May 2018 Q4
The following are the balances extracted from the Consolidated Fund of Public Accounts for the year ended 31st December, 2017.
Additional Notes:
i) Other Expenses
During the year, the Government of Ghana benefited from free services provided from medical experts who were task forces of the British Government. The main object of this task force was to help curb cholera in the country. The fair value of these services amounted to GH¢ 18,740,000. It is the policy of Government to include goods and services received during the year in kind in its financial statements at fair values.
ii) The annual estimates for the year ending 2017 were as follows:
Required: (Total: 20 marks)
a) Prepare a Statement of Revenue and Expenditure of the Consolidated Fund for the year ended December 31, 2017 indicating the accompanying variances to the statement.
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NB: Assets or services received free of charge or for nominal cost are recognized as Grant at the fair value of the assets or services that the Government would have otherwise paid for, where the fair value can be measured reliably.
A corresponding expense is however recognized for services received and in the case of assets, receipts of assets are recognized in the Statement of financial position.
As in this case a service in kind, hence the inclusion of GH¢ 18,740,000 in the Grants and Other Expenses accordingly.
b) Prepare a Statement of Financial Position of the Consolidated Fund as at December 31, 2017.
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