GOVERNMENT ACCOUNTING REVIEWER FUND CLUSTERS:

(FROM: Punzalan & GAM –Receipts and Disbursements) 1. Regular agency fund
2. Special accounts – locally funded/ domestic grants fund
CHAPTER 1 3. Special accounts – foreign assisted/ foreign grants fund
General Provisions, Basic Standards and Policies 4. Foreign assisted projects fund
5. Internally generated funds
INTOSAI IPSASB 6. Business related funds
7. Trust receipts
COA RES. NO. 2008-12
COA PSASB dtd. 10-12-08 RESPONSIBILITY ACCOUNTING system that relates financial
results to a responsibility center, which provides access to cost
NGAs and revenue information under the supervision of manager
GAM PPSAS LGUs having direct responsibility for its performance
RESPONSIBBILITY ACCOUNTING AIMS TO:
GOCCs not GBE 1. Ensure that all cost and revenues are properly
Standard
COA RES. NO. 2014- charged/ credited to the correct responsibility center
s
Reports 003 dtd. 1-24-14 2. Provide a basis for making decisions for future
COA CIRC. NO. 2013- operations
RCA 3. Facilitate review activities, monitoring performance of
002 dtd. 1-30-13
Government Accounting Manual each responsibility center and evaluation of
-Represents basic accounting policies in accordance with effectiveness of agency’s operations
PPSAS
-shall be used in National Government Agencies Responsibility Center – past of a govt agency headed by a
manager who is accountable
Government Accounting (ARCSC) PD 1445 Sec 109
-Analyzing, Recording, Classifying, Summarizing and CHAPTER 2
Communicating and transactions involving the receipt and Unified Accounts Code Structure (UACS)
distribution of government fund and property and interpreting UACS is a government wide harmonized budgetary, treasury
the results thereof. and accounting code classification that will facilitate reporting of
all financial transactions of gov’t agencies.
OBJECTIVES OF GOVERNMENT ACCOUNTING The key purpose is timely and accurate reporting of actual
1. Information concerning past operations and present revenue collections and expenditures against budgeted
conditions programmed revenues and expenditures.
2. basis for guidance of future operation
3. controls acts of public bodies Five Key Elemets – FOLMO 8 12 9 15 10
4. Reports financial position and results of operations 1. Funding Source (FFAF 2123)
a. Fund cluster 2
PPSAS Numbering b. Financial source 1
1. Numbering is same with IPSAS c. Authorizations code 2
2. Start with 101 pag gumawa ng bago na wala sa IPSAS d. Fund Category 3
2. Organization Code (DAOL 2325)
ACCOUNTING RESPONISIBILITY (UACS) a. Department code 2
1. COA Consistency of accounts classification and b. Agency code 3
coding structures with the revised chart of accounts c. Operating unit classification 2
2. DBM Validation and assignment of new codes for d. Lower level operating unit 5
funding source organization, sub object codes for 3. Location code (RPMB 2223)
expenditure items a. Regional 2
3. BTr Consistency of accounts classification with b. Provincial 2
government finance statistics c. Municipal 2
4. DOF d. Barangay 3
4. MFO/PAP (SPPAA 51225)
GOVERNMENT BUSINESS ENTERPRISE a. Sector outcomes 5
1. Power to contract its own name b. Program/project 1
2. Financial and operating authority c. Project category 2
3. Sale of goods/ services for profit d. Project sub category 2
4. Not reliant on continuing govt funds e. Project title 5
5. Controlled by public sector entity 5. Object code (RS 82)
a. RCA 8
REGISTRIES: b. Sub object code 2
1. Registry of Revenue and Other Receipts
2. Registry of Appropriation and Allotments General Funds are funds available for any purpose
3. Registry of Allotments, Obligations and Disbursement Off Budgetary Funds receipt of items that are not part of the
4. Registry of Budget, Utilization and Disbursements national expenditure program
5. Registry of Allotments and Notice of Cash Allocation Custodial Funds receipt of cash received by any govt agency
6. Registry of Allotments and Notice of Transfer of to fulfil a specific purpose
Allocation New general appropriations annual authorization for incurring
obligations
FUND CLUSTER ACCOUNTING for recording revenues and Continuing appropriations authorizations to support
expenditures associated with a specific activity obligations for a specified purpose or project
Supplemental appropriations additional appropriations to
augment original appropriations that have been insufficient
Automatic appropriations are authorizations made annually or CHAPTER 3
for some other period prescribed by law Revised Chart of Accounts
Unprogrammed funds stand by appropriations for priority Complete set of Financial Statements:
programs or project of the government 1. Statement of Financial Position
Retained income funds collections that are authorized by law 2. Statement of Financial Performance
to be used directly by agencies for their operation or specific 3. Statement of changes in net assets/equity
purpose 4. Statement of cash flows
Revolving funds receipts derived from business type activities 5. Statement of comparison of budget and actual
of departments as authorized by law and deposited in amounts
authorized depository bank 6. Notes to financial statements
Trust receipts are receipts that are officially in possession of Elements of Financial Statements
govt agencies or public offices as trustee 1. Assets
Special accounts in the general fund proceeds from specific 2. Liabilities
revenue for priority projects 3. Equity
Special purpose funds lump sum funds which are not within 4. Income
the approved appropriations of department or agencies 5. Expenses
which are available for allocation
Department codes primary subdivision of executive branch. *Under COA Circular No. 203-002, account code structure
Constitutional, legislative, judiciary consists of 8 mandatory digits.
