Anonymous
10 hours ago
Accounting for the public sector and civil society.
Haramaya University
College of Continuing and Distance Education
Department of Accounting and finance
Assignment for the course Accounting for Public Sector and Civil Society
Max. Mark: 30%
XYZ Company purchased a new computer asset module at a cost of $100,000 and estimated that the useful life of the module would be 5 years. After 3 years, a new much faster computer is introduced and XYZ decides to upgrade. However, the new asset module is not compatible with the new computer. An asset module similar to the one currently in use is available to the market at a price of $60,000.
Required: calculate the amount of impairment loss using depreciated replacement cost approach
XYZ owns snow ploughs which were purchased at a cost of $750,000 each. The ploughs were expected to be used for 10 years. After 3 years two of the ploughs were in an accident. The cost of repairing the ploughs will amount to $350,000 in total. The estimated cost of a plough is $900,000 each.
Required: calculate the amount of impairment loss using restoration cost approach
XYZ acquired a printer for $200,000. On acquisition it was expected that the printer will print 5 million certificates over 5 years. 2 years after acquisition one of the parts is broken. A similar part can be used in its place. However, it will result in a 1 million reduced in number of certificates that the printer can produce over its useful life. The part is replaced at no cost to the entity. 2 million copies have been printed to date. The current replacement cost of the printer is $250,000
Required: calculate the amount of impairment loss using service units approach
Write in detail, the advantages and disadvantages of:
Incremental budgeting
Zero-based Budgeting (ZBB)
Rolling (Continuous) Budgeting
Activity-based Budgeting (ABB)
Performance-based Budgeting (PBB)
The following transactions were undertaken by the general fund of Hawassa Town. You are required to pass the journal entry on the book of General fund only.
The town general fund adopted the following budget for the fiscal year of 2009. Estimated revenue from tax 3,000,000 birr, estimated revenue from inter- governmental sources 200,000 birr and estimated grant from outside countries 4,500,000 birr. Appropriation for the next fiscal year was also estimated to be 5,700,000 birr for general public sector activities which also includes 500,000 birr for purchase of an ambulance for the towns’ Hospital.
The town general fund also estimated to collect a property tax. Therefore, a property tax of 1,500,000 birr was estimated and levied on property owners. The towns’ general fund estimated not to collect 10% of the property tax.
The towns’ general fund ordered the purchase of an ambulance by the amount of 500,000 birr.
Property tax of 1,000,000 birr was collected and the remaining amount became delinquent. The property owners are charged a penalty of 5,000 birr for not paying in time.
The towns’ general fund collected 2,000,000 birr from general revenue sources.
The ambulance ordered is received and the towns’ general fund paid 550,000 birr.
A total of 250,000 birr was paid for general purpose expenditure.
The remaining property tax and the penalty charged is collected in full amount.
The towns’ general fund transferred 50,000 birr to the towns’ debt service fund.
The grant from outside countries is collected in full amount.
The following are specific transaction in relation to the Hawassa town capital project fund. Record the necessary entries in relation to capital project fund only.
Hawassa town council approved the construction of Hospital in the town. The total cost of the construction including equipment purchasing cost is estimated to be 120,000,000 birr. The city council decided to finance the construction by issuing a serial bond that has a value of 100,000,000 birr, 15%, 25 years and were the payment is made in 25 equal annual installments. The remaining amount to be financed by the towns’ general fund (5,000,000 birr as a fund transfer) and the remaining 15,000,000 birr from grant to be received from World Vision Ethiopia. The construction is expected to be completed in one year and also purchase of equipment’s needed to operate the hospital were decided to be undertaken side by side with the construction activity.
1. The bond was issued at a premium of 100,000 birr.
2. The premium on bond is transferred to the towns’ debt service fund.
3. The grant to be received from World Vision and the transfer from General fund was recorded.
4. Preliminary expenditures for cite clearing, design and preparation in the amount of 50,000 birr is paid.
5. As per the councils’ decision, a digital x-ray machine is ordered by the amount of 500,000 birr.
6. A construction contract was signed by the amount of 90,000,000 birr with Afro-Tsion Construction Company.
7. The grant from World Vision and the transfer from General fund is collected in full amount.
8. The digital X-ray machine was actually received at 450,000 birr.
9. The construction company billed the town for completion of half of the construction.
10. The initial claim of the construction company was approved and payment is made by retaining 10% of the amount to be paid after final inspection.
