Philippine Public Sector Accounting Standard 14

EVENTS AFTER THE REPORTING DATE

Table of ContentsPAG Number

BACKGROUND

INTRODUCTION TO THE IPSAS 14

PHILIPPINE APPLICATION GUIDANCE TO IPSAS 14

Scope1

Authorizing the Financial Statements for Issue2

Effective Date3

Philippine Public Sector Accounting Standard 14Events after the Reporting DateBackground

This Philippine Public Sector Accounting Standard (PPSAS) 14 consists of International Public Sector Accounting Standard (IPSAS) 14, Events after the Reporting Date, and the Philippine Application Guidance (PAG) prepared to suit the Philippine public sector situation.

The IPSAS 14 was issued in December 2001 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 14.

Introduction to the IPSAS 14IPSAS 14 prescribes the circumstances in which adjustments for events after the reporting period are required. It also prescribes the disclosure requirements regarding the date of authorization for issue and information received after the reporting period.

It requires that an entity should not prepare its financial statements on a going concern basis if events after the reporting date indicate that the going concern assumption is not appropriate.

Philippine Application Guidance to IPSAS 14Scope

PAG1. Paragraph 3 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 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.Authorizing the Financial Statements for Issue

PAG2. Paragraph 6 states the necessity to identify both the reporting date and the date on which the financial statements are authorized for issue to determine which events satisfy the definition of events after the reporting date. The reporting date is set every end of the calendar year while the date on which the financial statements are authorized for issue is the date of approval by the Chief Executive or his authorized representative. Effective DatePAG3. This PPSAS shall apply for annual financial statements covering periods beginning January 1, 2014.

Public Sector Auditing Standards Board

(PSSB Auditing)

PPSAS 14 Events After the Reporting Date

Page 2 January 2014