Manual 3 - Federal Accounting System Chapter 12. Financial Statements

Manual 3 – Federal Accounting System
Chapter 12. Financial Statements
CHAPTER 12: FINANCIAL STATEMENTS
The financial statements presented are intended to meet the needs of users who are not in a
position to demand reports tailored to meet their specific requirements. These users include
stakeholders such as members of the legislature, donors, lenders, tax payers and employees.
The objective of the financial statements is to provide information about the financial
position, performance and cash flows that is useful in making and evaluating decisions
about the sources, allocation and uses of financial resources and about how the activities
were financed. In addition, the financial reporting also provides users with information
about whether resources were used in accordance with the approved budget.
Transparency in government begins with full and fair disclosure of financial information.
The FGE uses the International Public Sector Accounting Standards (IPSAS) issued by the
Public Sector Section of the International Federation of Accountants as a basis for
establishing the financial statements.
The FGE accounting system can produce the following set of financial statements:
 A set of federal-level financial statements that includes:

o Statement of Financial Position
o Statement of Financial Performance
o Statement of Changes in Net Assets/Equity
o Cash Flow Statement
o Accounting Policies and Notes to Financial Statements
o Statement of Comparison of Budget and Actual Amounts – Domestic Revenue
o Statement of Comparison of Budget and Actual Amounts – External Assistance
o Statement of Comparison of Budget and Actual Amounts – Expenditure
o Comparison of Original and Adjusted Budget and Actual Amounts
o Statement of Expenditure by Functional Classification
 A set of countrywide financial statements that includes:

o Summary Statement of Domestic and External Revenues
o Summary Statement of Expenditure
o Summary Statement of Expenditure and its Statement.
In addition to the above financial statements, the accounting system also produces detailed
revenue and expenditure schedules that provide detailed information and analysis of the
summary countrywide financial statements.
The remainder of this chapter describes the format of each financial statement.
May 2007 Page 176

GOVERNMENT OF ETHIOPIA
Statement of Financial Position

As at 7 July 20X2
Ethiopian Birr '000

Notes 20X2 20X1
ASSETS (CURRENT)
Cash and cash equivalents 1 0 0
Receivables 2 0 0

Total Assets 0 0
LIABILITIES(CURRENT)
Current Liabilities - Payables 3 0 0
Total liabilities 0 0
Net Current
Assets/(Liabilities) 0 0
NET ASSETS/EQUITY
Accumulated surpluses/deficits 0 0

May 2007 Page 177

Statement of Financial Performance
For the year ended 7 July 20X2
Ethiopian Birr '000
Notes 20X2 20X1
OPERATING ACTIVITIES
Operating Revenue
Tax revenues 4 0 0
Non-tax revenues 5 0 0
Subsidies 6 0 0
Municipality revenues 7 0 0
Other revenue 8 0 0
Total operating revenue 0 0
Operating Expenses
Subsidies 0 0
Personnel services 9 0 0
Goods and services 10 0 0
Fixed assets and construction 11 0 0
Other expenses 12 0 0
Total operating expenses 0 0
Surplus/(deficit) from operating activities 0 0
NON OPERATING ACTIVITIES

External assistance 13 0 0
External loans 14 0 0
Capital revenue 15 0 0
Debt repayments - principal 16 (0) (0)
Finance costs 17 (0) (0)
Surplus/(deficit) from non operating activities 0 0
Surplus/(deficit) for the year 0 0
May 2007 Page 178

Statement of Changes in Net Assets/Equity

Ethiopian Birr '000
Balance at 7 July 20X1 0
Changes in accounting
policy/Fundamental errors 0
Restated balance 0
Net surplus/(deficit) for the year 0

