MODULE 1 Nature and Scope of NGAS

OVERVIEW OF NEW GOVERNMENT ACCOUNTING SYSTEM (NGAS)

The accounting standards being applied in the private sectors were developed
because of the needs to present the financial statements fairly so that the
readers or those interested users will not be misinformed. With this, the
Philippines adopted the International Accounting Standards using the
Philippine Financial Reporting Standards (PFRS) to presents the financial
statements of the companies registered under the Philippine Law.

The same with the private sectors, the Philippine government also improved
its accounting system thru the recommendation of the Commission of Audit
(COA) by adopting the New Government Accounting System (NGAS) under
COA Circular No. 2001-004. Because of the critical function of accounting
reports in the government, accounting information play a vital part in the
decisions of the public managers to give credible reports to the public. This
module discussed the reason why NGAS was developed, and the
responsibility accounting are also emphasized. The budgetary accounting will
also be discussed to show the new ways of recording appropriation,
allotments and obligations in the different registries maintained by the
Department of Budget and Management (DBM).

Learning Objectives

Differentiate between accounting for private sectors and accounting for the
government.

Determine the body that will provide standards for government accounting.

Discuss the basic objectives of the New Government Accounting System

Determine how funds of government were used.

Describe the fundamental requirements in the budget process

Apply ethical standards to issues in government accounting.