Beruflich Dokumente
Kultur Dokumente
7 8
9 10 11
12
TANGIBLE ASSETS
Immovable
Initial Cost
Cost
Subsequent Cost
OR
Fair Value
Session 9: Applying the Accounting Policies
GAM: Accounting Slide 9-14
on Property, Plant and Equipment
ELEMENTS OF COST
Initial estimate of
Purchase price dismantling and
removing the item and
restoring the site
• Plantation Establishment
Betterments
Purchase
Construction
Exchange transaction
Non-exchange transaction
Transfer
Finance lease
Cash
Account
Installment
With promotional items
-promotional item received is the same as PPE purchased
-promotional item received is different from the PPE purchased
Lump sum price
Contract Administration
Labor and materials – in
Construction-in- Progress
compliance with RA 9184
Transferred to proper
asset account
Measurement of PPE:
a. Fair value (with commercial substance)
b. Carrying amount of asset given up (w/out
commercial substance or if the fair value of
the asset received or given up cannot be
measured reliably)
Grants
Assistance in the form of transfer of resources, in cash or in kind from other of government,
private sectors or international institutions
Intra-agency transfers
transfer from Central Office to Regional Offices/Staff Bureaus or vice versa
Inter-agency transfers
transfer from one government entity to another entity
Transfers
- Implementation of projects through funds transferred/received may
require the acquisition of the necessary PPE
• Source agency – shall record and monitor the PPE if the Memorandum
of Agreement/Understanding (MOA/U) provides that the PPE shall be
returned to the source agency
• Implementing Agency – shall record and monitor the PPE if the
Memorandum of Agreement/Understanding (MOA/U) provides that
the PPE shall be donated to the implementing agency
Finance Lease
- Lease that transfers substantially all the risks and rewards incident to
ownership of an asset
Cost Model
Less accumulated Less accumulated
Cost
depreciation impairment loss
RSA
Impairment (NCGA)
Carrying
or
Loss Amount RA
(CGA)
Cost – Accumulated
Fair value less Cost to
Depreciation and
sell and Value in Use
Accumulated
whichever is higher
Impairment Loss
Property
Inspection and Report on Physical
Property Card Acknowledgement
Acceptance Report Count of PPE
Receipt
Comparative Reporting Periods 2015 2014 2015 2014 2015 2014 2015 2014
Beginning Carrying Amount 2,025 2,025 2,090 2,260 1,085 1,100 200 150
Carrying Amount (As per Statement of Financial Position) 2,025 2,025 2,000 2,090 1,000 1,085 150 200