Balance as at 7 July 20X2 0

May 2007 Page 179

Cash Flow Statement
Ethiopian Birr '000 20X2 20X1
1 CASH FLOW FROM OPERATING ACTIVITIES
Tax revenues 0 0
Non tax revenues 0 0
Other income 0 0
Miscellaneous income 0 0
Municipality revenues 0 0
Regional subsidy 0 0
Total Receipts - A 0 0
Personnel services 0 0
Goods and services 0 0
Finance charges 0 0
Subsidies 0 0
Other expenses 0 0
Total Payments - B 0 0
Non Cash Movements
Increase/(Decrease) in payables 0 0
Increase/(Decrease) in receivables 0 0
Total Non Cash Movements - C 0 0
Net Cash Flow from Operating Activities 0 0

2 CASH FLOW FROM INVESTING ACTIVITIES
Sale of assets 0 0
Sale of equity 0 0
Repayment of borrowings to government 0 0
Privatization proceeds 0 0
Capital receipts from non government 0 0
Total Receipts (A) 0 0
Fixed Assets and Construction 0 0
Govt. lending or equity investments 0 0
Total Payments (B) 0 0
Net Cash Flow from Investing Activities 0 0
May 2007 Page 180

Cash Flow Statement
Ethiopian Birr '000
20X2 20X1
3 CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from external assistance 0 0
Proceeds from external loans 0 0
Total Receipts (A) 0 0
Debt repayments – external Total Payments (B) 0 0
Net Cash Flow from Financing Activities 0 0
4 NET INCREASE/(DECREASE) IN CASH &CASH EQUIVALENTS 0 0
5 Cash and Cash Equivalents at Beginning of Year 0 0
6 Net Increase/(Decrease) in Cash Equivalents During the Year 0 0
7 Cash and Cash Equivalents at End of Year 0 0
May 2007 Page 181

Accounting Policies and Notes to Financial Statements
Notes to Financial Statements
Ethiopian Birr ‘000
1 Cash and Cash Equivalents 20X2 20X1
Domestic currency
Foreign currency
Budget support
Counterpart funds
SSDP
Cash in transit
Sinking fund
Others
Domestic currency refers to local currency held in a safe as well as in a bank account.
Foreign currency is cash held in a bank account denominated in foreign currency. Budget
support refers to cash from a foreign source held in a bank account available for unrestricted
general budgetary support. Counterpart funds refer to grants held in a bank account
reserved for specific program support.
2 Receivables
Advances
Prepayments
Others ___________ ______
Advances represent amounts due from government entities and staff. Prepayments
represent amounts due from suppliers, contractors and consultants. Others represent
amounts due from peasant associations, cooperatives, individuals, private organizations
and others.
May 2007 Page 182

3 Payables 20X2 20X1
Accounts Payable
Payables within Government
Direct advances
Treasury bills
Deposits
Retentions ___________ ______
Accounts payables represent grace period payables, sundry creditors, pension

contributions payable, salary payable and other payroll deductions. Payables within
government represent amounts due to government entities and staff. Deposits represent
customs, court, hospital bid bond, VAT and other deposits.
4 Tax Revenues
Tax revenues are legally mandated payments to government. Tax revenues represent taxes
on income, profits and capital gains, value added tax and sales turnover tax on domestically
manufactured goods and services, excise tax and foreign trade taxes which include excise
tax, value added tax, customs and export duties. The breakdown of tax revenues by revenue
item is provided in the statement of comparison of budget and actual amounts – domestic
revenue.
5 Non Tax Revenues
Non-tax revenues represent administrative fees and charges, sales of goods and services and
miscellaneous revenues. The breakdown of non tax revenues by revenue item is provided in
the statement of comparison of budget and actual amounts – domestic revenue.
May 2007 Page 183

6 Subsidies
Subsidy revenue represents treasury funds received by regions from the federal government
to execute their recurrent and capital budgets and subsidy expense represents treasury
funds transferred by the federal government to regions to execute their recurrent and capital
budgets.
7 Municipality Revenues
Municipality revenue represents different types of municipal taxes, municipal rents and
service charges and sale of goods and municipal services.
8 Other Revenues
Other revenue represents government investment income including dividend income,

residual surplus and capital charges. The breakdown of other revenues by revenue item is
provided in the statement of comparison of budget and actual amounts – domestic revenue.
9 Personnel Services
Personnel services represent government pension contributions made to pension funds and
salaries, wages, allowances/benefits paid to permanent, contracted, externally contracted
and casual staff. The breakdown of personnel services by expense item is provided in the
statement of comparison of budget and actual amounts – expenditure.
10 Goods and Services
Goods and services represent expenditure incurred on goods and supplies, traveling,
maintenance and repairs, training, stocks of emergency and strategic goods and contracted
services. The breakdown of goods and services by expense item is provided in the statement
of comparison of budget and actual amounts – expenditure.
May 2007 Page 184

