December 29, 2016
COA CIRCULAR NO. 006-16
| TO | : | All Heads of Government-Owned or Controlled Corporations, Government Financial Institutions, Government Instrumentalities with Corporate Powers/Government Corporate Entities, and Their Subsidiaries and Water Districts, Heads of Finance/Comptrollership/Financial Management Services, Chief Accountants/Heads of Accounting Units, Budget Officers/Heads of Budget Units; Commission on Audit (COA) Assistant Commissioners, COA Directors, COA Auditors; and All Others Concerned |
| SUBJECT | : | 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 Government Corporations under COA Circular No. 2015-010 Dated December 01, 2015, New, Revised and Deleted Accounts, and Relevant Accounting Policies and Guidelines in the Implementation Thereof |
1.0Purpose
This Circular is issued to:
1.1provide guidelines and procedures on the conversion from the Philippine Government Chart of Accounts (PGCA) per COA Circular No. 2004-008 dated September 20, 2004, as amended, to the Revised Chart of Accounts (RCA) prescribed through COA Circular No. 2015-010 dated December 01, 2015 for use by Government Corporations (GCs), which consist of Government-Owned or Controlled Corporations (GOCCs), Government Financial Institutions (GFIs), Government Instrumentalities with Corporate Powers (GICPs)/Government Corporate Entities (GCEs) and their Subsidiaries, and Water Districts;
1.2provide additional accounts and revised code, title and/or description of accounts to facilitate the proper implementation of the new and revised accounting policies; and CAIHTE
1.3provide accounting guidelines on the implementation of the RCA for GCs prescribed under COA Circular No. 2015-010 and additional accounts and revised code, title, and/or description of accounts herein prescribed.
2.0 Coverage
2.1This Circular shall be adopted for all funds of GCs, except for Special Accounts in the General Fund (SAGF) maintained by GOCCs which are covered by COA Circular No. 2014-003 dated April 15, 2014, prescribing the guidelines on the conversion from the PGCA under the New Government Accounting System (NGAS) per COA Circular No. 2004-008, as amended, to the RCA for National Government Agencies under COA Circular No. 2013-002 dated January 30, 2013.
2.2The procedures on the conversion of electronic New Government Accounting System (eNGAS) databases to the RCA for GCs shall be covered by separate guidelines.
2.3The guidelines on the conversion of accounts for small and medium-sized entities (SMEs) shall also be covered by another circular. Pending the issuance of the said guidelines, all GCs which qualified as SMEs may adopt either the full Philippine Financial Reporting Standards (PFRS) or the PFRS for SMEs as adopted under Securities and Exchange Commission (SEC) Notice dated December 11, 2009 and Paragraph 2.9 of COA Circular No. 2015-003 dated April 16, 2015.
2.4Separate supplementary guidelines on the preparation of financial statements and other financial reports shall be covered by a separate circular.
3.0 General Guidelines and Procedures on the Conversion of Accounts
3.1All GCs classified as government business enterprises (GBEs) and non-GBEs under COA Circular No. 2015-003 dated April 16, 2015 shall make the conversion of accounts for their opening financial statements (FS), as follows:
3.1.1For GBEs based on the statement of financial position as at January 1, 2015 and December 31, 2015; statement of comprehensive income, statement of cash flows and statement of changes in equity for the year ended December 31, 2015; and
3.1.2For Non-GBEs based on the statement of financial position as at December 31, 2015.
3.2To facilitate recognition of 2016 transactions in the books of accounts using the RCA and additional accounts herein prescribed, account balances covering the transactions from January 1, 2016 up to the date of the latest FS under the PGCA shall also be converted.
3.3For Calendar Year (CY) 2016, an entity's first PFRS financial statements shall include at least the following:
3.3.1Statements of financial position as at December 31, 2016, December 31, 2015, and January 1, 2015;
3.3.2Statement of comprehensive income for the years ended December 31, 2016 and 2015;
3.3.3Statements of cash flows for the years ended December 31, 2016 and 2015;
3.3.4Statements of changes in equity for the years ended December 31, 2016 and 2015; and
3.3.5Related notes, including comparative information.
3.4The accounts included in the RCA and additional accounts prescribed in this Circular based on the Philippine Public Sector Accounting Standards (PPSAS)/PFRS effective as at December 31, 2015 shall be used for uniformity.
3.5The Chief Accountants/Heads of Accounting Units shall be guided by the Matrix on the Conversion of Accounts of the PGCA to the RCA for GCs and additional/modified accounts herein prescribed, attached as Annex A.
3.6The Chief Accountants/Heads of Accounting Units shall ensure that careful analyses of the General Ledger (GL) and Subsidiary Ledger (SL) accounts are properly made before the conversion, particularly for SL accounts in the PGCA that are classified as GL accounts in the RCA and additional/modified accounts herein prescribed or vice versa.
3.7Government banks, the Government Service Insurance System, and the Social Security System, which were exempted from the use of the chart of accounts under the NGAS in accordance with COA Circular No. 2004-002 dated April 29, 2004, prescribing the chart of accounts for GOCCs, shall convert their specific accounts to the appropriate accounts in the RCA and additional/modified accounts herein prescribed.
3.8GCs with existing computerized accounting system other than the eNGAS shall convert/map their account codes to the codes of the equivalent accounts in the RCA for GCs and additional and revised accounts herein prescribed.
4.0 New, Revised, and Deleted Accounts
4.1To provide the additional accounts requested by GCs, new accounts are prescribed and some account codes, titles and descriptions are revised, details of which are in Annex B.
4.2In conformity with the applicable PPSAS/PFRS, the following accounts shall be deleted from the RCA for GCs prescribed under COA Circular No. 2015-010: DETACa
Account | Covering PPSAS/PFRS | Reason for Deletion | |
Title | Code | ||
| Items under | 19999090 | PPSAS 19/Philippine | This account is considered |
| Litigation | Accounting Standard | as Contingent Asset due to | |
| (PAS) 37 (Provisions, | uncertainty of timing and | ||
| Contingent Liabilities | amount. For disclosure in | ||
| and Contingent Assets) | the notes to FS. | ||
| Treasury Bills | 20102010 | PPSAS 1/PAS 1 | This account is applicable |
| Payable | (Presentation of | to the Bureau of the | |
| Financial Statements) | Treasury only. | ||
| Equity in Joint | 30401010 | PPSAS 8/PAS 31 | This account is not |
| Venture | (Interests in Joint | necessary when accounting | |
| Ventures) | for Investments in Joint | ||
| Ventures using the Equity | |||
| Method. | |||
| Equity in | 30601010 | PAS 28 (Investments in | This account is not |
| Associates/ | Associates) | necessary when accounting | |
| Affiliates | for Investments in | ||
| Associates/Affiliates using | |||
| the Equity Method. | |||
| Dividend Expense | 50299160 | PPSAS 1/PAS 1 | This account should not be |
| presented as part of the | |||
| corporation's operating | |||
| expenses, but rather, it | |||
| should be presented as an | |||
| outright deduction from the | |||
| Retained Earnings account. | |||
| Impairment Loss- | 50503040 | PPSAS 1/PAS 1 | This account has no |
| Investments in | corresponding asset | ||
| Government | account. | ||
| Corporations |
4.3The following accounts were deleted and renamed/replaced:
Account | Deleted/Renamed/Replaced by Account | ||
Title | Code | Title | Code |
| Semi-Expendable | 10405010 | Deleted | Deleted |
| Machinery | |||
| Machinery | 10605010 | Deleted | Deleted |
| Accumulated Depreciation- | 10605011 | Deleted | Deleted |
| Machinery | |||
| Accumulated Impairment | 10605012 | Deleted | Deleted |
| Losses-Machinery | |||
| Other Equipment | 10605990 | Other Machinery and Other | 10605990 |
| Equipment | |||
| Accumulated Depreciation- | 10605991 | Accumulated Depreciation-Other | 10605991 |
| Other Equipment | Machinery and Equipment | ||
| Accumulated Impairment | 10605992 | Accumulated Impairment Losses- | 10605992 |
| Losses-Other Equipment | Other Machinery and Equipment |
5.0Specific Accounting Policies and Guidelines
5.1All GCs shall discontinue the adoption of the One Fund Concept provided under the NGAS. A separate set of books shall be maintained by fund (i.e., Corporate Fund, Trust Fund, Special Account, Foreign Assisted Project Fund, Prize Fund, Charity Fund, etc.). Thus, all balances of accounts as at December 31, 2015 and balances of accounts covering transactions from January 1, 2016 up to the latest FS under the PGCA shall be transferred to the appropriate new books per fund.
5.1.1Balances of existing books of accounts maintained as at December 31, 2015 shall be analyzed based on the law, rules, and regulations creating the fund to determine the appropriate fund to which they shall be transferred.
5.1.2A Journal Entry Voucher (JEV) to recognize the conversion of accounts based on the Statement of Financial Position as at December 31, 2015 and the transfer of balances in the appropriate fund shall be prepared as illustrated in Annex C.
5.1.3Likewise, a JEV to recognize the conversion of accounts based on the Trial Balance covering the transactions from January 1, 2016 up to the date of the latest FS under the PGCA and the transfer of balances in the appropriate fund shall also be prepared as illustrated in Annex D.
5.1.4Copies of the JEVs on the conversion of accounts and other supporting documents for the transfer of balances to the appropriate new books of accounts, together with the year-end financial statements (FS) and other financial reports/schedules shall be furnished separately to the COA Auditor concerned and the Government Accountancy Sector (GAS), COA, within the reglementary period.