11. Different equipment’s, machineries and supplies were collectively ordered in the amount of 20,000,000 birr.
12. The first installment of the bond payable is paid.
13. The construction company billed the town for the reaming amount and reported that the construction is completed.
14. The equipment’s, machineries and supplies ordered were received at a cost of 25,000,000.
15. The final inspection was done and there were no any defects in the construction; therefore, the retainage percent as well as the second claim is fully paid to the construction company.
16. After all expenditures are paid the remaining amount is transferred to the towns’ debt service fund and the capital project fund in relation to the construction of Hospital is closed.
Record the following transactions under purchase and consumption method.
During 2005 General fund purchase supply costing Br. 15,000
At the end of 2005 Br. 10,000 supplies is unused
At the end of 2006 the ending inventory of supply is increased by Br. 5,000
At the end of 2006 the ending inventory of supply is decreased by Br. 3,000
College of Continuing and Distance Education
Department of Accounting and finance
Assignment for the course Accounting for Public Sector and Civil Society
Max. Mark: 30%
XYZ Company purchased a new computer asset module at a cost of $100,000 and estimated that the useful life of the module would be 5 years. After 3 years, a new much faster computer is introduced and XYZ decides to upgrade. However, the new asset module is not compatible with the new computer. An asset module similar to the one currently in use is available to the market at a price of $60,000.
Required: calculate the amount of impairment loss using depreciated replacement cost approach
XYZ owns snow ploughs which were purchased at a cost of $750,000 each. The ploughs were expected to be used for 10 years. After 3 years two of the ploughs were in an accident. The cost of repairing the ploughs will amount to $350,000 in total. The estimated cost of a plough is $900,000 each.
Required: calculate the amount of impairment loss using restoration cost approach
XYZ acquired a printer for $200,000. On acquisition it was expected that the printer will print 5 million certificates over 5 years. 2 years after acquisition one of the parts is broken. A similar part can be used in its place. However, it will result in a 1 million reduced in number of certificates that the printer can produce over its useful life. The part is replaced at no cost to the entity. 2 million copies have been printed to date. The current replacement cost of the printer is $250,000
Required: calculate the amount of impairment loss using service units approach
Write in detail, the advantages and disadvantages of:
Incremental budgeting
Zero-based Budgeting (ZBB)
Rolling (Continuous) Budgeting
Activity-based Budgeting (ABB)
Performance-based Budgeting (PBB)
The following transactions were undertaken by the general fund of Hawassa Town. You are required to pass the journal entry on the book of General fund only.
The town general fund adopted the following budget for the fiscal year of 2009. Estimated revenue from tax 3,000,000 birr, estimated revenue from inter- governmental sources 200,000 birr and estimated grant from outside countries 4,500,000 birr. Appropriation for the next fiscal year was also estimated to be 5,700,000 birr for general public sector activities which also includes 500,000 birr for purchase of an ambulance for the towns’ Hospital.
The town general fund also estimated to collect a property tax. Therefore, a property tax of 1,500,000 birr was estimated and levied on property owners. The towns’ general fund estimated not to collect 10% of the property tax.
The towns’ general fund ordered the purchase of an ambulance by the amount of 500,000 birr.
Property tax of 1,000,000 birr was collected and the remaining amount became delinquent. The property owners are charged a penalty of 5,000 birr for not paying in time.
The towns’ general fund collected 2,000,000 birr from general revenue sources.
The ambulance ordered is received and the towns’ general fund paid 550,000 birr.
A total of 250,000 birr was paid for general purpose expenditure.
The remaining property tax and the penalty charged is collected in full amount.
The towns’ general fund transferred 50,000 birr to the towns’ debt service fund.
The grant from outside countries is collected in full amount.