11 Fixed Assets and Construction
Fixed assets and construction represent expenditure incurred in the acquisition of fixed
assets and the pre-construction and construction of buildings and infrastructure. The
breakdown of fixed assets by expense item is provided in the statement of comparison of
budget and actual amounts – expenditure.
12 Other Expenses
Other expenses include contingency and miscellaneous payments, compensation to

individuals and institutions, government investments, grants to institutions, and
contributions to international organizations. The breakdown of other expenses by expense
item is provided in the statement of comparison of budget and actual amounts –
expenditure.
13 External Assistance
External assistance represents the amounts contributed by donors as grants and are
recognized as revenue on receipt of funds. The breakdown of external assistance by donor is
provided in the statement of comparison of budget and actual amounts – external assistance.
14 External Loans
External loans represent amounts received from external lenders as loans during the fiscal
year and are recognized as revenue on receipt of funds directly or payments to suppliers on
behalf of the government. The breakdown of external loans by lenders is provided in the
statement of comparison of budget and actual amounts –external loans.
15 Capital Revenues
Capital revenue represents proceeds from the privatization of state owned enterprises, sale
of fixed assets, stocks and intangible assets and amounts received from non-governmental
sources for capital purposes. The breakdown of capital revenues by item of revenue is
provided in the statement of comparison of budget and actual amounts – domestic revenue.
May 2007 Page 185

16 Debt Repayments
Debt repayments to domestic and external lenders represent the principal amounts repaid
during the year and are recognized as expenditure. The breakdown of debt repayments by
internal and external debt is provided in the statement of comparison of budget and actual
amounts – expenditure.
17 Finance Costs
Finance costs represent payments of bank charges and interest on external and domestic
debt.
18 Long Term Foreign Loans

20X2 20X1
At the beginning of the year 0 0

Additions 0 0
Amounts written off 0 0
Repayments 0 0
Exchange Differences 0 0
At the end of the year 0 0
The amounts falling due for repayment within the next 12 months amount to Birr …..
Details of the lenders, date of obtaining loan, amount due in foreign currency and the period
of repayment are detailed below:
Name of Lender Date of loan Amount Due Period
May 2007 Page 186

19 Long Term Domestic Loans

20X2 20X1
At the beginning of the year 0 0

Additions 0 0
Repayments 0 0
At the end of the year 0 0
Maturity Analysis
Due within 1 year 0 0
Due within 2 to 5 years 0 0
Due after more than 5 years 0 0
The loans represent long term bonds issued.
20 Comparison of Budget and Actual Amounts – Domestic Revenue
The causes for material differences between the actual amounts and the budget amounts are
detailed below by item of revenue:
21 Comparison of Budget and Actual Amounts – Expenditure
The causes for material differences between the actual amounts and the budget amounts are
detailed below by item of expenditure:
22 Contingent Liabilities
A list of contingent liabilities, explaining its type, nature and circumstances should be
provided together with a reliable estimate of the probable amount.
23 Other Notes
Any other notes and disclosures that MOFED may decide to include as part of the financial
statements.
May 2007 Page 187

Accounting Policies
The principal accounting policies of the Government, which are set out below, have been
applied consistently throughout the period.
BASIS OF ACCOUNTING
The financial statements have been prepared on the historical cost basis using a modified cash
basis of accounting that recognizes the following non-cash transactions:
 Revenue is recognized when:
o Aid in kind is received.

o Payroll is processed (income tax and employee fines)
o Salary advance is made to an employee (interest on salary advances)
o Withholding tax is deducted from the amount due to a supplier
 Expenditure is recognized when:
o Payroll is processed (salary and pension expenses)

o Aid in kind is received
o Goods are received or services are rendered
o At the end of the year, a grace period payable is accounted for.
 Intergovernmental transfers are recognized without actual cash movement
 Amounts borrowed using treasury bills and direct advances from the National Bank
of Ethiopia are recognized as current liabilities
REVENUE
Revenues are recognized on receipt of amounts except as stated above.