Agency codes any various units of govt
Operating units organizational entities charged with carrying Account Group represents the account classification as to
out specific substantive functions assets, liabilities, equity income and expenses
Staff bureau principal subdivision of a department Major account group represents classification within the
Regional office organizational subdivision responsible for the account group (FA chapters)
performance of an entity’s function within a region Sub-major account group represents classification within the
CDA extension office units established in each of the country’s major account group (FA topics within the chapter)
regions General ledger accounts represents accounts to be presented
School division with at least 750 public elementary schools and in the financial statements
secondary schools
Deped secondary school learning institution that offers 6 year CHAPTER 4
secondary course Accounting for Budgetary Accounts
TESDA offers non degree program Government Accounting Plan shows overall system of a
DFA Consular office established locally and abroad government agency
responsible for delivering front line foreign affairs
Customs collection district composed of one principal port of Accounting systems: (BRDF)
entry 1. Budgetary Accounts system
Revenue regional offices enforce internal revenue laws 2. Receipt/ Income and deposit system
Revenue district office directly serves tax payers 3. Disbursement System
Treatment and rehabilitation centers after care and follow up 4. Financial reporting system
treatment for drugs
District engineering office responsible for highways, flood Revenue Approval
control, water resource development system and other Execution
public works Plan
Key budgetary units under armed forces of the Philippines Expense Authorization
Lower level operating unit code for individual operating units
Region 17 regions. Composed of several provinces Balanced Budget Revenue > Expenses
Province political corporate unit consists of municipal and cities
Municipalities political corporate units consists of group of Kinds of Budget (NBA)
barangays N Nature (ASS)
Barangay basic political unit of government Annual
Municipality identifier 4 digit number that identifies the identity Supplementary
of municipality Special
Major final output goods or services that a dept or agency is B Basis (PL)
mandated to deliver to external clients through Performance
implementation of program, activities or projects Line Item
Program group of activities A Approach (ZI)
Activity work process that contributes to the fulfilment of Zero Based
program or project Incremental
Project special department or agency undertaking carried out
within a reasonable timeframe BUDGET CYCLE (PLEA B)
General administration and support consists of activities 1. Budget preparation
involving the provision of overall administration management 2. Budget legislation
support to the entire agency operations 3. Budget execution
Support to operations provides technical substantive support 4. Budget accountability
to the operations and projects
Operations consists of activities directed at fulfilling the
department and agency mandate
BUDGET CYCLE CHAPTER 5
Start Accounting for Disbursements and Related Transactions
Fundamental Principles for disbursement of public funds
budget call by DBM - 1. No money shall be paid out of any public treasury or
Dec. depository except in pursuance of appropriation law or
other specific statutory authority
Submission by agencies of BP 2. Government funds or property shall be spent or used
to DBM
solely for public purposes
3. Trust funds shall be available and may be spent only
agencies will defend to for the specific purpose for which the thrust was
DBM technical Panel
created or the funds received
4. Fiscal responsibility shall, to the greatest extent, be
results, recommendations presented to
Executive Review Board (DBM Sec and shared by all those exercising authority over the
senior officials) financial affairs, transactions and operations of the
government agency
Consiladation of budget 5. Disbursement of government funds or property shall
resulting to NEP and BESF invariably bear the approval of the proper officials
6. Claims against govt funds shall be supported with
DBM will present together complete documentation
with DBCC to cabinet
7. All laws and regulations applicable to financial
transactions shall be faithfully adhered to
president and cabinet will
approve NEP 8. Generally accepted principles and practices of
accounting as well as of sound management and fiscal
president's administration shall be observed, provided that they not
budget contravene existing laws and regulations

submit to house Basic requirements for disbursements and requires

speaker
certifications:
PB will assign to
1. Availability of budget shall be certified by a budget
HAC officer/head of budget unit
2. Obligations/utilizations properly charged against
(1) hearing of available allotments by the chief accountant/ head of
the bill
accounting unit
3. Availability of funds certified by the chief accountant.
assign to
SFC 4. Availability of cash and completeness of supporting
documents based on RANCA/RANTA certified by chief
(2) hearing of the bill accountant.
- senate 5. Legality of transactions and conformity with existing
laws and regulations
GAB - senate 6. Submission of proper evidence to establish validity of
version
claim. All payments of government obligations and
payables shall be covered by disbursement vouchers
BICAM committee together with original copy
7. Approval of disbursement by the head of the agency or
harmonized version his duly authorized representative

Availability of funds
president for
approval No funds shall be disbursed, and no expenditures or
obligations chargeable against any authorized allotment shall be
pres and DBM Veto incurred or authorized in any department, office or agency
message without first securing the certification of its chief accountant or
head of accounting unit as to the availability of funds.
GAA Any certification for a non-existent or fictitious
obligation shall be considered void.
DBM issue guidelines on
the release and utilization Notice of Cash Allocation (NCA)
of funds - Issued by DBM
- The NCA shall be the authority of an agency
agencies submitt
BEDs
Notice of Transfer of Allocation (NTA)
DBM prepares - issued by central office
allotment release - The NTA shall be the authority of the regional and
program
operating units
CRP is also -
formulated Non cash Availment Authority (NCAA)
- issued by DBM.
- Cover liquidation of their actual obligations
Cash Disbursement Ceiling (CDC) 3. Return of unused PCF upon retirement,
- issued by DBM to DFA & DOLE resignation, separation and termination of PCF
custodian
ACCOUNTING ENTRIES TO RECOGNIZE RECEIPTS Cash collecting officer XX*
Receipt of NCA. The NCA specifies the maximum amount of Petty cash XX
withdrawal that an entity can make from a government bank for *PCF-various expenses=unused
the period indicated. 4. To record unreplenished PC at year end
The Collecting Officer shall not issue an OR for the receipt Various expenses XX
of NCA Petty cash XX
Regular
Cash – MDS, Regular XX ACCOUNTING ENTRIES FOR EMPLOYEE CONTRIBUTIONS
Subsidy from national government XX 1. Remittance of government’s share
To recognize receipt of NCA for regular agency fund Philhealth/sss/pag-ibig CONTRIBUTION XX
Cash – MDS, Regular XX
Special Account
Cash – MDS, Special Account XX 2. Remittance of employee share/ salary deduction
Cash – Treasury/Agency Deposit, Special acct. XX DUE TO Philhealth/sss/pag-ibig XX
To recognize receipt of NCA for special acct. in the general fund Cash – MDS, Regular XX

Trust Receipt DISBURESEMENT BY CASH

Cash – MDS, Trust XX Existing rules and regulations per COA circ. No. 997-002
Cash – Treasury/Agency Deposit, Trust XX dtd. Feb. 10, 1997 as amended by COA circ. No. 2006-005
To recognize receipt of NCA for Trust receipts fund dtd. July 13, 2006:
1. No cash advance shall be given unless for a legally
MODES OF DISBURSEMENT authorized specific purpose
1. checks (MDS or commercial checks) 2. A cash advance shall be reported on and liquidated as
2. cash (out of cash advance granted toauthorized soon as the purpose for which it was given has been
Disbursing Officer) served
3. advice to debit the account 3. No additional cash advance shall be allowed to any
4. tax remittance advice official or employee unless the previous cash advance
5. working Fund/CDC given to him is first settled/ liquidated or a proper
6. direct payment method. accounting thereof is made
4. Except for cash advance for official travel, no officer or
DISBURSEMENTS BY CHECK employee shall be granted cash advance unless
Checks shall be drawn only on duly approved disbursement he/she is properly bonded in accordance with existing
voucher payroll. laws or regulations. The amount of cash advance shall
