PGAS 11 - EQUITY

11.1 Equity represents the difference between the assets and liabilities.

11.2 Equity for GOCCs shall include among others the authorized subscribed capital
stock, additional paid in capital, treasury stock and retained earnings.

PGAS 12 - INCOME

12.1 Income are increases in economic benefits during the accounting period in the
form of inflows or enhancement of assets or decreases of liabilities that result in
increases in equity, other than those relating to contributions from equity
participants.

12.2 Income includes both revenues and gains. Revenue arises in the course of the
ordinary activities of an agency. Gains include those arising on the disposal of
non-current assets and those resulting from revaluation of marketable securities as
well as increases in the carrying amount of non-current assets.

12.3 Income shall be recognized when earned or collected. It shall be measured at fair
value of the consideration received or still collectible in the future.

12.4 Donations in cash or in kind shall be recognized as income.

PGAS 13 - EXPENSES

13.1 Expenses are the decreases in economic benefits during an accounting period in
the form of outflows or depletions of assets or incurrence of liabilities that result
in decreases in equity.

13.2 Expenses shall include financial costs in fulfilling the mandate of an agency such
as personal services, maintenance and other operating expenses and financial
expenses.

13.3 These shall also include losses resulting from disasters such as fire and flood as
well as those arising on the disposal of non-current assets and those arising from
the effects of increases in the rate of exchange for a foreign currency in respect of
the borrowings of an agency.

13.4 Expenses shall be recognized when incurred.

13.5 Bank charges, commitment fees, documentary stamp expenses, interest expenses
and other financial charges shall be classified separately.