CITY OF GUIHULNGAN
Notes to Condensed Financial Statements
(All amounts in Philippine Peso unless otherwise stated)
Note 1 - Profile
The City of Guihulngan is composed of 33 barangays with a total land area of 422.75 square
kilometers and a population of 102,656 based on the 2020 Census of Population.
Guihulngan was converted into a component city on March 29, 2007 by virtue of Republic Act
No. 9409 when it lapsed into law upon failure of then President Gloria Macapagal-Arroyo to
sign it. The law was ratified on July 14, 2007 through a plebiscite.
In November 2008, Guihulngan lost its cityhood, along with 15 other LGUs. It then gained it
back in December 2009, lost it again in August 2010, and finally got it back in February 2011.
The Supreme Court declared its ruling on the cityhood as final on June 28, 2011.
The City envisions to become the handicraft and livestock trade giant of Negros Oriental. It
aims to become a holistic city characterized by a progressive and diversified economy,
ecologically balanced and peaceful environment, a self-reliant, disaster-resilient, healthy and
God-centered community, well planned infrastructures, governed by proactive leaders.
The City Government of Guihulngan has made it its mission to effectively and efficiently
deliver basic services and facilities to the people towards upliftment of human and economic
resources for sustainable development.
Note 2 - Statement of Compliance and Basis of Preparation of Financial Statements
The consolidated financial statements of the LGU have been prepared in accordance with the
Philippine Public Sector Accounting Standards (PPSAS). The consolidated financial
statements are presented in pesos, which is the functional and reporting currency of the LGU.
The accounting policies have been applied since CY 2015.
The Financial Statements have been prepared on the basis of historical cost, unless stated
otherwise. The Statement of Comparison of Budget and Actual Amounts and the Notes to FS
are attached components of the FS of the City. The Statement of Cash Flows is prepared using
the direct method.
Note 3 - Summary of significant accounting policies
3.1 Basis of accounting
The combined financial statements are prepared on an accrual basis in
accordance with the Philippine Public Sector Accounting Standards (PPSAS).
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