FINANCIAL

REPORTING SYSTEM
FOR THE NATIONAL
GOVERNMENT
• Each entity of the NG maintains complete
set of accounting books by fund cluster.
• The BTr accounts for the cash, public
debt and related transactions of the NG.
• Each entity maintains budget registries
which are reconciled with the budget
records maintained by DBM and GAS,
COA
4. The COA through GAS
a) Maintains budget records showing the overall
approved budget of the NG and its
execution/implementation
b) Consolidates the FSs and budget accountability
reports of all NGAs and the BTr with COA’s
records to come up with the Annual Financial
report for the NG as required in Sec.4, Article
IX-D of the 1987 Philippine Constitution and
c) Prepares other financial reports required by law
for submission to oversight agencies
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FAIR PRESENTATION AND

COMPLIANCE WITH PPSAS

Fair Presentation also requires an

entity

• To select and apply accounting policies in

accordance with PPSAS 3 Accounting
Policies, Changes in Accounting Estimates
and Errors.
• To present information including accounting
policies, in a manner that provides relevant,
reliable, comparable and understandable
information.
• To provide additional disclosure
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DEPARTURE FROM PPSAS

• The entity may depart from PPSAS

if the relevant regulatory allows, or
otherwise does not prohibit such a
departure
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GOING CONCERN

• This assessment shall be made by those

responsible for the preparation of the FS.
• The FS shall be prepared on a going
concern unless there is an intention to
liquidate the entity or to cease operating,
or if there is no realistic alternative but to
do so
• Uncertainties shall be DISCLOSED
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CONSISTENCY
OF PRESENTATION

• The another presentation or

classification would be more
appropriate
• Changed in presentation provides
information that is reliable and more
relevant to users of the FS
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MATERIALITY AND
AGGREGATION

• Each MATERIAL class of similar items

shall be presented separately

• DISSIMILAR Nature and Function shall

be presented separately
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OFFSETTING

• Assets, Liabilities and Revenues

and Expenses are reported
separately
• Assets, Liabilities and Revenues
and Expenses shall not be offset
unless required or permitted by
PPSAS
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REPORTING PERIOD

Entity shall disclose

• The reason for using a longer or

shorter period.
• The fact that comparative amounts
for certain statements are not
entirely comparable
STATEMENT OF
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FINANCIAL POSITION
Shows the financial condition of the entity as
at a certain date

CONDENSED
DETAILED STATEMENT OF
STATEMENT OF FINANCIAL POSITION
FINANCIAL POSITION

- Present only the MAJOR

sub- classification of
- ALL SFOP Accounts
SFOP
- At the YEAR END to the
- Submitted at YEAR END
Government
to the concerned
Accountancy Sector,
AUDITOR
COA
- Breakdown shall be
disclosed to Notes to FS
STATEMENT OF
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FINANCIAL POSITION
Current/ Non- current Current/ Non- current
Assets Liabilities

- Expected to be realized - Expected to be settled in

in , or held for sale or entity’s normal operating
consumption in , entity’s cycle
normal operating cycle - Primarily for trading
- Primarily for trading - Due to be settled within
- Expected to be realized 12 months after reporting
within 12 months after period
reporting period - No unconditional right to
- It is cash and cash defer settlement for at
equivalents unless least 12 months after
restricted reporting period
STATEMENT OF
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FINANCIAL PERFORMANCE
Shows the results of operation/performance
of the entity at the end of particular period

Nature of Expense Method Function of Expense

- According to their nature - According to the

and not to reallocated program/purpose for
among various functions which they are made
within the entity