GOVERNMENT ACCOUNTING
3. Explain Briefly the purposes of creating the Public Sector Accounting Standards
Board(PSASB).
The primary purpose or function of the Public Sector Accounting Standards Board (PSASB) is
to assist the Commission on Audit(COA) in formulating and implementing the International Public
Sector Accounting Standards (IPSAS) here in the Philippines. The PSASB was also created in 2008
under COA Resolution No. 2008-12 for the purpose of establishing linkages with international
bodies, professional organizations and academe on accounting related fields on financial
management.
4. For what reason/s COA circular 2021-004 dated July 21,2021, renaming the
PPSAS to IPSAS,was issued?
- COA Circular 2021-004, renaming PPSAS to IPSAS, was issued to solidify the Philippines'
commitment to adopting globally recognized accounting standards or the IPSAS. While the PPSAS
were largely based on IPSAS, the renaming eliminates the misconception that they were
independently developed by COA, clarifying their international alignment for greater
transparency, comparability, and stakeholder confidence. This applies to all national government
agencies(NGAs), including state universities and colleges(SUC) , government-owned corporations
classified as non-commercial, and local government units (LGU) implementing these standards.
6. Enumerate the registries of the National Government Agencies as provided by the
Government Accounting Manual.
The 16 registries of the NGAs under the Government Accounting Manual (GAM) are the
following:
1. Registry of Revenue and Other Receipts - Summary (RRORS)
2. Registry of Revenue and Other Receipts - Regular Agency and Foreign Assisted Projects Fund
(RROR-RA&FAP)
3. Registry of Revenue and Other Receipts Special Account Locally Funded/Domestic Grants Fund
and Special Account Foreign Assisted/Foreign Grants Fund (RROR-SADFGF)
4. Registry of Revenue and Other Receipts - Internally Generated Funds (Off- Budgetary Funds -
Retained Income Funds)/Business Related Funds (RROR- IGF/BRF)
5. Registry of Revenue and Other Receipts Transferred Funds (RROR-TR/IATF)
6. Registry of Appropriation and Allotments (RAPAL)
7. Registry of Allotments, Obligations and Disbursements (RAOD-PS)
8. Registry of Allotments, Obligations and Disbursements - Maintenance and Other Operating
Expenses (RAOD-MOOE)
9. Registry of Allotments, Obligations and Disbursements - Financial Expenses (RAOD-FE)
10. Registry of Allotments, Obligations and Disbursements (RAOD-CO)
11. Registry of Budget, Utilization and Disbursements (RBUD-PS)
12. Registry of Budget, Utilization and Disbursements - Maintenance and Other Operating
Expenses (RBUD-MOOE)
13. Registry of Budget, Utilization and Disbursements-Financial Expenses(RBUD-FE)
14. Registry of Budget, Utilization and Disbursements - Capital Outlays (RBUD- CO)
15. Registry of Allotments and Notice of Cash Allocation (RANCA)
16. Registry of Allotments and Notice of Transfer of Allocation (RANTA)
8. How would the general purpose financial reporting in the public sector provide useful
information for decision making and demonstrate the accountability of the government entity?
The objectives of general purpose financial reporting in the public sector should be to
provide information useful for decision making, and to demonstrate the accountability of the
entity for the resources entrusted to it, by:
a. Providing information about the sources, allocation, and uses of financial resources;
b. Providing information about how the entity financed its activities and met its cash
requirements;
c. Providing information that is useful in evaluating the entity’s ability to finance its activities and
to meet its liabilities and commitments.
d. Providing information about the financial condition of the entity and changes in it;
e. Providing aggregate information useful in-evaluating the entity’s performance in terms of
service costs, efficiency and accomplishments.
9. Enumerate and explain the concept of responsibility accounting.
- The following are the concepts of responsibility accounting:
1. Responsibility accounting involves accumulating and reporting data on revenues and costs on
the basis of the manager’s action, who has authority to make the day-to-day decisions about the
items;
2. Evaluation of a manager’s performance is based on the matters directly under his control;
3. Responsibility accounting can be used at every level of management in which the following
conditions exist:
a. Cost and revenues can be directly associated with the specific level of management
responsibility;
b. Costs and revenues are controllable at the level of responsibility with which they are
associated; and
c. Budget data can be developed for evaluating the manager’s effectiveness in controlling the
costs and revenues.
4. The reporting of costs and revenues under responsibility accounting differs from budgeting in
two aspects:
a. A distinction is made between controllable and non-controllable costs.
1. A cost is considered controllable at a given level of managerial responsibility if that manager
has the power to incur it within a given period of time. It follows that all costs are controllable by
top
management because of the broad range of its activity, and fewer costs are controllable as one
moves down to lower level of management responsibility because of the manager’s decreasing
authority.
2. Non-controllable costs are costs incurred indirectly and allocated to a responsibility level.
b. Performance reports either emphasize or include only items controllable by individual
manager.
5. A responsibility reporting system involves the preparation of a report for each level of
responsibility. Responsibility reports usually compare actual costs with flexible budget data. The
reports show only controllable costs and no distinction is made between variable and fixed costs.
6. Evaluation of a manager’s performance for cost centers is based on his ability to meet
budgeted goals for controllable costs.
