Table of Contents

Philippine Public Sector Accounting Standard 24

PRESENTATION OF BUDGET INFORMATION

IN FINANCIAL STATEMENTS

Table of Contents PAG Number

BACKGROUND

INTRODUCTION TO THE IPSAS 24

PHILIPPINE APPLICATION GUIDANCE TO IPSAS 24

Scope 1

Presentation of a Comparison of Budget and Actual Amounts 2

Effective Date 3

Philippine Public Sector Accounting Standard 24PRESENTATION OF BUDGET INFORMATION

IN FINANCIAL STATEMENTS

BackgroundThis Philippine Public Sector Accounting Standard (PPSAS) 24 consists of International Public Sector Accounting Standard (IPSAS) 24, Presentation of Budget Information in Financial Statements, and the Philippine Application Guidance (PAG) prepared to suit the Philippine public sector situation.

The IPSAS 24 was issued 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 24.

Introduction to the IPSAS 24

IPSAS 24 prescribes a comparison of budget amounts and the actual amounts arising from execution of the budget to be included in the financial statements of entities. This Standard also requires disclosure of an explanation of the reasons for material differences between the budget and actual amounts. The main issue in the implementation of this Standard is how the comparison of budget and actual amounts shall be presented in the financial statements.Philippine Application Guidance to IPSAS 24

Scope

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. Presentation of a Comparison of Budget and Actual Amounts

PAG2. Paragraph 14 deals with the presentation by an entity of a comparison of the budget and actual amounts, either as a separate additional financial statement or as additional budget columns in the financial statements currently presented in accordance with IPSASs. An entity shall present a comparison of the budget and actual amounts as a separate additional financial statement. Effective DatePAG3. An entity shall apply this PPSAS for annual financial statements covering periods beginning January 1, 2014.PPSAS 24 - Presentation of Budget Information in Financial Statements

January 2014

Page 3