5.1.5All GCs shall prepare the following financial statements:
5.1.5.1Separate Detailed FS and Trial Balance (TB) by fund;
5.1.5.2Combined Detailed FS and TB for all funds;
5.1.5.3Condensed FS by fund; and
5.1.5.4Condensed FS for all funds.
5.2To facilitate verification, appropriate SLs shall be maintained for real accounts and for some revenue/income and expense accounts, particularly those that were converted to SL accounts. aDSIHc
5.3Public infrastructure and reforestation projects that were transferred to the registries shall be recognized in the appropriate fund using the Property, Plant and Equipment (PPE) accounts prescribed in Annex A. The following procedures shall be followed:
5.3.1An entity shall recognize the cost and the related accumulated depreciation and impairment losses of existing public infrastructure assets based on the data in the Registry of Public Infrastructures (RPIs) previously maintained under the NGAS and the estimated useful life of each asset as may be determined by competent authority, if practicable. The RPIs shall no longer be maintained.
5.3.2If not practicable, the alternative approach of depreciated replacement cost approach may be used to determine the cost and the accumulated depreciation. The Depreciated Replacement Cost Approach is an approach used to determine the value in use of a non-cash-generating asset. Under this approach, the present value of the remaining service potential of an asset is determined as the depreciated replacement cost of the asset. The replacement cost of an asset is the cost to replace the asset's gross service potential. This cost is depreciated to reflect the asset in its used condition.
5.3.3The estimated life of each public infrastructure asset shall be 20-50 years. Based on this life span, the entity shall prepare a list of the specific estimated useful life for each asset based on its experience, copy furnished the COA Auditor concerned and the GAS, COA.
5.3.4The effect on the recognition of the public infrastructure assets shall be applied retrospectively or directly to Accumulated Surplus/(Deficit)/Retained Earning.
5.3.5Starting January 1, 2016, an entity is allowed up to three years to fully comply with the applicable provisions of PPSAS 17/PAS 16.
5.4Tangible items below the capitalization threshold of P15,000 shall be accounted as semi-expendable property. The following policies shall be applied as follows:
5.4.1Semi-expendable property which were recognized as PPE shall be reclassified to the affected appropriate semi-expendable inventory accounts (if not yet issued to end-user), expense accounts (if issued within the year), or accumulated surplus/(deficit)/retained earnings accounts (if issued in prior years).
5.4.2These tangible items shall be recognized as expenses upon issue to the end-user.
5.4.3Inventory Custodian Slip (ICS) shall be issued to end-user to establish accountability over the semi-expendable property. Accountability shall be extinguished upon return of the item to the Property and Supply Division/Unit or in case of loss, upon approval of the relief from property accountability.
5.5Adoption of the PFRS by all GBEs:
5.5.1The newly prescribed accounts shall be used by GBEs adopting the PFRS.
5.5.2The existing measurement model being used (cost or fair value/revaluation model) for property, plant and equipment, investment property and intangible assets shall be retained until a uniform measurement model is prescribed by this Commission.
However, for consolidation purposes, Trial Balances and FS to be submitted to the GAS, COA, shall be restated to Cost Model.
5.6Adoption of the PPSAS by all Non-GBEs:
5.6.1The use of the newly prescribed accounts for the first time adoption of PPSAS starting January 1, 2016 by Non-GBEs shall be governed by policies set forth through COA Resolution No. 2014-003 dated January 24, 2014:
PPSAS 1 — Presentation of Financial Statements
PPSAS 2 — Cash Flow Statements
PPSAS 3 — Accounting Policies, Changes in Accounting Estimates and Errors
PPSAS 4 — The Effects of Changes in Foreign Exchange Rates
PPSAS 5 — Borrowing Costs
PPSAS 6 — Consolidated and Separate Financial Statements
PPSAS 8 — Interests in Joint Ventures
PPSAS 9 — Revenue from Exchange Transactions
PPSAS 12 — Inventories
PPSAS 13 — Leases
PPSAS 14 — Events after the Reporting Date
PPSAS 16 — Investment Property
PPSAS 17 — Property, Plant and Equipment
PPSAS 19 — Provisions, Contingent Liabilities and Contingent Assets
PPSAS 20 — Related Party Disclosures ETHIDa
PPSAS 21 — Impairment of Non-Cash-Generating Assets
PPSAS 23 — Revenue from Non-Exchange Transactions (Taxes and Transfers)
PPSAS 24 — Presentation of Budget Information in Financial Statements
PPSAS 26 — Impairment of Cash-Generating Assets
PPSAS 27 — Agriculture
PPSAS 28 — Financial Instruments: Presentation
PPSAS 29 — Financial Instruments: Recognition and Measurement
PPSAS 30 — Financial Instruments: Disclosures
PPSAS 31 — Intangible Assets
PPSAS 32 — Service Concession Arrangements: Grantor
5.7GCs with computerized accounting system other than the eNGAS shall be given one (1) year from the effectivity of this Circular to enhance/revise their existing systems to conform to this Circular. In case enhancement of their existing computerized accounting systems is not yet completed as at December 31, 2016, the 2016 FS to be submitted to the COA Auditor concerned and the GAS, COA, shall be converted to the RCA and additional/modified accounts herein prescribed.
5.8For monitoring purposes, GCs concerned shall maintain separate records of contingent assets and liabilities.
6.0Responsibility
The Chief Accountants/Heads of Accounting Units and Budget Officers/Heads of Budget Units of GCs and other concerned officers of all entities covered by this Circular shall be responsible for the proper conversion of the accounts and the submission of copies of the JEV, FS, and reports to the COA Auditor concerned and the GAS, COA.
7.0Saving Clause
Any clarification or request for assistance on the implementation of this Circular or cases not covered in this Circular shall be referred for resolution to the GAS, COA.
8.0Repealing Clause
All issuances inconsistent herewith are deemed repealed or amended accordingly.
9.0Transitory Provision
Accounts that have not been converted due to issues which are not yet settled as of conversion date shall be converted to the most appropriate account in the RCA and additional/modified accounts herein prescribed until a supplemental circular or clarification is issued.
10.0Effective Date
This Circular shall take effect fifteen (15) days after publication in a newspaper of general circulation.
(SGD.) MICHAEL G. AGUINALDOChairperson
(SGD.) JOSE A. FABIACommissioner
(SGD.) ISABEL D. AGITOCommissioner
ANNEX A
Matrix on the Conversion of Accounts
ANNEX B
NEW ACCOUNTS AND REVISED CODE, TITLE AND/OR DESCRIPTION
1.List of New Accounts
ACCOUNT CODE | ACCOUNT TITLE | |||
| Assets | ||||
1 | 2 | 12 | Investment Securities at Amortized Cost | |
1 | 2 | 12 | 10 | Investment Securities at Amortized Cost |
1 | 2 | 12 | 11 | Allowance for Impairment-Investment Securities at Amortized Cost |
1 | 2 | 13 | Financial Assets at Fair Value Through Other Comprehensive Income | |
1 | 2 | 13 | 10 | Financial Assets at Fair Value Through Other Comprehensive Income |
1 | 3 | 1 | Loans and Receivable Accounts | |
1 | 3 | 1 | 200 | Assigned Receivables |
1 | 3 | 1 | 201 | Allowance for Impairment-Assigned Receivables |
1 | 3 | 5 | Other Receivables | |
1 | 3 | 5 | 70 | Guarantee Receivables |
1 | 3 | 5 | 71 | Allowance for Impairment-Guarantee Receivables |
1 | 3 | 5 | 80 | Unremitted Recoveries |
1 | 3 | 5 | 81 | Allowance for Impairment-Unremitted Recoveries |
1 | 3 | 5 | 90 | Guaranty Call Receivable |
1 | 3 | 5 | 91 | Allowance for Impairment-Guaranty Call Receivable |
1 | 3 | 5 | 100 | Universal Charge Receivable |
1 | 3 | 5 | 101 | Allowance for Impairment-Universal Charge Receivable |
1 | 4 | 4 | Inventory Held for Consumption | |
1 | 4 | 4 | 190 | Electrical Supplies and Materials Inventory |
1 | 4 | 4 | 191 | Allowance for Impairment-Electrical Supplies and Materials Inventory |
1 | 4 | 5 | Semi-Expendable Machinery and Equipment | |
1 | 4 | 5 | 160 | Semi-Expendable Kitchen Equipment |
1 | 4 | 5 | 170 | Semi-Expendable Electrical Equipment |
1 | 6 | 5 | Machinery and Equipment | |
1 | 6 | 5 | 160 | Kitchen Equipment |
1 | 6 | 5 | 161 | Accumulated Depreciation-Kitchen Equipment |
1 | 6 | 5 | 162 | Accumulated Impairment Losses-Kitchen Equipment |
1 | 6 | 5 | 170 | Electrical Equipment |
1 | 6 | 5 | 171 | Accumulated Depreciation-Electrical Equipment |
1 | 6 | 5 | 172 | Accumulated Impairment Losses-Electrical Equipment |
1 | 09 | 01 | International Reserves | |
1 | 09 | 01 | 080 | Foreign Securities Purchased under Agreement to Resell |
| Equity | ||||
3 | 11 | 01 | Members' Equity | |
3 | 11 | 01 | 010 | Members' Equity |
