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NOTES

Government accounting encompasses analyzing, recording, classifying, summarizing, and communicating all transactions involving government funds and property. It places greater emphasis on sources and uses of funds and the responsibility, accountability, and liability of those entrusted with government resources. Key agencies responsible for government accounting include the Commission on Audit, Department of Budget and Management, and Bureau of Treasury. The Government Accounting Manual for National Government Agencies, based on International Public Sector Accounting Standards, provides accounting standards, policies, and procedures for government funds and financial reporting.

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Jñelle Faith Herrera Saludares
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104 views

NOTES

Government accounting encompasses analyzing, recording, classifying, summarizing, and communicating all transactions involving government funds and property. It places greater emphasis on sources and uses of funds and the responsibility, accountability, and liability of those entrusted with government resources. Key agencies responsible for government accounting include the Commission on Audit, Department of Budget and Management, and Bureau of Treasury. The Government Accounting Manual for National Government Agencies, based on International Public Sector Accounting Standards, provides accounting standards, policies, and procedures for government funds and financial reporting.

Uploaded by

Jñelle Faith Herrera Saludares
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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GOVERNMENT ACCOUNTING government agency, are accountable for the safeguarding

“Government Accounting encompasses the processes of analysing, thereof, and are liable for any losses.
recording, classifying, summarizing and communicating all
transactions involving the receipt and disposition of government Accounting Responsibility
funds and property, and interpreting the results thereof.” (State Audit The following offices are charged with government accounting
Code of the Philippines, P.D. No. 1445, Sec. 109) responsibility.
1. Commission on Audit (COA)
Government Accounting vs. Business Accounting 2. Department of Budget and Management (DBM)
Compared to the accounting for business entities, government 3. Bureau of Treasury (BTr)
accounting places greater emphasis on the following: 4. Government Agencies
 Sources and utilization of government funds; and
 Responsibility, accountability and liability of entities Commission On Audit (COA)
entrusted with government funds and properties. Responsibilities of COA
 Promulgate accounting and auditing rules
Objectives of Government Accounting  Keep the general accounts
 To produce information concerning past operations and  Submit financial reports
present conditions;
 To provide a basis for guidance for future operations; Department of Budget and Management (DBM)
 To provide for control of the acts of public bodies and offices Responsibility of DBM
in the receipt, disposition and utilization of funds and  Formulation and implementation of the national budget
property; and
 To report on the financial position and the results of Bureau of Treasury (BTr)
operations of government agencies for the information of all Responsibility of BTr
persons concerned.  Cash custody and control of disbursements

Responsibility, Accountability and Liability over Government Funds Government Agencies


and Property Responsibility
 Government resources must be utilized efficiently and  Maintain accounting books and budget registries which are
effectively in accordance with the law. reconciled with the cash records of the BTr and the budget
 The head of a government agency is directly responsible in record of the COA and DBM.
implementing this policy.
 All other personnel entrusted with the custody of
government resources are responsible to the head of the The GAM for NGAs
 The Government Accounting Manual for National 6. Notes to the Financial Statements
Government Agencies (GAM for NGAs) is promulgated by the Recognition of an Asset
COA under the authority conferred to it by the Philippine An item is recognized as asset if it meets all of the following criteria:
Constitution. 1. It meets the definition of an asset;
 The GAM for NGAs was promulgated primarily to harmonize 2. Probable inflow of future economic benefits; and
the government accounting standards with the International 3. Reliable measurement of cost or other value (e.g., fair value).
Public Sector Accounting Standards (IPSAS). The IPSAS are
based on the IFRSs.

Objectives of the GAM for NGAs


 Standards, policies, guidelines and procedure in accounting for
government funds and property;
 Coding structure and accounts; and
 Accounting books, registries, records, forms, reports and
financial statements.

Basic Accounting and Budget Reporting Principles


 Compliance with PPSAS and relevant laws, rules and
regulations
 Accrual basis of accounting
 Budget basis for presentation of budget information in the
financial statements
 Revised Chart of Accounts
 Double entry bookkeeping
 Financial statements based on accounting and budgetary
records
 Fund cluster accounting

Components of General Purpose Financial Statements


1. Statement of Financial Position
2. Statement of Financial Performance
3. Statement of Changes in Net Asset/Equity
4. Statement of Cash Flows
5. Statement of Comparison of Budget and Actual Amounts

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