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PAR812S-PUBLIC SECTOR FINANCIAL ACCOUNTING AND REPORTING-1ST OPP-NOV 2025 |
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n Am I BI A u n IVE RS ITV
OF SCIEnCE Ano TECHnOLOGY
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT OF ECONOMICS, ACCOUNTING & FINANCE
QUALIFICATION: BACHELOR OF ACCOUNTING {HONOURS)
QUALIFICATION CODE: 08BOAH
COURSE CODE: PAR812S
LEVEL: 8
COURSE NAME: PUBLIC SECTOR FINANCIAL
ACCOUNTING & REPORTING
SESSION: NOVEMBER 2025
DURATION: 3 HOURS
PAPER: THEORY AND APPLICATION
MARKS: 100
FIRST OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINERS: Mr. Kuhepa Tjondu
MODERATOR: Mr. Emmanuel Milijala
INSTRUCTIONS
• This question paper is made up of THREE (3) questions.
• Answer All the questions and in blue or black ink.
• Show all your working in the answer sheet.
• Start each question on a new page in your answer booklet and show all your workings.
• Questions relating to this paper may be raised in the initial 30 minutes after the start of
the paper. Thereafter, candidates must use their initiative to deal with any perceived error
or ambiguities and any assumption made by the candidate should be clearly stated.
PERMISSIBLE MATERIALS
Non-programmable calculator/financial calculator
THIS QUESTION PAPER CONSISTS OF 6 PAGES {Including this front page)
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QUESTION 1
[25 MARKS]
A public sector entity purchases a site to be used for landfill waste disposal. The
purchase includes the land and bu ildings on the site. The public sector entity assumes
the liability to restore the site at the end of its useful life. No staff or processes are
transferred as a result of the purchase .
Required:
(a) Does the purchase of the landfill waste disposal site constitute a public sector
combination? Explain your reasoning .
(5 marks)
The territorial boundaries of two existing municipalities, A and B, are redrawn by
Parliament through legislation; neither Parliament nor Central Government controls A
or B. Responsibility for part of each municipality's former territory is transferred to a
new municipality, C. Operations in respect of the transferred territories are combined
to form C.
A and B remain otherwise unchanged and retain their governing bodies. A new
governing body (unrelated to the governing bodies of A and B) is elected for C to
manage the operations that are transferred from the other municipalities.
(b) Should this public sector combination above be classified as an amalgamation
or an acquisition?
(5 marks)
(c) List 10 Disclosures made in respect of the GGS in line with IPSAS 22, Disclosure
of Financial Information about the General Government Sector.
(10 marks)
(d) What are the conditions that must be satisfied for Revenue from the sale of
goods to be Recognised in line with IPSASs 9 Revenue from Exchange
Transactions?
(5 marks)
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QUESTION 2
[25 MARKS]
a) Discuss the objectives and scope of IPSAS 33 First-time Adoption of Accrual
Basis International Public Sector Accounting Standards (IPSASs).
(10 marks)
b) What are some of the advantages and arguments if favour of adopting accrual
basis IPSASs.
(5 mark)
c) What are the challenges that must be addressed when adopting IPSASs for
the first time?
(5 marks)
d) What are the Critical Success Factors when it comes to the implementation of
IPSASs?
(5 marks)
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QUESTION 3
The Trial Balance below relates to Tulela Teaching Hospital, a
public hospital. Trial Balance for the year ended 31
December, 2023
Debit
N$'000
Government subvention
Out-patient services fees
In-patient services fees
Development Partner grants (ii)
Established position salaries
62,000
Casual Labour
5,600
Contract appointment (local and foreign) 1,400
Limited engagements
200
Rent (iii)
5 500
0
0
Insurance
340
Consultancy services
120
Conferences, workshops and training
4,500
Purchase of drugs
60,000
Purchase of medical consumables
80,000
Office expenses
20,000
Repairs and maintenance
6,000
Interest on loan
10,000
Pharmacy sales
Diagnostic
Mortuary Services
Cafeteria and Canteen
Extension services
Furniture and office equipment (iv)
200,000
[50 MARKS]
Credit
N$'000
100,750
35,000
40,000
16,000
150
180,000
85,000
9,400
4,650
14,500
40,000
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Medical equipment & accessories (iv & v) 420,000
Motor vehicles (iv)
120,000
Land and buildings (iv)
300,000
Bank and Cash
30,000
Receivable from National Health
Insurance Scheme (vi)
65 ,000
Receivable from patients
15,000
Payables
Loan from foreign Institution (2028) (vii)
Inventory of drugs
22,000
Inventory of medical consumables
12,000
Accumulated Fund
Other expenses
13 ,000
1,447,660
120,000
20,000
70,000
26,000
350,000
336,210
1,447,660
Additional Information:
i) The hospital prepares its financial statements in accordance with the International
Public Sector Accounting Standards (IPSAS), the Public Financial Management Act
and the current Chart of Accounts of the Government of Namibia.
ii) The Development Partner grants received from the Health Care Fund, an
international organisation that provides free medical care to the rural poor and
vulnerable individuals, are typically unconditional. However, 40% of this year's grant
is subject to certain conditions, which had not been met as at December 31, 2023.
iii) Rent received in advance during the year amounted to N$20,000 while rent owed
by the hospital for the year amounts to N$300,000.
iv) The hospital charges consumption of fixed assets on straight line basis as follows
Non-current Assets
Furniture and office equipment
Medical equipment and accessories
Motor vehicles
Buildings
Estimated Useful Life
5 years
4 years
5 years
10 years
Land constitute 30% of the amount of land and building shown in the trial balance.
v) A medical equipment valued at N$20,000,000 which is included in the medical
equipment and accessories listed on the trial balance, was completely damaged due
to consistent power fluctuations . The value of this equipment should be written off.
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vi) The hospital submitted a claim of N$11,000,000 to the National Health Insurance
Scheme for services provided to patients in the last quarter of 2023, but the payment
has not yet been received . This transaction has not yet been reflected in the trial
balance.
vii) The hospital took a loan of $100,000,000 from Health World Bank on January 1,
2023 when the exchange rate was $1 to N$3.50. The exchange rate at 31 December
2023 is $1 to N$5.
viii) The inventories at 31 December 2023 were as follows:
Inventory type
DruQs
Medical
consumables
Cost
N$'000
15,000
10,000
Net Realisable
Value
N$'000
16,000
11,000
Current
Replacement
N$'000
14,000
9,000
Required:
Prepare the following financial statements for for Tulela Teaching Hospital:
a) Statement of Financial Performance for the year ended 31 December 2023.
(30 marks)
b) Statement of Financial Position as at 31 December 2023.
(20 marks)
(Show all your workings; marks will be awarded for all the necessary
workings!!!)
THE END
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