These shall be used for payment of regular expenses which not exceed the maximum accountability covered by his
cannot be conveniently nor practically paid using ADA or Petty bond
cash fund advances. 5. Only permanently appointed officials shall be
Checks issued shall be reported and recorded whether designated as disbursing officer
released or unreleased to the respective payees. 6. Only duly appointed or designated disbursing officer
may perform disbursing functions. Officers and
Two types of check being issued by govt agencies: employees who are given cash advances for official
1. Modified disbursement system checks issues travel need not be designated as disbursing officer
against the account of the Treasurer of the Philippines 7. Transfer of cash advance from one accountable officer
2. Commercial Checks chargeable against agency to another shall not be allowed
checking account with government servicing banks 8. The cash advance shall be used solely for specific legal
(GSBs) and shall be covered by income/receipts purpose for which it was granted. Under no
authorized to be deposited with Authorized circumstance shall it be used for encashment of checks
Government Depository Banks (AGDB) or for liquidation of a previous cash advance

ACCOUNTING ENTRIES FOR DISBURSEMENT CHECK CASH ADVANCE FOR PAYROLL

1. PAYMENT: - Granted to regular disbursing officer
Various expenses XX - Shall not be used for encashment of checks or for
; Cash – MDS, Regular XX liquidation of previous or other types of cash advances
2. GRANT OF CASH ADVANCE: MONITOR: cash disbursement record
Advances to… XX UTILILIZATION REPORT: report of cash disbursements
Cash – MDS, Regular XX LIQUIDATION: 5 days after the end of pay period
3. ADVANCE PAYMENT TO PROCUREMENT 1. SET UP PAYABLE:
SERVICE: Salaries expense XX
Due from NGAs XX Due TO Philhealth/sss/pag-ibig XX
Cash – MDS, Regular XX Due TO officers and employees XX*
2. GRANTING:
ACCOUNTING ENTRIES FOR PETTY CASH FUND Advances FOF payroll XX*
1. Establishment of petty cash fund Cash – MDS, Regular XX
Petty cash fund XX 3. LIQUIDATION:
Cash – MDS, Regular XX Due TO officers and employees XX*
2. Replenishment of petty cash fund Advances FOR… (payroll) XX*
Various expenses XX
Cash – MDS, Regular XX
 ACCOUNTING FOR OVERPAYMENTS 2. LIQUIDATION
TAKEN UP AS RECEIVABLE traveling expenses-local XX
1. RECOGNIZE OVERPAYMENT advances TO officers and employees XX
Due FROM… (officers and employees) XX FOREIGN TRAVELS
Expense (salaries and wages) XX 1. GRANTING
2. RECEIPT OF REFUND advances TO officers and employees XX
cash collecting officer XX cash – MDS, regular XX
Due FROM… (officers and employees) XX 2. LIQUIDATION
traveling expenses-foreign XX
3. DEPOSIT OF COLLECTION advances TO officers and employees XX
Cash - treasury/ agency, regular XX
cash collecting officer XX CASH ADVANCE FOR SPECIFIC PURPOSE/ TIME BOUND
UNDERTAKING
NOT TAKEN UP AS RECEIVABLE - shall be granted only to authorized accountable officer/
1. RECEIPT OF REFUND special disbursing officer
cash collecting officer XX - any unutilized cash advance shall be refunded and an OR
Expenses (salaries and wages) XX shall be issued to acknowledge collection
2. DEPOSIT OF COLLECTION 1. GRANTING
Cash - treasury/ agency, regular XX advances TO special disbursing officer XX
cash collecting officer XX cash – MDS, regular XX
3. RECEIPT OF REFUND IN ENSUING YEAR 2. LIQUIDATION
Cash collecting officer XX Various expenses XX
Accumulated surplus/(deficit) XX advances TO special disbursing officer XX
4. DEPOSIT OF COLLECTION
Cash - treasury/ agency, regular XX LIST OF DUE AND DEMANDABLE ACCOUNTS PAYABLE-
cash collecting officer XX ADVICE TO DEBIT ACOUNT (LDDAP-ADA)
- Is a mode of settlement of accounts payable due the
CASH ADVANCES WITHOUT COMPLETE SET OF BOOKS creditors/payees of all NGAs.
Field/extension/satellite offices - All LDDAP-ADA prepared/issued during the day shall be
-Offices that do not have complete set of books. recorded chronologically in the CkADADRec
-Offices that can be granted cash advances covering 2 - MDS-GSB shall effect payment through MDPS not earlier
months requirements for MOOE/authorized expenses to finance than 24 hours but npt later than 48 hours after receipt of
their operations. document
MONITOR, UTILIZATION AND LIQUIDATION: cash
disbursement register EXCLUSIONS FROM THE IMPLEMENTATION OF
LIQUIDATION: 5 days after month end EXPANDED MODIFIED DIRECT PAYMENT SCHEME
1. GRANTING OF CASH ADVANCE (ExMPDS): TSUP
Advances FOR… (opex) XX* 1. Payment of terminal leave and retirement gratuity
cash – MDS, regular XX 2. Remittance of social insurance premium contributions
2. LIQUIDATION OF CASH ADVANCE to government corporations such as GSIS, philhealth
Various expenses XX and HDMF
Advances FOR… (opex) XX* 3. Payment of accounts payable to utility companies
4. Other payables which cannot be conveniently or
ADVANCES FOR TRAVEL practically paid using the ADA
- Travel shall cover only those that are urgent and extremely
necessary and will involve the minimum expenditure and are ENTRIES USING ADA
beneficial to the agency concerned and the country 1. SET UP PAYABLES
- No govt fund shall be utilized to defray foreign travel Expense XX
expenses except in the training, seminar or conference Accounts payable XX
abroad when the officials or other personnel of the foreign 2. PAYMENT THROUGH ADA
mission cannot effectively represent the country therein. Accounts payable XX
- No official or employee including uniformed personnel of cash – MDS, regular XX
DILG and DND will be sent to foreign training, conferences 3. GRANTING OF PAYROLL
or attend international commitments when they are DUE TO Advances FOR payroll XX*
RETIRE WITHIN 1 YEAR after the said foreign travel Cash – MDS, Regular XX
- No additional cash advance shall be granted to any official 4. PAYMENT OF SALARIES THROUGH ATM
unless the previous cash advance given is first liquidated Expense (Salaries) XX
and accounted Due TO… (Philhealth/sss/pag-ibig) XX
Due TO… (officers and employees) XX*
- For local travels, liquidation shall be done within the period
of 30 days upon return to workstation 5. DEPOSIT OF SALARIES - PAID THROUGH ATM
Cash in bank- local currency, current account XX*
- Foreign travels shall be liquidated within 60 days upon return
Cash – MDS, Regular XX
to the Philippines
6. PAYMENT OF SALARIES THROUGH ATM
Due TO… (officers and employees) XX*
LOCAL TRAVELS Cash in bank- local currency, current account XX
1. GRANTING
advances TO officers and employees XX
DISBURSEMENT THROUGH ELECTRONIC MODIFIED
cash – MDS, regular XX
DISBURSEMENT SYSTEM
- Agencies na may account sa GSBs
- Entries same with checks
 DISBURSEMENT BY FOREIGN-BASED GOVERNMENT 7. Temporary receipts are not allowed. official receipts only
AGENCIES 8. ORs are made by national printing office. It should be pre-
DFA AND DOLE’S BOOKS numbered. Gov’t cannot produce its own receipt. NPO lang
1. COLLECTION OF REVENUE 9. Checks are allowed as payment given that it is named after
Cash collecting officer XX government, properly indorsed and cash on hand of cashier
Passport and visa fees XX cannot be used to encash checks
2. DEPOSIT OF COLLECTION 10. Treasury and authorized government depository bank must
Cash- foreign currency, current account XX issue acknowledgement receipt of all funds received by them
Cash collecting officer XX
3. RECEIPT OF CDC FROM DBM Accounting standards to recognize, measure and disclose
Cash- Constructive income remittance XX revenue
Subsidy from national government XX PPSAS 9 – exchange transactions
4. PAYMENT OF EXPENSES CHARGED TO CDC PPSAS 23 – non-exchange transactions
various expenses XX
Cash- foreign currency, current account XX DEFINITION OF TERMS:
Revenue includes only gross inflows of economic benefits or
BTr BOOKS service potential received and receivable
CONSTRUCTIVE RECEIPT OF REMITTED COLLECTIONS Receipts/collections refers to all cash actually received from
AND DISB CHARGED TO CDC all sources during a given accounting period
Subsidy from national government XX Fines includes economic benefits or service potential received
Cash- Constructive income remittance XX
or receivable as determined by a court as a consequence of the
breach of laws. Shall be recognized as income of the year these
DISBURSEMENTS THROUGH DIRECT PAYMENT METHOD were collected
- Si BTr ang mag babayad ng utang mo Gifts and donations consist of voluntary transfers of assets
BOOKS OF AGENCY (cash, monetary assets, goods in kind, services in kind)
1. RECEIPT OF PROCUREMENT Goods in kind tangible assets transferred to any agency in a
Asset received XX
non-exchange transaction
Accounts payable XX*
Taxes are economic benefits or service potentials compulsory
2. RECEIPT OF NCAA
paid or payable to public sector agencies in accordance with
Accounts payable XX
Subsidy from national government XX
laws and regulations, established to provide revenue to the
government (do not include fines and penalties)
