Philippine Public Sector Accounting Standard 6

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Table of Contents
PAG
Numbe
r
BACKGROUND
INTRODUCTION TO THE IPSAS 6
PHILIPPINE APPLICATION GUIDANCE TO IPSAS 6
Scope

Effective Date

PPSAS 6 - Consolidated and Separate Financial Statements

January 2014

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Philippine Public Sector Accounting Standard 6

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
Background
This Philippine Public Sector Accounting Standard (PPSAS) 6 consists of
International Public Sector Accounting Standard (IPSAS) 6, Consolidated and
Separate Financial Statements, and the Philippine Application Guidance
(PAG) prepared to suit the Philippine public sector situation.
The IPSAS 6 was issued in May 2000 and revised in December 2006 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 6.
Introduction to the IPSAS 6
IPSAS 6 establishes the requirements for the preparation and presentation of
consolidated financial statements, and for accounting for controlled entities,
jointly controlled entities, and associates in the separate financial statements
of the controlling entity, the venturer, and the investor.
A controlled entity is an entity controlled by another entity, known as the
controlling entity. Control is the power to govern the operating and financial
policies.
Consolidated financial statements are financial statements of an economic
entity (controlling entity and controlled entities combined) presented as
those of a single entity.
Philippine Application Guidance to IPSAS 6
Scope
PAG1.Paragraph 4 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
PPSAS 6 - Consolidated and Separate Financial Statements
January 2014

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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.
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.

PPSAS 6 - Consolidated and Separate Financial Statements

January 2014

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