Republic of the Philippines
PROVINCE OF NEGROS ORIENTAL
Notes to Condensed Financial Statements
(All amounts in Philippine Peso)
Note 1 - Profile
The Province of Negros Oriental was created by virtue of Republic Act No. 120 dated
April 20, 1901. It is located 857 kilometers south of Manila and comprises
approximately 5,385 square kilometers of land, mostly devoted to agriculture and
housing communities. Its present population was reported at 1,432,990.
The Provincial Government of Negros Oriental, as a dynamic and credible LGU,
provides efficient and effective service to its customers through a team of dedicated,
committed, and customer-oriented officials and employees working together for
excellence in public service.
Note 2 - The consolidated financial statements of the Province have been prepared in accordance
with and comply with the International Public Sector Accounting Standards (IPSAS).
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 2015.
Note 3 - Summary of significant accounting policies
3.1 Basis of accounting
The consolidated financial statements are prepared on an accrual basis in
accordance with the International Public Sector Accounting Standards (IPSAS).
3.2 Consolidation
The Provincial Government has maintained three funds, namely: General Fund,
Trust Fund, and Special Education Fund. Under the General Fund, there are eight
(8) special accounts, namely:
• General Fund - Proper
• 20% Economic Development Fund
• General Fund - Hospitals
• Loans
• Sports Center
• Convention Center
• Local Government Service Equalization Fund
• Bayanihan Grant to Provinces
3.3 Revenue recognition
Revenue from non-exchange transactions
Taxes, fees and fines
The Province of Negros Oriental 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,
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.
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