TRIAL BALANCE, FINANCIAL REPORTS AND STATEMENTS - Shows adjusted balances of all accounts as at a given

period
GENERAL PURPOSE FINANCIAL STATEMENTS - Adjusted Trial Balance
- Provide financial position, financial performance and CLOSING JOURNAL ENTRIES – close out balances of nominal
cash flows of an entity that is useful to a wide range accounts
of users
POST-CLOSING TRIAL BALANCE – shall be prepared at the
TRIAL BALANCE – listing of general ledger accounts with their
end of the year
corresponding debit and credit balances
- Balance sheet/ real accounts
ADJUSTING JOURNAL ENTRIES – made at the end of an
accounting period FINANCIAL STATEMENTS – structured representation of the
financial position and performance
o ACCRUED ITEMS – already undertaken but
not yet recorded STATEMENT OF MNGT RESPONSIBILITY – serve as the
o DEFERRED ITEMS – already recorded but covering letter in transmitting the agency’s FS to the COA,
DBM
OTHER ADJUSTMENTS
QUALITATIVE CHARACTERISTICS
A. UNUSED NCA
1. UNDERSTANDABILITY
SUBSIDY FROM NGA 40301010
2. RELEVANCE
CASH-MDS, REGULAR 10104040
3. MATERIALITY - influence
CASH-Tr/AGENCY DEPOSIT, TRUST 10104030
4. TIMELINESS
CASH-MDS, TRUST 10104060
5. RELIABILITY – free from material error and bias
B. PETTY CASH FUND
6. FAITHFUL REPRESENTATION
C. UNRELEASED COMMERCIAL CHECKS
7. SUBSTANCE OVER FORM
CIB-LC, CA 10102020
8. NEUTRALITY – free from biases
ACCOUNTS PAYABLE 20101010
9. PRUDENCE – inclusion of a degree of caution in the
***restoration of the unreleased check to the cash account exercise of the judgments needed
D. ALLOWANCE OF IMPAIRMENT LOSSES OF ASSET
10. COMPLETENESS
ACCOUNTS
11. COMPARABILITY – identify similarities and differences
IMPAIRMENT LOSS-LOANS AND REC 50503020
ACCOUNTING SYSTEM – ACCRUAL BASIS
ALLOWANCE FOR IMP - AR 10301011
BUDGET REPORTING SYSTEM – BUDGET BASIS
E. DEPRECIATION EXPENSES
***under NGAs, BTr, DBM and COA
DEPRECIATION – systematic allocation of depreciable
amount of the PPE over its useful life PPSAS 3 ACCOUNTING POLICIES, CHANGES IN ACCOUN]
USEFUL LIFE – defined as the asset’s expected utility

F. OTHER ADJUSTMENTS TING ESTIMATES AND ERRORS

PRE-CLOSING TRIAL BALANCE
 - Hierarchy of authoritative guidance that mngt - 10 DAYS AFTER THE END OF THE MONTH
considers
QUARTERLY – TB, FS, SS
GOING CONCERN
- 10 DAYS AFTER THE END OF THE QUARTER
OFFSETTING – impairment and allowances are not offsetting
YEAR-END – TB, FS, SS combined with CO, RO, OU
STATEMENT OF BALANCE SHEET/ FINANCIAL POSITION/
ASSETS AND LIABILITIES - ON OR BEFORE JAN. 20, 31, FEB 14 OF THE
FOLLOWING YEAR
- Financial condition as at a certain date - PO AND OU, RO AND BRANCHES OFFICES,
o CONDENSED – major sub-classification; CENTRAL/HEAD/MAIN OFFICES RESPECTIVELY
breakdown in the Notes top FS t the
concerned auditor
o DETAILED – all accounts to the Gov’t
Accountancy Sector, COA

AUTHORIZATION FOR ISSUANCE OF FS:

- SoMR is approved by the CHIEF EXECUTIVE and

HEAD OF FINANCE DEP’T

ACCOUNTING POLICIES – specific principles, bases,

conventions, rules and practices applied by an entity in
preparing and presenting FS.

- RESTOSPECTIVELY

1. Required by PPSAS

2. Results in FS that providing reliable and more relevant info

about effects of transactions

CHANGES:

1. One basis of accounting to another basis

2. Accounting treatment, recognition or measurement

CHANGES IN ACCOUNTING ESTIMATES

- New info or new developments, and accordingly, are

not correction of errors
- DIFFICULTY TO DETERMINE: CHANGE IN
ACCOUNTING ESTIMATE
- PROSPECTIVELY

ERRORS – mathematical mistakes, mistakes in applying

accounting policies

INTERIM FINANCIAL STATEMENTS – required to be prepared

at any given period

MONTHLY: TRIAL BALANCE AND SUPPORTING SCHEDULES