| Revenue/Income | ||||
4 | 02 | 01 | Service Income | |
4 | 02 | 01 | 230 | Harmonization Fees |
4 | 02 | 01 | 240 | Sewerage/Garbage Fees |
4 | 02 | 01 | 250 | Transshipment Fees |
4 | 02 | 02 | Business Income | |
4 | 02 | 02 | 240 | Service Concession Revenue |
4 | 02 | 02 | 380 | Income from Communication Facilities |
4 | 04 | 01 | Shares | |
4 | 04 | 01 | 040 | Share in Universal Charge |
| Expenses | ||||
5 | 02 | 14 | Financial Assistance/Subsidy/Contribution | |
5 | 02 | 14 | 120 | Charity Expenses |
5 | 02 | 18 | Receivership and Liquidation Expense | |
5 | 02 | 18 | 010 | Receivership and Liquidation Expense |
5 | 05 | 03 | Impairment Loss | |
5 | 05 | 03 | 190 | Impairment Loss-Investment Securities at Amortized Cost |
5 | 05 | 03 | 200 | Impairment Loss-Financial Assets-Available for Sale Securities |
5 | 05 | 04 | Losses | |
5 | 05 | 04 | 240 | Rehabilitation Cost |
2.Description of New Accounts
1 ASSETS | |||||||
| 1 | Assets | ||||||
| 2 | Investments | ||||||
| 12 | Investment Securities at Amortized Cost | ||||||
| Account Title | Investment Securities at Amortized Cost | ||||||
| Account Number | 10212010 | ||||||
| Normal Balance | Debit | ||||||
| Description | This account is used to recognize investments held within a | ||||||
| business model whose objective is to hold an asset in order to | |||||||
| collect contractual cash flows rather than to sell the investment | |||||||
| prior to maturity. | |||||||
| Subsidiary Ledgers: | |||||||
| 1 | Corporate | ||||||
| 2 | Sinking Fund | ||||||
| 3 | Legal Liability Insurance Fund | ||||||
| Account Title | Allowance for Impairment-Investment Securities at Amortized Cost | ||||||
| Account Number | 10212011 | ||||||
| Normal Balance | Credit | ||||||
| Description | This account is credited when there is objective evidence that the | ||||||
| investment securities at amortized cost are impaired. Debit this | |||||||
| account upon derecognition of the investment securities at amortized | |||||||
| cost, transfers, reversal of allowance for impairment, write-off or | |||||||
| write-down. | |||||||
| 13 | Financial Assets at Fair Value Through Other Comprehensive | ||||||
| Income | |||||||
| Account Title | Financial Assets at Fair Value Through Other Comprehensive Income | ||||||
| Account Number | 10213010 | ||||||
| Normal Balance | Debit | ||||||
| Description | This account is used to recognize non-derivative investments in | ||||||
| equity securities carried at fair value. Credit this account for the | |||||||
| amount of assets expired or transferred to another party through | |||||||
| resale or other disposition. | |||||||
| 3 | Receivables | ||||||
| 1 | Loans and Receivables | ||||||
| Account Title | Assigned Receivables | ||||||
| Account Number | 10301200 | ||||||
| Normal Balance | Debit | ||||||
| Description | This account is used to recognize accounts sold to various banks | ||||||
| secured by promissory notes. | |||||||
| Account Title | Allowance for Impairment-Assigned Receivables | ||||||
| Account Number | 10301201 | ||||||
| Normal Balance | Credit | ||||||
| Description | This account is credited to reduce the amortized cost of assigned | ||||||
| receivables due to impairment, which may arise from non- | |||||||
| collection of the receivables. Debit this account upon collection | |||||||
| of assigned receivable, transfers, reversal of impairment, or write- | |||||||
| off. | |||||||
| 5 | Other Receivables | ||||||
| Account Title | Guarantee Receivables | ||||||
| Account Number | 10305070 | ||||||
| Normal Balance | Debit | ||||||
| Description | This account is used to recognize the amounts due from banking | ||||||
| institutions and lending conduits that extended production and | |||||||
| production-related loans to small farmers. Credit this account | |||||||
| upon collection of receivables, transfers or write-off. | |||||||
| Account Title | Allowance for Impairment-Guarantee Receivables | ||||||
| Account Number | 10305071 | ||||||
| Normal Balance | Credit | ||||||
| Description | This account is credited to reduce the amortized cost of guarantee | ||||||
| receivable due to impairment, which may arise from non- | |||||||
| collection of the receivables. Debit this account upon receipt of | |||||||
| guarantee receivables, transfers, reversal of impairment, or write- | |||||||
| off. | |||||||
| Account Title | Unremitted Recoveries | ||||||
| Account Number | 10305080 | ||||||
| Normal Balance | Debit | ||||||
| Description | This account is used to recognize the amount of recoveries on | ||||||
| guarantee loans not yet remitted by lending institutions. Credit | |||||||
| this account upon collection of receivables, transfers or write-off. | |||||||
| Account Title | Allowance for Impairment-Unremitted Recoveries | ||||||
| Account Number | 10305081 | ||||||
| Normal Balance | Credit | ||||||
| Description | This account is credited to reduce the amortized cost of unremitted | ||||||
| recoveries due to impairment, which may arise from non-collection | |||||||
| of the receivables. Debit this account upon receipt of unremitted | |||||||
| recoveries, transfers, reversal of impairment, or write-off. | |||||||
| Account Title | Guaranty Call Receivable | ||||||
| Account Number | 10305090 | ||||||
| Normal Balance | Debit | ||||||
| Description | This account is used to recognize the amount of property conveyed | ||||||
| to the entity as a result of payment of guaranty call. The account is | |||||||
| credited for property that are redeemed by the former borrower or | |||||||
| in the event of foreclosure if borrower fails to exercise right of | |||||||
| redemption. | |||||||
| Account Title | Allowance for Impairment-Guaranty Call Receivable | ||||||
| Account Number | 10305091 | ||||||
| Normal Balance | Credit | ||||||
| Description | This account is credited to reduce the amortized cost of guarantee | ||||||
| call receivable due to impairment, which may arise from non- | |||||||
| collection of the receivables. Debit this account upon receipt of | |||||||
| guaranty call receivable, transfers, reversal of impairment, or | |||||||
| write-off. | |||||||
| Account Title | Universal Charge Receivable | ||||||
| Account Number | 10305100 | ||||||
| Normal Balance | Debit | ||||||
| Description | This account is used to recognize the amount due from distribution | ||||||
| utilities for collections from power customers to subsidize the loss | |||||||
| incurred by the National Power Corporation and Power Sector | |||||||
| Assets and Liabilities Management Corporation from their | |||||||
| operations. Credit this account upon collection of receivables, | |||||||
| transfers, or write-off. | |||||||
| Account Title | Allowance for Impairment-Universal Charge Receivable | ||||||
| Account Number | 10305101 | ||||||
| Normal Balance | Credit | ||||||
| Description | This account is credited to reduce the amortized cost of universal | ||||||
| charge receivable due to impairment, which may arise from non- | |||||||
| collection of the receivables. Debit this account upon collection of | |||||||
| universal charge-stranded contract cost receivable, transfers, | |||||||
| reversal of impairment, or write-off. | |||||||
| 4 | Inventories | ||||||
| 4 | Inventory Held for Consumption | ||||||
| Account Title | Electrical Supplies and Materials Inventory | ||||||
| Account Number | 10404190 | ||||||
| Normal Balance | Debit | ||||||
| Description | This account is used to recognize cost of electrical supplies and | ||||||
| materials purchased/acquired for stock and later issue for the | |||||||
| repairs and maintenance of power supply systems. Credit this | |||||||
| account for issues, transfers, losses or other forms of disposal. | |||||||
| Account Title | Allowance for Impairment-Electrical Supplies and Materials Inventory | ||||||
| Account Number | 10404191 | ||||||
| Normal Balance | Credit | ||||||
| Description | This account is credited for any subsequent write-down of | ||||||
| Electrical Supplies and Materials Inventory due to fortuitous event. | |||||||
| Debit this account upon disposal, derecognition of the inventory or | |||||||
| reversal of impairment loss. | |||||||
| 5 | Semi-Expendable Machinery and Equipment | ||||||
| Account Title | Semi-Expendable Kitchen Equipment | ||||||
| Account Number | 10405160 | ||||||
| Normal Balance | Debit | ||||||
| Description | This account is used to recognize the cost/fair value of the | ||||||
| purchased/acquired kitchen equipment costing less than P15,000 | |||||||
| for use in the operation of canteen, hotel and restaurant. Credit | |||||||
| this account for issues, transfers, losses or other forms of disposal. | |||||||
| Account Title | Semi-Expendable Electrical Equipment | ||||||
| Account Number | 10405170 | ||||||
| Normal Balance | Debit | ||||||