FINANCE COSTS
Finance costs are recognized as an expense in the period in which they are paid.
May 2007 Page 188

Accounting Policies
TRANSLATION OF FOREIGN CURRENCIES
Transactions denominated in foreign currencies are translated into Ethiopian Birr at the rates
of exchange ruling at the date of the transaction.
Cash and bank balances that are denominated in foreign currencies are translated at the
rates of exchange ruling at the year end and the exchange gains/loss arising from such
translation are recognized as revenue/expenditure respectively.
CONSOLIDATION
The accounts of controlled entities are not consolidated– for example Ethiopian Airlines and
Ethiopian Telecommunications Corporation.
May 2007 Page 189

Statement of Comparison of Budget and Actual Amounts - Domestic Revenue
for the year ended 7 July 20X2
Ethiopian Birr '000
20X2 20X1
Budget Actual Variance Budget Actual Variance
OPERATING REVENUE
Tax revenues
Tax on income, profit and capital gains
Value Added Tax on goods & services
Excise Tax
Sales turnover tax on goods & services
Stamp sales and duty
Customs Duty on imported goods
Excise Tax on imported goods
Value Added Tax on imported goods
Export Duties
Timber Tax
Municipality Tax revenue
Total tax revenues
Non-tax revenues
Administrative fees and charges
Sales of public goods and services
Miscellaneous revenue
Municipality revenues
Total non-tax revenues
Subsidies
External assistance
External loans
Total operating revenues
May 2007 Page 190

Statement of Comparison of Budget and Actual Amounts - Domestic Revenue
Ethiopian Birr '000
20X2 20X1
Other revenues
Government investment income
Dividend income
Residual surplus
Interest income and capital charges
Total government investment income
Contribution to pension funds
Capital revenue
Sale of properties, stock and intangible assets
Privatization proceeds
Capital transfers from non-governmental sources
Collection of principal from on-lending

Municipality capital and investment revenue
Total capital revenues
Total other revenues
TOTAL REVENUE
May 2007 Page 191

Statement of Comparison of Budget and Actual Amounts - External Assistance

Ethiopian Birr '000

20X2 20X1
Adjusted Adjusted
External Assistance
List of donors
0 0 0 0 0 0

Total 0 0 0 0 0 0

May 2007 Page 192

Statement of Comparison of Budget and Actual Amounts - External Loan

Ethiopian Birr '000

20X2 20X1
Adjusted Adjusted
External Loan
List of lenders
0 0 0 0 0 0

Total External Loan 0 0 0 0 0 0

May 2007 Page 193

Statement of Comparison of Budget and Actual Amounts - Expenditure
Ethiopian Birr '000
20X2 20X1
Adjusted Adjusted
PERSONNEL SERVICES Budget Actual Difference Budget Actual Difference
Emoluments
Salaries to permanent staff 0 0 0 0 0 0
Salaries to military staff 0 0 0 0 0 0
Wages to contract staff 0 0 0 0 0 0
Wages to casual staff 0 0 0 0 0 0
Wages to external contract staff 0 0 0 0 0 0
Miscellaneous payments to staff 0 0 0 0 0 0
Total 0 0 0 0 0 0
Allowances/benefits
Allowances to permanent staff 0 0 0 0 0 0
Allowances to military staff 0 0 0 0 0 0
Allowances to contract staff 0 0 0 0 0 0
Allowances to external contract staff 0 0 0 0 0 0
Total 0 0 0 0 0 0
Pension contributions
Cont to permanent staff pensions 0 0 0 0 0 0
Cont to military staff pensions 0 0 0 0 0 0
Total 0 0 0 0 0 0
TOTAL PERSONNEL SERVICES 0 0 0 0 0 0
GOODS AND SERVICES
Goods and supplies
Uniforms, clothing, bedding 0 0 0 0 0 0
Office supplies 0 0 0 0 0 0
Printing 0 0 0 0 0 0
Medical supplies 0 0 0 0 0 0
Educational supplies 0 0 0 0 0 0
Food 0 0 0 0 0 0
May 2007 Page 194

