Korbel Foundation College, Inc.

Purok Spring, Brgy. Morales, City of Koronadal

Tel Number 877-2051/0228-1996

GOVERNMENT GENERAL PROVISIONS,

BASIC STANDARDS AND POLICIES
ACCTG 35

ACCOUNTING FOR GOVERNMENT, NON-FOR-PROFIT AND SPECIALIZED INDUSTRIES

Prepared by:
JEFFREY RODRIGUEZ

KFCI-Module 12
 Learning Objectives
At the end of the week, the learners
must be able to:

01 Know the general provisions from

existing laws and regulations

02 Understand Government Accounting

Manual (GAM)

03 Discuss Philippine Public Sector

Accounting Standards (PPSAS)
 GENERAL PROVISIONS, BASIC STANDARDS AND POLICIES

Commission on Audit is mandated to

promulgate accounting and auditing rules and
regulations and prescribed Government
Accounting Manual (GAM) for National
Government Agencies (NGAs).

KFCI-Module 12
 GENERAL PROVISIONS, BASIC STANDARDS AND POLICIES

Department of Budget and Management –shall be

responsible for the formulation and implementation of
the National Budget with the goal of attaining our
national socio-economic plans and objectives.

KFCI-Module 12
 GENERAL PROVISIONS, BASIC STANDARDS AND POLICIES

Bureau of Treasury (BTr) –plays a pivotal role

in the cash operations of the national
government, the accounting rules and
regulations pertaining to cash operations,
collections, remittances and disbursements,
including public borrowings.

KFCI-Module 12
 GENERAL PROVISIONS, BASIC STANDARDS AND POLICIES

Responsibility Accounting –is a system that

relates the financial results to a responsibility
enter, which provides access to cost and
revenue information under the supervision of a
manager having direct responsibility for its
performance

KFCI-Module 12
 GENERAL PROVISIONS, BASIC STANDARDS AND POLICIES

Responsibility Center –is a part, segment,

unit of function of a government agency,
headed by a manager, who is accountable
for a specified set of activities.

KFCI-Module 12
 GENERAL PROVISIONS, BASIC STANDARDS AND POLICIES

Government Accounting Manual (GAM) –presents the

basic accounting policies and principles in accordance
with Philippine Public Sector Accounting Standards
(PPSAS).

KFCI-Module 12
 GENERAL PROVISIONS, BASIC STANDARDS AND POLICIES

Philippine Public Sector Accounting Standards (PPSAS)

–provide the quality accounting standards thereby
enhancing the quality and uniformity in financial
reporting by Philippine Public Sector entities, and
ensuring accountability, transparency and comparability
of financial information with other public sector entities
around the world.

KFCI-Module 12
 GENERAL PROVISIONS, BASIC STANDARDS AND POLICIES

PD 1445 Section 110 sets down the following objectives of government

accounting:

• To produce information concerning pas operations and present

conditions;
• To provide a basis for guidance for future operations;
• To provide for control of the acts of public bodies and offices in the
receipt, disposition and utilization of funds and property; and
• To report the results of operations of government agencies for the
information and guidance of all persons concerned.

KFCI-Module 12
 GOVERNMENT TRIAL BALANCE, FINANCIAL REPORTS AND STATEMENTS

Government Business Enterprise is an entity has the all the following

characteristics:

• An entity with the power to contract in its own name;

• Has been assigned the financial and operational authority to carry on a
business;
• Sells goods and services, in the normal course of its business, to other
entities at a profit or full cost recovery;
• Not reliant on continuing government funding to be a going concern;
• Controlled by public sector entity.

KFCI-Module 12
 GOVERNMENT TRIAL BALANCE, FINANCIAL REPORTS AND STATEMENTS

The following are the processes and other consideration in developing the
Philippine Public Sector Accounting Standards (PPSAS).

1. Applicability of IPSAS: After a study and review of the

provisions of the International Public Sector Accounting
Standards (IPSAS), the Public Sector Accounting Standard
Board recommended the adoption of the said standards.

KFCI-Module 12
 GOVERNMENT TRIAL BALANCE, FINANCIAL REPORTS AND STATEMENTS

The following are the processes and other consideration in developing the
Philippine Public Sector Accounting Standards (PPSAS).

2. Exposure draft of PPSAS: The Board issues exposure drafts of all

proposed PPSAS for comment by interested parties including COA officials
and auditors, agency finance personnel, oversight agencies, professional
organizations, academe and other stakeholder.

KFCI-Module 12
 GOVERNMENT TRIAL BALANCE, FINANCIAL REPORTS AND STATEMENTS

The following are the processes and other consideration in developing the
Philippine Public Sector Accounting Standards (PPSAS).

3. Consideration of Fundamental Issues: When an accounting principle

contained in IPSAS is observed to be in conflict with the Philippine laws,
rules and regulations, this would be regarded as a fundamental issue and
necessary changes must be considered.

KFCI-Module 12
 GOVERNMENT TRIAL BALANCE, FINANCIAL REPORTS AND STATEMENTS

The following are the processes and other consideration in developing the
Philippine Public Sector Accounting Standards (PPSAS).

4. Statutory authority: Where the international standard deviates from the

Philippine regulatory or legislative environment, Philippine application
guidance shall be issued accordingly.

KFCI-Module 12
 GOVERNMENT TRIAL BALANCE, FINANCIAL REPORTS AND STATEMENTS

The following are the processes and other consideration in developing the
Philippine Public Sector Accounting Standards (PPSAS).

5. Disclosure requirements: Disclosure requirements may be amended

when the amendments are regarded as being significant for improving fair
presentation of the matter.

KFCI-Module 12
 GOVERNMENT TRIAL BALANCE, FINANCIAL REPORTS AND STATEMENTS

The following are the processes and other consideration in developing the
Philippine Public Sector Accounting Standards (PPSAS).

6. PPSAS numbering: The Philippine Public Sector Accounting Standards

(PPSAS) is assigned the same number as the IPSAS to maintain the link.

KFCI-Module 12
 GOVERNMENT TRIAL BALANCE, FINANCIAL REPORTS AND STATEMENTS

The following are the processes and other consideration in developing the
Philippine Public Sector Accounting Standards (PPSAS).

7. Financial reporting issued not dealt with by IPSAS: Where issues related
to financial reporting emerged, researches were done and discussion
document prepared based on other relevant accounting standards not in
conflict with Philippine laws.

KFCI-Module 12
 GOVERNMENT TRIAL BALANCE, FINANCIAL REPORTS AND STATEMENTS

The following are the processes and other consideration in developing the
Philippine Public Sector Accounting Standards (PPSAS).

8. Submission of draft to PSASB for consideration of the COA: Where there

are significant changes or unresolved issues associated with an exposure
draft, the PSASB may decide to re-expose a proposed PPSAS.

KFCI-Module 12
 HIGHLIGHT SUMMARY

• In order to harmonize the existing accounting standards with the

international accounting standards, the COA has prescribed GAM.
• The PPSAS, as aligned with the prevailing international standards,
provide the quality accounting standards thereby enhancing the quality
and uniformity in the financial reporting.
• National Government Agencies are those Departments, Bureaus, Offices
and Other instrumentalities of the National Government, including the
Congress, the Judiciary, the Constitution bodies, State Colleges and
Universities, and other self-contained institutions and Hospitals.

KFCI-Module 12