Professional Documents
Culture Documents
The PPSAS and The Revised Chart of Accounts
The PPSAS and The Revised Chart of Accounts
LOURDES M. CASTILLO
Assistant Commissioner
Government Accountancy Sector
Commission on Audit
Objective
To set out the recognition, measurement, presentation
and disclosure requirements for financial reporting in the
Philippine Government.
Scope
PPSASs set out requirements dealing with
transactions and other events in general purpose
financial reports.
Phased Implementation
Phase 1 (25 PPSAS for implementation in 2014)
Phase 2 (3 PPSAS for implementation in 2015)
Phase 1 For implementation in 2014
1. PPSAS 1- Presentation of Financial
Statements (IPSAS 1)
2. PPSAS 2- Cash Flow Statements (IPSAS 2)
3. PPSAS 3 Accounting Policies, Changes in
Accounting Estimates and Errors (IPSAS 3)
4. PPSAS 4- The Effects of Changes in FOREX
rates (IPSAS 4)
Phase 1 (continued)
5. PPSAS 5- Borrowing Costs (IPSAS 5)
6. PPSAS 6- Consolidated and Separate Financial
Statements (IPSAS 6)
7. PPSAS 8 Interest in Joint Venture (IPSAS 8)
8. PPSAS 9- Revenue from Exchange Transactions
(IPSAS 9)
9. PPSAS 12- Inventories (IPSAS 12)
10. PPSAS 13- Leases (IPSAS 13)
11. PPSAS 14- Events after the Reporting Date (IPSAS 14)
12. PPSAS 16- Investment Property (IPSAS 16)
13. PPSAS 17- Property, Plant and Equipment (IPSAS 17)
Phase 1 (continued)
14. PPSAS 19- Provisions, Contingent Liabilities and
Assets (IPSAS 19)
15. PPSAS 20 Related Party Disclosure (IPSAS 20)
16. PPSAS 21- Impairment of Non-Cash Generating
Assets (IPSAS 21)
17. PPSAS 23- Revenue from Non- Exchange
Transactions (Taxes and Transfers) (IPSAS 23)
18. PPSAS 24- Presentation of \Budget Information in
Financial Statements (IPSAS 24)
Phase 1 (continued)
19. PPSAS 26- Impairment of Cash Generating Assets
(IPSAS 26)
20. PPSAS 27- Agriculture (IPSAS 27)
21. PPSAS 28- Financial Instruments Presentation (IPSAS 28)
22. PPSAS 29-Financial Instruments: Recognition and
Measurement (IPSAS 29)
23. PPSAS 30- Financial Instruments Disclosure (IPSAS 30)
24. PPSAS 31- Intangible Assets (IPSAS 31)
25. PPSAS 32- Service Concession Arrangements: Grantor
(IPSAS 32)
Phase 2 For Implementation in 2015
1. PPSAS 18- Segment Reporting
Salient Features
Prescribes requirements for preparing and presenting
consolidated FS for an economic entity under the
accrual basis of accounting.
A controlled entity is an entity controlled by another
entity, known as the controlling entity.
Balances, transactions, revenue and expenses between
entities within the economic entity are eliminated in
full.
PPSAS 8 Interests in Joint Ventures
Salient Features
The key characteristic of a joint venture is a binding
arrangement whereby two or more parties are committed
to undertake an activity that is subject to joint control.
