Tomas Del Rosario College

Capitol Drive, San Jose, Balanga City, Bataan

Telefax No.: (047)791-6152; Tel. Nos.: (047) 237-3511, 237-0841

BACHELOR OF SCIENCE IN ACCOUNTANCY

(Course Syllabus)

Course: Actg. 10

Course Title: Accounting for Governmental, Not-for-Profit Entities and Specialized

Industries

Course Credit: Three (3) units

Prerequisite: Advanced Financial Accounting & Reporting, Part II

Course Description

This course is the last part of the advanced financial accounting and reporting for government and not-
for-profit organizations such as universities, NGOs and hospitals accounting and specialized industries
like banking, insurance and extractive industries. A large part of the course covers the Philippine
Government Accounting Standards (PGAS) and the New Government Accounting System (NGAS)
prescribed by the Commission on Audit.

Course Outline:

1. Government Accounting
1.1 Basic concepts in government accounting
1.1.1 Principles of accounting and financial reporting for national, government
owned and controlled corporations and local government units
1.1.2 Analysis of governmental financial performance
1.1.3 Auditing governmental agencies
1.2 Government budgeting
1.3 New Government Accounting System (NGAS)
1.3.1 Basic features and policies
1.3.2 Accounting books, records, forms and reports
1.3.3 Chart of accounts
1.3.4 Accounting system
1.3.5 Special funds
1.3.6 Special accounts
1.3.7 Supplies or property
1.3.8 Trial balance
1.3.9 Financial reports and statements
2. Financial reporting for not-for-profit organizations
2.1 Definition and description of nature and operations of not-for-profit organizations and the
different funds used by them
 2.1.1 Non-governmental colleges and universities
2.1.2 Health care providers
2.1.3 Voluntary health and welfare organizations
2.2 Journal entries of typical transactions of not-for-profit organizations
2.3 Preparation of financial statements
3. Accounting for Derivatives
3.1 Nature of Derivatives
3.2 Examples of Derivatives
3.2.1 Financial Futures
3.2.2 Financial Forward Contracts
3.2.3 Options
3.2.4 Foreign Currency Futures
3.2.5 Interest Rate Swaps
3.3 Accounting for Derivatives
3.3.1 Fair Value Hedge
3.3.2 Cash Flow Hedge
3.3.3 Foreign Currency Type of Hedge
4. Financial reporting for specialized industries
4.1 Insurance
4.1.1 IFRS (Insurance contracts)
4.1.2 PAS/IAS 39 (Financial Instruments: Recognition and measurement)
4.1.3 How insurance liabilities should be valued
4.2 Banks
4.2.1 GAAP versus Regulatory Accounting Principles (RAP)
4.2.2 Calculation of basic capital ratios and their significance
4.2.3 Analysis of a typical depository institution’s GAAP balance sheet, income
statement, statement of changes in equity, statement of cash flows and
related footnotes
4.2.4 Transactions that are unique to depository accounting (non-refundable fees
and costs, financial instruments fair value disclosure, investment in
securities, loan impairments, etc.)
4.3 Agricultural farms
4.3.1 PAS 41
5. Financial reporting for specialized topics
5.1 Environmental costs and liabilities
5.2 Governmental assistance

Suggested References
 New Government Accounting System. (2004). Quezon City: Commission on Audit.
 Gross, Malvern J., Richard F. Larkin, Roger S. Bruttomesso, Jo McNally. (1995). Financial and
Accounting Guide for No-for-Profit Organizations. John Wiley 7 Sons.
 Punzalan & Cardona. (2004). Government Accounting (NGAS). Manila: GIC Enterprises.
 Cabrera. E. B. Financial Accounting and Reporting, Theory and Practice Volumes I and II, 2007
Edition, Manila: GIC Enterprises.
 Philippine Accounting Standard 101
 Philippine Accounting Standard 32, 39
 Philippine Financial Reporting Standards