Accounting 12 – GOVERNMENT ACCOUNTING

MSL – FOREIGN CURRENCY TRANSACTIONS

Foreign currency transaction are transactions to be settled in a foreign currency and financial
statements of an affiliate maintained in a foreign currency are translated into pesos by multiplying the
number of units of the foreign currency by a direct exchange rate. I’ve learned that in a foreign currency
transactions, gains and losses are recognized as the exchange rate are changed when preparing report.
In the point of view of seller, buying rate is used. And in the point of view of buyer, selling rate is used.

MSL – GOVERNMENT ACCOUNTING

Government accounting taught me that it emphasizes the sources and utilization of these sources or
funds. Government resources shall be utilized efficiently and all those exercising authority shall share
fiscal responsibility. Moreover, I’ve learned that it is not necessary to be CPA in order to be a member or
officer of DBM. The rules used on GAM for NGAS is also the same as accounting methods for business
establishments except for it uses fund cluster accounting. I also learned that government accounting is
primarily budgetary accounting. The budget starts from budget preparation using bottom up approach.
The budget preparation will be followed by budget legislation, budget execution and budget
accountability respectively. The appropriation of budget allocate funds for purpose specified by
legislative. Next to this is the allotment followed by obligation. These have no journal entry but there is
a memo entry and entry on its registries. Upon disbursement, journal entry is made. Furthermore, I‘ve
learned that if government official spend beyond approved budget they will be charged technical
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