Chapter

CHAPTER 1
NATURE AND SCOPE

GOVERNMENT ACCOUNTING
Encompasses the process of analyzing,

recording, classifying, summarizing
and communicating all transactions
involving the receipt and disposition
of government fund and property and
interpreting the result thereof.
OBJECTIVES OF
GOVERNMENT ACCOUNTING
1. To provide information concerning past
operations and present conditions.
2. To provide a basis for guidance for future

operations.
3. To provide for control of the acts of public

bodies and offices in the receipt, didposition
and utilization of funds and property.
4. To report on the financial position and the

results of operations of government agencies
for the information and guidance of all persons
concerned.
• Information of past operations and present
conditions will facilitate the evaluation of the
performance of an agency from one period to
another.
• Public officers are accountable for the resources

entrusted to them.
• The accounting data will also show the

obligations of the agency and how such
obligations have been incurred.
PUBLIC SECTOR ACCOUNTING
STANDARDS BOARD (PSASB)
• Was created in 2008 under COA Resolution

No. 2008-12 dated October 10, 2008
• Makes use of , among others, the existing

laws, financial reporting, accounting rules
and regulations, and pronouncements issued
by the International Public Sector
Accounting Standards Board (IPSASB
Philippine Public Sector
Accounting Standards (PPSAS)
Shall apply to the ff:

- National Government Agencies (NGAs)
- Local Government Units (LGUs)
- Government and/or Controlled
Corporations (GOCCs)
Government Business Enterprise (GBE)
An entity that has all the following characteristics:
1.An entity with the power to contract in its own name.
2.Has been assigned the financial and operational

authority to carry on a business
3.Sells goods and services, in the normal course of its

business, to other entities at a profit or full cost
recovery
4. Not reliant on continuing government
funding to be a going concern ( other than
purchase of outputs at arm's length)
5. Controlled by a public sector entity

The ff. are the processes and other
considerations in developing the PPSAS:
1. Applicability of IPSAS
2. Exposure draft of PPSAS
3. Fundamental issues
4. Statutory authority
5. Disclosure Requirements
6. PPSAS Numbering
7. Financial Reporting Issues
8. Submission of draft to PSASB for

consideration of the COA
9. Focus group discussions

ACCOUNTING RESPONSIBILITY
The Constitution of the Philippines, the

fundamental law of the land, mandates
the keeping of the general accounts of
the government, promulgation of
accounting rules, and the submission of
reports covering the financial condition
and operation of the government.
• Commission on Audit (COA)
• Department of Budget and

Management (DBM)
• Bureau of Treasury (BTr)
• National Government Agencies

COMMISSION ON AUDIT
Keeps the general accounts of the

government, promulgates accounting rules
and regulations, and submits to the
President and Congress, within the fixed
time by law, an annual report of the
government, its subdivisions, agencies and
instrumentalities, including government-
owned or controlled corporations.
COMMISSION ON AUDIT
Pursuant to the COA, DBM and DOF

Joint Circular No. 2013-1 dated
August 6, 2013, Unified Accounts
Code Structures (UACS), the
consistency of account classification
and coding structures with the Revised
Chart of Accounts shall be the
responsibility of COA.
DEPARTMENT OF BUDGET AND
MANAGEMENT
Pursuant to Section 2, Chapter 1, Title XVII, Book
IV of the Administrative Code of the Philippines
• Responsible for the formulation and

implementation of the National Budget
• Responsible for the efficient and sound

utilization of government funds and revenues
DEPARTMENT OF BUDGET AND
MANAGEMENT
• As provided by the Joint Circular No.

2013-1 dated August 6, 2013, Unified
Accounts Code Structures (UACS)
– Responsible of the validation and assignment

of new codes for funding source organization,
sub-object codes for expenditure items
BUREAU OF TREASURY
Under the Revised Administrative Code, the

BTr is authorized to:
1.Receive and keep national funds, manage

and control the disbursements
2.Maintain accounts of financial transactions
of all national government offices, agencies
and instrumentalities.

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CHAPTER 1

NATURE AND SCOPE

Encompasses the process of analyzing,

2. To provide a basis for guidance for future

3. To provide for control of the acts of public

4. To report on the financial position and the

• Public officers are accountable for the resources

• The accounting data will also show the

• Was created in 2008 under COA Resolution

• Makes use of , among others, the existing

Shall apply to the ff:

1.An entity with the power to contract in its own name.

2.Has been assigned the financial and operational

3.Sells goods and services, in the normal course of its

5. Controlled by a public sector entity

2. Exposure draft of PPSAS

7. Financial Reporting Issues

8. Submission of draft to PSASB for

9. Focus group discussions

The Constitution of the Philippines, the

• Department of Budget and

• Bureau of Treasury (BTr)

• National Government Agencies

Keeps the general accounts of the

Pursuant to the COA, DBM and DOF

• Responsible for the formulation and

• Responsible for the efficient and sound

• As provided by the Joint Circular No.

– Responsible of the validation and assignment

Under the Revised Administrative Code, the

1.Receive and keep national funds, manage

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