@ The University of the South Pacific School of Accounting, Finance & Economics F307 ~ PUBLIC SECTOR ACCOUNTING MID-SEMESTER EXAMINATION SEMESTER 01/2021 Date: WEDNESDAY 28 APRIL. 2021 Course Name: PUBLIC SECTOR ACCOUNTING. ‘Time alowed: TWO (2) HOURS PLUS 10 MINUTES READING TIME ‘Types of Question: CASE STUDY ANALYSIS (3) Instructions ‘Question | — Marks 1, Attempt ALL questions. Cae [| 2 This test has total mark of 100 and carries & 25% ra ‘weighting towards your overall couse gride. Analysis 3. Questions must be answered on the separate answer booklet provided. Also, answers for mew questions tobe aT 30 ‘wten on new page aa 70) 4. Handwriting must be legible. Ad B05, Usebie or black pen only : 6, This ie a closed book examination, You are NOT permited to access any books, notes ot other writen materials Total 7100] 7. Non-programmable and aon-textretivalcleulators may eusedSECTION A - SHORT ANSWERS (QUESTION ONE (30 marks) (use approx. 40 minutes) (CapeX Limited specialises in selling building materials and household furniture. The company’s financial year ends on the 3" March 2021, PKMG is currently conducting financial audit which willend on 23 April 2021. Last weekend, CapeX Limitel hosted its ‘nancial yearend party and invited PKMG tothe party. Both the company and their auditing firm enjoyed the party. Required 4) Do you think PKMG displayed independence when accepting the invitation? (10 marks) b) Identity and explain some ethical issues that may arise in his sitwation (20 mark). "Note: Support your views with at leas five (5) ethical issues,QUESTION TWO (40 marks) (use approx. 40 minutes) ‘You were following two persons, «police officer and an accounts clerk in a government department, They were discussing isues in relation to their work. The police aier sid he booked John Doe for incorect parking andthe fine pid is an example of an exchange transteton, The accounts clerk agreed withthe officer and sad, “the fine willbe recorded by government using IPSAS.” ‘The two also discussed the vaccine below but were confused on how government will ecord the vaccine inthe financial statements sinc iis important tht government should comply ‘with an IPSAS standard Required Describe the following: 4) “the difference between exchange and non-exchange transactions (10 marks) 1) Atleast ive (5) important things user of financial reports prepared in acccrdance with IPSAS wil gain? (15 marks), ©), How should the Fiji Government record in thei financial statements the Covid-19 ‘vaccine donated by the European Union? (25 marks) "Note: Use examples to support your answers.QUESTION THREE (30 marks) ‘approx. 40 minutes) Refer tothe attached financial statement and answer the following questions Required i. Cash and Cosh Eguivaeuts ae apestat fox any yoveniticnl Du you agree oF disagree. Provide examples to support your views. (Z0 marks) li, Whatdo you understand when reading Note 14 of the atached financial statement? (0 marks) ‘Note: Seudents should use the below financial statement including the Notes te Financial Statements to support their views iil, Asa taxpayer, why do you need information about cash receipt, cash payments and ‘ash balances? (J0 marks)GOVERNMENT OF THE REPUBLIC OF Fist ‘Sehetile3 ‘STATEMENT OF ASSETS AND LIABILITIES asargusuuygoy Notes Sgat2017 ‘3 su 2016 (22 month) 7 meats) o restated ASSETS Curren Asset (ac and cash equivalent 298,735181 1496898, ‘AccomtsReelable 15 4064s eRe Prepayments 6 lapavt 1700879 levetoey 0 sata 3sn1 3m “Total Careat Ase 709.305336 wresan, Current Ass “Term LoansRecsvable ie ‘asians 97303509, ity nvesoens| io a3 800 530332 ‘Total Non Current Asels 52270986 2.808131 SOXAL ABGETS. ae, ‘LADILATIES Current Linbltes ‘Accounts Paibe 20 ospigass looses. Defered Income 2 515 009 35000 ‘Trt ad cent 2 1979489 13309.585 ‘Tem LounPajble-Trasuy ils 234) 94,804305 13,344.70 ‘Tem Loats Payable Overseas Loans 230) 56530305, SasTaaus Ter Lous Pyabie-DomesteLoess—23(0) c0729000 53,685,000 “otal Curren Listes 9 STS SH Bera ‘Non Current Liabites TencrloanaPeableOvesesLears 20) rstiasopds 1 205,753,948 ‘Temoans PryabieDomestc Loans 2M) _3044 033 346 2390201613, ‘Total Now Curent Lables 4355363304 4185961562 TOTAL LIABILITIES 496460915 Peer equity 36 (9.386060) (3.599.484240, “The aceompanyng ote form an intra at ofthese fia Miisey of Beoomy : ¥ Si, Fi Ms Mnkefeta Konrote Dulel Ofte met of Aaja 2019 Permanent Seurtary fo Minty of Economy‘GOVERNONaCT OF THE REPUBLIC OF FUE [NOTIS TO AND FORMING PARTS OF OTHER FINANCIAL STATEMENTS fae.) 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