| Description | This account is used to recognize the cost/fair value of the | ||||||
| purchased/acquired electrical equipment costing less than P15,000 | |||||||
| for use in government operations. Credit this account for issues, | |||||||
| transfers, losses or other forms of disposal. | |||||||
| 6 | Property, Plant and Equipment | ||||||
| 5 | Machinery and Equipment | ||||||
| Account Title | Kitchen Equipment | ||||||
| Account Number | 10605160 | ||||||
| Normal Balance | Debit | ||||||
| Description | This account is used to recognize the cost incurred in the purchase | ||||||
| or fair value, if acquired through donation or transfers without | |||||||
| cost, of kitchen equipment, for use in the operation of canteens, | |||||||
| hotels, restaurants, hospitals, schools and other entities. Credit this | |||||||
| account for derecognition of the carrying amount of the replaced | |||||||
| parts in major repairs, or disposal. | |||||||
| Account Title | Accumulated Depreciation-Kitchen Equipment | ||||||
| Account Number | 10605161 | ||||||
| Normal Balance | Credit | ||||||
| Description | This account is credited for the allocation of cost of kitchen | ||||||
| equipment in accordance with the prescribed policy on | |||||||
| depreciation. Debit this account upon disposal or derecognition | |||||||
| of the asset. | |||||||
| Account Title | Accumulated Impairment Losses-Kitchen Equipment | ||||||
| Account Number | 10605162 | ||||||
| Normal Balance | Credit | ||||||
| Description | This account is credited for the amount recognized to reduce | ||||||
| kitchen equipment to its recoverable amount due to impairment. | |||||||
| Debit this account upon disposal, derecognition of the asset, or | |||||||
| reversal of impairment. | |||||||
| Account Title | Electrical Equipment | ||||||
| Account Number | 10605170 | ||||||
| Normal Balance | Debit | ||||||
| Description | This account is used to recognize the cost incurred in the purchase | ||||||
| or fair value, if acquired through donation or transfers without cost, | |||||||
| of electrical equipment, for use in government operations. Credit | |||||||
| this account for derecognition of the carrying amount of the | |||||||
| replaced parts in major repairs, or disposal. | |||||||
| Account Title | Accumulated Depreciation-Electrical Equipment | ||||||
| Account Number | 10605171 | ||||||
| Normal Balance | Credit | ||||||
| Description | This account is credited for the allocation of cost of electrical | ||||||
| equipment in accordance with the prescribed policy on | |||||||
| depreciation. Debit this account upon disposal or derecognition | |||||||
| of the asset. | |||||||
| Account Title | Accumulated Impairment Losses-Electrical Equipment | ||||||
| Account Number | 10605172 | ||||||
| Normal Balance | Credit | ||||||
| Description | This account is credited for the amount recognized to reduce | ||||||
| electrical equipment to its recoverable amount due to impairment. | |||||||
| Debit this account upon disposal, derecognition of the asset, or | |||||||
| reversal of impairment. | |||||||
| 9 | International Reserves | ||||||
| 1 | International Reserves | ||||||
| Account Title | Foreign Securities Purchased under Agreement to Resell | ||||||
| Account Number | 10901080 | ||||||
| Normal Balance | Debit | ||||||
| Description | This represents excess funds of BSP's daily requirements held | ||||||
| and invested automatically by Nostro banks in an overnight | |||||||
| facility. | |||||||
3 EQUITY | |||||||
| 3 | Equity | ||||||
| 11 | Members' Equity | ||||||
| 1 | Members' Equity | ||||||
| Account Title | Members' Equity | ||||||
| Account Number | 31101010 | ||||||
| Normal Balance | Credit | ||||||
| Description | This account is used by HDMF to recognize the mandatory | ||||||
| contributions of members, employers' counterpart of employed | |||||||
| members and corresponding dividends earned. It shall also be | |||||||
| used by AFP Retirement and Separation Benefits System (AFP- | |||||||
| RSBS) to recognize members' contribution stated based on | |||||||
| remittance reports on actual deductions from the compensation | |||||||
| of officers and enlisted personnel in the active service and | |||||||
| contributions from the retirees covered by P.D. No. 1909. | |||||||
4 REVENUE/INCOME | |||||||
| 4 | Revenue/Income | ||||||
| 2 | Service and Business Income | ||||||
| 1 | Service Income | ||||||
| Account Title | Harmonization Fees | ||||||
| Account Number | 40201230 | ||||||
| Normal Balance | Credit | ||||||
| Description | This account is used to recognize annual fees levied upon by | ||||||
| Philippine Retirement Authority on the retiree in consideration | |||||||
| for the release of the amounts in excess of the required deposit | |||||||
| under the Modified/Special Reduced Deposit Scheme. This | |||||||
| account shall be closed to the Revenue/Income and Expense | |||||||
| Summary Account. | |||||||
| Account Title | Sewerage/Garbage Fees | ||||||
| Account Number | 40201240 | ||||||
| Normal Balance | Credit | ||||||
| Description | This account is used to recognize charges imposed in the | ||||||
| ecozone enterprises at Public Economic Zones based on the | |||||||
| volume of their solid waste disposed at designated dumping area | |||||||
| for proper disposal. This account shall be closed to Revenue/ | |||||||
| Income and Expense Summary Account. | |||||||
| Account Title | Transshipment Fees | ||||||
| Account Number | 40201250 | ||||||
| Normal Balance | Credit | ||||||
| Description | This account is used to recognize fees charged to ecozone | ||||||
| enterprises for the services provided by PEZA Police to escort | |||||||
| shipments from the Port to Ecozone and vice-versa. This | |||||||
| account shall be closed to Revenue/Income and Expense | |||||||
| Summary Account. | |||||||
| 2 | Business Income | ||||||
| Account Title | Service Concession Revenue | ||||||
| Account Number | 40202240 | ||||||
| Normal Balance | Credit | ||||||
| Description | This account is used to record the revenue arising from the | ||||||
| grant by grantor entity to the operator the right to earn revenue | |||||||
| from third party users of the service concession asset or another | |||||||
| revenue generating asset. This account shall be closed to the | |||||||
| Revenue/Income and Expense Summary Account. | |||||||
| Account Title | Income from Communication Facilities | ||||||
| Account Number | 40202380 | ||||||
| Normal Balance | Credit | ||||||
| Description | This account is used by the CARP to recognize the amount of | ||||||
| operational charges collected for the use of the enroute and | |||||||
| airport/terminal navigational facilities and services provided to | |||||||
| aircraft on international, domestic and general aviation flying into | |||||||
| and out of airports in the Republic of the Philippines, and aircraft | |||||||
| overflying the Manila Flight Information Region, without landing | |||||||
| at any Philippine airport. This account shall be closed to Revenue/ | |||||||
| Income and Expense Summary Account. | |||||||
| 4 | Shares | ||||||
| Account Title | Share in Universal Charge | ||||||
| Account Number | 40401040 | ||||||
| Normal Balance | Credit | ||||||
| Description | This account is used to recognize the share of the National Power | ||||||
| Corporation and Power Sector Assets and Liabilities Management | |||||||
| Corporation on the Universal Charge being collected by distribution | |||||||
| utilities from all power customers. This account shall be closed to | |||||||
| the Revenue Income and Expense Summary Account. | |||||||
5 EXPENSES | |||||||
| 5 | Expenses | ||||||
| 02 | Maintenance and Other Operating Expenses | ||||||
| 14 | Financial Assistance/Subsidy/Contribution | ||||||
| Account Title | Charity Expenses | ||||||
| Account Number | 50214120 | ||||||
| Normal Balance | Credit | ||||||
| Description | This account is used to recognize expenses incurred by PCSO | ||||||
| for health and medical assistance granted to individuals but | |||||||
| payable to the hospitals/health facility where the patient/PCSO | |||||||
| client is treated; mandatory contributions to the government | |||||||
| agencies which are supported by existing laws; aid to national | |||||||
| calamities; and donations to local government units, National | |||||||
| Government Agencies, Non-government Organizations and/or | |||||||
| People's Organizations/private companies. This account shall be | |||||||
| closed to the Revenue/Income and Expense Summary Account. | |||||||
| Subsidiary Ledgers: | |||||||
| 1 | Individuals | ||||||
| 2 | National Government Agencies | ||||||
| 3 | Local Government Units | ||||||
| 4 | Non-government Organizations/People's Organizations | ||||||
| 99 | Other Charity Expenses | ||||||
| 18 | Receivership and Liquidation Expense | ||||||
