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(i) Components of an Integrated Report;
- Financial statements
These should be prepared in accordance with IFRSs and audited to provide
reasonable assurance in accordance with the international assurance standards.
- Sustainability report
This covers a combination of environmental, social and governance matters. This is
prepared in accordance with a recognized framework such as GRI (Global Reporting
Initiative) and audited to provide at least limited assurance over key indicators.
- Governance report
This should be tailored along the guidelines offered by an accepted governance code.
ii) Strategic focus
An integrated report provides insight into the organizations strategic objectives and
how those objectives relate to its ability to create and sustain value over time and the
resources and relationships on which the organization depends.
- Connectivity of information
An integrated report shows the connections between the different components of the
organization's business model, external factors that affect the organization and the
various resources and relationships on which the organization and its performance
depend.
- Future orientation
An integrated report includes management expectations about the future as well as
other information to help report users understand and assess the organization's
prospects and the uncertainties it faces.
- Responsiveness and stakeholder inclusiveness
An integrated report provides insight into the organization's relationship with its key
stakeholders and how and to what extent the organization understands, takes into
account and responds to their needs.
- Conciseness, reliability and materiality
An integrated report 'provides concise, reliable information that is material to
assessing the organization's ability to; create and sustain value in the short, medium
and long-term.
marto answered the question on February 15, 2019 at 07:18
- Explain the benefits that would accrue from the adoption of international public sector accounting standards (IPSASs) by governments and public entities.(Solved)
Explain the benefits that would accrue from the adoption of international public sector accounting standards (IPSASs) by governments and public entities.
Date posted: February 15, 2019. Answers (1)
- The following information has been compiled by the Ministry of Finance for the fiscal year ended 30 June 2009:(Solved)
The following information has been compiled by the Ministry of Finance for the fiscal year ended 30 June 2009:
Date posted: February 15, 2019. Answers (1)
- The International Public Sector Accounting Standards (IPSASs) are developed by the International Public Sector Accounting Standards Board (IPSASB) to enhance uniformity in the way...(Solved)
The International Public Sector Accounting Standards (IPSASs) are developed by the International Public Sector Accounting Standards Board (IPSASB) to enhance uniformity in the way public sector organizations prepare their financial statements. The Board (IPSASB) is promoting the international adoption and application of these standards.
Required:
Highlight four challenges that the Board is facing in promoting the use of IPSASs.
Date posted: February 15, 2019. Answers (1)
- The following data has been collected from the Ministry of Trade and Commerce for the fiscal year ended 30 June 2010:(Solved)
The following data has been collected from the Ministry of Trade and Commerce for the fiscal year ended 30 June 2010:
Required:
The following statements in accordance with IPSAS 1 (Presentation of Financial Statements):
i) Statement of financial performance for the year ended 30 June 2010.
ii) Statement of financial position as at 30 June 2010.
Date posted: February 15, 2019. Answers (1)
- The following summary of receipts and payments was extracted from the records of the Ministry of Finance for the fiscal year ended 30 June 2010.(Solved)
The following summary of receipts and payments was extracted from the records of the Ministry of Finance for the fiscal year ended 30 June 2010.
Required:
The statement of comparison of budget and actual amounts for the fiscal year ended 30 June 2010 in accordance with International Public Sector Accounting Standard (IPSAS) 24 (Presentation of Budget Information in Financial Statements
Date posted: February 15, 2019. Answers (1)
- i. A certain government agency has a widely published environmental policy in which it undertakes to clean up all contamination arising from its operations. The...(Solved)
i. A certain government agency has a widely published environmental policy in which it undertakes to clean up all contamination arising from its operations. The government agency has a record of honoring agency operates. During the course of a naval exercise, a vessel was damaged and a substantial amount of oil leaked. The government agency agreed to pay for the costs of the immediate clean-up and the costs of monitoring and assisting marine animals and birds.