0 00 00 00 0
Account Group
Asset
Cash and Cash Equivalents
Cash on Hand
Cash Collecting Officer
GL Contra-Account
Asset with Contra Account
Example: Accounts Receivable
1 -03 -01 -010
Asset
Receivables
Loans & Receivable Accounts
Accounts Receivable
GL Contra-Account
Asset with Contra Account
Example: Allowance for Impairment - Accounts Receivable
1 -03 -01 -011
Asset
Receivables
Loans & Receivable Accounts
Accounts Receivable
Allowance for Impairment-
Accounts Receivable
Major Changes
New Accounts
1 02 01 010 Financial Assets Held for Trading in compliance with IPSAS 28-30
1 02 02 011 Allowance for Impairment - in compliance with IPSAS 29 (Financial Instruments -
Investments in Treasury Bills - Recognition and Measurement)
Local
1 03 02 020 Finance Lease Receivable in compliance with IPSAS 13 (Leases)
1 03 02 021 Allowance for Impairment - in compliance with IPSAS 13 (Leases)
Finance Lease Receivables
1 05 01 020 Investment Property, Buildings in compliance with IPSAS 16 (Investment Property)
1 05 01 021 Accumulated Depreciation - in compliance with IPSAS 16 (Investment Property)
Investment Property, Buildings
1 05 01 022 Accumulated Impairment Losses - in compliance with IPSAS 26 (Impairment of Cash
Investment Property, Buildings Generating Assets)
New Accounts
10202010 Investments in Treasury Bills Local In compliance with
IPSAS 29-30
10202011 Allowance for Impairment - Investments In compliance with
in Treasury Bills - Local IPSAS 29-30
10501010 Investment Property, Land In compliance with
IPSAS 16
10501011 Allowance for Impairment - Investment In compliance with
Property, Land IPSAS 16 & 21
New Accounts
1 01 04 010 Cash-Treasury/Agency
Deposit, Regular
1 01 04 020 Cash - Treasury/Agency
Deposit, Special Account
1 01 04 030 Cash - Treasury/Agency
Deposit, Trust
Major Changes
d. Some accounts were deleted since these
accounts are for use by local government
units or government-owned and/or
controlled corporations, while other
accounts are no longer applicable to
national government agencies.
Deleted Accounts
Example:
101 Cash in Vault for LGUs use
127 Real Property Tax for LGUs use
Receivables
128 Special Education Tax for LGU use
Receivables
144 Due from Other Funds not allowed
145 Due from Subsidiaries/ for GOCCs
Affiliates use only
Major Changes
e. Some accounts were either expanded or
compressed. For instance, expense accounts
for repairs and maintenance and depreciation
of property, plant and equipment which were
previously presented per asset account were
compressed based on the major account
classification
Compressed Accounts
Example:
811 Repairs and Maintenance - 5 02 13 040 Repairs and
Office Buildings Maintenance-
812 Repairs and Maintenance - Buildings and Other
School Buildings Structure
813 Repairs and Maintenance -
Hospitals and Health
Centers
814 Repairs and Maintenance -
Market and Slaughterhouses
815 Repairs and Maintenance -
Other Structures
Compressed Accounts
Example:
811 Depreciation-Office 5 05 01 040 Depreciation -
Buildings Buildings and
812 Depreciation-School Other Structures
Buildings
813 Depreciation-Hospitals
and Health Centers
814 Depreciation-Market
and Slaughterhouses
815 Depreciation-Other
Structures
Repairs and Maintenance
Buildings and Other Structures
Subsidiary Ledgers:
01 - Buildings
02 - School Buildings
03 - Hospitals and Health Centers
04 - Markets
05 - Slaughterhouses
06 - Hostels and Dormitories
99 - Other Structures
Depreciation - Buildings and Other Structures
5-05-01-040
Subsidiary Ledgers:
01 - Buildings
02 - School Buildings
03 - Hospitals and Health Centers
04 - Markets
05 - Slaughterhouses
06 - Hostels and Dormitories
99 - Other Structures
Expanded Account
Example:
25 PPSAS
Specific Accounting Policies and Guidelines
Maintenance of NG books shall be discontinued. A
separate set of books shall be maintained by fund.
All balances as of December 31, 2013 shall be
transferred to the appropriate new books.
Bases shall be the law creating the fund
Copies of the JEV shall be furnished the COA
Auditor and the COA-GAS separately
BIR books
constructive receipt of remittance thru TRA
(debit)
closing to Accumulated Surplus/(Deficit)
(credit)
New Accounts
Cash Tax Remittance Advice (1-01-04-070)
BTR books
TRA issued (credit)
Closing to Accumulated Surplus/ (Deficit)
(Credit)
New Accounts
1 06 12 000 Service Concession Assets
1 06 12 010 Service Concession - Road Networks
1 06 12 011 Accumulated Depreciation - Service Concession - Road Networks
Revenue
4 02 02 240 Service Concession Revenue
New Accounts
Expenses
- ARNOLD SCHWARZENEGGER