The PPSAS and the Revised Chart of
Accounts: Tools to Enhance
Accountability
and Transparency in Financial
Reporting
LOURDES
M. CASTILLO
Assistant Commissioner
Government Accountancy Sector
Commission on Audit
Delivered during the 36th GACPA Annual National Convention
May 21-24, 2014
Skylight Convention Center, Puerto Princesa City, Palawan
The Philippine Public Sector
Accounting Standards (PPSAS)
LEGAL BASES
Article IX-D, 1987 Philippine Constitution
To promulgate auditing and accounting
rules and regulations so as to facilitate
the keeping, and enhance the information
value of the accounts of government.
Article IX-D, 1987 Philippine Constitution
LEGAL BASES
(continued)
COA Circular No. 2013-002
dated January 30, 3013
Adoption of the Revised Chart of Accounts
COA Resolution No. 2014-003
dated January 24, 2014
Adoption of the Philippine Public Sector
Accounting Standards (PPSAS)
LEGAL BASES
(continued)
COA Circular No. 2014-003 dated April 15,
2014
Conversion from the Philippine Government
Chart of Accounts under the New Government
Accounting System per COA Circular No.
2004-008 dated September 20, 2004 as
amended, to the Revised Chart of Accounts
for National Government Agencies under COA
Circular No. 2013-002 dated January 30, 2013,
additional accounts/revised description/title of
accounts and relevant Accounting Policies and
Guidelines in the Implementation thereof
Creation of the Public Sector
Accounting Standards Board (PSAcSB)
COA Resolution No. 2008-012 dated Oct. 10, 2008
COA Office Order No. 2010-118 dated Feb. 19, 2010
COA Office Order No. 2013-622 dated Oct. 01, 2013
Functions of the PSAcSB
Assist the COA Commission Proper in formulating and
implementing accounting standards for the public sector.
Establish and maintain linkages with international
bodies, professional organizations and academe on
accounting related fields on financial management.
Bases of PPSAS
Pronouncements issued by IPSASB (IPSASs),
IASB, PICPA, International Organization of
Supreme Audit Institutions and others.
Relevant factors, including best accounting
practices, and
Capacity of Agencies to comply with PPSAS.
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.
PPSASs are designed to apply to the general
purpose financial reports of all public sector
entities other than Government Business
Enterprises (GBEs)
Applies to all NGAs, LGUs and GOCCs not
classified as GBEs
Methodology
I. Evaluation of IPSAS
. Studied and evaluated each IPSAS to
determine applicability
II. Development of PPSAS
. Provided the PAG for IPSAS provisions
which were not adopted
. Exposed drafts to stakeholders
. Addressed fundamental issues
. Conducted Focus Group Discussions
III. Preparation/Update of Government
Accounting Manual
.Studied, enhanced and modified the
provision of Government Accounting
Manual, as PPSASs are being developed.
IV. Revision of the Chart of Accounts
. Revised the Chart of accounts to conform
with the PPSAS and
. COA Circular 2013-002 dated Jan. 30,
2013.
Content
PPSAS consists of
International Public Sector Accounting Standards
(IPSASs) (Accrual Based IPSASs per 2012 Handbook)
developed by IPSASB and published by the
International Federation of Accountants (IFAC), and
Philippine Application Guidance (PAG)
Philippine Application Guidance (PAG)
Provide supplementary guidance of IPSASs to suit
the Philippine public sector situation.
States the reason for not adopting some paragraphs
of the IPSASs.
Approach to Implementation
28 out of 32 IPSAS shall be implemented
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
2. PPSAS 22 Disclosure of Information about
the General Government Sector
3. PPSAS 25- Employee Benefits
PPSAS SUMMARY
PPSAS 1- Presentation of FS
Objective To set overall considerations for the:
Presentation
Structure
Minimum content of Financial Statements
Salient Features
. Accrual basis except for transactions
otherwise accounted for as required by law.
