REPUBLIC OF THE PHILIPPINES. COMMISSION ON AUDIT Commonwealth Avenue, Quezon City, Philippines Date RESOLUTION No. 3, A AOS on SUBIECT: Adoption of Additional Six (6) Philippine Public Sector Accounting Standards (PPSASs) anc Updates on the PPSAS prescribed through COA Resolution No, 2014-003 dated January 24, 2014 in accordance with the 2016 Edition of the Handbock of international Public Sector Accounting Pronouncements (HIPSAP) published by the International Federation of Accountants (IFAC) WHEREAS, Section 2(2), Article IX-D of the 1987 Constitution vests in the Commission ‘on Audit (COA) the exclusive authority to promulgate accounting rules and regulations; WHEREAS, Chapter 2, Section 25(4) of Presidential Decree (P.0,} No. 1445 mandates COA to promulgate accounting rules and regulations; WHEREAS, there is a need to harmonize the accounting standards under COA Circular No, 86-263 dated October 16, 1986 and other issuances of the Commission, to the extent possible, with the current public sector accounting standards; WHEREAS, COA Resolution No. 2008-012 dated October 10, 2008 created the Public Sector Accounting Standards Board [PSAcSB) to assist the Commission in formulating and implementing public sector accounting standards; WHEREAS, the Commission, upon the recommendation of the PSAcSB, issued COA Resolution No. 2014-003 on January 24, 2014 adopting 25 PPSAS enumerated in Annex A, thereof, after a study and review of the provisions of the International Public Sector Accounting Standards (IPSAS) based on 2012 Edition of the HIPSAP published by the IFAC; WHEREAS, PPSASs, as aligned with the prevailing internationat accounting standards, Provide quality accounting standards thereby enhancing the quality and uniformity in financial reporting by Philippine pyblic sector entities and ensuring accountability, transparency and comparability ‘ancial information with other public sector entities around the worl WHEREAS, IFAC issued 2016 Edition of HIPSAP containing updated version of issued IPSASS and new IPSASS;NOW, THEREFORE, this Commission resolves, as it does hereby resolve, to adopt the six IPSASS as additional PPSASs (Annex B), as follows: PPSAS No. PPSAS Title ‘Annex No. PPSAS 33 - First-time Adoption of Accrual Basis International Public B.A. Sector Accounting Standards (iPSASs) PPSAS 34 Separate Financial Statements: B2 PPSAS.35 - Consolidated Financial Statements B3 PPSAS 36 - Investments in Associates and Joint Ventures a4 PPSAS 37 - —_ Joint Arrangements BS PPSAS 38 Disclosure of Interests in Other Entities B.6 RESOLVED FURTHER, that based on the 2016 Edition of the HIPSAP published by IFAC, the following shall also be adopted: 1, The Preface to international Public Sector Accounting Standards (Annex C}; 2. Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities (Annex D); 3. Glossary of Defined Terms for IPSASs 1-38 (Annex E); and 4. Summary of Updates/Changes to the PPSASs prescribed through COA Resolution No. 2014-003 dated January 24, 2014 (Annex F). This Resolution shall take effect on January 1, 2017. 2017 ‘at Quezon City, Philippines, Done this iiday of _____April PI 30% BEL D. AGITO. Comnissloner Commissioner micyatl c. nGUINALDO Chairperson