This document provides guidance on accounting for revenue from exchange transactions in the Philippine public sector. It consists of the International Public Sector Accounting Standard (IPSAS) 9 on revenue from exchange transactions and additional Philippine Application Guidance. The guidance applies to revenue earned by national and local government agencies and government-owned corporations through the sale of goods, services, or use of assets, but not to revenue of government business enterprises. It is effective for annual financial statements beginning January 1, 2014.
This document provides guidance on accounting for revenue from exchange transactions in the Philippine public sector. It consists of the International Public Sector Accounting Standard (IPSAS) 9 on revenue from exchange transactions and additional Philippine Application Guidance. The guidance applies to revenue earned by national and local government agencies and government-owned corporations through the sale of goods, services, or use of assets, but not to revenue of government business enterprises. It is effective for annual financial statements beginning January 1, 2014.
This document provides guidance on accounting for revenue from exchange transactions in the Philippine public sector. It consists of the International Public Sector Accounting Standard (IPSAS) 9 on revenue from exchange transactions and additional Philippine Application Guidance. The guidance applies to revenue earned by national and local government agencies and government-owned corporations through the sale of goods, services, or use of assets, but not to revenue of government business enterprises. It is effective for annual financial statements beginning January 1, 2014.
Table of Contents PAG Number BACKGROUND INTRODUCTION TO THE IPSAS 9 PHILIPPINE APPLICATION GUIDANCE TO IPSAS 9 Scope
Effective Date
PPSAS 9 - Revenue from Exchange Transactions
January 2014
Page 1
Philippine Public Sector Accounting Standards 9
REVENUE FROM EXCHANGE TRANSACTIONS Background This Philippine Public Sector Accounting Standard (PPSAS) 9 consists of International Public Sector Accounting Standard (IPSAS) 9, Revenue from Exchange Transactions, and the Philippine Application Guidance (PAG) prepared to suit the Philippine public sector situation. The IPSAS 9 was issued in July 2001 by the International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC). This includes amendments resulting from IPSASs issued up to January 15, 2012. The PAG (in italics) provides supplementary guidance on the proper implementation of IPSAS 9. Introduction to the IPSAS 9 IPSAS 9 prescribes the standards for identification, measurement and disclosure of revenues of public sector entities derived from exchange transactions. An exchange transaction is one in which the entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value to the other party in exchange. These transactions are rendering of services, sale of goods and use by others of entity assets yielding interest, royalties, and dividends. Philippine Application Guidance to IPSAS 9 Scope PAG1.Paragraph 2 deals with the applicability of this Standard to all public sector entities other than Government Business Enterprises (GBEs). GBE is an entity that has all the following characteristics: (a) Is an entity with the power to contract in its own name; (b) Has been assigned the financial and operational authority to carry on a business; (c) Sells goods and services, in the normal course of its business, to other entities at a profit or full cost recovery; (d) Is not reliant on continuing government funding to be a going concern (other than purchases of outputs at arms length); and (e) Is controlled by a public sector entity.
PPSAS 9 - Revenue from Exchange Transactions
January 2014
Page 2
This standard shall be applied to all National Government Agencies
(NGAs), Local Government Units (LGUs) and Government-Owned and/or Controlled Corporations (GOCCs) not considered as GBEs. Effective Date PAG2.This PPSAS shall apply for annual financial statements covering periods beginning January 1, 2014.
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