. Comparative Information
- for all amounts reported in the FS
- for all relevant narrative and descriptive
information.
PPSAS 1- Presentation of FS
Complete set of Financial Statements:
1.
2.
3.
4.
5.
Statement of financial position
Statement of financial performance
Statement of changes in net assets/ equity
Cash Flow Statement
Notes, comprising a summary of significant
accounting policies and other explanatory notes
6. Separate additional statements for comparison
of budget and actual amounts shall be prepared
and submitted
PPSAS 2- Cash Flow Statement
Objective To set overall considerations for the:
Provisions of information about changes in cash and cash
equivalents by means of a cash flow statement.
Classifies cash flows during the period from operating,
investing and financing activities.
Salient Features
Cash flows for operating activities are reported using the
direct method.
Cash flows exclude movements between items that
constitute cash or cash equivalents.
Investing and financing transactions that do not require
the use of cash shall be excluded from the cash flow
statement, but they shall be separately disclosed.
PPSAS 3 - Accounting Policies,
Changes in Accounting
Estimates and Errors
Salient Features
. Changes in Accounting Estimates
Follow transition requirements
If the change is voluntary, apply the new
accounting policy retrospectively by restating
prior periods.
. Effect
of a change in estimate is accounted for by
including it in net income or comprehensive income
as appropriate in:
a. The period of change if the change affects that
period only.
b. The period of change and future periods if the
change affects both.
PPSAS 4 The Effects of Changes in
Foreign Exchange Rates
Salient Features
Covers Foreign currency transactions and
Foreign operations.
Translation should be done for foreign currency
items into functional currency.
Initial recognition and measurement record the
spot exchange rate.
PPSAS 5 Borrowing Costs
Salient Features
Borrowing costs shall be charged to expenses in the period
when they are incurred. (Benchmark treatment)
Borrowing costs directly attributable to the acquisition,
construction, or production of a qualifying asset shall be
capitalized as part of the cost of that asset. (Allowed
Alternative Treatment)
For borrowing costs pertaining to loans borrowed by the
National Government (NG) which are recorded by the
Bureau of the Treasury, the benchmark treatment shall be
used. However for loans borrowed directly by the NGAs
and LGUs, the allowed alternative treatment shall be used.
PPSAS 6 Consolidated and
Separate Financial
Statement
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.
Joint ventures may be classified as jointly
controlled operations, jointly controlled assets
and jointly controlled entities. Different
accounting treatments apply for each type of
joint venture.
PPSAS 9 Revenue from Exchange
Transactions
Salient Features
.
Applies to revenue arising from the following
exchange transactions and events:
The rendering of services.
The sale of goods, and
The use of others of entity assets yielding
interest, royalties and dividends.
. Revenue shall be measured at the fair value
of the consideration received or receivable.
PPSAS 12 Inventories
Salient Features
Inventories are measured at the lower of cost and
net realizable value.
If acquired through a non exchange transaction,
their cost shall be measured as their fair value as at
the date of acquisition.
Cost is determined on weighted average basis
Write- downs to net realizable value are recognized
as an expense. Reversals arising from an increase
in net realizable value are recognized as reduction
of the inventory expense in the period in which
they occur.
PPSAS 13 Leases
Salient Features
Lease is classified as a Finance lease if:
(a) The lease transfers ownership of the asset to the
lessee by the end of the lease term.
(b) The lessee has the option to purchase the asset at
a price that is expected to be sufficiently lower
than the fair value.
(c) The lease term is for the major part of the
economic life of the asset.
(.Operating lease does not transfer substantially all
the risks and rewards incidental to ownership of the
asset.
PPSAS 14 Events After the
Reporting Date
Definitions
Adjusting events after the reporting date events that provide evidence of conditions that
existed at the reporting date.
Non-Adjusting events after the reporting
date - those that are indicative of conditions that
arose after the reporting date.
An entity shall disclose:
The date its financial statements were
authorized for issue, and
Who gave that authorization.
