Sec. 1. Legal Basis. The Government Accounting Manual (GAM) Is Prescribed by COA
Sec. 1. Legal Basis. The Government Accounting Manual (GAM) Is Prescribed by COA
Sec. 1. Legal Basis. The Government Accounting Manual (GAM) Is Prescribed by COA
INTRODUCTION
Sec. 1. Legal Basis. The Government Accounting Manual (GAM) is prescribed by COA
pursuant to Article IX-D, Section 2 par. (2) of the 1987 Constitution of the Republic of the
Philippines which provides that:
Sec. 2. Coverage. This Manual presents the basic accounting policies and principles in
accordance with the Philippine Public Sector Accounting Standards (PPSAS) adopted thru COA
Resolution No. 2014-003 dated January 24, 2014 and other pertinent laws, rules and regulations.
It includes the Revised Chart of Accounts (RCA) prescribed under COA Circular No. 2013-002
dated January 30, 2013, as amended; the accounting procedures, books, registries, records, forms,
reports, and financial statements; and illustrative accounting entries. It shall be used by all
National Government Agencies (NGAs) in the:
a. preparation of the general purpose financial statements in accordance with the PPSAS
and other financial reports as may be required by laws, rules and regulations; and
b. reporting of budget, revenue and expenditure in accordance with laws, rules and
regulations.
Sec. 3. Objective of the Manual. The Manual aims to update the following:
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GENERAL PROVISIONS, BASIC STANDARDS AND POLICIES
Sec. 1. Scope. This chapter covers the general provisions from existing laws, rules and
regulations; and the basic standards/fundamental accounting principles for financial reporting by
national government agencies.
Sec. 2. Definition of Terms. For the purpose of this Manual, the terms used as stated
below shall be construed to mean as follows:
a. Accrual basis – means a basis of accounting under which transactions and other
events are recognized when they occur (and not only when cash or its equivalent is
received or paid). Therefore, the transactions and events are recognized in the
accounting records and recognized in the financial statements of the periods to which
they relate. The elements recognized under accrual accounting are assets, liabilities,
net assets/equity, revenue, and expenses.
b. Assets – are resources controlled by an entity as a result of past events, and from
which future economic benefits or service potential are expected to flow to the entity.
c. Contributions from owners – means future economic benefits or service potential that
have been contributed to the entity by parties external to the entity, other than those
that result in liabilities of the entity, that establish a financial interest in the net
assets/equity of the entity, which:
h. Government Budget – is the financial plan of a government for a given period, usually
for a fiscal year, which shows what its resources are, and how they will be generated
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