Transfers are inflows of future economic benefits or service
BTR BOOKS
1. REPLENISHMENT MADE TO AGSB potential from non-exchange transactions other than taxes.
Subsidy TO NGAs XX
Loans payable- foreign XX SOURCES OF REVENUE AND OTHER RECEIPTS:
A. EXCHANGE TRANSACTIONS
REGISTRIES TO UPDATE Transactions in which one entity receives assets or services
GAA RAPAL or has liabilities extinguished and directly gives approximately
NCA RANCA & RAOD equal value to another entity in exchange
NTA RANTA & RAOD RECOGNITION
ALLOTMENT RAPAL & RAOD Revenue from exchange transaction shall be measured at
OBLIGATION RAOD & ORS (PS, MOOE, PE, CO) fair value of the consideration received or receivable.
Revenue shall be recognized when it is probable that future
CHAPTER 6 economic benefits or service potential will flow to the entity and
Accounting for Revenue and other receipts these benefits can be measured reliably.
GENERAL RULE: Revenues accruing to the national 1. Sale of Goods
government / treasury should be deposited in the national  Transferred ownership of the goods to
treasury or in duly authorized depository bank of the purchaser;
government.  The entity retains NEITHER continuing
managerial involvement to the ownership
FUNDAMENTAL PRINCIPLES FOR REVENUE NOR effective control over the goods sold;
1. All receipts and revenues accruing to the general fund shall  Probable and measurable
be deposited to the national treasury or duly authorized  The costs incurred or to be incurred in respect
government depository of the transaction can be measured reliably.
2. All money and property officially received by a public officer 1. Service Income – Permit Fees, Registration
in any capacity must be accounted for as government funds Fees, Registration Plates, Tags and Stickers Fee,
and government property Clearance and Certification Fees, Franchising
3. Amounts received in trust and from business type activities Fees, Licensing Fees, Supervision and Regulation
may be separately recorded and disbursed Enforcement Fees, Spectrum Usage Fees, Legal
4. Receipts shall be recorded as revenue of Special, fiduciary Fees, Inspection Fees, Verification and
and trust or funds other than general fund only when Authentication Fees, Passport and Visa Fees,
authorized by law as implemented by rules and regulations Processing Fees and Other Service Income;
issued by Permanent Committee consisting of the Secretary 2. Business Income – School Fees, Affiliation Fees,
of Finance as Chairman, and the Secretary of the Budget Examination Fees, Seminar/Training Fees,
and the Chairman, Commission on Audit, as members. Rent/Lease Income, Communication Network
5. Always issue Official receipt. No payment of any nature shall Fees, Transportation System Fees, Road Network
be received by a collecting officer pag walang OR. Receipt Fees, Waterworks System Fees, Power Supply
may be in the form of postage, doc stamp, internal revenue System Fees, Seaport System Fees, Landing and
6. Electronic receipts are used only if approved by COA. Parking Fees, Income from Hostels/Dormitories
 and Other Like Facilities, Slaughterhouse 1. Gifts and Donations (other than services in kind) –
Operation, Income from Printing and Publication, when probable and measurable
Sales Revenue, Hospital Fees, Share in the Profit 2. Donation (in cash or in kind) – shall be recognized as
of Joint Venture and Other Business Income. revenue.
2. Supply of services 3. goods in kind – received without conditions and
Recognized on a straight line basis over the specified period recognized as revenue immediately
of the services unless an alternative method is better. 4. Services in kind
If the transaction cannot be estimated reliably, revenue 5. Fines and penalties
should be recognized only to the extent of the expenses 6. Shares or grants
recognized that are recoverable. 7. Taxes – at gross amount. It shall not be reduced for
 Probable and measurable expenses paid through the tax system.
 The stage of completion of the transaction at the
reporting date can be measured reliably; and MEASUREMENT
 The costs incurred for the transaction and the costs to Shall be measured at the amount of the increase in net
complete the transaction can be measured reliably. assets recognized by the entity unless it is also required to
3. Use by others of entity Assets recognize a liability.
Recognized when it is probable that the economic benefits An asset acquired through a non-exchange transaction shall
or service potential associated with the transaction will flow to initially be measured at its fair value as at the date of acquisition
the entity; and the amount of the revenue can be measured Where the time value of money is material, the liability will
reliably. be measured at the present value of the amount expected to be
 Interest – when earned required to settle the obligation.
 Royalties – when earned
 Dividends – when declared Transfer of Internal Revenue Allotment
Proceeds collected by NGAs is transferred to LGUs through
MEASUREMENT an appropriation.
Fair value of consideration received or receivable. Any NGAs recognize assets and revenue for the tax, and a
amount of trade discounts and volume rebates allowed by the decrease in assets and an expense for the transfer to LGUs.
entity shall be taken into account. The LGUs will recognize the assets and revenue for the
Fair value is determined by discounting all future receipts transfer.
using an imputed rate of interest BOOKS OF DBM
Difference between FV and consideration received is Financial assistance to LGUs XX
recognized as interest revenue/income cash – MDS, regular XX
To record transfer of IRA to LGUs
TO RECOGNIZE SALE
Accounts receivable / notes receivable XX Expenses Paid Through the Tax System and Tax
Sales revenue XX Expenditure
TO RECOGNIZE COLLECTION OF NOTES RECEIVABLE Expenses of the govt paid through the tax system or as
Cash collecting officer XX reduction from tax revenue received should NOT be offset or
Notes receivable XX deducted from that tax revenue.