Required:
In the context of International Public Sector Accounting Standard Number 19 (Provisions, Contingent Liabilities, and Contingent Assets}, evaluate how the costs in the above, scenario would be accounted for.
ii. Mashinani City Council constructed a 20 storey office building for use by the council at a cost of Sh.800 million. This building came into use on 1 January 1996 and it was expected to have a useful life of 40 years. During the year 2010, National Safety Regulations required that owing to security concerns, the top 4 storeys of high-rise buildings should be left unoccupied for the foreseeable future. These regulations were to come into force on 31 December 2010. As at 31 December 2010, the building had a fair value less costs to sell of Sh.450 million. As at the same date, the replacement cost of a similar 20 storey building was Sh.850 million.
Required:
Using the service units approach, evaluate whether there is any impairment loss as at 31 December 2010 in accordance with the requirements of International Public Sector Accounting Standard Number 21 (Impairment of Non-Cash-Generating Assets).
Date posted: February 15, 2019. Answers (1)
- In relation to-International Public Sector Accounting Standards (IPSASs).
i) Explain any three benefits that would accrue to a government as a result of the adoption of...(Solved)
In relation to-International Public Sector Accounting Standards (IPSASs).
i) Explain any three benefits that would accrue to a government as a result of the adoption of IPSASs.
ii) Analyze, any two limitations that, state (or. county) governments in your country are likely to face in implementing IPSASs.
Date posted: February 15, 2019. Answers (1)
- In the context of IPSAS 19 (Provisions, Contingent Liabilities and Contingent Assets), explain the meaning of the term 'constructive obligation'.(Solved)
In the context of IPSAS 19 (Provisions, Contingent Liabilities and Contingent Assets), explain the meaning of the term 'constructive obligation'.
Date posted: February 15, 2019. Answers (1)
- With reference to IPSAS 9 (Revenue from Exchange Transactions):
(i) Evaluate the objectives of the standard.
(ii) Analyse the difference between 'exchange transactions' and 'non-exchange transactions'.(Solved)
With reference to IPSAS 9 (Revenue from Exchange Transactions):
(i) Evaluate the objectives of the standard.
(ii) Analyse the difference between 'exchange transactions' and 'non-exchange transactions'.
Date posted: February 15, 2019. Answers (1)
- In the context of IPSAS 23 (Revenue from Non-exchange Transactions), summarize five sources of revenue from non-exchange transactions recognized by this standard.
(Solved)
In the context of IPSAS 23 (Revenue from Non-exchange Transactions), summarize five sources of revenue from non-exchange transactions recognized by this standard.
Date posted: February 15, 2019. Answers (1)
- On 1 January 2008, Mashambani County Education Department purchased a printing machine at a cost of Sh.40 million. The department estimated that the useful life...(Solved)
On 1 January 2008, Mashambani County Education Department purchased a printing machine at a cost of Sh.40 million. The department estimated that the useful life of the machine would be ten years. On 31 December 2012, it was reported that an automated feature on the machine's function did not operate as expected, resulting in a 25% reduction in the machine's annual output over the remaining five years of its useful life. The cost of a new printing machine was Sh.45 million as at 3 1 December 2012.
Required:
The impairment loss as at 31 December 2012 using the service units approach
Date posted: February 15, 2019. Answers (1)
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With reference to IPSAS 26 (Impairment of Cash Generating Assets), explain the meaning of the following terms
i) Value in use.
ii) Recoverable amount.(Solved)
With reference to IPSAS 26 (Impairment of Cash Generating Assets), explain the meaning of the following terms
i) Value in use.
ii) Recoverable amount.
Date posted: February 15, 2019. Answers (1)
- In 1993, the Nairobi County Government constructed a public primary school at a cost of Sh.25 million. It was estimated that the school would be...(Solved)
In 1993, the Nairobi County Government constructed a public primary school at a cost of Sh.25 million. It was estimated that the school would be used for 40 years. By the end of 2013, the school population had declined from 1,500 students to 400 students as a result of a population shift caused by the bankruptcy of a major employer in the area. The management decided to close the two top floors of the three storey school building. The management has no expectation that enrollment will increase in future such that the upper storeys would be reopened. The current replacement cost of the school is estimated at Sh.13 million.Required:
Calculate the impairment loss to be recognized using the depreciated replacement cost approach.