Statement of Comparison of Budget and Actual Amounts - Expenditure
Ethiopian Birr '000 20X2 20X1
Adjusted Adjusted
Budget Actual Difference Budget Actual Difference
Fuel and lubricants 0 0 0 0 0 0
Other material and supplies 0 0 0 0 0 0
Miscellaneous equipment 0 0 0 0 0 0
Agriculture, forestry & marine inputs 0 0 0 0 0 0
Veterinary supplies and drugs 0 0 0 0 0 0
Research and development supplies 0 0 0 0 0 0
Ammunition and ordinance 0 0 0 0 0 0

Total 0 0 0 0 0 0
Traveling & official entertainment
Per diem 0 0 0 0 0 0
Transport fees 0 0 0 0 0 0
Official entertainment 0 0 0 0 0 0
Total 0 0 0 0 0 0
Maintenance and repair services:
Vehicles and other transport 0 0 0 0 0 0
Aircraft and boats 0 0 0 0 0 0
Plant, machinery, and equipment 0 0 0 0 0 0
Buildings, furniture and fixtures 0 0 0 0 0 0
Infrastructure 0 0 0 0 0 0
Military equipment 0 0 0 0 0 0
Total 0 0 0 0 0 0
May 2007 Page 195

Statement of Comparison of Budget and Actual Amounts - Expenditure(Cont'd)
Ethiopian Birr '000
20X2 20X1
Adjusted Adjusted
Contracted services Budget Actual Difference Budget Actual Difference
Contracted professional services 0 0 0 0 0 0
Rent 0 0 0 0 0 0
Advertising 0 0 0 0 0 0
Insurance 0 0 0 0 0 0
Freight 0 0 0 0 0 0
Fees and charges 0 0 0 0 0 0
Electricity charges 0 0 0 0 0 0
Telecommunication charges 0 0 0 0 0 0
Water and other utilities 0 0 0 0 0 0
Total contracted services 0 0 0 0 0 0
Training services
Local training 0 0 0 0 0 0
External training 0 0 0 0 0 0
Total training services 0 0 0 0 0 0
Emergency & strategic goods
Stocks of food 0 0 0 0 0 0
Stocks of fuel 0 0 0 0 0 0
Other stocks 0 0 0 0 0 0

Total stocks 0 0 0 0 0 0
TOTAL GOODS AND SERVICES 0 0 0 0 0 0
May 2007 Page 196

Statement of Comparison of Budget and Actual Amounts - Expenditure(Cont'd)
Ethiopian Birr '000
20X2 20X1
Adjusted Adjusted
Fixed Assets And Construction Budget Actual Difference Budget Actual Difference
Purchase of Fixed Assets
Vehicles & other vehicular transport 0 0 0 0 0 0
Aircraft, boats, etc. 0 0 0 0 0 0
Plant, machinery and equipment 0 0 0 0 0 0
Buildings, furnishings and fixtures 0 0 0 0 0 0
Livestock and transport animals 0 0 0 0 0 0
Military equipment 0 0 0 0 0 0

Total 0 0 0 0 0 0
Construction
Pre-construction activities 0 0 0 0 0 0
Construction of buildings-residential 0 0 0 0 0 0
Const. of building-non-residential 0 0 0 0 0 0
Construction of infrastructure 0 0 0 0 0 0
Construction for military purposes 0 0 0 0 0 0
Total 0 0 0 0 0 0
Total Fixed Assets & Construction 0 0 0 0 0 0
SUBSIDIES 0 0 0 0 0 0
FINANCE COSTS
Interest & bank charges – ext. debt 0 0 0 0 0 0
Interest & bank charges – dom. debt 0 0 0 0 0 0

