Professional Documents
Culture Documents
SUBJECT: Guidelines on the conversion of the chart of accounts from the Philippine
Chart of Accounts under COA Circular No. 2004-008 dated September
20, 2004, as amended to the Revised Chart of Accounts for Local
Government Units (LGUs) under COA Circular No. 2015-009 dated
December 1, 2015, and Guidelines on the Preparation of the CY 2015
Year-End Financial Statements and Reports
1.0 Rationale
The Revised Chart of Accounts for LGUs took effect January 1, 2015
consistent with the adoption of the Philippine Public Sector Accounting Standards
(PPSAS) in the LGUs. To provide uniform instruction in the implementation of
the Chart of Accounts for CY 2015and the preparation of the year-end financial
statements and reports, this Circular is issued.
2.0 Coverage
This circular shall cover all local government units except the barangays.
3.0 Guidelines
3.1 All LGUs shall effect the conversion of accounts based on the preliminary
trial balance as of December 31, 2015.
3.2.1 Verify and analyze all accounts to be converted to the new chart of
accounts resulting from:
Change of account name;
Change of account description;
New accounts formed in compliance with the provisions of the
PPSAS; and
New accounts formed resulting from splitting of old accounts
3.2.2 Analyze subsidiary ledger accounts for proper conversion to the new
accounts
3.2.3 Review the Memorandum of Agreements, Contracts and the like of the
LGU concerned to determine the circumstances of transactions
affecting the said agreements and to establish the correct accounts to
be used;
3.2.4 Provide the Actual Obligations column in the Registry of
Appropriation, Allotments and Obligations based on the processed
and/or paid vouchers.
3.5 Financial statements shall present only the figures for CY 2015. Succeeding
years’ F/S shall present comparative figures for two years.
3.6 The transitional provision provided under paragraph 116 of IPSAS 23, which
provides that: “Entities are not required to change their accounting policies in
respect of the recognition and measurement of tax revenue for reporting
period beginning on a date within five years following the date of first
adoption of this Standard,” shall be availed of. This shall apply to the
recognition and measurement of Tax Revenue - Real Property Tax (RPT) and
Special Education Tax (SET). The policy recognizing the receivable and the
deferred accounts shall be maintained at status quo until the issuance of the
new policy aligned with the PPSAS. In the meantime, the accounts Deferred
RPT and SET shall be used.
3.7 The transitional provision provided under paragraph 95 of IPSAS 17, which
provides that: “ Entities are not required to recognize property, plant, and
equipment for reporting periods beginning on a date within five years
following the date of first adoption of accrual accounting in accordance with
IPSAS,” shall be observed. This shall apply to the Public Infrastructure
accounts transferred to the registries under the NGAS and which shall be
recorded back to the books of accounts using the appropriate account
prescribed in the chart. The target of implementation for the recognition of
the Public Infrastructures shall be :
3.8 The accounting and reporting guidelines on local roads prescribed under COA
Circular No. 2015-008 shall be followed.
Local officials shall assist the local accountant as herein provided as follows:
4.3.2 Furnish copy of the inventory list of buildings and other physical
structures under his accountability and responsibility as at the
reporting date.
4.4.1 Provide the fair value of the lots recognized as asset by the LGU
as at every reporting date.
4.5 Local agriculturist shall:
6.0 Effectivity
MICHAEL AGUINALDO
Chairman
JOSE A. FABIA
Commissioner