2. Under the Budget Reform Bill (BRB)
• Bureau of the Treasury (BTr) is to create and maintains an Asset
Registry System of the non-financial assets of the national government
(NG).
Support the government property insurance
• Administrative Order No. 4 (August 7, 2017) – with DOF (thru BTr) as
Chair, Office of the Executive Secretary, DBM, IC GSIS as members
National Asset Registry
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3.
4. Asset Registry
• Comprehensive List and Inventory of the
NG’s Non-Financial Assets
• Acquire and maintain an asset
IT/database system for recording and
updating of the status of non-financial
asset of the NG;
• Central Repository of National Government
Assets for Fiscal Risk Management
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6. DEPARTMENT OF EDUCATION
FINANCIAL INFORMATION FOR
NARS
1. Acquisition Cost- Amount of the acquisition cost of the Assets.
2. Book Value- Carrying value of the Assets
3. Depreciation- Refers to the reduction of the recorded costs of
an asset.
4. Asset Life- Estimated number of years in which the assets will
be useful. ( Lifespan)
5. Number of Years used- refers to the number of years that the
asset has been used/utilized.
6. DATE OF ACQUISITION- date acquired/ date of acceptance
7. Depreciable amount is the cost of an asset, or other amount substituted for cost, less its
residual value.
6
12. DEPARTMENT OF EDUCATION
Steps to compute the carrying value/book
value.
1.Determine the date of acquisition.
2.Determine the cost
3.Determine the lifespan ( refer to COA
Circular 2017-004)
17. DEPARTMENT OF EDUCATION
Subsequent addition
What if there is a subsequent repair of a school building that contributes to an increase in
the original acquisition cost.
====== COMPUTATION OF DEPRECIATION IS APPLIED PROSPECTIVELY===
For example:
1. Major repair amounting to P 1,200,000
2. School Building is already 5 years old
Compute the book value of school building, assuming in its 6th year existence.
18. DEPARTMENT OF EDUCATION
What is prospective application?
Prospective application is the application
of a new accounting policy to
transactions after the date of the policy
change, with recognition of the effect of
changes in accounting estimates in the
current and future periods. The change is
not applied to prior periods.
