PSAF – Nov 2016 – L2 – Q1b – International Public Sector Accounting Standard

Identify and disclose two significant accounting policies for the Consolidated Fund using the accrual basis for the first time.

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.