TOTAL 0 0 0 0 0 0
May 2007 Page 197

Statement of Comparison of Budget and Actual Amounts - Expenditure (Cont'd)
Ethiopian Birr '000
20X2 20X1
Adjusted Adjusted
OTHER EXPENSES Budget Actual Difference Budget Actual Difference
Principal debt payments
Payment – principal of external debt 0 0 0 0 0 0
Payment - principal of domestic debt 0 0 0 0 0 0
Total 0 0 0 0 0 0
Pension payments
Pension payment to permanent staff 0 0 0 0 0 0
Pension payment to military staff 0 0 0 0 0 0
Total 0 0 0 0 0 0
Grants & Cont. to institutions 0 0 0 0 0 0
Government investment 0 0 0 0 0 0
Cont. to international organizations 0 0 0 0 0 0
Contingency 0 0 0 0 0 0
Comp. to individuals and institutions 0 0 0 0 0 0
Grants and gratuities to individuals 0 0 0 0 0 0
Contributions to sinking funds 0 0 0 0 0 0
Miscellaneous payments 0 0 0 0 0 0
Total Other Expenses 0 0 0 0 0 0
TOTAL EXPENSES 0 0 0 0 0 0
May 2007 Page 198

Comparison of Original and Adjusted and Actual Amounts
Ethiopian Birr '000

Original Adjusted
Variance Actual Variance
Budget Budget
6100 PERSONNEL SERVICES

6110 Emoluments
6120 Allowances/benefits
6130 Pension contribution
6200 GOODS AND SERVICES
6210 Goods and supplies

Traveling and official entertainment
6230
services

6240 Maintenance services
6250 Contracted services
6270 Training services

Stocks of emergency and strategic
6280
goods
FIXED ASSETS AND
6300
CONSTRUCTION
6310 Fixed assets
6320 Construction
6400 OTHER PAYMENTS
6410 Subsidies, investments and payments
6000 TOTAL
May 2007 Page 199

Statement of Expenditure by Functional Classification
Ethiopian Birr '000
Administration & General Services Economic Services Social Services Others

Total
100 200 300 400
Code Category and Sub-Category
Adjusted Adjusted Adjusted Adjusted

Actual Variance Actual Variance Actual Variance Actual Variance Budget Actual Variance
Budget Budget Budget Budget
6100 PERSONNEL SERVICES

6110 Emoluments

6120 Allowances/Benefits

6130 Pension Contributions

6200 GOODS AND SERVICES

6210-20 Goods and Supplies

6230 Travel & Entertainment

6240 Maintenance & Repair

6250 Contracted Services

6270 Training Services

Stocks of Emergency &
6280
Strategic Goods
May 2007 Page 199

Administration & General Services Economic Services Social Services Others

Total
100 200 300 400
Code Category and Sub-Category
Adjusted Adjusted Adjusted Adjusted

Actual Variance Actual Variance Actual Variance Actual Variance Budget Actual Variance
Budget Budget Budget Budget
FIXED ASSETS &

6300
CONSTRUCTION
6310 Fixed Assets

6320 Construction

6400 OTHER PAYMENTS
6410 Subsidies, inv. & payments

TOTAL
May 2007 Page 200

Summary Statement of Domestic and External Revenues
ITEM OF REVENUE
A. ORDINARY REVENUE
Direct Tax
Indirect Tax
Taxes on Foreign Trade
Government Investment Income
Other Revenue
Total Ordinary Revenue
B. EXTERNAL ASSISTANCE
Counter Part Fund Grants
Technical Assistance
Total External Assistance
C. CAPITAL REVENUE
Domestic Sources
Counter Part Fund Credit
External Loan
Total Capital Revenue
D. DOMESTIC BORROWING
GRAND TOTAL
May 2007 Page 201

Summary Statement of Expenditure
Particulars Recurrent Expenditure Capital Expenditure Subsidies Total
Administrative & General Service: 100 series
Organs of State
Justice and Security
National Defense
General Services
Others:
Economic Services: 200 series