PPSAS 16 Investment Property
Salient Feature
Investment property - is property (land or a building
or part of a building, or both) held to earn rentals for
capital appreciation, or both, rather than for:
a) Use in the production or supply of goods or services,
or for administrative purposes; or
b) Sale in the ordinary course of operations.
. Investment Property - Shall be measured initially at
cost. If acquired through non-exchange transactionFair value as at date of acquisition.
PPSAS 17 Property, Plant and
Equipment
Salient Features
Initial recognition is at cost, its cost is its fair
value as at the date of acquisition.
Infrastructure assets are accounted as PPE
The carrying amount of an item of property,
plant and equipment shall be derecognized:
a) On disposal; or
b) When no future economic benefits or service
potential is expected from its use or disposal.
PPSAS 19 Provisions, Contingent
Liabilities and Contingent
Assets
Salient Features
Recognize a provision only when:
A past event has created a present legal or
constructive obligation.
An outflow of resources to settle the obligation
is probable, and
There is a reliable estimate of the obligation
PPSAS 19 Provisions, Contingent
Liabilities and Contingent
Assets
Salient Features
Contingent Liability arises when there is:
Possible obligation to be confirmed by a future event
that is outside the control of the entity; or
A present obligation may, but probably will not
require an outflow of resources, or
A reliable estimate cannot be made.
Contingent liabilities require disclosure only (no
recognition). If the possibility of outflow is remote,
then no disclosure.
PPSAS 19 Provisions, Contingent
Liabilities and Contingent
Assets
Salient Features
Contingent asset arises when the inflow of
economic benefits or service potential is probable,
but not virtually certain, and occurrence depends
on an event outside the control of the entity.
Contingent assets require disclosure only (no
recognition). If the realization of revenue is
virtually certain, the related asset is not a
contingent asset and recognition of the asset and
related revenue is appropriate.
PPSAS 20- Related Party Disclosures
Salient Features
Related Parties are parties that control or have
significant influence over the reporting entity and
parties that are controlled or significantly influenced
by the reporting entity.
Requires disclosure of:
Relationship involving control, even when there
have been no transactions in between;
Related party transactions; and
Management compensation
PPSAS 21 Impairment of Non-CashGenerating Assets
Definition
Cash - generating assets- are assets held with the primary
objective of generating a commercial return.
Non-cash - generating assets- are assets other than cashgenerating assets.
Impairment - a loss in the future economic benefits or
service potential of an asset, over and above the
systematic recognition of the loss of the assets
future economic benefits or service potential through
depreciation.
PPSAS 21 Impairment of Non-Cash
Generating Assets
Salient Features
A non-cash-generating asset is impaired when
the carrying amount of the asset exceeds its
recoverable service amount.
An impairment loss shall be recognized
immediately in surplus or deficit.
After the recognition of an impairment loss, the
depreciation charge for the asset shall be
adjusted in future periods.
PPSAS 23 Revenue from NonExchange Transactions (Taxes
and Transfers)
Non- Exchange transactions
Examples:
(a) Taxes; and
(b) Transfers (whether cash or non-cash)
(.An asset acquired through a non exchange
transaction shall initially be measured as its fair value
as at the date of acquisition.
(.An entity shall recognize an asset in respect of taxes
when the taxable event occurs and the asset
recognition criteria are met.
PPSAS 24 Presentation of Budget
Information in Financial Statements
Salient Features
PPSAS 24 requires:
Presentation of budget information in the financial
statements when the reporting entity is publicly
accountable for its budget.
Disclosure of an explanation of the reasons for material
differences between the budget and actual amounts.
To ensure that the public sector entities discharge their
accountability obligations and enhance the transparency of
their financial statements.
PPSAS 26 Impairment of Cash
Generating Assets
Definition
Cash-Generating Assets (CGA) - Assets held
with the primary objective of generating a
commercial return.
