GAM Presentation
GAM Presentation
GAM Presentation
MANUAL
The issuance of the GAM is in line with
the provision under
Article 1X-D Section 2(2)
of the 1987 Philippine Constitution
mandating the Commission to
promulgate accounting rules and
regulations.
The GAM considered the
provisions of the particular
PPSASs as they apply to the
respective chapters of the
manual.
20 to 50 years
Buildings and Other Structures
30 to 50 years
Machinery and Equipment
5 to 15 years
Furniture, Fixtures and Books
2 to 15 years
Motor Vehicles
5 to 15 years
Other Property, Plant and
Equipment
2 to 15 years
Based on the above life spans,
the entity shall prepare the
specific estimated useful life for
each asset based on its
experience on the life of its PPE,
copy furnished the Resident
Auditor and the Government
Accountancy Sector of COA.
The estimated useful life of the
undepreciated portion of a PPE
shall be reviewed on a regular
basis and revised when the
appropriateness of a change can
be clearly demonstrated.
A residual value equivalent to at
least five percent (5%) of the cost
shall be adopted unless a more
appropriate percentage is
determined by the entity based
on its operation subject to the
approval of COA.
Criteria for Recognition of PPE