The GAM for NGAs is promulgated by the COA under the authority conferred to it by the

Overview of Government AccountingLearning Objectives1. Differentiate government accounting from the accounting for business entities.2. State the government entities charged with accounting responsibility.3. Describe briefly the GAM for NGAs.4. State the basic principles used in government accounting.5. State the recognition criteria for assets.Introduction and Overview"Government accounting encompasses the processes of analyzing, recording, classifying, summarizing communicating alltransactions involving the receipt and disposition of government funds and property, and interpreting the results thereof." (State Audit Code of the Philippines, P.D. No. 1445, Sec. 109)The objectives of government accounting are:a) To produce information concerning past operations and present conditions;b) To provide a basis for guidance for future operations;c) To provide for control of the acts of public bodies and officers in the receipt, disposition and utilization of funds and property, andd) To report on the financial position and the results of operations of government agencies for the information of all persons concerned.Like the accounting for business entities, government accounting is also a process of producing information that is useful in making economic decisions, Government accounting, however, places greater emphasis on the following:a. Sources and utilization of government funds; andb. Responsibility, accountability and liability of entities entrusted with government funds and properties.The sources of government funds include receipts from taxes and other fees, borrowings, and grants from other governments and international bodies.The utilization of government funds includes expenditures on programs, projects, unanticipated losses from calamities and the like.Responsibility, Accountability and Liability over Government Funds and PropertyResponsibility over Government Funds and Property 1. Government resources shall be utilized efficiently and effectively in accordance with the law. The head of a government agency is directly responsible in implementing this policy and is primarily responsible for government resources entrusted to his agency. Those who are entrusted with the possession of government resources are directly responsible to the head of the agency2 All those who are exercising authority over a government agency shall share fiscal responsibility.(State Audit Code of the Philippines. P.D. No. 1445)

Question 211 / 1 ptsThe GAM for NGAs is promulgated by the COA under the authority conferred to it by thePhilippine Accounting StandardsPhilippine Accountancy ActCorrect!Philippine ConstitutionState Audit Code (P.D. No. 1445)

Question 221 / 1 ptsAccording to the GAM for NGAs, deliberately overstating liabilities is

0% found this document useful (0 votes)

3K views4 pages

QUIZ

Uploaded by

Bryan Ibarrientos

Full description

Jump to Page

You are on page 1of 4

Search inside document

You're Reading a Free Preview
Page 3 is not shown in this preview.

Buy the Full Version

Reward Your Curiosity

Everything you want to read.

Anytime. Anywhere. Any device.

No Commitment. Cancel anytime.

CHAPTER 1 OVERVIEW OF GOVERNMENT ACCOUNTING

Learning Objectives: Differentiate government accounting from the accounting for business entities. State the government entities charged with accounting responsibility. Describe briefly the GAM for NGAs. State

the

basic

principles

used

in

government accounting. State the recognition criteria for assets.

Definition of Government Accounting “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.” (State Audit Code of the Philippines, P.D. No. 1445, Sec. 109) Government Accounting vs. Business Accounting Compared to the accounting for business entities,

government

accounting

places

greater emphasis on the following: •

Sources and utilization of government funds; and

•

Responsibility, accountability and liability of entities entrusted with government funds and properties.

•

Responsibility, Accountability and Liability over Government Funds and Property Government resources must be utilized efficiently and effectively in accordance with the law.

MODULE •

ACCOUNTING FOR GOVERNMENT AND NON-PROFIT ORGANIZATIONS

The head of a government agency is directly responsible in implementing this policy.

•

All other personnel entrusted with the custody of government resources are responsible to the head of the government agency, are accountable for the safeguarding thereof, and are liable for any losses.

Accounting Responsibility The following offices are charged with government accounting responsibility: 1. Commission on Audit (COA) Responsibilities of COA 

Promulgate accounting and auditing rules



Keep the general accounts



Submit financial reports

2. Department of Budget and Management (DBM) Responsibility of DBM 

Implementation of the national budget

3. Bureau of Treasury (BTr) Responsibility of DBM 

Cash custody and control of disbursements.

4. Government Agencies Responsibility of government agencies 

Maintain accounting books and budget registries which are reconciled with the cash records of the BTr and the budget records of the COA and DBM.



The GAM for NGAs The Government Accounting Manual for National Government Agencies (GAM for NGAs) is promulgated by the COA under the authority conferred to it by the Philippine Constitution.



The GAM for NGAs was promulgated primarily to harmonize the government accounting standards with the International Public Sector Accounting Standards (IPSAS). The IPSASs are based on the IFRSs.

Objectives of the GAM for NGAs To update the following: 

Standards, policies, guidelines and procedures in accounting for government funds and property;

Page 2

MODULE

ACCOUNTING FOR GOVERNMENT AND NON-PROFIT ORGANIZATIONS



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

Fund clusters

Qualitative Characteristics 

Understandability



Substance over form



Relevance



Neutrality



Materiality



Prudence



Timeliness



Completeness



Reliability



Comparability



Faithful representation

Page 3

MODULE

ACCOUNTING FOR GOVERNMENT AND NON-PROFIT ORGANIZATIONS

Components of General Purpose Financial Statements 1. Statement of Financial Position; 2. Statement of Financial Performance; 3. Statement of Changes in Net Assets/Equity; 4. Statement of Cash Flows; 5. Statement of Comparison of Budget and Actual Amounts; and 6. Notes to the Financial Statements

Recognition of an Asset An item is recognized as asset if it meets all of the following criteria: 1. It meets the definition of an asset; 2. Probable inflow of future economic benefits; and 3. Reliable measurement of cost or other value (e.g., fair value).

To know more information about CHAPTER 1- Overview of Government AccountingPLEASE CLICK THE LINK: https://www.youtube.com/watch?v=sdcR8a9UzsQ To know more information about CHAPTER 1-Accounting responsibility- PLEASE CLICK THE LINK: https://www.youtube.com/watch?v=VrHeFUJuZBs

Reference: Accounting for Government and Non-profit Organization by Zeus Vernon B. Millan

Page 4

Why is GAM for NGAs promulgated?

What is the basis of accounting under NGAs?

Who is responsible for the keeping of general accounts of the government?

Which agency is charged with the responsibility of keeping the general accounts and related documents of the government?