Payables:
Payable to 20% EDF 1,265,606.03
Market 2,200,000.00
Port 300,408.80
Slaughterhouse 335,710.99
Proper 3,644,674.71
Total 7,746,400.53
3.3 Revenue recognition
Revenue from non-exchange transactions
Taxes, fees, and fines
The LGU recognizes revenues from taxes and fines when the event occurs, and
the asset recognition criteria are met. To the extent that there is a related
condition attached that would give rise to a liability to repay the amount, a
liability is recognized instead of revenue. Other non-exchange revenues are
recognized when it is probable that the future economic benefit or service
potential associated with the asset will flow to the entity and the fair value of
the asset can be measured reliably.
Transfers from other government entities
Revenues from non-exchange transactions with other government entities are
measured at fair value and recognized on obtaining control of the asset (cash,
goods, services and property) if the transfer is free from conditions and it is
probable that the economic benefits or service potential related to the asset will
flow to the LGU and can be measured reliably.
The LGU availed of the five-year transitional provision for the recognition of
Tax Revenue- Real Property and Special Education Tax. For the two-year
period (2017 and 2016), there will be no change in policy for the recognition of
the aforementioned tax revenue.
Revenue from exchange transactions
Rendering of services
The LGU recognizes revenue from the rendering of services by reference to the
stage of completion when the outcome of the transaction can be estimated
reliably. The stage of completion is measured by reference to labor hours
incurred to date as a percentage of total estimated labor hours.
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