12/11/2014

Luz Loreto-Tolentino
Assistant Commissioner
Professional and Institutional Development Sector
Commission on Audit;

Government
Integrated Financial
Management
Information System
(GIFMIS)

Develop a web-based application that will

provide real time financial information to
government

Improving Treasury
Put in place a system of cash management that
Cash Management
can keep daily cash balances of government at
Operations (ITCMO) appropriate levels
Budget Reporting
and Performance
Standards (BRPS)

Harmonize and simplify data structures and

apply a consistent set of budgeting and
accounting rules and regulations for financial
performance reporting.

system of rules, procedures and practices for

government to manage public finances in the
areas of:

Budgeting
Accounting
Auditing
Cash management
Management of public debt
Revenue generation
Public reporting on public sector financial
operations

Liability management
(LM)

Develop a system for recording and reporting

liabilities to better manage NGs financial
exposure

Accounting and
Auditing Reforms
(AAR)

Harmonize accounting and auditing rules with

international standards and strengthen
participatory audit of programs and projects

Capacity Building (CB)

Support the various policy reform, business

process and system improvements through
training and learning

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Harmonize accounting and auditing rules

with international standards and strengthen
participatory audit of programs and projects

improves the quality of financial information;

and
facilitates comparison of information across
governments and organisations.

to provide information that is useful to a wide

range of users in making and evaluating
decisions about the allocation of resources;
and
to demonstrate the accountability of the
entity for the resources entrusted to it.

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Adoption of the Philippine Public Sector

Accounting Standards

enhancing the quality and uniformity in financial

reporting by Philippine public sector entities, and

based on the International Public Sector Accounting

Standards (IPSAS)

PPSAS provide quality accounting standards

thereby:

ensuring accountability, transparency and

comparability of financial information with other
public sector entities around the world;

Relevant and useful to users

FS are more transparent

Users have a more comprehensive view of an

agencys FP, FP and CF

Users are now in a position to determine how well

the government manage public sector assets and
resources; and to make better decisions on
providing the entity with needed resources

Improved comparability and consistency of FS

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Content

Content

PPSAS consists of
International Public Sector Accounting
Standards (IPSASs) (Accrual Based IPSASs
per 2012 Handbook) developed by IPSASB
and published by the International
Federation of Accountants (IFAC), and
Philippine Application Guidance (PAG)

Philippine Application Guidance (PAG)

Approach to Implementation

28 out of 32 IPSAS shall be

implemented

Phased Implementation

Phase 1 (25 PPSAS for implementation

in 2014)
Phase 2 (3 PPSAS for implementation
in 2015)

Provide supplementary guidance of IPSASs

to suit the Philippine public sector
situation.
States the reason for not adopting some
paragraphs of the IPSASs.

Phase 1 For implementation in

2014
PPSAS 1- Presentation of Financial
Statements (IPSAS 1)
PPSAS 2- Cash Flow Statements (IPSAS
2)

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Phase 1 For implementation in

2014
PPSAS 3 Accounting Policies,
Changes in Accounting Estimates and
Errors (IPSAS 3)

Phase 1 (continued)
PPSAS 5- Borrowing Costs (IPSAS 5)
PPSAS 6- Consolidated and Separate Financial
Statements (IPSAS 6)
PPSAS 8 Interest in Joint Venture (IPSAS 8)
PPSAS 9- Revenue from Exchange Transactions
(IPSAS 9)

PPSAS 4- The Effects of Changes in

FOREX rates (IPSAS 4)

Phase 1 (continued)
PPSAS
PPSAS
PPSAS
14)
PPSAS
PPSAS
17)

12- Inventories (IPSAS 12)

13- Leases (IPSAS 13)
14- Events after the Reporting Date (IPSAS
16- Investment Property (IPSAS 16)
17- Property, Plant and Equipment (IPSAS

Phase 1 (continued)
PPSAS 19- Provisions, Contingent Liabilities and
Assets (IPSAS 19)
PPSAS 20 Related Party Disclosure (IPSAS 20)
PPSAS 21- Impairment of Non-Cash Generating
Assets (IPSAS 21)
PPSAS 23- Revenue from Non- Exchange
Transactions (Taxes and Transfers) (IPSAS 23)
PPSAS 24- Presentation of \Budget Information in
Financial Statements (IPSAS 24)

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Phase 1 (continued)

Phase 1 (continued)

PPSAS 26- Impairment of Cash Generating

Assets
(IPSAS 26)
PPSAS 27- Agriculture (IPSAS 27)
PPSAS 28- Financial Instruments Presentation
(IPSAS 28)

PPSAS 29-Financial Instruments: Recognition

and Measurement (IPSAS 29)
PPSAS 30- Financial Instruments Disclosure
(IPSAS 30)
PPSAS 31- Intangible Assets (IPSAS 31)
PPSAS 32- Service Concession Arrangements:
Grantor (IPSAS 32)

Phase 2 For Implementation in

2015
1. PPSAS 18- Segment Reporting
2. PPSAS 22 Disclosure of Information
about the General Government Sector
3. PPSAS 25- Employee Benefits

Property, Plant and Equipment

Ownership vs. control/use/benefit

Public infrastructure projects
Investment property

Comparison of budget and actual

Expenses with no existing budgets

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Conduct of training

Resolution of issues raised

Formulation of an implementation strategy

Cost of implementing

Changes on the existing computerized accounting

systems

Capacity building