Interest income XX Expenses paid through the tax system are those expenses
which should be paid irrespective of whether the taxpayer pay
Exchange of goods or services for similar/dissimilar good taxes, or use a particular mechanism to pay taxes.
or services
a. similar – no revenue Taxation Revenue Shall Not Be Grossed Up For the Amount
b. dissimilar – with revenue (measured at the FV of of Tax Expenditures
goods or services received, adjusted by the amount of Tax expenditures are foregone revenue, not expenses and
any cash or cash equivalent transferred. but If cannot do not give rise to inflows or outflows of resources that is, they
be measured reliably, measured at FV of the goods do not give rise to assets, liabilities, revenue or expenses of the
given up, adjusted by the amount of any cash or cash government.
equivalents transferred)
Recognition of Asset through Transfers
Impairment Losses and Allowances for Impairment Losses RECOGNITION
Recognized as an expense (impairment loss) rather than as Shall be recognized when the transferred resources meet
an adjustment of the amount of revenue originally recognized. the definition of an asset and satisfy the criteria of recognition of
(never reverse revenue) an asset.
Transfers meet the definition of an asset:
DISCLOSURE  When the entity controls the resources as a result of a
1. Disclose accounting policies adopted past event (the transfer), and
2. Amount of significant category of revenue recognized  expects to receive future economic benefits or service
potential from those resources.
B. NON-EXCHANGE TRANSACTIONS Transfers satisfy the criteria for recognition as an asset :
Transactions in which entity either receives value from  probable and measurable
another entity without directly giving approximately equal value in
exchange, or gives value to another entity without directly MEASUREMENT
receiving approximately equal value in exchange Measured at their fair value as at the date of acquisition.
RECOGNITION TRANSFERS Recognition Measurement
cash basis shall be applied in recognition of non-exchange Debt Forgiveness when it no longer meets carrying amount of debt
the definition of liability forgiven
transactions. Hence, recognized when collected or when
measurable and legally collectible
 Fines When receivable meets Best estimate Cancellation for current year’s deposited collection
the definition of assets Other receivables XX
(probable and
measurable) Cash – treasury/ agency deposit, regular XX
if entity collects fines in Cancellation for prior year’s deposited collection
the capacity of an Other receivables XX
agent, the fine will not Accumulated surplus/(deficit) XX
be recognized as
revenue
Bequest Probable and FV of assets received or REDEMPTION OF DISHONORED CHECKS
measurable receivable Recognize replenishment of disb. Checks
Gifts, donations and NO STIPULATION: FV at the date of
Cash collecting officer XX
goods in kind revenue is recognized acquisition
immediately Other receivables XX
WITH STIPULATION: Recognize remittance of replacement
liability is recognized, Cash – treasury/ agency deposit, regular XX
reduced and revenue Cash collecting officer XX
recognized as the
conditions are satisfied.
Services in kind Not recognized but encouraged to be disclosed – CASH SHORTAGE/OVERAGE OF CASH
immediately consumed COLLECTING/DISBURSING OFFICER
pleges Not recognized disclosure only as contingent Cash overage discovered that cannot be explained shall be
assets– does not meet the definition of asset
If subsequently transferred, RECOGNIZED as gift or forfeited in favour of government and an official receipt shall be
donation issued by the collecting officer
Cash overage shall be taken up as MISCELLANEOUS
ENTRIES: INCOME
1. RECEIPT OF GRANT Cash overage not restituted shall be taken up as receivable
Books of National Gov’t –BTr from the collecting/disbursing officer
Cash in bank- local currency, BSP XX
Other deferred credits XX OVERAGE
receipt of grant directly credited to the account of NGA maintained by Cash overage forfeited
BSP Cash collecting officer XX
Books of NGA Miscellaneous Income XX
Cash- MDS, special account XX Remittance of cash overage forfeited to BTr
Subsidy from national Government XX Cash – treasury/agency deposit, regular XX
Receipt of NCA by NGA Cash collecting officer XX

2. PURCHASE SHORTAGE
Books of National Gov’t –BTr Recognize cash shortage
Subsidy from national Government XX Due from officers and employees XX
Cash in bank- local currency, BSP XX Cash collecting officer (if shortage of coll. Officer) XX
Record replenishment of MDS checks Advances for payroll (if shortage of disb. Officer) XX
Books of NGA Restitution of Cash shortage
CIP(related purchases) XX Cash collecting officer XX
Cash- MDS, special account XX Due from officers and employees XX
Remittance of cash shortage to BTr
3. RECEIPT OF REPORT FOR THE COMPLETION Cash – treasury/agency deposit, regular XX
Books of National Gov’t –BTr Cash collecting officer XX
Other deferred credits XX
Income from grants and donations in cash XX Tax Remittance Advice refers to a specially-numbered
Recognize income from grants and donations representing payment document prescribed by DBM that should be used by the NGAs
for expenses in the remittance of withheld taxes on funds coming from DBM
Books of NGA This shall be used to recognize:
Completed project (eg. Railway system) XX
1. NGA books – the constructive remittance to BIR and
CIP (related purchases) (infra assets) XX
BOC of taxes and customs’ duties withheld, and the
Recognize turnover of completed project
constructive receipt of NCA for those taxes and customs
duties
CANCELLATION OF OFFICIAL RECEIPT DUE TO
2. BIR and BOC books – the constructive receipt of tax
DISHONORED CHECKS
revenue and customs duties;
Dishonored check: (pwedeng NSF)
3. BTr books – the constructive receiptof the taxes and
1. Dishonor by non-payment
customs duties remitted.
a. the check is duly presented for payment and payment
is refused or cannot be obtained;
TAX WITHHELD BY NGAs
b. presentment is excused and the check is overdue
Books of Agency
and unpaid Cash - tax remittance advice XX
2. Dishonor by non-acceptance Subsidy from national government XX
a. the check is duly presented for acceptance, and such Recognize receipt of NCA for TRA
an acceptance as is prescribed by law is refused or Due to BIR XX
cannot be obtained; Cash - tax remittance advice XX
b. presentment for acceptance is excused and the Recognize remittance to BIR of taxes withheld through TRA
check is not accepted
BIR Books Remittance of collections to BTr
Cash - tax remittance advice XX Cash – treasury/agency, deposit, regular XX
Import duties XX Cash collecting officer XX
Recognize receipt of taxes remitted by NGAs through TRA
PERFORMANCE BOND/SECURITY DEPOSIT
BTr Books Receipts of performance bond posted by contractor or
Subsidy to NGAs XX supplier to guaranty full and faithful performance of their
Cash - tax remittance advice XX contract. It may be in the form of cash or certified checks.
