Professional Documents
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Sec. 1. Scope. This Chapter provides the standards, policies, guidelines and procedures
in accounting for revenue and other receipts including those collections through authorized agent
banks, remittance of collections to the NT through AGDB and deposits with the AGDB in
accordance with PPSAS 9-Revenue from Exchange Transactions and PPSAS 23-Revenue from
Non-exchange Transactions.
Sec. 2. Definition of Terms. For the purpose of this Manual, the following terms shall
be construed to mean as follows:
d. Fair value – is the amount for which an asset could be exchanged, or a liability settled,
between knowledgeable, willing parties in an arm’s length transaction
f. Gifts, Donations and Goods In-kind – are voluntary transfers of assets, including cash
or other monetary assets, goods in-kind and services in-kind that one entity makes to
another, normally free from stipulations. The transferor may be an entity or an
individual. For gifts and donations of cash or other monetary assets and goods in-kind,
the past event giving rise to the control of resources embodying future economic
benefits or service potential is normally the receipt of the gift or donation.
(Par. 93, PPSAS 23)
i. Revenue – is the gross inflow of economic benefits or service potential during the
reporting period when those inflows result in an increase in net assets/equity, other
than increases relating to contributions from owners.
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