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

Presentation of a Comparison of Budget and Actual

Amounts

Effective Date

PPSAS 24 - Presentation of Budget Information in Financial Statements

January 2014

Page 1

Philippine Public Sector Accounting Standard 24

PRESENTATION OF BUDGET INFORMATION
IN FINANCIAL STATEMENTS
Background
This 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
PPSAS 24 - Presentation of Budget Information in Financial Statements
January 2014

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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 Date
PAG3. 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