Recognize receipt of remittance of taxes by NGAs through TRA Collection of performance bond
Cash collecting officer XX
BOC CUSTOMS DUTIES CHARGED TO TAX Guaranty/security deposits payable XX
EXPENDITURE FUND
Books of Agency Remittance of collections to BTr
RECOGNIZE PURCHASES Cash – treasury/agency, deposit, trust XX
Asset purchased XX Cash collecting officer XX
Cash - MDS, regular XX
Due to NGAs XX REFUND OF OVERPAYMENT OF EXPENSES
RECEIPT OF NCA FOR CUSTOM DUTIES CHARGED Collection of refund of overpayment of expenses
AGAINST TEF Cash collecting officer XX
Cash - tax remittance advice XX Expense overpaid XX
Subsidy from national government XX Remittance of collections to BTr
REMITTANCE TO BOC THROUGH TRA Cash – treasury/agency, deposit, regular XX
Due to NGAs XX Cash collecting officer XX
Cash - tax remittance advice XX
COLLECTIONS MADE ON BEHALF OF ANOTHER ENTITY
BOC Books OR NON-GOVERNMENT/PRIVATE ORGANIZATION
Cash - tax remittance advice XX These are receipts of income, receivables or trust funds for
Income tax XX the account of other NGAs, LGUs, GOCCs or non-government/
Recognize receipt of taxes remitted by NGAs through TRA private organizations.
Books of Agency
BTr Books Recognize collection of fees
Subsidy to NGAs XX Cash collecting officer XX
Cash - tax remittance advice XX Due to NGAs XX
Recognize receipt of remittance of taxes by NGAs through TRA
Remittance of collections to BTr
Due to NGAs XX
REFUND OF EXCESS CASH ADVANCE GRANTED TO Cash collecting officer XX
OFFICERS AND EMPLOYEES
CASH ADVANCES ARE CLASSIFIED INTO: BTr Books
1. Advances to officers and employees – for official Recognize remitted collections
travels Cash in bank – local currency, savings account XX
2. Advances for operating expenses – granted to regular Cash – treasury/agency deposit, trust XX
disb officer for operating expenses of operating/field
units and foreign post not maintaining complete set of Books of UP-LRF
books Recognize remitted collections for UP-LRF by other NGAs
3. Advances for payroll – for payment of salaries, wages Cash – treasury/agency deposit, trust XX
and other personnel benefits Trust liabilities XX
4. Advances to special disb officer – for special
purpose/time-bound undertaking by administration. INTRA-AGENCY FUND TRANSFER cash received from
Same is credited upon liquidation. central/regional office operating units of an entity for the purpose
of implementing specific projects
COLLECTION OF REFUND OF EXCESS OF CASH Receipt of intra-agency fund transfer
ADVANCE Cash collecting officer XX
Cash collecting officer XX Due to central office XX
Advances to officers and employees XX Remittance of collections to BTr
Advances for operating expenses XX Cash – treasury/agency, deposit, trust XX
Advances for payroll XX Cash collecting officer XX
REMITTANCE OF COLLECTION TO BTr
Cash – treasury/agency, deposit, regular XX INTER-AGENCY FUND TRASFER cash received from another
Cash collecting officer XX entity for the purpose of implementing specific projects
Receipt of inter-agency fund transfer
RECEIT OF SUBSIDY/ASSISTANCE FROM OTHER NGAs, Cash collecting officer XX
LGUs, GOCCs AND OTHER FUNDS Due to NGAs XX
Receipts of performance bond posted by contractor/ supplier Remittance of collections to BTr
to guaranty full and faithful performance of their contract may be Cash – treasury/agency, deposit, trust XX
in the form of cash or certified checks Cash collecting officer XX
Receipt of subsidy/assistance from other govt agencies
Cash collecting officer XX
Subsidy/assistance from other govt agencies XX
 CANCELLATION AND REPLACEMENT OF STALE/ - Accrued and deferred items
VOIDED/ SPOILED MDS/ COMMERCIAL CHECK IN THE
CURRENT YEAR AND PRIOR YEAR Other Adjustments
Cancellation of stale/ voided/ spoiled check The following adjustments shall also be made if applicable) for
Cash – MDS, regular (MDS check) or; XX fair presentation of the results of operation of the entity in the
Cash in bank – local currency, current account financial statements:
(commercial check) a. Unused NCA (National)
Accounts payable XX b. Petty Cash Fund
c. Unreleased Commercial Checks
Replacement of stale/ voided/ spoiled check d. Allowance for/Accumulated Impairment Losses of asset
Accounts payable XX accounts
Cash – MDS, regular (MDS check); XX
e. Write-down of Inventories
Cash in bank – local currency, current account
(commercial check) f. Correction/Reclassification Entries
g. Adjustment for reversal of Impairment Losses
Cancellation of stale/ voided/ spoiled check without h. Depreciation Expense
replacement i. Exchange differences on foreign currency
Cash – MDS, regular (MDS check current) or; XX j. Other adjustments
Accumulated surplus/(deficit) (MDS prior yr/
commercial check) Petty Cash Fund Adjustments
expense XX - All unreplenished Petty Cash Fund expenses shall be
reported and supporting papers submitted to the Accounting
ACCOUNTING FOR DISALLOWANCES Division/Unit the end of the year.
Recognize overpayment of purchased - If no replenishment could be made for lack of fund, a JEV
Receivables - disallowances/charges XX shall be prepared to recognize all the expenses paid under
Expense overpaid (current year) XX the Petty Cash with a credit to the account “Petty Cash”.
Accumulated surplus/(deficit) (prior year) - If replenishment is made, the credit shall be the appropriate
Recognize settlement of disallowance cash account.
Cash collecting officer XX
Receivables - disallowances/charges XX Reversion of Unused Notice of Cash Allocation
Recognize deposit of cash collection - Adjusting for the reversion of the unused or unutilized NCA
Cash - treasury/ agency, regular XX of NGAs receiving subsidies from the national government
cash collecting officer XX in the form of NCA
Subsidy from national government XX
REPORTING OF COLLECTIONS AND DEPOSITS Cash – MDS, regular XX
Receipts and deposits shall be reported as follows:
a. At the close of the business day, the Collecting Officers Adjustments for Unreleased Commercial Checks
shall prepare the Report of Collections and Deposits - All unreleased checks at the end of the year shall be reverted
(RCD) that is submitted to Accounting Office/Unit. The back to the cash accounts.
report lists all the ORs issued in numerical sequence - A Schedule of Unreleased Commercial Checks shall be
including cancelled ones. prepared by the Cashier for submission to the Accounting
b. The Collecting government entity issuing electronic Division/Unit.
Official Receipt (eOR) should generate and submit Cash in bank – local currency, current account XX
daily to the Auditor a copy of the RCD. Accounts payable XX
c. Field Offices (FOs)/Operating Units (OUs) without
complete set of books shall record their collections of Allowance for Impairment Losses
income chronologically in the Cash Receipts Register - The uncollectible amount, or the amount in respect of which
(CRReg) and shall be submitted within five (5) days recovery has ceased to be probable, is recognized as an
after the end of each month to the expense (impairment losses), rather than as an adjustment
central/regional/division office of the amount of revenue originally recognized.
