How to present budget information for the public sector in MPSAS 24

Multiple-choice questions: In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again

  1. What is the objective behind MPSAS 24 requiring public sector entities to present budget information in their annual financial statements?

  2. The presentation of budget information in the financial statements is applicable to which public sector entities?

  3. An approved budget under the MPSAS 24 context reflects the anticipated revenues or receipts expected to arise in the annual or multi-year budget period, based on current plans and the anticipated economic conditions during that budget period, and expenses or expenditures approved by a legislative body, being the legislature or other relevant authority. Which of the following is NOT a key feature of an approved budget as set out by MPSAS 24?

  4. Which of the following BEST sets of the requirement for the comparison of budget and actual amounts for each level of legislative oversight?

  5. Under MPSAS 24, a public sector entity is required to provide an explanation of changes between the original and final budget. How can this explanation be made?

  6. Which of the following are NOT common reasons for a public sector entity having an original and final budget?

  7. All comparisons of budget and actual amounts must be presented on a comparable basis to the budget. An entity presents the comparison as additional budget columns in the primary financial statements only where the financial statements and the budget are prepared on a comparable basis. This would entail that -

  8. If the financial statements and the budget were prepared on a comparable basis, additional columns can be added to the existing primary financial statements presented in accordance with MPSAS. What are the additional columns that are added to the existing primary financial statements?

  9. Where the financial statements and budget are not prepared on a comparable basis, the actual amounts presented on a comparable basis to the budget must be reconciled to the amounts presented in the financial statements. What must the reconciliation be made for?

  10. Differences between the actual amounts presented on a comparable basis to the budget and the amounts presented in the financial statements can arise from the following, EXCEPT -