Impairment - a loss in the future economic
benefits or service potential of an asset.
An impairment loss of a cash-generating
asset - is the amount by which the carrying
amount of an asset exceeds its recoverable
amount.
PPSAS 27 Agriculture
Salient Features
Prescribes the accounting treatment and disclosures
related to agricultural activity.
Agricultural activity- management by an entity of the
biological assets for sale, or for distribution at no
charge or for a nominal charge or for conversion into
agricultural produce or into additional biological
assets.
PPSAS 28 Financial Instruments
Presentation
Prescribes principles for classifying and presenting financial
instruments as liabilities or net assets/equity, and for offsetting
financial assets and liabilities.
IPSAS 29 Financial Instruments:
Recognition and Measurement
Established principles for recognizing, derecognizing
and measuring financial assets and financial
liabilities.
IPSAS 30 Financial Instruments:
Disclosure
Prescribe disclosures that enable financial statement
users to evaluate the significance of financial
instruments to an entity, the nature and extent of
their risks, and how the entity manages those risks.
PPSAS 31 Intangible Assets
Salient Features
Intangible Asset is an identifiable non-monetary
asset without physical substance.
An intangible asset, whether purchased or selfcreated, is recognized if:
- It is probable that the future economic benefits or
service potential that are attributable to the asset
will flow to the entity and
- The cost or fair value of the asset can be
measured reliably.
All research costs are charged to expense when
incurred.
PPSAS 32 Service Concession
Arrangements: Grantor
Grantor- public sector entity grants service
concession arrangements.
Operator- private sector which manages the
service concession asset
Service concession arrangement- sets
performance standards, mechanism for adjusting
prices , and arrangements for arbitrating disputes.
Service concession assets- turned over to the
grantor
PPSAS 32 Service Concession
Arrangements: Grantor
Recognize liability when the grantor recognizes a
service concession asset
Initial measurement- same amount as the asset
adjusted by any consideration given by the grantor
or the operator or from the operator to the grantor.
The operator is compensated for its service over
the period of the service concession
arrangement.
THE REVISED CHART OF
ACCOUNTS
COA Circular No. 2013-002 dtd. Jan.
30, 2013
Effectivity:
January 1, 2014
Objectives
To provide new accounts for the adoption of
the Philippine Public Sector Accounting
Standards (harmonized with IPSAS)
To provide uniform accounts for national
government accounting and budget systems
to facilitate the preparation of harmonized
financial and budgetary accountability
reports
To expand the account code from
three (3) digits in the NGAS Chart of
Accounts to eight (8) digits, to allow
expansion or creation of new
accounts as may be necessary to
implement new standards or policies
and provide up to four levels of
consolidation depending on the users
information needs.
Major Changes
a. Coverage is limited only to all national
government agencies and GOCCs
receiving funds constituted as Special
Accounts in the General Fund (SAGF)
from the National Government
b. Expanded account code structure
- from three (3) digits to eight (8) digits
COA Revised Chart of Accounts
ACCOUNT CODE STRUCTURE
ACCOUNT GROUPS
Codes are assigned to account groups to
facilitate location of accounts in the general and
subsidiary ledgers, to provide systematic
arrangement and classification of accounts and
facilitate preparation of the consolidated
financial reports as follows:
Code
1
2
3
4
5
Account Groups
Assets
Liabilities
Equity
Income
Expenses
Asset without Contra Account
Example: Cash-Collecting Officer
1 - 01 -01 -010
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
Asset
Receivables
Loans & Receivable Accounts
Accounts Receivable
Allowance for ImpairmentAccounts Receivable
-011
Major Changes
c. New accounts were provided for
the implementation of the
Philippine Public Sector
Accounting Standards.