| Account Title | Receivership and Liquidation Expenses | ||||||
| Account Number | 50218010 | ||||||
| Normal Balance | Debit | ||||||
| Description | This account is used to recognize losses on receivership from | ||||||
| closed banks necessary expenses advanced by the PDIC as | |||||||
| receiver and liquidator. This account shall be closed to the | |||||||
| Revenue/Income and Expense Summary Account. | |||||||
| 5 | Non-Cash Expenses | ||||||
| 3 | Impairment Loss | ||||||
| Account Title | Impairment Loss-Investment Securities at Amortized Cost | ||||||
| Account Number | 50503190 | ||||||
| Normal Balance | Debit | ||||||
| Description | This account is used to recognize the loss incurred due to | ||||||
| impairment of investment securities at amortized cost. This | |||||||
| account shall be closed to the Revenue/Income and Expense | |||||||
| Summary Account. | |||||||
| Account Title | Impairment Loss-Financial Assets-Available for Sale Securities | ||||||
| Account Number | 50503200 | ||||||
| Normal Balance | Debit | ||||||
| Description | This account is used to recognize the loss incurred due to | ||||||
| impairment of financial assets-available for sale securities. This | |||||||
| account shall be closed to the Revenue/Income and Expense | |||||||
| Summary Account. | |||||||
| 04 | Losses | ||||||
| Account Title | Rehabilitation Cost | ||||||
| Account Number | 50504240 | ||||||
| Normal Balance | Debit | ||||||
| Description | This account is used to recognize the estimated losses on | ||||||
| financial assistance to banks and assets acquired from banks. | |||||||
| Debit this account for any adjustments made to the account. | |||||||
| This account shall be closed to the Revenue/Income and | |||||||
| Expense Summary Account. |
3.Revised Code, Title and/or Description of Accounts
a.List of Revised/Modified Accounts
ACCOUNT CODE | ACCOUNT TITLE | |||
Assets | ||||
1 | 1 | 2 | 000 | Cash in Bank-Local Currency |
1 | 1 | 2 | 20 | Cash in Bank-Local Currency, Current Account |
1 | 2 | 2 | 000 | Financial Assets-Held to Maturity |
1 | 2 | 2 | 10 | Investments in Treasury Bills-Local |
1 | 2 | 5 | 000 | Investments in Joint Venture |
1 | 2 | 5 | 10 | Investments in Joint Venture |
1 | 3 | 1 | 000 | Loans and Receivable Accounts |
1 | 3 | 1 | 11 | Allowance for Impairment-Accounts Receivable |
1 | 3 | 1 | 21 | Allowance for Impairment-Notes Receivable |
1 | 3 | 1 | 110 | Loans to Bangko Sentral ng Pilipinas |
1 | 3 | 1 | 111 | Allowance for Impairment-Loans to Bangko Sentral ng Pilipinas |
1 | 4 | 1 | 000 | Inventory Held for Sale |
1 | 4 | 1 | 10 | Merchandise Inventory |
1 | 4 | 3 | 000 | Inventory Held for Manufacturing |
1 | 4 | 3 | 10 | Raw Materials Inventory |
1 | 4 | 3 | 20 | Work-in-Process Inventory |
1 | 4 | 3 | 30 | Finished Goods Inventory |
1 | 4 | 8 | 000 | Plant Inventory |
1 | 4 | 8 | 10 | Plant Inventory |
1 | 5 | 1 | 000 | Land and Buildings |
1 | 5 | 1 | 22 | Accumulated Impairment Losses-Investment Property, Buildings |
1 | 6 | 3 | 000 | Infrastructure Assets |
1 | 6 | 3 | 10 | Road Networks |
1 | 6 | 3 | 12 | Accumulated Impairment Losses-Road Networks |
1 | 6 | 3 | 20 | Flood Control Systems |
1 | 6 | 3 | 30 | Sewer Systems |
1 | 6 | 3 | 32 | Accumulated Impairment Losses-Sewer Systems |
1 | 6 | 5 | 000 | Machinery and Equipment |
1 | 6 | 5 | 990 | Other Machinery and Equipment |
1 | 6 | 5 | 991 | Accumulated Depreciation-Other Machinery and Equipment |
1 | 6 | 5 | 992 | Accumulated Impairment Losses-Other Machinery and Equipment |
1 | 6 | 8 | 000 | Leased Assets |
1 | 6 | 8 | 992 | Accumulated Impairment Losses-Other Leased Assets |
1 | 6 | 11 | 000 | Service Concession-Tangible Assets |
1 | 6 | 11 | 71 | Accumulated Depreciation-Service Concession-Seaport Systems |
1 | 6 | 13 | 000 | Bearer Trees, Plants and Crops |
1 | 6 | 13 | 11 | Accumulated Impairment Losses-Bearer Trees, Plants and Crops |
1 | 7 | 1 | 000 | Bearer Biological Assets |
1 | 7 | 1 | 10 | Breeding Stocks |
1 | 7 | 1 | 30 | Trees, Plant and Crops |
Liabilities | ||||
2 | 1 | 1 | 000 | Payables |
2 | 1 | 1 | 100 | Accrued Benefits Payable |
2 | 1 | 2 | 000 | Bills/Bonds/Loans Payable |
2 | 1 | 2 | 60 | Bills Payable-Bangko Sentral ng Pilipinas |
2 | 1 | 4 | 000 | Financial Liabilities Designated at Fair Value through |
| Surplus/Profit or Deficit/Loss | ||||
2 | 1 | 4 | 10 | Financial Liability Designated at Fair Value through |
| Surplus/Profit or Deficit/Loss | ||||
2 | 2 | 2 | 000 | Due to Bangko Sentral ng Pilipinas/Other Banks/Others |
2 | 2 | 2 | 10 | Due to Bangko Sentral ng Pilipinas |
Revenue | ||||
4 | 2 | 1 | 000 | Service Income |
4 | 2 | 1 | 60 | Licensing Fees |
4 | 2 | 1 | 210 | Accreditation Fees |
4 | 2 | 1 | 220 | Cancellation Fees |
4 | 2 | 2 | 000 | Business Income |
4 | 2 | 2 | 310 | Forfeited Prizes |
4 | 2 | 2 | 340 | Management Fees |
4 | 2 | 2 | 370 | Annual Philippine Retirement Authority Fees |
Expenses | ||||
5 | 2 | 6 | 000 | Awards/Rewards, Prizes and Indemnities |
5 | 2 | 6 | 20 | Prizes |
5 | 2 | 14 | 000 | Financial Assistance/Subsidy/Contribution |
5 | 2 | 14 | 990 | Financial Assistance/Subsidy/Contribution-Others |
5 | 2 | 99 | 000 | Other Maintenance and Operating Expenses |
5 | 2 | 99 | 150 | Fees and Commission Expenses |
5 | 5 | 4 | 000 | Losses |
5 | 5 | 4 | 90 | Loss of Assets |
5 | 5 | 4 | 220 | Loss Recoveries Ceded |
5 | 5 | 4 | 230 | Loss Adjustment Expenses |
5 | 5 | 4 | 990 | Other Losses |
b.Description of Revised/Modified Accounts
1 ASSETS | ||||
| 1 | Assets | |||
| 01 | Cash and Cash Equivalents | |||
| 02 | Cash in Bank-Local Currency | |||
| Account Title | Cash in Bank-Local Currency, Current Account | |||
| Account Number | 10102020 | |||
| Normal Balance | Debit | |||
| Description | This account is used to recognize cash in local currency in a | |||
| current account with AGDBs, which is used to recognize | ||||
| deposits/withdrawals including credit/debit advices/memoranda | ||||
| received from AGDBs. | ||||
| 02 | Investments | |||
| 02 | Financial Assets-Held to Maturity | |||
| Account Title | Investments in Treasury Bills-Local | |||
| Account Number | 10202010 | |||
| Normal Balance | Debit | |||
| Description | This account is used to recognize money invested in treasury | |||
| bills with 91 days and above maturity issued by the National | ||||
| Government thru the BTr. Credit this account upon | ||||
| derecognition of the investments in local treasury bills. | ||||
| 05 | Investments in Joint Venture | |||
| Account Title | Investments in Joint Venture | |||
| Account Number | 10205010 | |||
| Normal Balance | Debit | |||
| Description | This account is used to recognize money and/or other assets | |||
| invested in entities that are neither a subsidiary nor associate/ | ||||
| affiliate and share in the profit of joint venture where the | ||||
| government corporation has joint control. This account shall | ||||
| only be used when the joint arrangement is classified as Joint | ||||
| Venture/Jointly Controlled Entities. Credit this account upon | ||||
| receipt of the return of the investment, sale, transfers, write-off | ||||
| and share in the loss of joint venture. | ||||
| 03 | Receivables | |||
| 01 | Loans and Receivable Accounts | |||
| Account Title | Allowance for Impairment-Accounts Receivable | |||
| Account Number | 10301011 | |||
| Normal Balance | Credit | |||
| Description | This account is credited upon recognition of impairment which | |||
| may arise from non-collection. Debit this account upon | ||||
| collection of receivables, transfers, reversal of impairment, or | ||||
| write-off. | ||||
| Account Title | Allowance for Impairment-Notes Receivable | |||
| Account Number | 10301021 | |||
| Normal Balance | Credit | |||
| Description | This account is credited upon recognition of the amount to reduce | |||
| the amortized cost of notes receivable due to impairment, which | ||||
| may arise from non-collection. Debit this account upon encashment | ||||
| of notes, transfers, reversal of impairment, or write-off. | ||||
| Account Title | Loans to Bangko Sentral ng Pilipinas | |||
| Account Number | 10301110 | |||
| Normal Balance | Debit | |||
| Description | This account is used to recognize foreign currency denominated | |||
| loans and discounts granted by a Foreign Currency Deposit | ||||
| Unit/Expanded Foreign Currency Deposit Unit to BSP. Credit | ||||
| this account upon collection of receivables, transfers or write-off. | ||||
| Account Title | Allowance for Impairment-Loans to Bangko Sentral ng Pilipinas | |||
| Account Number | 10301111 | |||
| Normal Balance | Credit | |||
| Description | This account is credited to reduce the amortized cost of loans to | |||
| BSP due to impairment. Debit this account upon receipt of loans, | ||||
| transfers, reversal of impairment, or write-off. | ||||
| 4 | Inventories | |||
| 1 | Inventory Held for Sale | |||