The following are specific transaction in relation to the Hawassa town capital project fund. Record the necessary entries in relation to capital project fund only.
Hawassa town council approved the construction of Hospital in the town. The total cost of the construction including equipment purchasing cost is estimated to be 120,000,000 birr. The city council decided to finance the construction by issuing a serial bond that has a value of 100,000,000 birr, 15%, 25 years and were the payment is made in 25 equal annual installments. The remaining amount to be financed by the towns’ general fund (5,000,000 birr as a fund transfer) and the remaining 15,000,000 birr from grant to be received from World Vision Ethiopia. The construction is expected to be completed in one year and also purchase of equipment’s needed to operate the hospital were decided to be undertaken side by side with the construction activity.
1. The bond was issued at a premium of 100,000 birr.
2. The premium on bond is transferred to the towns’ debt service fund.
3. The grant to be received from World Vision and the transfer from General fund was recorded.
4. Preliminary expenditures for cite clearing, design and preparation in the amount of 50,000 birr is paid.
5. As per the councils’ decision, a digital x-ray machine is ordered by the amount of 500,000 birr.
6. A construction contract was signed by the amount of 90,000,000 birr with Afro-Tsion Construction Company.
7. The grant from World Vision and the transfer from General fund is collected in full amount.
8. The digital X-ray machine was actually received at 450,000 birr.
9. The construction company billed the town for completion of half of the construction.
10. The initial claim of the construction company was approved and payment is made by retaining 10% of the amount to be paid after final inspection.
11. Different equipment’s, machineries and supplies were collectively ordered in the amount of 20,000,000 birr.
12. The first installment of the bond payable is paid.
13. The construction company billed the town for the reaming amount and reported that the construction is completed.
14. The equipment’s, machineries and supplies ordered were received at a cost of 25,000,000.
15. The final inspection was done and there were no any defects in the construction; therefore, the retainage percent as well as the second claim is fully paid to the construction company.
16. After all expenditures are paid the remaining amount is transferred to the towns’ debt service fund and the capital project fund in relation to the construction of Hospital is closed.
Record the following transactions under purchase and consumption method.
During 2005 General fund purchase supply costing Br. 15,000
At the end of 2005 Br. 10,000 supplies is unused
At the end of 2006 the ending inventory of supply is increased by Br. 5,000
At the end of 2006 the ending inventory of supply is decreased by Br. 3,000
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ChatGPT
10 hours ago
Accounting for the public sector and civil society involves the recording, reporting, and analysis of financial transactions and activities of government entities, non-profit organizations, and other entities that serve the public interest. This type of accounting is often referred to as governmental accounting or non-profit accounting.
In the public sector, accounting is essential for ensuring transparency, accountability, and stewardship of public funds. Government entities are required to follow specific accounting standards and regulations, such as the Governmental Accounting Standards Board (GASB) in the United States, to accurately report their financial information to stakeholders, including taxpayers, legislators, and oversight bodies.
Non-profit organizations, including civil society organizations, also have unique accounting requirements due to their tax-exempt status and mission-driven activities. These organizations must adhere to accounting standards set forth by organizations such as the Financial Accounting Standards Board (FASB) in the United States to accurately report their financial activities and demonstrate their impact on society.
Accounting for the public sector and civil society involves specialized knowledge and skills, as well as an understanding of the unique challenges and complexities faced by these organizations. Accountants working in these sectors must be familiar with fund accounting, budgeting, compliance requirements, and reporting standards specific to government entities and non-profit organizations.
Overall, accounting plays a crucial role in ensuring the financial health and integrity of public sector and civil society organizations, enabling them to fulfill their missions and serve the public interest effectively.
In the public sector, accounting is essential for ensuring transparency, accountability, and stewardship of public funds. Government entities are required to follow specific accounting standards and regulations, such as the Governmental Accounting Standards Board (GASB) in the United States, to accurately report their financial information to stakeholders, including taxpayers, legislators, and oversight bodies.