New Accounts
Example:
New Accounts
10202010 Investments in Treasury Bills Local
IPSAS 29-30
10202011 Allowance for Impairment - Investments
in Treasury Bills - Local
10501010 Investment Property, Land
IPSAS 16
10501011 Allowance for Impairment - Investment
Property, Land
In compliance with
In compliance with
IPSAS 29-30
In compliance with
In compliance with
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 governmentowned 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 and
Office Buildings
Maintenance812 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 -
5 02 13 040
Repairs
Compressed Accounts
Example:
811 Depreciation-Office
Buildings
and
812 Depreciation-School
Structures
Buildings
813 Depreciation-Hospitals
and Health Centers
814 Depreciation-Market
and Slaughterhouses
815 Depreciation-Other
Structures
5 05 01 040 Depreciation Buildings
Other
Repairs and Maintenance
Buildings and Other Structures
Subsidiary Ledgers:
01
02
03
04
05
06
99
Buildings
School Buildings
Hospitals and Health Centers
Markets
Slaughterhouses
Hostels and Dormitories
Other Structures
Depreciation - Buildings and Other
Structures
5-05-01-040
Subsidiary Ledgers:
01
02
03
04
05
06
99
Buildings
School Buildings
Hospitals and Health Centers
Markets
Slaughterhouses
Hostels and Dormitories
Other Structures
Expanded Account
Example:
716 Subsistence, Laundry
Subsistence
and Quarters
Allowance
Allowance
Laundry
5 01 02 050
5 01 02 060
Allowance
5 01 02 070
Quarters
CONVERSION OF THE NGAS
CHART OF ACCOUNTS TO THE
REVISED CHART OF ACCOUNTS
(RCA)
COA Circular No. 2014-003 dated
April 15, 2014
COA Circular No. 2014-003 dated April
15, 2014
Re: Conversion
from the PGCA to RCA
PURPOSE:
Provide guidelines and procedures on
the conversion of the PGCA to the RCA
Provide accounting policies and guidelines on
the implementation of the RCA for NGAs
Provide additional and revised
description/ title of accounts for proper
implementation of the new and revised
accounting policies
COA Circular No. 2014-003 dated April
15, 2014
Re: Conversion
from the PGCA to RCA
COVERAGE:
Shall be adopted for all funds of NGAs and for
Special Accounts in the General Fund (SAGF)
maintained by GOCCs
For agencies implementing the eNGAS,
procedures on the Conversion of the eNGAS
databases to the RCA for NGAs shall be
covered
separatefor
guidelines
The
Chart by
of Accounts
GOCCs and LGUs and its
conversion shall be covered by separate guidelines
General Guidelines and Procedures
All NGAs and GOCCs with SAGF shall effect
the conversion based on the Balance Sheet as
of December 31, 2013
The Chief Accountants/Heads of Accounting units
shall be guided by the Matrix on the Conversion
of Accounts
The Chief Accountants/Heads of Accounting
units shall carefully analyze the GL and SL
accounts before conversion
Any clarification or request for assistance shall be
directed to the Government Accountancy Sector
(GAS), COA
New Accounts/Revised Title and
Description
of Account
For PPSAS 32 Service Concession
Arrangements Grantor, use the new
accounts as prescribed in Annex B
In conformity with PPSAS 1, the title of the
following accounts shall be revised:
Account Government Equity (30101010)
shall be changed to Accumulated
Surplus/Deficit
Account Income(30101010).
and Expense Summary
(30301010) shall be changed to Revenue
and Expense Summary(30101010).
Basis for Conversion
Balance Sheet as of December
31, 2013
Guide for Conversion of
Accounts
Matrix on the Conversion of
Accounts of the PGCA to the RCA Annex A
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
shall benew
the books.