| Account Title | Merchandise Inventory | |||
| Account Number | 10401010 | |||
| Normal Balance | Debit | |||
| Description | This account is used to recognize the cost of goods | |||
| purchased/acquired/produced which are intended for sale | ||||
| in the ordinary course of business as well as share in the | ||||
| reclaimed land with proponents, land and other items that | ||||
| are intended for sale. This includes forest products, food | ||||
| supplies for canteen operations and the like, and other | ||||
| merchandise. Credit this account for sale, transfers or | ||||
| write-off. | ||||
| 03 | Inventory Held for Manufacturing | |||
| Account Title | Raw Materials Inventory | |||
| Account Number | 10403010 | |||
| Normal Balance | Debit | |||
| Description | This account is used to recognize the cost of unprocessed | |||
| materials that serve as component of produced goods. Credit | ||||
| this account for the issuance of raw materials for production, | ||||
| transfers, or write-off. | ||||
| Account Title | Work-in-Process Inventory | |||
| Account Number | 10403020 | |||
| Normal Balance | Debit | |||
| Description | This account is used to recognize cost of goods still in the process | |||
| of being manufactured or fabricated to produce an end product. | ||||
| Credit this account upon completion of the product/inventory, | ||||
| transfers or write-off. | ||||
| Account Title | Finished Goods Inventory | |||
| Account Number | 10403030 | |||
| Normal Balance | Debit | |||
| Description | This account is used to recognize cost of completed/manufactured | |||
| product available for sale or use. Credit this account for transfers | ||||
| to other inventory accounts or other disposal, and write-off. | ||||
| 8 | Plant Inventory | |||
| Account Title | Plant Inventory | |||
| Account Number | 10408010 | |||
| Normal Balance | Debit | |||
| Description | This account is used to recognize inventories held at the BSP | |||
| Security Plant Complex, where the "weighted average acquisition | ||||
| cost" is used for valuation, for issuance unless specifically | ||||
| identified for purposes of laboratory/end-user evaluation. Credit | ||||
| this account for issuance, transfers or other disposal. | ||||
| Subsidiary Ledgers: | ||||
| 01 — Silver in Bullion Vault | ||||
| 02 — Gold in Bullion Vault | ||||
| 03 — Gold for Domestic Sale | ||||
| 04 — Raw Materials | ||||
| 05 — Finished Goods | ||||
| 99 — Others | ||||
| 5 | Investment Property | |||
| 1 | Land and Buildings | |||
| Account Title | Accumulated Impairment Losses-Investment Property, Buildings | |||
| Account Number | 10501022 | |||
| Normal Balance | Credit | |||
| Description | This account is credited for the loss in the future economic benefits | |||
| or service potential of the investment property, over and above | ||||
| depreciation, which is equivalent to the excess of the carrying amount | ||||
| of the asset over its recoverable service amount. Debit this account | ||||
| upon disposal of the asset, upon reclassification to other Property, | ||||
| Plant and Equipment account, transfers or reversal of impairment | ||||
| loss. This account is used by entities adopting the cost model. | ||||
| 6 | Property, Plant and Equipment | |||
| 3 | Infrastructure Assets | |||
| Account Title | Road Networks | |||
| Account Number | 10603010 | |||
| Normal Balance | Debit | |||
| Description | This account is used to recognize the cost incurred in the purchase | |||
| or construction or fair value, if acquired through donation or transfers | ||||
| without cost, of the roads, highways and bridges, and other road | ||||
| network facilities such as traffic lights and road signage for public use | ||||
| or for income generating purposes. Credit this account upon | ||||
| derecognition of the carrying amount of the replaced portion. | ||||
| Account Title | Accumulated Impairment Losses-Road Networks | |||
| Account Number | 10603012 | |||
| Normal Balance | Credit | |||
| Description | This account is credited for the amount recognized to reduce road | |||
| networks to its recoverable amount due to impairment. Debit this | ||||
| account upon derecognition of the asset or reversal of impairment | ||||
| loss. | ||||
| Account Title | Flood Control Systems | |||
| Account Number | 10603020 | |||
| Normal Balance | Debit | |||
| Description | This account is used to recognize the cost incurred in the purchase | |||
| or construction or fair value, if acquired through donation or transfers | ||||
| without cost, of the seawalls, river walls and other flood control system | ||||
| facilities for public use or for income generating purposes. Credit this | ||||
| account upon derecognition of the carrying amount of the replaced | ||||
| portion. | ||||
| Account Title | Sewer Systems | |||
| Account Number | 10603030 | |||
| Normal Balance | Debit | |||
| Description | This account is used to recognize the cost incurred in the purchase | |||
| or construction or fair value, if acquired through donation or | ||||
| transfers without cost, of the waste treatment plants and other sewer | ||||
| system facilities for public use or for income generating purposes. | ||||
| This also includes pumps, purification works, rising/gravity mains, | ||||
| air release valves, screens, overflows and associated infrastructures. | ||||
| Credit this account upon derecognition of the carrying amount of the | ||||
| replaced portion. | ||||
| Account Title | Accumulated Impairment Losses-Sewer Systems | |||
| Account Number | 10603032 | |||
| Normal Balance | Credit | |||
| Description | This account is credited for the amount recognized to reduce sewer | |||
| systems to its recoverable amount due to impairment. Debit this | ||||
| account upon derecognition of the asset or reversal of impairment | ||||
| loss. | ||||
| 05 | Machinery and Equipment | |||
| Account Title | Other Machinery and Equipment | |||
| Account Number | 10605990 | |||
| Normal Balance | Debit | |||
| Description | This account is used to recognize the cost incurred in the purchase | |||
| or assembly or fair value, if acquired through donation or transfers | ||||
| without cost, of other machinery and equipment, not otherwise | ||||
| classified under the specific machinery and equipment accounts. | ||||
| Credit this account for derecognition of the carrying amount of the | ||||
| replaced parts in major repairs, or disposal. | ||||
| Account Title | Accumulated Depreciation-Other Machinery and Equipment | |||
| Account Number | 10605991 | |||
| Normal Balance | Credit | |||
| Description | This account is credited for the allocation of cost of other machinery | |||
| and equipment in accordance with the prescribed policy on | ||||
| depreciation. Debit this account upon disposal or derecognition of | ||||
| the asset. | ||||
| Account Title | Accumulated Impairment Losses-Other Machinery and Equipment | |||
| Account Number | 10605992 | |||
| Normal Balance | Credit | |||
| Description | This account is credited for the amount recognized to reduce other | |||
| machinery and equipment to its recoverable amount due to | ||||
| impairment. Debit this account upon disposal, derecognition of the | ||||
| asset, or reversal of impairment. | ||||
| 8 | Leased Assets | |||
| Account Title | Accumulated Impairment Losses-Other Leased Assets | |||
| Account Number | 10608992 | |||
| Normal Balance | Credit | |||
| Description | This account is credited for the amount recognized to reduce to its | |||
| recoverable amount the value of other leased assets under a finance | ||||
| lease due to impairment. Debit this account upon disposal, | ||||
| derecognition of the asset or reversal of impairment. | ||||
| 11 | Service Concession-Tangible Assets | |||
| Account Title | Accumulated Depreciation-Service Concession-Seaport Systems | |||
| Account Number | 10611071 | |||
| Normal Balance | Credit | |||
| Description | This account is credited for the allocation of service concession- | |||
| seaport systems in accordance with the prescribed policy on | ||||
| depreciation. Debit this account upon derecognition of the asset. | ||||
| 13 | Bearer Trees, Plants and Crops | |||
| Account Title | Accumulated Impairment Losses-Bearer Trees, Plants and Crops | |||
| Account Number | 10613011 | |||
| Normal Balance | Credit | |||
| Description | This account is credited for the amount recognized to reduce bearer | |||
| trees, plants and crops to its recoverable amount due to impairment. | ||||
| Debit this account upon disposal, derecognition of the asset or reversal | ||||
| of impairment. | ||||
| 07 | Biological Assets | |||
| 01 | Bearer Biological Assets | |||
| Account Title | Breeding Stocks | |||
| Account Number | 10701010 | |||
| Normal Balance | Debit | |||
| Description | This account is used to recognize the cost, or fair value, if acquired | |||