Non-profit organizations, including civil society organizations, also have unique accounting requirements due to their tax-exempt status and mission-driven activities. These organizations must adhere to accounting standards set forth by organizations such as the Financial Accounting Standards Board (FASB) in the United States to accurately report their financial activities and demonstrate their impact on society.
Accounting for the public sector and civil society involves specialized knowledge and skills, as well as an understanding of the unique challenges and complexities faced by these organizations. Accountants working in these sectors must be familiar with fund accounting, budgeting, compliance requirements, and reporting standards specific to government entities and non-profit organizations.
Overall, accounting plays a crucial role in ensuring the financial health and integrity of public sector and civil society organizations, enabling them to fulfill their missions and serve the public interest effectively.
0
Google Gemini AI
10 hours ago
Accounting for the Public Sector
- Purpose: To provide financial reporting and accountability for government entities.
- Key Features:
- Adheres to Generally Accepted Accounting Principles (GAAP) applicable to the public sector.
- Focuses on cash basis accounting or modified accrual accounting.
- Financial statements include the balance sheet, statement of operations, and statement of cash flows.
- Reports on financial position, performance, and cash flows.
- Users: Taxpayers, government officials, citizens, and other stakeholders.
Accounting for Civil Society
- Purpose: To provide financial transparency and accountability for non-profit organizations (NPOs) and other civil society entities.
- Key Features:
- Adheres to specific accounting standards and frameworks developed for NPOs, such as GAAP for NPOs or Financial Reporting Framework for Voluntary Non-profit Organizations (FRFVNPO).
- Encompasses both accrual and cash basis accounting.
- Financial statements include the statement of financial position, statement of activities, and statement of cash flows.
- Reports on resources, expenses, and operations.
- Users: Donors, beneficiaries, oversight bodies, and other interested parties.
Similarities
- Both public sector and civil society accounting emphasize financial transparency, accountability, and reporting on financial position and performance.
- They adhere to specific accounting standards and principles tailored to their respective sectors.
Differences
- Scope: Public sector accounting covers government entities, while civil society accounting focuses on NPOs and other civil society organizations.
- Accounting Basis: Public sector accounting typically uses modified accrual accounting, while civil society accounting may use both accrual and cash basis accounting.
- Reporting Focus: Public sector accounting reports on the allocation and use of public resources, while civil society accounting emphasizes the achievement of mission and impact.
- Regulators: Public sector accounting is regulated by government agencies, while civil society accounting may be subject to industry standards or oversight by independent bodies.
- Purpose: To provide financial reporting and accountability for government entities.
- Key Features:
- Adheres to Generally Accepted Accounting Principles (GAAP) applicable to the public sector.
- Focuses on cash basis accounting or modified accrual accounting.
- Financial statements include the balance sheet, statement of operations, and statement of cash flows.
- Reports on financial position, performance, and cash flows.
- Users: Taxpayers, government officials, citizens, and other stakeholders.
Accounting for Civil Society
- Purpose: To provide financial transparency and accountability for non-profit organizations (NPOs) and other civil society entities.
- Key Features:
- Adheres to specific accounting standards and frameworks developed for NPOs, such as GAAP for NPOs or Financial Reporting Framework for Voluntary Non-profit Organizations (FRFVNPO).
- Encompasses both accrual and cash basis accounting.
- Financial statements include the statement of financial position, statement of activities, and statement of cash flows.
- Reports on resources, expenses, and operations.
- Users: Donors, beneficiaries, oversight bodies, and other interested parties.
Similarities
- Both public sector and civil society accounting emphasize financial transparency, accountability, and reporting on financial position and performance.
- They adhere to specific accounting standards and principles tailored to their respective sectors.
Differences
- Scope: Public sector accounting covers government entities, while civil society accounting focuses on NPOs and other civil society organizations.
- Accounting Basis: Public sector accounting typically uses modified accrual accounting, while civil society accounting may use both accrual and cash basis accounting.
- Reporting Focus: Public sector accounting reports on the allocation and use of public resources, while civil society accounting emphasizes the achievement of mission and impact.
- Regulators: Public sector accounting is regulated by government agencies, while civil society accounting may be subject to industry standards or oversight by independent bodies.
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