Agriculture & Rural Development
Water Resources
Trade and Industry
Mines and Energy
Transport and Communication
Construction
Others:
Social Services: 300 series

Education
Information and Communication
Culture and Sport
Health
Labor and Social Affairs
Prevention and Rehabilitation
Others:
Other Expenditures: 400 series

Transfers
Subsidies to regions
Debt
Contingencies and Bank Charges
Miscellaneous
Others:
Grand Total
May 2007 Page 202

Summary Statement of Expenditure and its Financing
1. EXPENDITURE
A. Recurrent Expenditure
Administrative and General Service
Economic Service
Social Service
Other Service
Total Recurrent Expenditure
B. Capital Expenditure
Economic Development
Social Development
General Development
Other Development
Total Capital Expenditure
C. Subsidy to Regions
Total Expenditure
2. FINANCING
A. Domestic Revenue:
Tax Revenue
Non Tax Revenue
Total Domestic Revenue
B. External Assistance:
Counter Part Fund Assistance
Technical Assistance
Total External Assistance
C. Borrowings:
External Loan & Credit
Counter Part Fund Credit
Project Loan
External Loan Total
Domestic Loan
Direct Advance N.B.E.
Treasury Bills
Deposit & Other Account Balances
Net Domestic Loan & Other Deposit Accounts
Grace Period Credits
Total Borrowing
Total Financing
May 2007 Page 203

Manual 3 - Federal Accounting System Chapter 12. Financial Statements

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Manual 3 - Federal Accounting System Chapter 12. Financial Statements

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Manual 3 – Federal Accounting System

Chapter 12. Financial Statements

CHAPTER 12: FINANCIAL STATEMENTS

 A set of federal-level financial statements that includes:

 A set of countrywide financial statements that includes:

May 2007 Page 176

Statement of Financial Position

Ethiopian Birr '000

May 2007 Page 177

Surplus/(deficit) from operating activities 0 0

NON OPERATING ACTIVITIES

Surplus/(deficit) from non operating activities 0 0

Surplus/(deficit) for the year 0 0

May 2007 Page 178

Statement of Changes in Net Assets/Equity

Ethiopian Birr '000

Balance at 7 July 20X1 0

Net surplus/(deficit) for the year 0

May 2007 Page 179

Net Cash Flow from Operating Activities 0 0

Net Cash Flow from Investing Activities 0 0

May 2007 Page 180

Debt repayments – external Total Payments (B) 0 0

Net Cash Flow from Financing Activities 0 0

4 NET INCREASE/(DECREASE) IN CASH &CASH EQUIVALENTS 0 0

5 Cash and Cash Equivalents at Beginning of Year 0 0

6 Net Increase/(Decrease) in Cash Equivalents During the Year 0 0

7 Cash and Cash Equivalents at End of Year 0 0

May 2007 Page 181

Notes to Financial Statements

Ethiopian Birr ‘000

1 Cash and Cash Equivalents 20X2 20X1

May 2007 Page 182

Accounting Policies and Notes to Financial Statements

Notes to Financial Statements

Ethiopian Birr ‘000

3 Payables 20X2 20X1

Accounts payables represent grace period payables, sundry creditors, pension

5 Non Tax Revenues

May 2007 Page 183

Notes to Financial Statements

Other revenue represents government investment income including dividend income,

10 Goods and Services

May 2007 Page 184

Notes to Financial Statements

11 Fixed Assets and Construction

Other expenses include contingency and miscellaneous payments, compensation to

May 2007 Page 185

Notes to Financial Statements

Ethiopian Birr ‘000

18 Long Term Foreign Loans

At the beginning of the year 0 0

Name of Lender Date of loan Amount Due Period

May 2007 Page 186

Notes to Financial Statements

Ethiopian Birr ‘000

19 Long Term Domestic Loans

At the beginning of the year 0 0

The loans represent long term bonds issued.

20 Comparison of Budget and Actual Amounts – Domestic Revenue

21 Comparison of Budget and Actual Amounts – Expenditure

May 2007 Page 187