GOVERNMENT ACCOUNTING

MANUAL
 GOVERNMENT
ACCOUNTING
MANUAL
for National Government Agencies
Implementing of GAM is
another milestone in the
Philippine Government insofar
as public accounting sector is
concerned. The GAM
superseded the New
Government Accounting
System (NGAS) Manual that
national government agencies
have been using since 2002 as
prescribed by COA.
 GOVERNMENT
ACCOUNTING
MANUAL
Legal Basis
The Government Accounting Manual (GAM) is
prescribed by COA pursuant to Article IX-D,
Section 2 par. (2) of the 1987 Constitution of the
Republic of the Philippines which provides that:

“The Commission on Audit shall have exclusive authority,

subject to the limitations in this Article, to define the scope of
its audit and examination, establish the techniques and
methods required therefor, and promulgate accounting and
auditing rules and regulations, including those for the
prevention and disallowance of irregular, unnecessary,
excessive, extravagant, or unconscionable expenditures, or
uses of government funds and properties".
GOVERNMENT
ACCOUNTING
MANUAL
Coverage
The GAM presents the basic accounting policies and principles in
accordance with the Philippine Public Sector Accounting Standards
(PPSAS) adopted thru COA Resolution No. 2014-003 dated January 24,
2014, and other pertinent laws, rules and regulations. It includes the
Revised Chart of Accounts (RCA) prescribed under COA Circular No.
2013-002 dated January 30, 2013, as amended; the accounting
procedures, books, registries, records, forms, reports, and financial
statements; and illustrative accounting entries. It shall be used by all
National Government Agencies (NGAs) in the:

preparation of the general-

purpose financial statements in
accordance with the PPSAS and
other financial reports as may be
required by laws, rules and
regulations
reporting of budget, revenue and
expenditure in accordance with
laws, rules and regulations
 GOVERNMENT
ACCOUNTING
MANUAL

Objectives
of the Manual
To update the standards, policies,
guidelines and procedures in
accounting for government funds
and property

To update the coding structure

and accounts

To update the accounting books,

registries, records, forms, reports
and financial statements

Summary of
Contents
GAM contains the accounting policies in
accordance with IPSAS as well as the
guidelines and procedures to be adopted
by the accountants, budget officers,
cashiers, property officers, accountable
officers and other finance personnel in
recording and reporting government
financial transactions.
GOVERNMENT
ACCOUNTING
MANUAL
Volume I contains the general
provisions, basic standards and
policies, the specific guidelines and
procedures for each standard, and the
illustrative entries for typical
transactions of national government
agencies.
Volume II contains the various formats
of books of accounts, registries,
records, forms and reports, and the
instructions on their use.
Volume III contains the List of
Description of Accounts per COA
Circular No. 2013-002 dated 30
January 2013, amendments per COA
Circular No. 2014-003 dated 15 April
2014, and additional modified
accounts.
 GOVERNMENT
ACCOUNTING
MANUAL
Volume I contains the general
provisions, basic standards and
policies, the specific guidelines and
procedures for each standard, and the
illustrative entries for typical
transactions of national government
agencies.

Summary of
Contents
GAM contains the accounting policies in
accordance with IPSAS as well as the
guidelines and procedures to be adopted
by the accountants, budget officers,
cashiers, property officers, accountable
officers and other finance personnel in
recording and reporting government
financial transactions.
 GOVERNMENT
ACCOUNTING
MANUAL
Volume I contains the general
provisions, basic standards and
policies, the specific guidelines and
procedures for each standard, and the
illustrative entries for typical
transactions of national government
agencies.

Summary of
Contents
GAM contains the accounting policies in
accordance with IPSAS as well as the
guidelines and procedures to be adopted
by the accountants, budget officers,
cashiers, property officers, accountable
officers and other finance personnel in
recording and reporting government
financial transactions.