| through donation or transfers without cost, of breeding stocks such | ||||
| as cattle, horse, swine, and the like, including offsprings, if intended | ||||
| as bearers, and until the point of harvest, if intended for sale/ | ||||
| distribution/consumption. Credit this account for transfers to | ||||
| appropriate inventory/other accounts, donation, loss or death. | ||||
| Account Title | Trees, Plants and Crops | |||
| Account Number | 10701030 | |||
| Normal Balance | Debit | |||
| Description | This account is used to recognize the cost, or fair value, if acquired | |||
| through donation or transfers without cost, of trees for forestry, | ||||
| bearer plants and, annual or perennial cropping, cultivating orchards | ||||
| and plantations and floriculture if intended as bearers, and until the | ||||
| point of harvest, if intended for future sale/distribution/consumption. | ||||
| Credit this account upon disposal or derecognition of the asset. | ||||
2 LIABILITIES | ||||
| 2 | Liabilities | |||
| 01 | Financial Liabilities | |||
| 01 | Payables | |||
| Account Title | Accrued Benefits Payable | |||
| Account Number | 20101100 | |||
| Normal Balance | Credit | |||
| Description | This account is used to recognize accrued expenses from claims | |||
| filed by members or received by government corporations such | ||||
| as GSIS, SSS, PhilHealth, PCIC, etc. but not yet processed and | ||||
| paid. It also includes incurred but not yet received benefit claims | ||||
| (IBNR) based on the estimation and computation of accruals | ||||
| centralized in the Office of the Actuary of PhilHealth. Debit this | ||||
| account upon payment of the benefits and other necessary | ||||
| adjustments. | ||||
| 02 | Bills/Bonds/Loans Payable | |||
| Account Title | Bills Payable-Bangko Sentral ng Pilipinas | |||
| Account Number | 20102060 | |||
| Normal Balance | Credit | |||
| Description | This account is used to recognize the amortized cost of obligations | |||
| to the BSP. Debit this account for payments of loan amortization. | ||||
| 04 | Financial Liabilities Designated at Fair Value through | |||
| Surplus/Profit or Deficit/Loss | ||||
| Account Title | Financial Liability Designated at Fair Value through Surplus/Profit or Deficit/Loss | |||
| Account Number | 20104010 | |||
| Normal Balance | Credit | |||
| Description | This account is used to recognize financial liabilities that upon initial | |||
| recognition are designated by the government corporation at fair | ||||
| value through surplus/profit or deficit/loss. Debit this account upon | ||||
| derecognition. | ||||
| 2 | Inter-Agency Payables | |||
| 2 | Due to Bangko Sentral ng Pilipinas/Other Banks/Others | |||
| Account Title | Due to Bangko Sentral ng Pilipinas | |||
| Account Number | 20202010 | |||
| Normal Balance | Credit | |||
| Description | This account is used to recognize the estimated liability for the | |||
| bank's share in the cost of maintaining the appropriate supervision | ||||
| and examination department of the BSP, or other costs which | ||||
| cannot be appropriately classified and shall be set up monthly | ||||
| against current operations. | ||||
4 REVENUE/INCOME | ||||
| 4 | Revenue/Income | |||
| 2 | Service and Business Income | |||
| 1 | Service Income | |||
| Account Title | Licensing Fees | |||
| Account Number | 40201060 | |||
| Normal Balance | Credit | |||
| Description | This account is used to recognize the fees collected from the | |||
| issuance of licenses, such as professional licenses and the like. | ||||
| It is also used by Cagayan Economic Zone Authority to recognize | ||||
| the hosting fees collected from the gross winnings from interactive | ||||
| gaming activities such as, but not limited to internet casino, sports | ||||
| betting, lottery and poker. This account shall be closed to the | ||||
| Revenue/Income and Expense Summary Account. | ||||
| Account Title | Accreditation Fees | |||
| Account Number | 40201210 | |||
| Normal Balance | Credit | |||
| Description | This account is used to recognize fee collected by Philippine | |||
| Retirement Authority for the accreditation of marketers and | ||||
| retirement facilities. This account shall be closed to the | ||||
| Revenue/Income and Expense Summary Account. | ||||
| Account Title | Cancellation Fees | |||
| Account Number | 40201220 | |||
| Normal Balance | Credit | |||
| Description | This account is used to recognize service fee collected by | |||
| Philippine Retirement Authority from the retiree to facilitate | ||||
| the cancellation of his/her Special Resident Retiree's VISA | ||||
| (SRRV) with the Bureau of Immigration. This account shall | ||||
| be closed to the Revenue/Income and Expense Summary | ||||
| Account. | ||||
| 02 | Business Income | |||
| Account Title | Forfeited Prizes | |||
| Account Number | 40202310 | |||
| Normal Balance | Credit | |||
| Description | This account is used to recognize the amount of unclaimed | |||
| prizes for more than one year of winners of games, lottery | ||||
| and other competitive and promotional activities. This | ||||
| account shall be closed to the Revenue/Income and Expense | ||||
| Summary Account. | ||||
| Account Title | Management Fees | |||
| Account Number | 40202340 | |||
| Normal Balance | Credit | |||
| Description | This account is used to recognize management fees received/ | |||
| imposed by government corporations for the implementation | ||||
| of projects of other entities and other management service fees. | ||||
| This is also used by Philippine Retirement Authority to recognize | ||||
| the amount accrued from Philippine Retirement Authority's | ||||
| accredited banks equivalent to the authorized percentage per annum | ||||
| of the outstanding daily balance of the retiree's account deposited | ||||
| or maintained in the accredited banks. This account shall be closed | ||||
| to the Revenue/Income and Expense Summary Account. | ||||
| Account Title | Annual Philippine Retirement Authority Fees | |||
| Account Number | 40202370 | |||
| Normal Balance | Credit | |||
| Description | This account is used to recognize the yearly fee that has to be paid | |||
| to the Philippine Retirement Authority by the retiree equivalent to | ||||
| authorized amount to cover him/her, his/her spouse and dependents. | ||||
| This account shall be closed to the Revenue/Income and Expense | ||||
| Summary Account. | ||||
5 EXPENSES | ||||
| 05 | Expenses | |||
| 02 | Maintenance and Other Operating Expenses | |||
| 06 | Awards/Rewards, Prizes and Indemnities | |||
| Account Title | Prizes | |||
| Account Number | 50206020 | |||
| Normal Balance | Debit | |||
| Description | This account is used to recognize the amount paid to winners | |||
| and sellers of games, lottery and other competitive and | ||||
| promotional activities. This account shall be closed to the | ||||
| Revenue/Income and Expense Summary Account. | ||||
| 14 | Financial Assistance/Subsidy/Contribution | |||
| Account Title | Financial Assistance/Subsidy/Contribution-Others | |||
| Account Number | 50214990 | |||
| Normal Balance | Debit | |||
| Description | This account is used to recognize the financial assistance | |||
| given to individuals and institutions other than government | ||||
| entities or NGOs/POs for government programs/projects/activities. | ||||
| This account shall be closed to the Revenue/Income and Expense | ||||
| Summary Account. | ||||
| 99 | Other Maintenance and Operating Expenses | |||
| Account Title | Fees and Commission Expenses | |||
| Account Number | 50299150 | |||
| Normal Balance | Debit | |||
| Description | This refers to fees and commission expenses for services covering | |||
| intermediation, custodianship, underwriting and securities | ||||
| dealership, securitization activities and other services availed by | ||||
| the banks. This account is also used to recognize the commission | ||||
| share of the agent on the sales of lotto, keno, sweepstakes and other | ||||
| authorized gaming operations. This account shall be closed to the | ||||
| Revenue/Income and Expense Summary Account. | ||||
| 05 | Non-Cash Expenses | |||
| 04 | Losses | |||
| Account Title | Loss of Assets | |||
| Account Number | 50504090 | |||
| Normal Balance | Debit | |||
| Description | This account is used to recognize amount of loss suffered by | |||
| government due to theft/fortuitous events/calamities/civil | ||||
| unrest and events of same nature. This account shall be closed | ||||
| to the Revenue/Income and Expense Summary Account. | ||||
| Account Title | Loss Recoveries Ceded | |||
| Account Number | 50504220 | |||
| Normal Balance | Debit | |||
| Description | This account is used by PCIC for the aggregate share of the | |||
| reinsurers on the claims and losses and adjustment expenses | ||||
| on business ceded under treaty and facultative agreement. This | ||||
