ACC143: GOVERNMENT ACCOUNTING
REVENUE AND OTHER RECEIPTS
Revenue – gross inflow of economic benefits or
service potential during the reporting period when
those inflows result in an increase in equity, other
than relating to contribution from owners.
Receipts – actual cash collections from ALL sources
during a period.
FUNDAMENTAL PRINCIPLES FOR REVENUE
• All revenues of an entity shall be remitted to the
national treasury and included in the general fund
of the national government, unless another law
specifically allows otherwise.
• All moneys and property received by a public
officer in any capacity or upon any occasion must
be accounted for as government funds and
government property except as may otherwise be
specifically provided by law.
• Amounts received in trust and from business type
activities of government may be separately
recorded and disbursed in accordance with such
rules and regulations.
• Receipts shall be recorded as revenue of Special,
Fiduciary or Trust Funds or funds other than the
General Fund, only when authorized by law.
• A collecting officer shall immediately issue an
official receipt upon collecting a payment of any
nature.
• Where mechanical devices are used to
acknowledge cash receipts, the COA may approve
upon request, the exemption from the use of
accountable forms.
• At no instance shall temporary receipt be issued
to acknowledge the receipt of public funds.
• Pre-numbered ORs shall be issued in strict
numerical sequence, all copies of each receipt
shall be exact copies or carbon reproduction in all
respects of the original.
• A collecting officer shall accept payments to the
government in the form of checks, upon proper
endorsement and identification of the payee or
endorser.
• Receipts of government funds shall be
acknowledged in accordance with the law.
TYPES OF FUNDS
 General Fund
 Special Fund
 Trust Fund (Fiduciary Fund)
 Revenue Fund
 Depository Fund
 Special Account in the General Fund (SAGF)
 Special Purpose Funds (SPFs)
SOURCES OF REVENUE
 Exchange Transactions or Reciprocal Transfers
Ex. Sale of Goods, Rendering of Services
 Non-exchange Transfers or Non-reciprocal
Transfers
Ex. Tax Revenue, Fines, Penalties and Donations
EXCHANGE TRANSACTIONS
RECOGNITION
 Sale of Goods
Usual way of recognizing revenue.
 Rendering of Services
Recognized on a straight line basis over the period
the services are rendered. However, revenue is
recognized by reference to the stage of
completion if the outcome of the transaction can
be estimated reliably.
 Interest, Royalties, and Dividends
- Interest is recognized on a time proportion
basis;
- Royalties is recognized as they are earned in
accordance with the substance of the relevant
agreement;
- Dividends are recognized when the entity’s
right to receive payment is established.
MEASUREMENT
Measured at the fair value of the consideration
received or receivable. Any trade discounts and
volume rebates shall be taken into account.
NON-EXCHANGE TRANSACTIONS
RECOGNITION
 Tax Revenue
Tax revenue is recognized at a gross amount and
not reduced for expenses paid through the tax
system. Tax revenue shall also not be grossed up
for the amount of tax expenditures.
 Fines and Penalties
In the year they are collected.
 Gifts, Donations, and Goods In-Kind
 When it is probable that future economic benefits C. Receipt of excess cash advance granted to officers
will flow to the entity. and employees (e.g., receipt of cash advance for
travel).
MEASUREMENT
Cash-Collecting Officers xx
 ASSETS - at the acquisition-date fair value.
Advances to officers xx
 LIABILITIES - at present value, when the effect of
time value of money is material.
D. Receipt of refund of overpayment of expenses
 REVENUE - the amount of increase in net assets.
Cash-Collecting Officers xx
Appropriate Expense xx
 DEBT FORGIVENESS - equal to the carrying
amount of the debt forgiven.
E. Receipt of performance bond or security deposit.
 BEQUESTS – measured at fair value.
Cash-Collecting Officers xx
 GRANT CONDITION - recognized as revenue only
Security Deposit Payable xx
when the condition is satisfied.

Note: When an amount already recognized as
revenue becomes uncollectible, it is recognized as
expense/impairment loss. An allowance is provided
for known and estimated bad debts.
F. Collection made on behalf of another entity.
G. Intra-agency and Inter-agency Fund Transfer
 Intra-agency

OTHER RECEIPTS Cash-CO xx

Due to Regional Office* xx
A. Receipt of subsidy from the National Government
(i.e., disbursement authority), such as receipt of:  Inter-agency

i. Notice of Cash Allocation (NCA) Cash-CO xx

Due to NGA/LGU/GOCC xx
Cash-MDS, Regular xx
Subsidy from NG xx

ii. Tax Remittance Advice

Cash-TRA xx
Subsidy from NG xx

iii. Non-Cash Availment Authority

Accounts Payable xx
Subsidy from NG xx

iv. Cash Disbursement Ceiling

Cash-Constructive Income Remittance xx

Subsidy from NG xx

B. Receipt of subsidy or assistance from other

government agencies including LGUs and GOCCs.

Cash-Collecting Officers xx
Subsidy from other NGA xx
Assistance from LGU xx
Assistance from GOCC xx