Summary of
Contents
GAM contains the accounting policies in
accordance with IPSAS as well as the
guidelines and procedures to be adopted
by the accountants, budget officers,
cashiers, property officers, accountable
officers and other finance personnel in
recording and reporting government
financial transactions.
GOVERNMENT
ACCOUNTING
MANUAL
Volume I contains the general
provisions, basic standards and
policies, the specific guidelines and
procedures for each standard, and the
illustrative entries for typical
transactions of national government
agencies.
Volume II contains the various formats
of books of accounts, registries,
records, forms and reports, and the
instructions on their use.
Volume III contains the List of
Description of Accounts per COA
Circular No. 2013-002 dated 30
January 2013, amendments per COA
Circular No. 2014-003 dated 15 April
2014, and additional modified
accounts.

Summary of
Contents
GAM contains the accounting policies in
accordance with IPSAS as well as the
guidelines and procedures to be adopted
by the accountants, budget officers,
cashiers, property officers, accountable
officers and other finance personnel in
recording and reporting government
financial transactions.
GOVERNMENT
ACCOUNTING
MANUAL
Volume I contains the general
provisions, basic standards and
policies, the specific guidelines and
procedures for each standard, and the
illustrative entries for typical
transactions of national government
agencies.
Volume III contains the List of
Description of Accounts per COA
Circular No. 2013-002 dated 30
January 2013, amendments per COA
Circular No. 2014-003 dated 15 April
2014, and additional modified
accounts.

Summary of
Contents
GAM contains the accounting policies in
accordance with IPSAS as well as the
guidelines and procedures to be adopted
by the accountants, budget officers,
cashiers, property officers, accountable
officers and other finance personnel in
recording and reporting government
financial transactions.
GOVERNMENT
ACCOUNTING
MANUAL
Volume I contains the general
provisions, basic standards and
policies, the specific guidelines and
procedures for each standard, and the
illustrative entries for typical
transactions of national government
agencies.
Volume II contains the various formats
of books of accounts, registries,
records, forms and reports, and the
instructions on their use.
Volume III contains the List of
Description of Accounts per COA
Circular No. 2013-002 dated 30
January 2013, amendments per COA
Circular No. 2014-003 dated 15 April
2014, and additional modified
accounts.
 Basic Accounting
and Budget Reporting
Principles
0 5 Double-entry bookkeeping

0 6 Financial statements based on accounting and

budgetary records

0 7 Fund Cluster Accounting

Code Fund Clusters
01 Regular Agency Fund
0 1 Philippine Public Sector Accounting Standards
02 Foreign Assisted Projects Funds
(PPSAS) and relevant laws, rules and
03 Special Account-Locally Funded/Domestic Grants Fund
regulations
04 Special Account-Foreign Funded/Foreign Grants Fund
05 Internally Generated Funds
0 2 Accrual basis of accounting 06 Business Related Funds
07 Trust Receipts

0 3 Budget basis for presentation of budget

information in the financial statements

0 4 Revised Chart of Accounts prescribed by the

COA
 Components of
Financial Statements
Statement of Financial Position

Statement of Financial Performance

Statement of Changes in Equity / Net Assets

Statement of Cash Flows

Statement of Comparison of Budget and Actual Amount Qualitative Characteristics

Notes of Financial Reporting
Understandability Substance over Form

Relevance Neutrality

Materiality Prudence

Timeliness Completeness

Reliability Comparability

Faithful Representation
 PHILIPPINE
PUBLIC SECTOR

ACCOUNTING
STANDARDS
 Effective January 1, 2014
25 IPSASs
based on 2012 HIPSAP
Phased Accrual-Basis IPSAS (except IPSASs 7, 10, 11, 18, 22, 25)
Adoption/Implementation by Sector
P P S A S Effective January 1, 2018
Additional 6 IPSASs
The process of evaluation and adoption of IPSAS 33-38
31 IPSASs is considered timely,
acceptable and responsive to the demands
of PFM reforms

The IPSASs provide quality accounting

standards, thereby:
• Enhancing the quality and uniformity in
financial reporting by Philippine public
sector entities, and
• Ensuring accountability, transparency,
and comparability of financial
information with other public sector
entities around the world
Philippines is ahead of, or at par with,
countries in IPSAS adoption.
• Conducted knowledge-sharing with
other countries on IPSAS adoption
 PHILIPPINE
PUBLIC SECTOR

