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- 20 Marks
Question
(a) What is International Financial Reporting Standard (IFRS) foundation? Mention two (2) objectives of the foundation. (5 marks)
(b) The following information relates to “God will Provide” Youth Club for the accounting period of 2014.
- Subscription owing for 2014: GH¢40,000
- Payable for End of Year Party: GH¢1,500
- Payables for Repairs – Equipment: GH¢1,000
- Payables for Repairs – Vehicle: GH¢2,000
Payments:
- Vehicle running Expenses: GH¢6,000
- Electricity Expenses: GH¢3,000
- End of Year Party Expenses: GH¢10,000
- Salaries and Wages: GH¢25,000
- Printing and Stationery: GH¢3,000
- Cleaning Expenses: GH¢6,000
Receipts:
- Car Park Renting: GH¢10,000
- Sales of Party Tickets: GH¢6,000
- Donation from friends of the club: GH¢15,000
Subscription Received:
- 2013: GH¢6,000
- 2014: GH¢30,000
Additional Information:
i. Cash in hand as at 01/01/14: GH¢18,000
ii. Subscription owing as at 01/01/14: GH¢8,000
iii. Any subscription outstanding is written off in the following year if it is not paid.
You are required to prepare:
i. Receipts and Payments Account for the year ended 31st December, 2014 (5 marks)
ii. Subscription Account (3 marks)
iii. Income and Expenditure for the year ended 31st December, 2014 (7 marks)
Answer
(a) IFRS foundation is a non-profit making Private Sector body that oversees the International Accounting Standards Board (IASB) activities.
The Objectives are:
- Develop a single set of high-quality, understandable, enforceable, and globally accepted standards.
- Promote the use and rigorous application of those standards.
- Take account of the financial reporting needs of emerging economies and small and medium-sized entities.
- Bring about convergence of national accounting standards and IFRS(s) to high-quality solutions.
(b)i. God will Provide Youth Club
Receipts and Payments for the year ended 31st December, 2014
ii. Subscription Account for the year ended 31st December 2014
iii. God will Provide Youth Club
Income and Expenditure Account for the year ended 31st December, 2014
- Tags: Accounting Statements, Financial Reporting, IFRS Foundation, Not-for-profit, Objectives
- Level: Level 1
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