Guys please abeg you to drop your ideas on this public sector accounting question dealing with accounting issues of interest, Glory be to God

email :kijanicity15@gmail.com

Required: Identify any accounting issues of interest and explain how the district council should handle them.

The Bongo Market project has taken off. The Council has entered into agreement with several businessmen who wiil build shops along the perimeter of the market. Title to the structures will belong to the council but the businessmen will occupy the structures free of charge for the next 10 years. The useful life of the structures is estimated to be 20 years.

Bongo District Council has a 60% equity interest in Bongo Development Corporation. The district council has not prepared any consolidated financial statements on the grounds that IPSASs do not currently include a standard on Combinations, and in any case, the Development corporation is a business enterprise whose activities are so dissimilar to those of the council that consolidating the Corporation would result in financial statements that are misleading.

It has come to the councilors’ attention that while Bongo District Council uses accrual IPSASs, ministries use the cash-basis IPSAS. The councilors are wondering whether there are any benefits to be obtained from using an accrual basis system as opposed to a cash basis system.
The councilors have suggested a change in the dates that appear on their published financial statements. “We should be signing these financial statements after they have been audited, otherwise we are authorizing the issue of unaudited reports", argues Mr Zakaria, a very vocal councilor. Hamisi, the council chairman concurs.

Although the District Commissioner's wife has a controlling interest in Furaha Supplier's Ltd, the company that supplies stationery to the District Council, this is not disclosed anywhere in the Council's financial statements on the grounds that Furaha Supplier's Ltd has its own separate legal existence. Bongo District Council's most recent financial statements, prepared under accrual basis IPSASs, proudly and prominently state that there were no related-party transactions during the accounting period.

Furaha Suppliers Ltd is one of the companies advertising their wares on Bongo District Council's website. Prominent adverts have been placed on the page where the district council publishes its annual budget.

A few years ago, Bongo District Council opened a waste disposal plant. The central machinery required, on installation, drilling a deep and relatively wide hole in the ground. According to national legislation, plants of this nature must be re-located after 10 years, at which time the operating entity must fill the hole it drilled on installation.

The District council nas started a natcnery project so as to encourage investment in puultryy and to ensure the steady supply of one-day old chicks. The council has also started a project known as Bongo afforestation project. So far 60,000 trees have been planted. This project is near Lake Bongo, a natural lake that is endowed with a lot of fish.

Being a progressive district, the council has constructed impressive roads and .bridges. The district has its share of history and is well-known for its well-preserved ancient cave-pictures. The cave-pictures are protected by the district council.

I he council's road-side hotel has lost many of its customers because the new main road through the district by-passes the hotel.

If yhu ask me na who I go ask..... Just wanted my own fp tinz gud luck finding answers

Bolsnow:
If yhu ask me na who I go ask..... Just wanted my own fp tinz gud luck finding answers

Study IFRIC 18 and IFRS 15. Transfer of asset from customer. IFRIC 18 will give a clearer picture. Then we can discuss.
Thank you.