Impairment loss - …receivable XX
CHAPTER 7 Allowance for impairment - AR XX
TRIAL BALANCE, FINANCIAL REPORTS AND
STATEMENTS Depreciation expenses
Trial Balance - Systematic allocation of depreciable amount of the asset
Trial Balance is a list of all the GL accounts and their over its useful life.
balances at a given time. The accounts are listed in the order in - Useful life of an asset is the asset’s expected utility to the
which they appear in the RCA. entity.
The TB is prepared to: - The estimation of useful life is a matter of judgement
1. Prove the mathematical equality of the debits and - Depreciation is recognized even if the fair value of asset
credits after posting; exceeds its carrying amount, as long as its residual value
2. Check the accuracy of the postings; does not exceed the carrying amount.
3. Uncover errors in journalizing and posting; and - RV and UL should be reviewed at least each annual
4. Serve as basis for the preparation of the financial reporting date.
statements
Pre-Closing Trial Balance/ Adjusted Trial Balance
Adjusting Journal Entries - shall be prepared after posting the AJE in the GJ and
- Adjusting journal entries are made at the end of an the same to the GL
accounting period to allocate revenue and expenses to the - It shows the adjusted balances of all accounts as at a
period in which they actually occurred. given period.
 - TB shall be supported with the schedule of SL balances c. reporting date or period covered
of the controlling accounts. d. name of fund cluster
e. reporting currency
Closing Journal Entries f. level of rounding used
- Entries which close out the balances of all
nominal/temporary and intermediate accounts at the end Complete set of financial statements: (submitted to
of the year. Government Accountancy Sector, COA FS and TB by
- The closure will reduce the balance of those accounts to cluster)
zero. 1. statement of financial position
The nominal and intermediate accounts that shall be closed at 2. statement of financial performance
the end of the year are as follows: 3. statement of changes in net assets/ equity
1.Balance of all revenue accounts to the “Revenue and 4. statement of cash flows
Expense Summary” account; 5. statement of comparison of budget and actual amounts
2.Balance of all expense accounts to the “Revenue and 6. notes to financial statements
Expense Summary” account;
3.Balance of the “Revenue and Expense Summary” to the Qualitative Characteristics of Financial Reporting
“Accumulated Surplus/ (Deficit)” account; 1. understandability
4.Balance of all “Cash-Treasury/Agency Deposit, Regular” to 2. relevance
the “Accumulated Surplus/(Deficit)” account; and 3. materiality
5.Other Closing Entries. 4. timeliness
5. reliability
Post-Closing Trial Balance 6. faithful representation
- Shall be prepared at the end of the year after preparing and 7. substance over form
posting the closing journal entries in the GJ and posting to 8. neutrality
the GL. 9. prudence
- Basis of FP and TB 10. completeness
11. comparability
Purpose of Financial Statements
The objectives of general purpose financial reporting in the Financial reporting for the national government
public sector should be to provide information useful for decision a. each entity of the national govt maintains complete set of
making, and to demonstrate the accountability of the entity for accounting books by fund cluster which is reconciled with
the resources entrusted to it, by: the records of cash transactions maintained by BTr
1. providing information about the sources, allocation, b. the BTr accounts for cash, public debt and related
and uses of financial resources; transactions of the national government
2. providing information about how the entity financed its c. each entity maintains budget registries which are
activities and met its cash requirements; reconciled with the records maintained by DBM and
3. providing information that is useful in evaluating the GAS, COA
entity’s ability to finance its activities and to meet its d. the COA through GAS:
liabilities and commitments; a. maintains budget records showing the overall
4. providing information about the financial condition of approved budget of the NG and its
the entity and changes in it; execution/implementation
5. providing aggregate information useful in evaluating b. consolidates the FSs and budget
the entity’s performance in terms of service costs, accountability report of all NGAs and the BTr
efficiency and accomplishments; with COA’s records come up with an Annual
Financial Report (sept. 30 last day)
General purpose financial statements – predictive or c. prepares other financial reports required by
prospective role by providing information useful in predicting the: law
1. level of resources required for continued operations,
2. the resources that may be generated by continued Fair Presentation and Compliance with PPSAS
operations, A fair presentation also requires an entity:
3. The associated risks and uncertainties. a. To select and apply accounting policies in accordance
Financial reporting may also provide users with information: with PPSAS 3, Accounting Policies, Changes in
1. indicating whether resources were obtained and used Accounting Estimates and Errors. PPSAS 3 sets out a
in accordance with the legally adopted budget; and hierarchy of authoritative guidance that management
2. indicating whether resources were obtained and used considers, in the absence of a Standard that specifically
in accordance with legal and contractual requirements, applies to an item.
including financial limits established by appropriate b. To present information, including accounting policies, in
legislative authorities. a manner that provides relevant, reliable, comparable
and understandable information.
Responsibility for Financial Statements - responsibility for the c. To provide additional disclosures when compliance with
fair presentation and reliability of financial statements rests with the specific requirements in PPSASs is insufficient to
the management enable users to understand the impact of particular
transactions, other events and conditions on the entity’s
Components of Financial Statements financial position and financial performance.
Necessary for a person to understand the information presented
a. name of the reporting entity or other means of Consistency of Presentation.
identification and any change in that information from The presentation and classification of items in the financial
the preceding reporting date statements shall be retained from one period to the next unless:
b. whether separate or consolidated
 a. it is following a significant change in the nature of the 4. The effects of changes in accounting policies and
entity’s operations corrections of errors for each component of net
a. another presentation or classification would be more asset/equity disclosed; and
appropriate 5. The balance of accumulated surpluses or deficits at the
b. PPSAS requires a change in presentation. beginning of the period and at the reporting date, and
the changes during the period.
Materiality and Aggregation.
Each material class of similar items shall be presented Statement of Comparison of Budget and Actual Amount
separately in the financial statements. Items of a dissimilar Shall be prepared because the financial statements and
nature or function shall be presented separately, unless they are budget of NGAs are not on the same accounting basis.
immaterial. The statement shall present the ff:
a. Original and final budget amounts
Offsetting b. Actual amounts on a comparable basis
Assets and liabilities, and revenue and expenses, shall not c. Difference is explained by way of disclosure pag
be offset unless required or permitted by a PPSAS. material lang ang amount
Generally, BAWAL. Pero pag coming from same account,
pwede. Statement of Cash Flows (govt – direct method)
Summarizes the cash flows from operating, investing and
Reporting Period financing activities of an entity during a given period.
Financial statements shall be presented at least annually. Cash flow information provides users of financial statements
If period longer or shorter than one year, an entity shall with a basis to assess:
disclose, in addition to the period covered by the financial a. ability of the entity to generate cash and cash
statements: equivalents,
1. The reason for using a longer or shorter period; and b. the needs of the entity to utilize those cash flows.
2. Fact that certain statements are not entirely Cash flows exclude movements between items that
comparable constitute cash or cash equivalents because these components
are part of the cash management of an entity rather than part of
Statement of Financial Position (Assets, Liab, equity) its operating, investing and financing activities.
