The LGU considered the residual value of all items of property, plant and equipment, but
is not expecting residual values for these assets. These assets will be utilized for their entire
economic lives with no significant scrap value. During the current financial year, the LGU
reviewed the estimated useful lives and residual values of property, plant and equipment,
where appropriate.
The City Government conducted a public bidding in FY 2024 to dispose its unserviceable
movable assets with a total acquisition cost of ₱59,038,900.27. Net Loss from Sale of
Property, Plant and Equipment (PPE) amounting to ₱4,836,389.64 was booked. The
disposed PPEs were taken off the books along with the corresponding accumulated
depreciation.
In accordance with COA Circular No. 2022-004 issued on May 31, 2022, tangible items
which meet the definition and recognition criteria of Property, Plant and Equipment (PPE)
but costs below Fifty Thousand Pesos (₱50,000.00) are classified as Semi-Expendable
Items:
As of December 31,
Semi-Expendable Machinery and Equipment:
2024
Semi-Expendable Office Equipment ₱ 1,405,409.00
Semi-Expendable Information and Technology Equipment 9,133,911.30
Semi-Expendable Agricultural and Forestry Equipment 187,003.00
Semi-Expendable Communications Equipment 13,440.00
Semi-Expendable Disaster Response and Rescue
Equipment 2,104,647.44
Semi-Expendable Medical, Dental and Laboratory
Equipment 1,653,687.00
Semi-Expendable Sports Equipment 211,192.00
Semi-Expendable Technical and Scientific Equipment 1,051,637.00
Semi-Expendable Other Machinery and Equipment 6,605,482.50
Total Semi-Expendable Machinery and Equipment ₱ 22,366,409.24
Semi-Expendable Furniture, Fixtures and Books:
Semi-Expendable Furniture and Fixtures 3,848,112.80
Total Semi-Expendable Furniture, Fixtures and Books ₱ 3,848,112.80
Item 4.16 of COA Circular No. 2022-004 states that “Semi-expendable property shall be
covered by the policies of International Public Sector Accounting Standard (IPSAS) 12-
Inventories. Hence, they are not subject to depreciation but subject to impairment.”
The City Government is using the range of estimated useful life per class of Semi-
Expendable Property provided in the said Circular:
Semi-Expendable Machinery and Equipment - 5 to 15 years
Semi-Expendable Furniture, Fixtures and Books - 2 to 15 years
26
