Note 2. Basis of Financial Statement Preparation
The financial statements are prepared in accordance with and in compliance
with the International Public Sector Accounting Standards (IPSAS) per COA
Circular No. 2021-004 dated July 1, 2021. The financial statements are
presented in pesos, which is the functional and reporting currency of the
Municipalitiy. The accounting policies have been applied starting from the year
2015.
Note 3. Summary of Significant Accounting Policies
3.1 Basis of accounting
The financial statements are prepared on an accrual basis in accordance with
IPSAS.
3.2 Consolidation
The controlled funds are all those over which the controlling entity has the
power to govern the financial and operating policies. Intra-agency transactions
and balances between entities and funds are eliminated in full. The LGU
maintains special accounts under the General Fund for the following economic
enterprises and/or special accounts:
• General Fund Proper;
• Market Operations;
• Port Terminal Operations;
• Slaughterhouse Operations;
• 20% Development Fund; and
• Bayanihan Grant to Cities and Municipalities (BGCM).
These are the accounts that are eliminated as a result of intra-agency
transactions:
Receivables:
20% EDF 1,265,606.03
Market (2,920,961.67)
Port 5,677,322.04
Slaughterhouse 888,314.34
Due from Local Economic Enterprise 2,801,908.98
Proper 34,210.81
Total 7,746,400.53
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