ACCOUNTING
STANDARDS
The International Public Sector
Accounting Standards Board
(IPSASB) develops accounting
standards for public sector entities
referred to as International Public
Sector Accounting Standards
(IPSAS). The IPSASB recognizes
the significant benefits of achieving
consistent and comparable financial

INTERNATIONAL
information across jurisdictions and
it believes that the IPSASs will play
a key role in enabling these benefits
to be realized. PUBLIC SECTOR

ACCOUNTING The adoption of IPSASs by governments

will improve both the quality and

STANDARDS
comparability of financial information
reported by public sector entities around
the world. The IPSASB recognizes the right
of governments and national standard-
setters to establish accounting standards
and guidelines for financial reporting in their
jurisdictions. The IPSASB encourages the
adoption of IPSASs and the harmonization
of national requirements with IPSASs.
Financial statement should be described as
complying with IPSASs only if they comply
with all the requirements of each applicable
IPSAS.
 No. Title Based on
IPSAS 1 Presentation of Financial Statements IAS 1
IPSAS 2 Cash Flow Statements IAS 7
IPSAS 3 Accounting Policies, Changes in Accounting Estimates, and Errors IAS 8
IPSAS 4 The Effects of Changes in Foreign Exchange Rates IAS 21
IPSAS 5 Borrowing Costs IAS 23
IPSAS 6 Consolidated and Separate Financial Statements (superseded by IPSASs 34 and 35) IAS 27
IPSAS 7 Investments and Associates (superseded by IPSAS 36) IAS 28
IPSAS 8 Investments in Joint Ventures (superseded by IPSAS 37) IAS 31
IPSAS 9 Revenue from Exchange Transactions IAS 18
IPSAS 10 Financial Reporting in Hyperinflationary Economies IAS 29

INTERNATIONAL IPSAS 11
IPSAS 12
Construction Contracts
Inventories
IAS 11
IAS 2

PUBLIC SECTOR
IPSAS 13 Leases IAS 17
IPSAS 14 Events after the Reporting Date IAS 10
IPSAS 15 Financial Instruments: Disclosure and Presentation (superseded by IPSASs 28-30)

ACCOUNTING
IPSAS 16 Investment Property IAS 40
IPSAS 17 Property, Plant and Equipment IAS 16
IPSAS 18 Segment Reporting IAS 14

STANDARDS
IPSAS 19 Provisions, Contingent Liabilities and Contingent Assets IAS 37
IPSAS 20 Related Party Disclosures IAS 24
IPSAS 21 Impairment of Non-Cash Generating Assets IAS 36
IPSAS 22 Disclosure of Financial Information about the General Government Sector
IPSAS 23 Revenue from Non-Exchange Transactions (Taxes and Transfers)
IPSAS 24 Presentation of Budget Information in Financial Statements
IPSAS 25 Employee Benefits (superseded by IPSAS 39) IAS 19
IPSAS 26 Impairment of Cash-Generating Assets IAS 36
IPSAS 27 Agriculture IAS 41
IPSAS 28 Financial Instruments: Presentation IAS 32
IPSAS 29 Financial Instruments: Recognition and Measurement IAS 39
IPSAS 30 Financial Instruments: Disclosures IFRS 7
IPSAS 31 Intangible Assets IAS 38
IPSAS 32 Service Concession Arrangements: Grantor IFRIC 12
IPSAS 33 First-time Adoption of Accrual Basis IPSASs
IPSAS 34 Separate Financial Statements IAS 27
IPSAS 35 Consolidated Financial Statements IFRS 10
IPSAS 36 Investments in Associates and Joint Ventures IAS 28
IPSAS 37 Joint Arrangements IFRS 11
IPSAS 38 Disclosures of Interests in Other Entities IFRS 12
IPSAS 39 Employee Benefits IAS 19
IPSAS 40 Public Sector Combinations
IPSAS 41 Financial Instruments (not yet effective as at January 1, 2021) IFRS 9
IPSAS 42 Social Benefits (not yet effective as at January 1, 2021)
 INTERNATIONAL
PUBLIC SECTOR
ACCOUNTING
STANDARDS

GOVERNMENT
ACCOUNTING
MANUAL
T H A N K Y O U