- 2 Marks
Question
Disclose any TWO significant accounting policies as part of the notes to your accounts, as much as the information provided will permit.
Answer
Notes on Accounting Policy include:
i) Basis of Accounting
The accounts are prepared on an accrual basis for the first time.
ii) Consumption of Fixed Capital/Depreciation Policy
Depreciation is charged on non-financial assets acquired during the year. Infrastructure is depreciated at 5% per annum on cost, and other PPEs (Property, Plant, and Equipment) are depreciated at 10% per annum on cost.
iii) Accounts are prepared in compliance with the IPSAS and the Financial Laws of the country.
- Topic: International public sector accounting standards
- Series: NOV 2016
- Uploader: Cheoli