Chapter 3 Notes in Gov Acct PDF

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Chapter 3The Revised Chart of AccountsINTRODUCTIONThe Commission on Audit as member of the International Organization of Supreme Audit Institutions (INTOSAI) is encouraged to adopt relevant International Accounting Standards. Thus, to provide new accounts for the adoption of the Philippine Public Ac...

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Chapter 3 The Revised Chart of Accounts INTRODUCTION The Commission on Audit as member of the International Organization of Supreme Audit Institutions (INTOSAI) is encouraged to adopt relevant International Accounting Standards. Thus, to provide new accounts for the adoption of the Philippine Public Accounting Standards (PPSAS) which were harmonized with the IPSAS to enhance the accountability and transparency of the financial reports, and ensure compatibility of financial information, the COA recognizes the need to revise the existing NGAS Chart of Accounts prescribed in COA Cir. No, 2004-008 dated September 20, 2004.

1. Define and discuss the underlying reason why chart of accounts is prescribed in new accounting system. -to enhance the accountability and transparency of the financial reports, and ensure compatibility of financial information. 2. Where is the Revised Chart of Accounts As per Government Accounting Manual Volume Ill, and the Chart of Accounts as Object Code in the Unified Accounts Code Structure (UACS) based: a. COA Circular No. 2013-002 dated January 30, 2013 prescribing the adoption of the Revised Chart of Accounts (RCA) for National Government Agencies (NGAs) effective January l, 2014; b. COA Resolution No. 2014-003 dated January 24, 2014 prescribing the adoption of the Philippine Public Sector Accounting Standards (PPSAS); c. COA Circular No. 2014-003 dated April 15, 2014 providing the implementing rules and guidelines on the Conversion from the Philippine Government Chart of Accounts under the New Government Accounting System per COA Circular No. 2004-098 dated September 20, 2004, as amended, to the Revised Chart of Accounts for NGAs; d. COA-DBM-DOF Joint Circular No. 2013-1 dated August 6, 2013 prescribing the UACS, and e. COA-DBM-DOF Joint Circular No. 2014-1 dated November 7, 2014 providing the enhancement of UACS prescribed under COA-DBM-DOF Joint Circular No. 20133. What are the elements of financial statements. 

Assets — economic resources of an agency that are recognized and measured in conformity with generally accepted accounting principles. Any owned physical object (tangible) or right (intangible) with economic value that is expressed, for accounting purposes, in terms of its cost or some other value. These other values

include revalued amounts, current cost, net realizable value, fair value and recoverable amounts. 

Liabilities --- economic obligations of an agency that are recognized and measured in conformity with accounting principles. Also include certain deferred credits that are not obligations, but which are nonetheless recognized and measured according to accounting principles as outlined in Philippine Public Sector Accounting Standards.

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Equity ---- residual interest of the government in an agency which is the excess of the agency's assets over its liabilities.

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Income---- the gross inflow of economic benefits or service potential during the reporting period, when those inflows result in an increase in net assets/equity, other than increases relating to contributions from owners. The term "income" is broader that revenue and includes gains in addition to revenue.

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Expenses —refer to decrease 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 decrease in net assets/equity, other than those relating to distributions to owners.

4. (PPSAS 1 — Presentation of Financial Statements) COA Cir. No. 2013-002 It provides that the account code structure consists of eight (8) mandatory digits as follows: Account Group, Major Account Group, Sub-Major Account Group, General Ledger Accounts, General Ledger Contra-Accounts The Account Group represents the accounts classification as to Assets, Liabilities Equity Income and Expenses.  The Major Account group represents classification within the account group; example: for Asset major accounts- Cash and Cash Equivalents, Investments, Receivables, etc.  Sub-Major Account group represents classification within the major e.g. for Cash and Cash Equivalent: Cash on Hand, Cash in Bank-Local Currency, Cash in Bank-Foreign Currency, etc.  The General Ledger accounts represent the accounts to be presented in the detailed financial statements, e.g. Cash-Collecting Officer, Petty Cash, etc. This is Composed of segments. The first two digits from the left is the general ledger code, and the last digit is reserved for contra accounts like, Allowance for Impairment, Accumulated Depreciation, etc. 5. Classifications of expenses + sub major groups 1. Personnel services i. Salaries and wages ii. Other compensation iii. Personnel benefit contributions 

iv. Other personal benefits 2. Maintenance and other expenses i. Traveling expenses ii. Training and scholarship expenses iii. Supplies and material expenses iv. Utility expenses v. Communication expenses vi. Awards/rewards, prizes and indemnities vii. Survey, research, exploration, and development expenses viii. Generation, transmission, and distribution expenses ix. Confidential, intelligence, and extraordinary expenses x. Professional services xi. General services xii. Repairs and maintenance xiii. Financial assistance/subsidy xiv. Taxes, insurance premiums, and other fees xv. Labor and wages xvi. Other maintenance and operating expenses 3. Financial expenses i. Financial expenses 4. Direct costs i. COGM ii. Cost of sales 5. Non-cash expenses i. Depreciation ii. Amortization iii. Impairment loss iv. Losses

Questions: Present your answers in a hand-written form. Take a picture of your answers through the CamScanner (CS) application and convert it in PDF file. Once converted, upload this to our google classroom and mark as done. Limit your answers to 2-5 sentences per question. 1. Discuss Why the Revised Chart of Accounts in COA Circular No. 2013.002 dated January 30, 2013 was created. 2. What are the five (5) classifications of expenses in the Revised Chart Of Accounts in COA Circular No 2013-002 dated January 30, 2013? Give the Sub-major account group classifications. 3. Enumerate the five (5) account code structure of the Revised Chart of Accounts consisting of eight (8) mandatory digits. Explain briefly. 4. Enumerate and explain briefly the elements of Financial Statements. per COA Circular No.2013-002....