Professional Documents
Culture Documents
CY 2014
1
Features of IPSAS
• There are 31 standards on the accrual basis of accounting and one
standard on the cash basis of accounting (source: IPSAS Handbook
published March 2011).
• When the accrual basis of accounting underlies the preparation of the
financial statements, the financial statements will include:
– the statement of financial position (IPSAS 1),
– the statement of financial performance (IPSAS 1),
– the cash flow statement (IPSAS 2),
– the statement of changes in net assets/equity (IPSAS 1),
– the note to the financial statements, or annex (IPSAS 1).
• When the cash basis of accounting underlies the preparation of the
financial statements, the primary financial statement is
– the statement of cash receipts and payments.
Adoption of the Philippine Public Sector Accounting Standards (PPSAS)
COA Resolution No. 2014-003 dated January 24, 2014
PPSAS 1
PPSAS 1
• applicable to all public sector entities other than Government Business
Enterprises (GBEs).
PPSAS 1
PPSAS 1
PPSAS 1
PPSAS 24
PPSAS 24 ― Presentation of Budget Information in Financial\
Statements
IPSAS 24 prescribes
a. a comparison of budget amounts and the actual amounts arising
from execution of the budget to be included in the financial
statements of entities.
b. requires disclosure of an explanation of the reasons for material
differences between the budget and actual amounts.
PPSAS 2
PPSAS 3
PPSAS 4
PPSAS 6
PPSAS 9
PPSAS 9 ― Revenue from Exchange Transactions
• IPSAS 9 prescribes the standards for identification,
measurement and disclosure of revenues of public sector
entities derived from exchange transactions.
• An exchange transaction is one in which the entity receives
assets or services, or has liabilities extinguished, and directly
gives approximately equal value to the other party in exchange.
• These transactions are rendering of services, sale of goods and
use by others of entity assets yielding interest, royalties, and
dividends.
Adoption of the Philippine Public Sector Accounting Standards (PPSAS)
COA Resolution No. 2014-003 dated January 24, 2014
PPSAS 12
PPSAS 12 ― Inventories
• IPSAS 12 sets out the accounting treatment for inventories. A
primary issue in accounting for inventories is the amount of
cost to be recognized as an asset and carried forward until the
related revenues are recognized.
• This Standard provides guidance on the determination of cost
and its subsequent recognition as an expense, including any
write down to net realizable value. It also provides guidance
on the cost formulas that are used to assign costs to
inventories.
Adoption of the Philippine Public Sector Accounting Standards (PPSAS)
COA Resolution No. 2014-003 dated January 24, 2014
PPSAS 12
Cost Formulas
Paragraph 32 provides that the cost of inventories of items that are
not ordinarily interchangeable, and goods and services produced
and segregated for specific project, shall be assigned by using
specific identification of their individual costs.
Paragraph 35, on the other hand, deals with the assignment of cost
of inventories using the First-in-first-out (FIFO) or weighted average
cost formulas items that are not specifically identifiable.
For consistency and uniformity in costing inventories, the weighted
average shall be adopted for items that are not specifically
identifiable.
Adoption of the Philippine Public Sector Accounting Standards (PPSAS)
COA Resolution No. 2014-003 dated January 24, 2014
PPSAS 16
PPSAS 17
PPSAS 17
PPSAS 17
Depreciation
• Paragraphs 59 to 78 deal with the recognition of depreciation,
methods of depreciation, determination of depreciable
amount, residual value and useful life of PPE.
• For uniform accounting treatment for the depreciation of PPE
the following modifications shall be made:
Adoption of the Philippine Public Sector Accounting Standards (PPSAS)
COA Resolution No. 2014-003 dated January 24, 2014
PPSAS 17
PPSAS 17
Depreciation Method
• The straight line method of depreciation shall be adopted
unless another method is more appropriate for agency
operation.
PPSAS 17
Residual Value
A residual value equivalent to at least five percent (5%) of the
cost shall be adopted unless a more appropriate percentage is
determined by the agency based on their operation.
PPSAS 20
PPSAS 20 ― Related Party Disclosures
Gender Audit
Gender Audit
• Gender audit is an examination of the agency’s level of
gender mainstreaming or extent of gender responsiveness
of its policies, programs and projects, the level of gender
awareness and competence of its personnel and the
presence or absence of enabling mechanisms that support
gender mainstreaming. The result of the gender audit
could be a basis for implementing capacity development
programs that must be implemented and determining how
the agency’s policies, programs and projects could be made
more gender responsive. (Jt. Circular No. 2012-001 of the
PCW, NEDA and DBM)
Audit of GAD Funds
11. The Accounting unit shall prepare and maintain PPE ledger cards
and Supplies Ledger Cards for all PPE and relief goods procured
out of cash donations. The Property and Supply unit shall maintain
Property cards and stock cards.
12. The Monthly RSMI shall be prepared by the Property and Supply
Unit based on the RIS. The Report shall be submitted to the
Accounting Unit for recording in the books of accounts.
Accounting and Reporting Guidelines on the receipt and utilization of
NDRRMF, cash and in kind aids/donations from local and foreign sources,
and funds allocated from the agency regular budget for DRRM Program
COA Circular No. 2014-002 dated April 13, 2014
13. All unutilized cash donations after the purpose have been
served, shall be:
a. Remitted to the Bureau of Treasury (BTr), if no condition to
return any unused amount to the donor, or
b. Return to the donor, if specified in the agreement.
The amount returned to the BTr and returned to the donor
shall be debited to Trust Liabilities-DRRMF
Accounting and Reporting Guidelines on the receipt and utilization of
NDRRMF, cash and in kind aids/donations from local and foreign sources,
and funds allocated from the agency regular budget for DRRM Program
COA Circular No. 2014-002 dated April 13, 2014
Beginning Balance P x x x
Add: Donations during the Year x x x
Total P x x x
Less: Expenses x x x
Ending Balance x x x
5
Enhanced Monitoring of compliance with
recommendations in the Annual Audit
Report (AAR) through Action Plan and
Status of Implementation (AAPSI) Form
and Action Plan Monitoring Tool (APMT)
Agency sign-off:
______________________________ ___________
Name and Position of Agency Officer Date
Note: Status of Implementation may either be (a) Fully Implemented, (b) Ongoing,
(c ) Not Implemented, (d) Partially Implemented, or (e) Delayed
6
Issues:
a. Whether the funds of the UP are subject to
garnishment in order to satisfy the judgment award
SC ruled that:
a. Authorized by law
b. Serve a public Purpose
Supreme Court Decision
Ramon Yap vs. COA - G.R. No. 158562 dated April 23, 2010
Allowances and Benefits