| account shall be closed to the Revenue/Income and Expense | ||||
| Summary Account. | ||||
| Account Title | Loss Adjustment Expenses | |||
| Account Number | 50504230 | |||
| Normal Balance | Debit | |||
| Description | This account is used by PCIC to recognize the gross expenses | |||
| incurred by an independent insurance adjuster in the adjustment | ||||
| of claims and losses. This account shall be closed to the | ||||
| Revenue/Income and Expense Summary Account. | ||||
| Account Title | Other Losses | |||
| Account Number | 50504990 | |||
| Normal Balance | Debit | |||
| Description | This account is used to recognize the amount of losses not falling | |||
| under any of the specific loss accounts. This account shall be | ||||
| closed to the Revenue/Income and Expense Summary Account. |
ANNEX C
SAMPLE CONVERSION ENTRY
Accounts and Explanation | Code | Debit | Credit | |||
| Petty Cash | 1 | 1 | 1 | 20 | 50,000.00 | |
| Cash in Bank-Local Currency, Bangko Sentral ng Pilipinas | 1 | 1 | 2 | 10 | 2,500,000.00 | |
| Cash in Bank-Local Currency, Current Account | 1 | 1 | 2 | 20 | 1,480,000.00 | |
| Time Deposits-Foreign Currency | 1 | 1 | 5 | 30 | 4,200,000.00 | |
| Accounts Receivable | 1 | 3 | 1 | 10 | 670,000.00 | |
| Due from National Government Agencies | 1 | 3 | 3 | 10 | 5,600,000.00 | |
| Due from Other Funds | 1 | 3 | 4 | 50 | 776,500.00 | |
| Due from Officers and Employees | 1 | 3 | 5 | 20 | 680,000.00 | |
| Office Supplies Inventory | 1 | 4 | 4 | 10 | 1,820,000.00 | |
| Food Supplies Inventory | 1 | 4 | 4 | 50 | 150,000.00 | |
| Drugs and Medicines Inventory | 1 | 4 | 4 | 60 | 25,000.00 | |
| Land | 1 | 6 | 1 | 10 | 10,000,000.00 | |
| Buildings | 1 | 6 | 4 | 10 | 30,000,000.00 | |
| Other Machinery and Equipment | 1 | 6 | 5 | 990 | 8,500,000.00 | |
| Furniture and Fixtures | 1 | 6 | 7 | 10 | 5,300,000.00 | |
| Other Property, Plant and Equipment | 1 | 6 | 98 | 990 | 700,000.00 | |
| Advances to Contractors | 1 | 99 | 2 | 10 | 500,000.00 | |
| Prepaid Rent | 1 | 99 | 2 | 20 | 1,600,000.00 | |
| Deposit on Letters of Credit | 1 | 99 | 3 | 10 | 320,000.00 | |
| Petty Cash Fund | 104 | 50,000.00 | ||||
| Cash-Bangko Sentral Ng Pilipinas | 110 | 2,500,000.00 | ||||
| Cash in Bank-Local Currency, Current Account | 111 | 1,480,000.00 | ||||
| Cash in Bank-Foreign Currency, Time Deposits | 117 | 4,200,000.00 | ||||
| Accounts Receivable | 121 | 670,000.00 | ||||
| Due from NGAs | 136 | 5,600,000.00 | ||||
| Due from Other Funds | 144 | 776,500.00 | ||||
| Due from Officers and Employees | 123 | 680,000.00 | ||||
| Office Supplies Inventory | 155 | 1,820,000.00 | ||||
| Food Supplies Inventory | 158 | 150,000.00 | ||||
| Drugs and Medicines Inventory | 159 | 25,000.00 | ||||
| Land | 201 | 10,000,000.00 | ||||
| Office Buildings | 211 | 30,000,000.00 | ||||
| Machinery | 226 | 8,500,000.00 | ||||
| Furniture and Fixtures | 222 | 5,300,000.00 | ||||
| Other Property, Plant and Equipment | 250 | 700,000.00 | ||||
| Advances to Contractors | 181 | 500,000.00 | ||||
| Prepaid Rent | 177 | 1,600,000.00 | ||||
| Deposit on Letters of Credit | 180 | 320,000.00 | ||||
| Accumulated Depreciation-Office Buildings | 311 | 6,000,000.00 | ||||
| Accumulated Depreciation-Machinery | 326 | 1,700,000.00 | ||||
| Accumulated Depreciation-Furniture and Fixtures | 322 | 1,060,000.00 | ||||
| Accumulated Depreciation-Other Property, Plant and Equipment | 350 | 140,000.00 | ||||
| Accounts Payable | 401 | 5,200,000.00 | ||||
| Due to BIR | 412 | 50,000.00 | ||||
| Due to GSIS | 413 | 57,100.00 | ||||
| Due to PAG-IBIG | 414 | 15,000.00 | ||||
| Due to PHILHEALTH | 415 | 25,000.00 | ||||
| Due to Other NGAs | 416 | 450,000.00 | ||||
| Government Equity | 601 | 60,174,400.00 | ||||
| Accumulated Depreciation-Buildings | 1 | 6 | 4 | 11 | 6,000,000.00 | |
| Accumulated Depreciation-Other Machinery and Equipment | 1 | 6 | 5 | 991 | 1,700,000.00 | |
| Accumulated Depreciation-Furniture and Fixtures | 1 | 6 | 7 | 11 | 1,060,000.00 | |
| Accumulated Depreciation-Other Property, Plant and Equipment | 1 | 6 | 98 | 991 | 140,000.00 | |
| Accounts Payable | 2 | 1 | 1 | 10 | 5,200,000.00 | |
| Due to BIR | 2 | 2 | 1 | 10 | 50,000.00 | |
| Due to GSIS | 2 | 2 | 1 | 20 | 57,100.00 | |
| Due to PAG-IBIG | 2 | 2 | 1 | 30 | 15,000.00 | |
| Due to PHILHEALTH | 2 | 2 | 1 | 40 | 25,000.00 | |
| Due to NGAs | 2 | 2 | 1 | 50 | 450,000.00 | |
| Accumulated Surplus/(Deficit) | 3 | 1 | 1 | 10 | 60,174,400.00 | |
––––––––––––– | ––––––––––––– | |||||
| Total | 149,743,000.00 | 149,743,000.00 | ||||
============ | ============ | |||||
| To recognize the conversion of NGAS Accounts to the revised | ||||||
| accounts and transfer of balances to the appropriate fund book | ||||||
| based on the Statement of Financial Position as of December 31, | ||||||
| 2015 |
ANNEX D
SAMPLE CONVERSION ENTRY
Accounts and Explanation | Code | Debit | Credit | |||
| Cash in Bank-Local Currency, Current Account | 1 | 1 | 2 | 20 | 37,000.00 | |
| Fuel, Oil and Lubricants Inventory | 1 | 4 | 4 | 80 | 10,000.00 | |
| Other Supplies and Materials Inventory | 1 | 4 | 4 | 990 | 15,000.00 | |
| Information and Communication Technology Equipment | 1 | 6 | 5 | 30 | 90,000.00 | |
| Medical Equipment | 1 | 6 | 5 | 110 | 100,000.00 | |
| Cash in Bank-Local Currency, Current Account | 111 | 37,000.00 | ||||
| Gasoline, Oil and Lubricants Inventory | 161 | 10,000.00 | ||||
| Spare Parts Inventory | 167 | 15,000.00 | ||||
| IT Equipment and Software | 223 | 90,000.00 | ||||
| Hospital Equipment | 232 | 100,000.00 | ||||
| Accumulated Depreciation-Office Buildings | 311 | 500,000.00 | ||||
| Accumulated Depreciation-Machinery | 326 | 425,000.00 | ||||
| Accumulated Depreciation-Furniture and Fixtures | 322 | 265,000.00 | ||||
| Accumulated Depreciation-Hospital Equipment | 332 | 10,000.00 | ||||
| Accumulated Depreciation-IT Equipment | 323 | 9,000.00 | ||||
| Accumulated Depreciation-Other Property, Plant and Equipment | 350 | 70,000.00 | ||||
| Accounts Payable | 401 | 250,000.00 | ||||
| Due to BIR | 412 | 10,000.00 | ||||
| Due to GSIS | 413 | 5,000.00 | ||||
| Due to PAG-IBIG | 414 | 2,000.00 | ||||
| Due to PHILHEALTH | 415 | 1,000.00 | ||||
| Accumulated Depreciation-Buildings | 1 | 6 | 4 | 11 | 500,000.00 | |
| Accumulated Depreciation-Other Machinery and Equipment | 1 | 6 | 5 | 991 | 425,000.00 | |
| Accumulated Depreciation-Furniture and Fixtures | 1 | 6 | 7 | 11 | 265,000.00 | |
| Accumulated Depreciation-Medical Equipment | 1 | 6 | 5 | 111 | 10,000.00 | |
| Accumulated Depreciation-Information and Communication Technology | 1 | 6 | 5 | 31 | 9,000.00 | |
| Equipment | ||||||
| Accumulated Depreciation-Other Property, Plant and Equipment | 1 | 6 | 98 | 991 | 70,000.00 | |
| Accounts Payable | 2 | 1 | 1 | 10 | 250,000.00 | |
| Due to BIR | 2 | 2 | 1 | 10 | 10,000.00 | |
| Due to GSIS | 2 | 2 | 1 | 20 | 5,000.00 | |
| Due to Pag-IBIG | 2 | 2 | 1 | 30 | 2,000.00 | |
| Due to PhilHealth | 2 | 2 | 1 | 40 | 1,000.00 | |
| Printing and Publication Income | 641 | 50,000.00 | ||||
| Rent Income | 642 | 120,000.00 | ||||
| Insurance Income | 663 | 100,000.00 | ||||
| Income from Printing and Publication | 4 | 2 | 2 | 150 | 50,000.00 | |
| Rent/Lease Income | 4 | 2 | 2 | 50 | 120,000.00 | |
| Fidelity Insurance Income | 4 | 2 | 2 | 190 | 100,000.00 | |
| Salaries and Wages-Regular | 5 | 1 | 1 | 10 | 300,000.00 | |
| Internet Subscription Expenses | 5 | 2 | 5 | 30 | 50,000.00 | |
| Repairs and Maintenance-Buildings and Other Structures | 5 | 2 | 13 | 40 | 10,000.00 | |
| Depreciation-Buildings and Other Structures | 5 | 5 | 1 | 40 | 500,000.00 | |
| Depreciation-Machinery and Equipment | 5 | 5 | 1 | 50 | 425,000.00 | |
| Depreciation-Furniture, Fixtures and Books | 5 | 5 | 1 | 70 | 265,000.00 | |
| Depreciation-Machinery and Equipment | 5 | 5 | 1 | 50 | 9,000.00 | |
| Depreciation-Machinery and Equipment | 5 | 5 | 1 | 50 | 10,000.00 | |
| Depreciation-Other Property, Plant and Equipment | 5 | 5 | 1 | 990 | 70,000.00 | |
| Salaries and Wages-Regular | 701 | 300,000.00 | ||||
| Internet Expenses | 774 | 50,000.00 | ||||
| Repairs and Maintenance-Office Buildings | 811 | 10,000.00 | ||||
| Depreciation-Office Buildings | 911 | 500,000.00 | ||||
| Depreciation-Machinery | 926 | 425,000.00 | ||||
| Depreciation-Furniture and Fixtures | 922 | 265,000.00 | ||||
| Depreciation-IT Equipment | 923 | 9,000.00 | ||||
| Depreciation-Hospital Equipment | 932 | 10,000.00 | ||||
| Depreciation-Other Property, Plant and Equipment | 950 | 70,000.00 | ||||
––––––––––– | ––––––––––– | |||||
| Total | 3,708,000.00 | 3,708,000.00 | ||||
=========== | ========== | |||||
| To recognize the conversion of NGAS Accounts to the revised | ||||||
| accounts and transfer of balances to the appropriate fund book | ||||||
| based on the trial balance covering the transactions for the | ||||||
| period January 1-December 31, 2016. |
