Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗
Keeping of accounts.
SEC. 111. Keeping of accounts. —(1) The accounts of an agency shall be kept in such detail as is necessary to meet the needs of the agency and at the same time be adequate to furnish the information needed by fiscal or control agencies of the government. (2) The highest standards of honesty, objectivity and consistency shall be observed in the keeping of accounts to safeguard against inaccurate or misleading information.
Recording of financial transactions.
SEC. 112. Recording of financial transactions. —Each government agency shall record its financial transactions and operations conformably with generally accepted accounting principles and in accordance with pertinent laws and regulations.
Chart of accounts.
SEC. 113. Chart of accounts. —The chart of accounts for government agencies shall be prescribed by the Commission and shall be so designed as to permit agency heads to review their activities according to selected areas of responsibility: allow for a clearer definition of obligation accounting leading to more precise budgetary control; provide for a wider range of analytical information designed for use in management audit or legislative review; furnish information regarding the production of income and the investment in capital items which is of value in fiscal and economic planning; enable tighter accounting control to be exercised over agencies' financial relationship with the Treasury; permit a more simplified preparation of trial balances and a simpler and more orderly process of national consolidation; and facilitate the application of mechanized accounting procedures for more effective protection against error and irregularity and yielding economies in operation.
The general ledger.
SEC. 114. The general ledger. — (1) The government accounting system shall be on a double entry basis with a general ledger in which all financial transactions are recorded. (2) Subsidiary records shall be kept where necessary.
Terminology and classification.
SEC. 115. Terminology and classification. —A common terminology and classification shall be used consistently throughout the budget, the accounts and the financial reports.
Accounts classification.
SEC. 116. Accounts classification. —To permit effective budgetary control and to establish uniformity in financial reports, accounts shall be classified in balanced fund groups. The group for each fund shall include all accounts necessary to set forth its operations and condition. All financial statements shall follow this classification.
Budgetary control accounts.
SEC. 117. Budgetary control accounts. —The general accounting system shall include budgetary control accounts for revenues, expenditures and debt, as provided by P.D. No. 1177.
Accounting for unrealized revenues.
SEC. 118. Accounting for unrealized revenues. —Estimated revenues which remain unrealized at the close of the fiscal year shall not be booked or credited to the unappropriated surplus or any other account.
Accounting for obligations and expenditures.
SEC. 119. Accounting for obligations and expenditures. — All lawful expenditures and obligations incurred during the year shall be taken up in the accounts of that year.
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).