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    Acctg 322

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    Janine Remoroza Ü
    The Revised Chart of Accounts in COA Circular No. 2013-002 was created to adopt relevant International Accounting Standards, provide new accounts for the adoption of Philippine Public Sector Accounting Standards harmonized with IPSAS, and ensure uniform accounts are used in national government accounting and budget systems to facilitate harmonized financial and budget accountability reports. It revokes the previous COA Circular No. 2004-008. The five major expense account groups in the Revised Chart of Accounts are: 1) Personnel Services, 2) Maintenance and Other Operating Expenses, 3) Financial Expenses, 4) Direct Costs, and 5) Non-Cash Expenses. The account code structure for the

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    Acctg 322

    Uploaded by

    Janine Remoroza Ü
    2K views2 pages
    The Revised Chart of Accounts in COA Circular No. 2013-002 was created to adopt relevant International Accounting Standards, provide new accounts for the adoption of Philippine Public Sector Accounting Standards harmonized with IPSAS, and ensure uniform accounts are used in national government accounting and budget systems to facilitate harmonized financial and budget accountability reports. It revokes the previous COA Circular No. 2004-008. The five major expense account groups in the Revised Chart of Accounts are: 1) Personnel Services, 2) Maintenance and Other Operating Expenses, 3) Financial Expenses, 4) Direct Costs, and 5) Non-Cash Expenses. The account code structure for the

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    ACCTG 322

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    The Revised Chart of Accounts in COA Circular No. 2013-002 was created to adopt relevant International Accounting Standards, provide new accounts for the adoption of Philippine Public Sector Accounting Standards harmonized with IPSAS, and ensure uniform accounts are used in national government accounting and budget systems to facilitate harmonized financial and budget accountability reports. It revokes the previous COA Circular No. 2004-008. The five major expense account groups in the Revised Chart of Accounts are: 1) Personnel Services, 2) Maintenance and Other Operating Expenses, 3) Financial Expenses, 4) Direct Costs, and 5) Non-Cash Expenses. The account code structure for the

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    2K views2 pages

    Acctg 322

    Uploaded by

    Janine Remoroza Ü
    The Revised Chart of Accounts in COA Circular No. 2013-002 was created to adopt relevant International Accounting Standards, provide new accounts for the adoption of Philippine Public Sector Accounting Standards harmonized with IPSAS, and ensure uniform accounts are used in national government accounting and budget systems to facilitate harmonized financial and budget accountability reports. It revokes the previous COA Circular No. 2004-008. The five major expense account groups in the Revised Chart of Accounts are: 1) Personnel Services, 2) Maintenance and Other Operating Expenses, 3) Financial Expenses, 4) Direct Costs, and 5) Non-Cash Expenses. The account code structure for the

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    1. Discuss why the Revised Chart of Accounts in COA Circular No.

    2013-002 dated
    January 30, 2013 was created.
    The Commission on Audit as member of the International Organization of Supreme
    Audit Institutions (INTOSAI) is encouraged (1)to adopt relevant International
    Accounting Standards and (2)to provide new accounts for the adoption of the
    Philippine Public Sector Accounting Standards(PPSAS) which were harmonized with
    the IPSAS to enhance the accountability and transparency of the financial reports,
    and ensure compatibility of financial information, the COA recognizes the need to
    revise the existing NGAS Chart of Accounts prescribed in COA Cir. No. 2004-008
    dated September 20, 2004.(3)The Commission also recognizes the need for uniform
    accounts to be used in the national government accounting and budget systems to
    facilitate the preparation of harmonized financial and budget accountability
    reports .Accordingly, the COA revokes COA Cir. No. 2004-008 and the Revised Chart
    of Accounts in Circular No.2013-002 dated January 30, 2013 is adopted.

    2. What are the five (5) of expenses in the Revised Chart of Accounts in COA
    CIrcular No. 2013? Give the sub-major account group classifications.

    (1. ) Personnel Services: a. Salaries and wages b. Other Compensation c. Personnel


    Benefit Contributions d. Other Personnel Benefit
    (2. ) Maintenance and Other Operating Expenses: a. Traveling Expenses b. Training
    and Scholarship Expenses c. Supplies and Materials Expenses d. Utility Expenses e.
    Communication Expenses f. Awards/Rewards and Prizes g. Survey, Research,
    Exploration and Development Expenses h. Generation, Transmission and Distribution
    Expenses i. Confidential, Intelligence and Extraordinary Expenses j. Professional
    Expenses k. General Services l. Repairs and Maintenance m. Financial
    Assistance/Subsidy n. Taxes, Insurance Premiums and Other Fees o. Labor and
    Wages p. Other Maintenance and Operating Expenses
    (3. ) Financial Expenses: Financial Expenses
    (4. ) Direct Costs: a. Cost of Goods Manufactured b. Cost of Sales
    (5. ) Non-Cash Expenses: a. Depreciation b. Amortization c. Impairment Loss d.
    Losses

    3. Enumerate the five (5) account code structure for the Revised Chart of Accounts
    consisting of eight (8) mandatory digits. Explain Briefly.

    -Account Group represents the acounts classification as to Assets, Liabilities, Equity,


    Income and Expenses.
    - Major Account Group represents classification within the account group; e.g., for
    asset major accounts: Cash and Cash Equivalent, Investment, Receivables, etc.
    - Sub-Major Account Group represents classification within the major account
    group; e.g., for Cash and Cash Equivalent: Cash on Hand, Cash in Bank – Local
    Currency, Cash in Bank – Foreign Currency, etc.
    -General Ledger Accounts represents the accounts to be presented in detailed in
    detailed financial statements; e.g., Cash-Collecting Officer, Petty Cash, etc. This is
    composed of two segments: the first two digits from the left is the general ledger
    code, and the last digit is reserved for contra accounts, like: Allowance for
    Impairment, Accumulated Depreciation, etc.
    General Ledger Contra-Accounts – Contra-accounts are shown as reduction from the
    related accounts, and this includes, among others, Allowance for Impairment,
    Accumulated Depreciation, etc. as shown in the preceding item (General Ledger
    Accounts)

    4. Enumerate and explain briefly the elements of financial statements per COA
    Circular No. 2013 -002
    The elements directly related to the measurement of performance are shown in the
    Statements of Income and Expenses as revenue/income and expenses.The codes,
    per COA Circular No. 2013-002 dated Jan. 20,2013 are as follows: Assets, Liabilities,
    Equity, Income and Expenses.
    * Assets- economic resources of an agency that are recognized and measured in
    conformity with generally accepted accounting principles. An asset is any owned
    physical object (tangible) or right (intangible) with economic value that is expressed,
    for accounting purposes, in terms of its cost or some other value. These other values
    include revalued amounts, current cost, net realizable value, fair value and
    recoverable amounts.
    * Liabilities- economic obligations of an agency that are recognized and measured in
    conformity with accounting principles. Liabilities also include certain deferred credits
    that are not obligations, but which are nonetheless recognized and measured
    according to accounting principles as outlined in Philippine Public Sector Accounting
    Standards.
    * Equity – residual interest of the government in an agency which is the excess of
    the agency’s assets over its liabilities.
    * Income – the gross inflow of economic benefits or service potential during the
    reporting period, when those inflow result in increase in net assets/equity, other
    than increases relating to contributions from owners. The term “income” is broader
    that revenue and includes gains in addition to revenue.
    * Expenses – refer to decrease in economic benefits or service potential during the
    reporting period in the form of outflows or consumption of assets or incurrence of
    liabilities that result in decrease in net assets/equity, other than those relating to
    distributions to owners, (PPSAS 1 – Presentation of Financial Statements).

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