government Salaries
12,000,000
12,300,240
15,000,600
Cash and Cash Equivalent @ (1/1/2020)
Parish Development Facility
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
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. I
D. The IPSASS indicated some benefits of Cash Flow Information. State any two of these benefits to
an entity and also the general public.
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