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Unformatted text preview: A Research on Professional Ethics of Government Accountants and Auditors I.INTRODUCTION A. Government Accounting What is Government Accounting? Governmental accounting is an umbrella term which refers to the various accounting systems used by various public sector entities. The governmental accounting system has a different focus for measuring accounting than private sector accounting. Rather than measuring the flow of economic resources, governmental accounting measures the flow of financial resources. Instead of recognizing revenue when they are earned and expenses when they are incurred, revenue is recognized when there is money available to liquidate liabilities within the current accounting period, and expenses are recognized when there is a drain on current resources. B. Philippine Government Accounting Standards (PGAS) PGAS 1 - FINANCIAL STATEMENTS 1.1 Financial statements of a government agency shall consist of: (a) Balance Sheet presents the financial position of a government agency as of a given date. It includes information on the three elements directly related to the measurement of the agencys financial position assets, liabilities and equity; (b) Statement of Changes in Equity shows the changes in equity between two accounting periods reflecting the increase or decrease in the agencys net assets during the year; (c) Statement of Income and Expenses shows the results of operations of a government agency for a given period; and (d) Statement of Cash Flows summarizes the cash flows from operating, investing and financing activities of a government agency during a given period. 1.2 Notes to the financial statements shall likewise be prepared when necessary to: (a) provide information about the basis of preparation of the financial statements and the significant accounting policies; (b) disclose the information required by applicable PGAS that is not presented elsewhere in the financial statements; and (c) provide additional information which is not presented on the face of the financial statements but necessary for a fair presentation. 1.3 The books of accounts shall consist of: (a) National Government (NG) books for recording funds held for remittance to the National Treasury, such as those resulting from collections of taxes, fees, etc.; (b) Regular Agency (RA) books for recording funds pertaining to agencys regular operations; and (c) Subsidiary ledgers, which reconcile with general ledger control accounts such as cash, receivables, inventories, property plant and equipment and payables. PGAS 2 - CONCEPTS AND CHARACTERISTICS 2.1 The following accounting principles, concepts and qualitative characteristics of financial reporting shall be used as guides in the recording of transactions and preparation of financial statements: Principles and Concepts (a) Consistency Transactions and other events should be recognized, measured and presented in a consistent manner from one accounting period to another....
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This note was uploaded on 08/14/2011 for the course ECON 103 taught by Professor Profkinney during the Spring '11 term at Athens Tech.
- Spring '11