Shows the financial condition of the entity as at a certain Operating Activities – Cash flows from operating activities are
date, presented in comparative, detailed and condensed format primarily derived from the principal cash-generating activities
Shall present current and noncurrent assets, and current and of the entity.
non-current liabilities, as separate classifications on the face of Investing Activities – Involve the acquisition and disposal of non-
its Statement of Financial Position. current assets and other investments not included in cash
equivalent.
Condensed Statement of Financial Position – presents only the Financing Activities – Are activities concerning buildup of equity
major sub-classification of Statement of Financial Position capital or borrowings of the entity
accounts in the Revised Chart of Accounts.
- submitted at yearend to the concerned Auditor. Notes to Financial Statements
Detailed Statement of Financial Position – presents all These are integral parts of the financial statements.
Statement of Financial Position accounts in the Revised Notes provide additional information and help clarify the
Chart of Accounts as a line item in the financial report. items presented in the financial statements.
- submitted at yearend to the Government Accountancy It provides narrative description or disaggregation of items in
Sector, COA, as part of the yearend financial the financial statements and information about them that do not
statements. qualify for recognition.
The notes shall:
Statement of Financial Performance a. present information about the basis of preparation of
Shows the results of operation/performance of the entity at the financial statements and the specific accounting
the end of a particular period. policies used,
Taken from Pre-closing Trial balance b. disclose the information provide additional information
- Normally, all items of revenue and expense recognized that is not presented on the face of the Statement
in a period are included (surplus or deficit.)
- items that may be excluded from surplus or deficit for Events After the Reporting Date
the current period, as follows: Events after the reporting date are those events, both
- The correction of prior period errors favorable and unfavorable, that occur between the reporting
- The effect of changes in accounting policies date and the date when the financial statements are authorized
- Gains or losses on remeasuring available-for-sale for issue.
financial assets Two types of events can be identified:
a. Adjusting events after the reporting date – those that
Statement of Changes in Net Assets/Equity provide evidence of conditions that existed at the
The Statement of Changes in Net Assets/Equity shows the reporting date; and
changes in equity between two accounting periods reflecting the b. Non-adjusting events after the reporting date – those
increase or decrease in the entity’s net assets during the year. that are indicative of conditions that arose after the
1. Surplus or deficit for the period; reporting date.
2. Each item of revenue and expense for the period that,
as required by other Standards, is recognized directly Adjusting and Non-adjusting Events After the Reporting
in net assets/equity, and the total of these items Date
3. Total revenue and expense for the period (calculated (see pg.282 for examples)
as the sum of (a) and (b);
Disclosures of Events after the Reporting Date Disclosure of Prior Period Errors
The required disclosures for events after the reporting date are An entity shall disclose the following:
as follows: 1. the nature of the prior period error;
a. Authorized date for issue of FS and who gave that 2. for each prior period presented, to the extent
authorization. If another body has the power to amend practicable, the amount of the correction for each
the financial statements after issuance, the entity shall financial statements line item affected;
disclose that fact 3. the amount of the correction at the beginning of the
b. Information received after the reporting date, but before earliest prior period presented;
the financial statements are authorized for issue 4. if retrospective restatement is impracticable for a
c. Disclose if material. particular prior period, the circumstances that led to the
d. Accordingly, the entity shall disclose the following for existence of that condition and a description of how and
each material category of non-adjusting event after the from when the error has been corrected.
reporting date:
a. the nature of the event; and Interim Financial Statements
b. an estimate of its financial effect or a ` Financial statements that are required to be prepared at any
statement that such an estimate cannot be given period or at a financial reporting period without closing the
made. books of accounts.
The following, among others are examples of non-adjusting Shall be prepared by employing the same accounting
events after the reporting date which requires disclosure: principles used for annual reports.
c. an acquisition or disposal of a major controlled
entity; Preparation and Submission of Other Reports.
d. announcement of a plan to discontinue an the following reports/ schedules/statements shall be submitted
operation or a major program; to GAS, COA:
e. major purchases and disposal of asset; and a. Pre-Closing Trial Balances
f. the destruction of a major building by a fire b. Post-Closing
after the reporting date. c. Other schedules
-Regional Breakdown of Income
Changes in Accounting Policies -Regional Breakdown of Expenses
The entity should be consistent in the application of an
accounting policy. Deadlines on Submission of Reports
Change is not allowed in PPSAS unless the change: All NGAs shall prepare and submit the following financial
a. Is required by PPSAS; or statements and schedules as follows, within the prescribed
b. Results in the financial statements that providing deadline:
reliable and more relevant information about the effects Provincial Offices and Operating Units
of transactions, other events and conditions on the Entity/office Statement/report Deadline Submit to
Monthly TB and Supp. 10 days aft. End of Auditor, Regional
entity’s financial position, financial performance Scheds mo. Accountant
The following are considered changes in accounting policies: Quarterly TBs, FSs, SSs 10 days aft. End of Auditor, Regional
a. Change from one basis of accounting to another basis qtr. Accountant
of accounting; and yearend TBs, FSs, SSs On or before Auditor, Regional
January 20 of the Accountant
b. Change in the accounting treatment, recognition or following year
measurement of a transaction, event or condition within
a basis of accounting. Regional/Branches Offices
Entity/office Statement/report Deadline Submit to
Changes in Accounting Estimates Monthly TBs and SSs 10 days aft. End of Regional Auditor,
mo. Central Office
Changes in accounting estimates resuls from new Chief
information or new developments and, accordingly, are not Accountant
correction of errors. Quarterly TBs, FSs, SSs 10 days aft. End of Regional Auditor,
qtr. Central Office
Chief
Errors Accountant
include the effects of mathematical mistakes, mistakes in yearend TBs, FSs, SSs On or before Regional Auditor,
applying accounting policies, oversights or misinterpretations of (combined CO, January 31 of the Central Office
facts, and fraud. ROs following year Chief
and OUs) Accountant
Current period errors – are errors committed and discovered
within the same period. It shall be corrected by an adjusting Central/Head/Main Offices
entry, within the same year before the financial statements Entity/office Statement/report Deadline Submit to
are authorized for issue. Monthly TBs and SSs 10 days aft. End of Auditor, DBM,
Prior period errors – are omissions from, and misstatements in, mo. Management,
Quarterly TBs, FSs, SSs 10 days aft. End of Auditor, DBM,
the entities’ financial statements for one or more prior qtr. Management
periods yearend TBs, FSs, SSs Feb 14 of the COA Auditor,
An entity shall correct material prior period errors (combined CO, following year DBM,
retrospectively in the first set of financial statements authorized ROs COA-GAS
and OUs)
for issue after their discovery by:
1. restating the comparative amounts for prior period(s)
presented in which the error occurred; or
2. if the error occurred before the earliest prior period
presented, restating the opening balances of assets,
liabilities and net assets/equity for the earliest prior period
presented.