Philippine Public Sector Accounting Standard 8

INTEREST IN JOINT VENTURES

Table of Contents

PAG
Number
BACKGROUND
INTRODUCTION TO THE IPSAS 8
PHILIPPINE APPLICATION GUIDANCE TO IPSAS 8
Scope

Effective Date

PPSAS 8 Interests in Joint Ventures

January 2014

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INTERESTS IN JOINT VENTURES

Background
This Philippine Public Sector Accounting Standard (PPSAS) 8 consists of
International Public Sector Accounting Standard (IPSAS) 8, Interests in
Joint Ventures, and the Philippine Application Guidance (PAG) prepared
to suit the Philippine public sector situation.
The IPSAS 8 was issued in May 2000 and revised in December 2006 by
the International Public Sector Accounting Standards Board (IPSASB) of
the International Federation of Accountants (IFAC). This includes
amendments resulting from IPSASs issued up to January 15, 2012.
The PAG (in italics) provides supplementary guidance on the proper
implementation of IPSAS 8.
Introduction to the IPSAS 8
IPSAS 8 sets out the principles and procedures in accounting for
interests in joint ventures and reporting for joint venture assets,
liabilities, revenue and expenses in the financial statements of
venturers and investors, regardless of the structures or forms under
which the joint venture activities take place.
Philippine Application Guidance to IPSAS 8
Scope
PAG1.Paragraph 4 deals with the applicability of this Standard to all
public sector entities other than Government Business
Enterprises (GBEs).
GBE is an entity that has all the following characteristics: (a) Is
an entity with the power to contract in its own name; (b) Has
been assigned the financial and operational authority to carry on
a business; (c) Sells goods and services, in the normal course of
its business, to other entities at a profit or full cost recovery; (d)
Is not reliant on continuing government funding to be a going
concern (other than purchases of outputs at arms length); and
(e) Is controlled by a public sector entity.
PPSAS 8 Interests in Joint Ventures
January 2014

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This standard shall be applied to all National Government

Agencies (NGAs), Local Government Units (LGUs) and
Government-Owned and/or Controlled Corporations (GOCCs) not
considered as GBEs.
Effective Date
PAG2.This PPSAS shall apply for annual financial statements covering
periods beginning January 1, 2014.

PPSAS 8 Interests in Joint Ventures

January 2014

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