law creating the fund
Bases
Copies of the JEV shall be furnished the
COA Auditor and the COA-GAS separately
Appropriate SLs shall be maintained for real
accounts and for some income and expense
accounts
Specific Guidelines/Procedures
Maintain set of books by fund
Transfer the balances to
appropriate books per fund
Specific Guidelines/Procedures
Analyze balances as of December
31, 2013
Prepare JEVs to close the accounts
and transfer to the appropriate
account
Furnish COA Auditor and GAS
copies of the JEVs
Specific Guidelines/Procedures
Appropriate SLs shall be maintained
Revenue/income accounts shall be
recognized by revenue generating
agencies
Revenue and expenses of revolving
funds shall be recognized, net
surplus shall form part of equity
Specific Guidelines/Procedures
Public infrastructures and
reforestation projects shall be
recorded in the appropriate fund
using the PPE accounts in Annex A
Based on existing records (books
and registries) determine
depreciated cost or appraised value
Specific Guidelines/Procedures
ITEMS IN TRANSIT (284)
If the balance pertains to delivered items but
not recorded, determine the reason for not
recording the transaction and work for the
gathering of the supporting documents to
warrant the recording in the books of accounts.
If the balance pertains to fixed assets that were
converted to 284 upon implementation of the
NGAS and which remain undelivered as of
December 31, 2013, close the said account to
Government Equity.
Responsibility
The Chief Accountants/Heads
of Accounting units and
Budget Officers/Heads of
Budget Office units shall be
responsible for the conversion
of these accounts
Transitory Provisions
New account titles should be used
in the implementation of the
PPSAS
Accounts that have not been
converted due to issues not
settled as of the conversion date
shall be converted to the most
appropriate account in the RCA
until further defined
ADDITIONAL
ACCOUNTS
Created in 2014
New Accounts
New Accounts
h Tax Remittance Advice (1-01-04-070
Remitting books
remittance thru TRA (debit)
constructive receipt of NCA (credit)
BIR books
constructive receipt of remittance
thru TRA (debit)
closing to Accumulated Surplus/
(Deficit) (credit)
New Accounts
h Tax Remittance Advice (1-01-04-070
BTR books
TRA issued (credit)
Closing to Accumulated Surplus/
(Deficit) (Credit)
New Accounts
10
6
10
6
10
6
10
6
10
6
10
6
10
6
10
6
10
6
10
6
12 00
0
12 01
0
12 01
1
12 01
2
12 02
0
12 02
1
12 02
2
12 03
0
12 03
1
12 03
2
Service Concession Assets
Service Concession - Road Networks
Accumulated Depreciation - Service Concession - Road
Networks
Accumulated Impairment Losses -Service Concession Road Networks
Service Concession - Flood Control Systems
Accumulated Depreciation - Service Concession - Flood
Control Systems
Accumulated Impairment Losses - Service Concession Flood Control Systems
Service Concession - Sewer Systems
Accumulated Depreciation - Service Concession - Sewer
Systems
Accumulated Impairment Losses - Service Concession Sewer Systems
New Accounts
10
6
10
6
10
6
10
6
10
6
10
6
10
6
10
6
10
6
12
040 Service Concession - Water Supply Systems
12
041 Accumulated Depreciation - Service Concession Water Supply Systems
042 Accumulated Impairment Losses - Service Concession
- Water Supply Systems
050 Service Concession - Power Supply Systems
12
12
12
12
12
12
12
051 Accumulated Depreciation - Service Concession Power Supply Systems
052 Accumulated Impairment Losses - Service Concession
- Power Supply Systems
060 Service Concession - Communication Networks
061 Accumulated Depreciation - Service Concession Communication Networks
062 Accumulated Impairment Losses -Service Concession Communication Networks
New Accounts
