Beruflich Dokumente
Kultur Dokumente
MANUAL
Introduction
CHAPTER 1
Government Accounting Manual
Accrual basis
– means a basis of accounting under which
transactions and other events are recognized when
they occur (and not only when cash or its equivalent
is received or paid). Therefore, the transactions and
events are recognized in the accounting records and
recognized in the financial statements of the periods
to which they relate. The elements recognized under
accrual accounting are assets, liabilities, net
assets/equity, revenue, and expenses.
Sec. 2 Definition of Terms
Assets
– are resources controlled by an entity as a result of
past events, and from which future economic
benefits or service potential are expected to flow to
the entity.
Sec. 2 Definition of Terms
Distributions to owners
–means future economic benefits or service potential
distributed by the entity to all or some of its owners,
either as a return on investment or as a return of
investment.
Entity
– refers to a government agency, department or
operating/field unit. It may be referred to in this
GAM as an agency.
Sec. 2 Definition of Terms
Expenses
– are decreases in economic benefits or service potential during
the reporting period in the form of outflows or consumption of
assets or incurrence of liabilities that result in decreases in net
assets/equity, other than those relating to distributions to owners.
Government Accounting
– encompasses the processes of analyzing, recording, classifying,
summarizing and communicating all transactions involving the
receipt and disposition of government funds and property, and
interpreting the results thereof. (Sec. 109, Presidential Decree
(P.D.) No. 1445)
Sec. 2 Definition of Terms
Government Budget
Liabilities
– are firm obligations of the entity arising from past events, the
settlement of which is expected to result in an outflow from the entity of
resources embodying economic benefits or service potential.
Sec. 2 Definition of Terms
Net assets/equity
– is the residual interest in the assets of the entity after deducting all its
liabilities.
Revenue
Revenue funds
– comprise all funds derived from the income of any agency of the government and
available for appropriation or expenditure in accordance with law. (Section 3,
P.D. No. 1445)
Section 3. a. Responsibility over Government Funds and Property