(b) International Public Sector Accounting Standard (IPSAS) 22 (Disclosure of Financial Information about the General Government Sector (GGS)), defines a general government sector as "comprising all organizational entities of the general government as defined in statistical bases of financial reporting".
With regard to this standard, outline eight items that should be disclosed in respect of a GGS.
(c) IPSAS 20 (Related Party Disclosures) defines a related party as 'any party that has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions or if the related party entity and another entity are subject to common control'.
With respect to the above statement:
i) Explain the meaning of 'significant influence'.
ii) Outline four ways in which significant influence might be exercised.
Date posted: February 15, 2019. Answers (1)
- With reference to IPSAS 9 (Revenue from Exchange Transactions), summarize five conditions that must be satisfied before revenue from the sale of goods can be...(Solved)
With reference to IPSAS 9 (Revenue from Exchange Transactions), summarize five conditions that must be satisfied before revenue from the sale of goods can be recognized.
Date posted: February 15, 2019. Answers (1)
- In the context of IPSAS 4 (The Effects of Changes in Foreign Exchange Rates), explain how exchange differences arising on monetary items are recognized.(Solved)
In the context of IPSAS 4 (The Effects of Changes in Foreign Exchange Rates), explain how exchange differences arising on monetary items are recognized.
Date posted: February 15, 2019. Answers (1)
- i) On 1 January 2009, the government purchased a software licence for Sh.350,000 for an application on its new main frame computer. The government estimated...(Solved)
i) On 1 January 2009, the government purchased a software licence for Sh.350,000 for an application on its new main frame computer. The government estimated that the useful life of the software would be eight years and that it would receive benefits and service potential from the software on a straight-line basis over the useful life of the software. As at 31 December 2013, usage of the application had declined to 15% of its originally anticipated demand. A licence for a software application to replace the remaining service potential of the existing software application would cost Sh. 150,000.
Required:
Impairment loss to be recognized for the software using the depreciated replacement cost approach.
ii) On 1 January 2004, the government built an office at a cost of Sh.50 million. The building was expected to provide service for 40 years. On 31 December 2013, after 10 years of use a fire caused severe structural damage and due to safety reasons, the office building was closed for repairs that cost Sh.35.5 million. These repairs were made to restore the office building to occupiable condition. The current cost' of a new office building is Sh,100 million.
Required:
Impairment loss to be recognized for the office building using the cost restoration approach
Date posted: February 15, 2019. Answers (1)
- With reference to IPSAS 26 (Impairment of Non-Cash Generating Assets):
i) Explain the meaning of ‘cash-generating assets’.
ii) Analyse the criteria that could be used to identify...(Solved)
With reference to IPSAS 26 (Impairment of Non-Cash Generating Assets):
i) Explain the meaning of ‘cash-generating assets’.
ii) Analyse the criteria that could be used to identify ah asset that might be impaired.
Date posted: February 15, 2019. Answers (1)
- In the context of unethical management practices, discuss four incentives that could motivate the management of a business entity to manipulate the entity's financial statements...(Solved)
In the context of unethical management practices, discuss four incentives that could motivate the management of a business entity to manipulate the entity's financial statements as well as the underlying supporting records.
Date posted: February 14, 2019. Answers (1)
- The following financial statements relate to Hamada Group:(Solved)
The following financial statements relate to Hamada Group:
Date posted: February 14, 2019. Answers (1)
- Pamoja group has-prepared the following draft statements of financial position as at 30 June:(Solved)
Pamoja group has-prepared the following draft statements of financial position as at 30 June:
Date posted: February 14, 2019. Answers (1)