1 0
6
1 0
6
1 0
6
1 0
6
1 0
6
1 0
6
1 0
6
1 0
6
1 0
6
12
12
12
12
12
12
12
12
12
061 Accumulated Depreciation - Service Concession Communication Networks
062 Accumulated Impairment Losses -Service Concession Communication Networks
070 Service Concession - Seaport Systems
071 Accumulated Depreciation - Service Concession Seaport Systems
072 Accumulated Impairment Losses - Service Concession
- Seaport Systems
080 Service Concession - Airport Systems
081 Accumulated Depreciation - Service Concession Airport Systems
082 Accumulated Impairment Losses - Service Concession
- Airport Systems
090 Service Concession - Parks, Plazas and Monuments
New Accounts
1 0
6
1
2
091 Accumulated Depreciation - Service Concession -
1 0
6
1
2
092 Accumulated Impairment Losses - Service
1 0
6
1
2
990 Other Service Concession Assets
1 0
6
1
2
991 Accumulated Depreciation - Other Service
1 0
6
1
2
992 Accumulated Impairment Losses - Other Service
Parks, Plazas and Monuments
Concession - Parks, Plazas and Monuments
Concession Assets
Concession Assets
New Accounts
Liability
20
1
20
5
0
1
0
1
09
0
02
0
Service Concession
Arrangements Payable
Deferred Service Concession
Revenue
Revenue
4 0 0 24 Service Concession Revenue
2 2 0
New Accounts
Expenses
5 05 01 110 Depreciation Service
Concession Assets
5 05 04 090 Loss on Initial Recognition
of Biological Assets
Revised/Modified Accounts
Expenses
3 01 01 010 Government Equity
3 03 01 010 Income and Expense
Summary
Renamed as:
3 01 01 010 Accumulated Surplus/
3 03 01 010 (Deficit) Revenue and
Expense Summary
Sample Conversion Entry
Petty Cash Fund
Cash in Bank - Local Currency, Current
Account
Cash in Bank - Local Currency, Savings
Account
101
01
020
97,300
101
02
020
1,303,000
101
02
030
1,412,000
Due from National Government Agencies
103
03
010
7,800,000
Office Supplies Inventory
104
04
010
1,000,000
Non-Accountable Forms Inventory
104
04
030
200,000
Petty Cash Fund
Cash in Bank - Local Currency, Current
Account
Cash in Bank - Local Currency, Savings
Account
104
97,300
111
1,303,000
112
1,412,000
Due from NGAs
136
7,800,000
Office Supplies Inventory
155
1,200,000
Sample Conversion Entry
Prepaid Registration
1 99 02 030
672,000
Other Prepayments
Office Equipment
1 99 02 990
1 06 05 020
5,000,000
2,480,000
Furniture and Fixtures
1 06 07 010
2,615,000
Other Property, Plant and
Equipment
1 06 99 990 1,637,000
Other Prepaid Expenses
Office Equipment
Furniture and Fixtures
185
221
222
5,672,000
2,480,000
2,615,000
Other Property, Plant and
Equipment
250
1,637,000
Sample Conversion Entry
Accumulated Depreciation - Office
Equipment
321
Accumulated Depreciation Furniture
and Fixtures
322
2,615,000
Accumulated Depreciation - Other
Property, Plant and Equipment
350
1,117,300
1,840,000
Accumulated Depreciation - Office
Equipment
1 06 05 021
1,840,000
Accumulated Depreciation Furniture and Fixtures
1 06 07 011
2,615,000
Accumulated Depreciation - Other
Property, Plant and Equipment
1 06 99 991
1,117,300
Sample Conversion Entry
Due to BIR
412
502,000
Due to GSIS
413
51,100
Due to PAG-IBIG
Due to PHILHEALTH
414
13,000
415
14,000
Due to Other NGAs
416
606,000
Government Equity
501
17,457,900
Due to BIR
02
01
010
502,000
Due to GSIS
02
01
020
51,100
Due to PAG-IBIG
02
01
030
13,000
Due to PHILHEALTH
02
01
040
14,000
Due to NGAs
02
01
050
606,000
Government Equity
01
01
010
17,457,900
Other Matters
The Government Accounting
Manual
The Barangay Accounting Manual
The Local Government Chart of
Accounts
The Corporate Chart of Accounts
When the people become
involved
in their government,
government becomes more
accountable, and our society is
stronger,
more compassionate,
and better prepared for the
challenges of the future.
Have a nice day!
