Ngas Manual
MANUAL ON THE
NEW GOVERNMENT ACCOUNTING SYSTEM
For National Government Agencies
ACCOUNTING POLICIES
Volume I
Chapter 1. Introduction
Objectives of the Manual. The New Government Accounting System (NGAS) Manual presents the basic policies and procedures; the new coding system; the accounting systems, books, registries, records, forms, reports, and financial statements; and illustrative accounting entries to be adopted by all national government agencies effective January 1, 2002. The objectives of the Manual are to prescribe the following:
a. Uniform guidelines and procedures in accounting for government funds and property; b. New coding structure and chart of accounts; c. Accounting books, registries, records, forms, reports and financial statements; and d. Accounting entries.
Coverage. This Manual shall be used by all national government agencies.
Legal Basis. This Manual is prescribed by the Commission on Audit pursuant to Article IX-D, Section 2 par. (2) of the 1987 Constitution of the Republic of the Philippines which provides that:
“The Commission on Audit shall have exclusive authority, subject to the limitations in this Article, to define the scope of its audit and examination, establish the techniques and methods required therefor, and promulgate accounting and auditing rules and regulations, including those for the prevention and disallowance of irregular, unnecessary, excessive, extravagant, or unconscionable expenditures, or uses of government funds and properties". (underscoring supplied)
Chapter 2. Basic Features and Policies
Basic Features and Policies. The NGAS has the following basic features and policies, to wit:
a. Accrual Accounting. A modified accrual basis of accounting shall be used. Under this method, all expenses shall be recognized when incurred and reported in the financial statements in the period to which they
NEW GOVERNMENT ACCOUNTING SYSTEM
For National Government Agencies
ACCOUNTING POLICIES
Volume I
Chapter 1. Introduction
Objectives of the Manual. The New Government Accounting System (NGAS) Manual presents the basic policies and procedures; the new coding system; the accounting systems, books, registries, records, forms, reports, and financial statements; and illustrative accounting entries to be adopted by all national government agencies effective January 1, 2002. The objectives of the Manual are to prescribe the following:
a. Uniform guidelines and procedures in accounting for government funds and property; b. New coding structure and chart of accounts; c. Accounting books, registries, records, forms, reports and financial statements; and d. Accounting entries.
Coverage. This Manual shall be used by all national government agencies.
Legal Basis. This Manual is prescribed by the Commission on Audit pursuant to Article IX-D, Section 2 par. (2) of the 1987 Constitution of the Republic of the Philippines which provides that:
“The Commission on Audit shall have exclusive authority, subject to the limitations in this Article, to define the scope of its audit and examination, establish the techniques and methods required therefor, and promulgate accounting and auditing rules and regulations, including those for the prevention and disallowance of irregular, unnecessary, excessive, extravagant, or unconscionable expenditures, or uses of government funds and properties". (underscoring supplied)
Chapter 2. Basic Features and Policies
Basic Features and Policies. The NGAS has the following basic features and policies, to wit:
a. Accrual Accounting. A modified accrual basis of accounting shall be used. Under this method, all expenses shall be recognized when incurred and reported in the financial statements in the period to which they