SUBJECT

1.0 Rationale

No. :~2~0~15~-~0~1~0~­Date: -~Dr-_..- C....___...Q _.1~21.U0""""'15-

All Heads of Government-Owned or Controlled Corporations, Government Financial Institutions, Government Instrumentalities with Corporate Powers/Government Corporate Entities, and their Subsidiaries and Water Districts, Heads of Finance/Comptrollership/Financial Management Services, Chief Accountants/Heads of Accounting Units, Budget Officers/Heads of Budget Units; COA Assistant Commissioners, COA Directors, COA Auditors; and All Others Concerned

Adoption of the Revised Chart of Accounts (RCA) for Government Corporations (GCs) which consist of Government-Owned or Controlled Corporations (GOCCs), Government Financial Institutions (GFis), Government Instrumentalities with Corporate Powers (GJCPs)/ Government Corporate Entities (GCEs), and their Subsidiaries, and Water Districts

1.1 The Philippine Commission on Audit (COA), as a member of the lnternati9nal Organization of Supreme Audit Institutions (INTOSAI), is encouraged to adopt relevant international accounting standards.

1.2 The International Public Sector Accounting Standards Board (IPSASB) and International Accounting Standards Board (lASB), which promulgate the International Public Sector Accounting Standards (lPSAS) and International Financial Reporting Standards (IFRS), respectively, acknowledge the right of governments and national standards-setters to establish their respective accounting standards and guidelines for financial reporting in their jurisdictions.

1.3 The Commission recognizes the need to revise the extstmg chart of accounts of GOCCs which is included in the Philippine Government Chart of Accounts (PGCA) under the New Government Accounting System (NGAS) prescribed in COA Circular No. 2004-008 dated September 20,

, -·~?J' ~s amen~ed, to provide ne': accounts for the ado.ption. ~f tht.: 'i\f'ppme Pubhc Sector Accountmg Standards (PPSAS), Phtltppine t-

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Financial Reporting Standards (PFRS) and Philippine Accounting Standards (PAS) harmonized with the IPSAS or IFRS to enhance the accountability and transparency of the financial reports, and ensure comparability of financial information.

1.4 The Commission acknowledges the need to prescribe a uniform chart of accounts f(Jr GCs to align the entities' reportorial requirements with those of COA and other oversight bodies including compliance with the standards issued by international accounting standard-setting bodies.

1. 5 Jn light thereof, this Commission revokes COA Circular No. 2004-008 dated September 20, 2004, and hereby prescribes the RCA for GCs (Annex A), forming part of this Circular, to be adopted by all GCs in consonance with the rule making function of this Commission and as provided under Section 2(2), Article IX-D of the 1987 Constitution.

2.0 Implementing Guidelines

2. I For uniformity in the use of the RCA for GCs, the Government Accountancy Sector (GAS), this Commission, shall prepare the necessary guidelines and procedures on the conversion of accounts of GOCCs under the PGCA to the RCA. Supplementary guidelines on the preparation of financial statements and other financial reports as well as the transitional provisions on the implementation of the PPSAS by Non-Government Business Enterprises shall be covered by another Circular.

2.2 The GCs shall record their financial transactions in accordance with the RCA prescribed herein.

2.3 The RCA for National Government Agencies prescribed under COA C ircular No. 201 3-002 dated January 30,2013, as amended, shall continue to be adopted by GCs in accounting for their Special Accounts in the General Fund (SAGF), if any.

2.4 Accounts other than those provided in this Circular shall be used only upon prior approva l ofthis Commission.

3.0 Revised Chart of Accounts

An nex ~ Jtre~ts the Coding Scheme, List of Accounts for GCs and Descript~\'f Accounts.

~ 4.0 Repealing C lause

Al l iss~ances inconsi stent with this Circular are deemed repealed or amended 'f accordmgly. ·

5.0 Effectivity ·

Th is Circular takes effect on January I, 2016.

II ~ II ~ II II I MIC

JO~ ' Commissioner

Note : Annex "A" of the Circular may be accesse<l in the COA Website at lH.UWi v w ~·{ . c n~,_g o v J!.h.