The LGU maintains the following special accounts under the General
Fund:
� General Fund Proper
� Market Operation
� Slaughterhouse Operation
� Waterworks Operation
� 20% Economic Development Fund
� LGSEF
3.3 Presentation of Financial Statements
The financial statements were presented in accordance with the
International Public Sector Accounting Standards (IPSAS).
3.4 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 improbable 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.
3.5 Property, plant and equipment
All property, plant and equipment are stated at cost less accumulated
depreciation. Cost includes expenditure that is directly attributable to the
acquisition of the items. When significant parts of property, plant and
equipment are required to be replaced at intervals, the LGU recognizes
such parts as individual assets with specific useful lives and depreciates
them accordingly. Likewise, when a major inspection is performed, its
cost is recognized in the carrying amount of the plant and equipment as a
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