a) Pambu PLC operates across retail, technology and hospitality industries in Ghana. The group consists of Pambu PLC and three (3) fully owned subsidiaries. Below are the group’s consolidated financial statements for the year ended 30 September 2025 (along with the comparative 2024 year):

Consolidated statement of profit or loss for the year ended 30 September

Abridged consolidated statement of financial position as at 30 September

           The following notes are important:

1. On 1 April 2025, Pambu PLC completed the purchase of a 100% equity interest in Ndaah LTD, a large supermarket, for GHS¢280 million. The consideration was financed with both share-exchange and cash from a specific-purpose long-term syndicated credit facility. The fair value of the share exchange component was GHS¢130 million. The acquired net assets of Ndaah LTD included a 3-year term loan of GHS¢90 million which had been arranged on 1 October 2024. The rates of interest on the syndicated and the term loans are 16% p.a. and 18% p.a. respectively. Ndaah LTD held no other interest-carrying debts up to 30 September 2025. During the current period, Ndaah LTD generated revenue of GHS¢210 million, operating profit of GHS¢32.2 million, profit (after 20% tax) of GHS¢12.8 million, and other comprehensive income of GHS¢2.6 million. All of these items should be considered to have occurred evenly throughout the year.
2. The following metrics, determined based on consolidated figures, are also relevant:

During the current year 2025, Ndaah LTD evenly emitted 58,000 carbon dioxide equivalent (CO₂e) and generated a total waste of 49,200 kg.

Required:

i) Recompute the following ratios for the year ended 30 September 2025 after excluding the effects of Ndaah LTD:

• Operating margin
• Return on capital employed
• Return on equity
• Debt/equity ratio

ii) As the Finance Officer of the group, write a report to the board to evaluate the financial and nonfinancial performance of Pambu PLC for the year ended 30 September 2025, relative to the comparative year, using the metrics in Note (2) and the computed ratios (in i above). Your analysis should clearly highlight how the acquisition of Ndaah LTD has affected Pambu PLC’s performance.

b) You are the newly appointed Group Financial Controller (GFC) of Koranteng Agro LTD (KAG), a rapidly growing agribusiness headquartered in Kumasi, Ghana, with subsidiaries across East Africa region. The company is preparing for a listing on the Ghana Stock Exchange and is close to securing a €30 million sustainability-linked loan from international lenders. To support both initiatives, the company is placing strong emphasis on its financial performance and ESG credentials, closely monitored by auditors, regulators and investors.

During the year-end reporting process, several issues arose that raise serious ethical and professional concerns under IFRS Accounting standards and the ICAG Code of Ethics and Conduct.

First, revenue from a major export contract has been recognized, even though the goods had not been shipped or cleared by customs at year-end. Under IFRS 15: Revenue from Contracts with Customers, this is premature.

Second, carbon emissions data has been understated to meet loan covenant targets and IFRS S2 disclosure requirements.

These metrics are key to both the loan conditions and IFRS S2 compliance. You are expected to approve the report despite knowing the data is inaccurate. When you raise your concerns, leadership downplays them as “unnecessary drama” and urges you to stay aligned “until the deal is done.” With the Audit Committee meeting approaching, you face a dilemma: stay silent, escalate, or step aside.

Required: Identify and briefly explain FOUR key ethical issues you are facing as the GFC at KAG, with reference to the fundamental ethical principles in the ICAG Code of Ethics and Conduct.