The following Trial Balance is the financial details of Nsuta-Appiah Krom Municipal Assembly for the year ended 31 December 2021.

Additional Information:

1. It is the policy of the Assembly to adopt Accrual Basis in preparing its Financial Statements in compliance with Public Financial Management Act, 2016 (Act 921), Public Financial Management Regulation 2019 L.I 2378 and the International Public Sector Accounting Standards (IPSAS) and Local Governance Act 2016, (Act 936).
2. Office consumables in respect of stationery and other items bought for GH¢1,800,000 remained unused during the year. The current replacement cost of the inventories is GH¢1,550,000. Meanwhile, the net realizable value of the inventories is estimated at GH¢1,400,000. No market exists for unused office consumables and other items.
3. Property Rates received in respect of the 2022 financial year amounted to GH¢2,050,000.
4. Salaries outstanding during the year amounted to GH¢750,000, and other expenses amounting to GH¢1,105,000 paid in respect of the 2022 financial year.
5. Consumption of fixed assets is charged on a straight-line basis for the year as follows:
   • Motor vehicles: 10 years
   • Furniture, Fixtures & Fittings: 5 years
   • Building and Structures: 50 years
6. Included in the Work in Progress is an amount of GH¢2,000,000 relating to a Building that was completed, commissioned, and put to use on 5 July 2021, after an additional amount of GH¢800,000 was spent to complete the pavement aspect of the building. This expenditure has not yet been paid.
7. Interest on Loans to staff is at the rate of 15% per annum and interest on long-term Loans is at the rate of 10% per annum.

Required:

a) Prepare a Statement of Financial Performance for Nsuta-Appiah Krom Municipal Assembly for the year ended 31 December 2021.
(9 marks)

b) Prepare a Statement of Financial Position for Nsuta-Appiah Krom Municipal Assembly as at 31 December 2021.
(9 marks)

c) State TWO (2) Accounting Policies adopted and applied in preparing the financial statements.
(2 marks)