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 Province and can be measured reliably.
Revenue from exchange transactions
Sale of goods
Revenue from the sale of goods is recognized when the significant risks and
rewards of ownership have been transferred to the buyer, usually on delivery of the
goods, and when the amount of revenue can be reliably measured and it is probable
that the economic benefits or service potential associated with the transaction will
flow to the Province.
Interest income
Interest income is accrued using the effective yield method. The effective yield
discounts estimated future cash receipts through the expected life of the financial
asset to that asset’s net carrying amount. The method applies this yield to the
principal outstanding to determine interest income each period.
Rental income
Rental income arising from operating leases on investment properties is accounted
for on a straight-line basis over the lease terms and included in revenue.
3.4 Property, Plant and Equipment
All property, plant and equipment are stated at cost less accumulated depreciation
and impairment losses. 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 Province 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 replacement if the recognition
criteria are satisfied. All other repair and maintenance costs are recognized in
surplus or deficit as they are incurred. Where an asset is acquired in a non-exchange
transaction for nil or nominal consideration, it is initially measured at its fair value.
Completed projects for the year were recognized based on the report submitted by
the Provincial Engineer’s Office for the year then ended.
The LGU has a total of 474.475 kilometers of roads with a total cost of
₱2,733,484,395.70, of which ₱90,742,705.30 are provincial roads. For the year
ended, the agency spent a total of ₱48,682,078.39 on repairs and maintenance of
infrastructure projects (provincial roads and bridges).
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