Philippine Public Sector Accounting Standards 9

REVENUE FROM EXCHANGE TRANSACTIONS

Table of Contents
PAG
Number
BACKGROUND
INTRODUCTION TO THE IPSAS 9
PHILIPPINE APPLICATION GUIDANCE TO IPSAS 9
Scope

Effective Date

PPSAS 9 - Revenue from Exchange Transactions

January 2014

Page 1

Philippine Public Sector Accounting Standards 9

REVENUE FROM EXCHANGE TRANSACTIONS
Background
This Philippine Public Sector Accounting Standard (PPSAS) 9 consists of
International Public Sector Accounting Standard (IPSAS) 9, Revenue from
Exchange Transactions, and the Philippine Application Guidance (PAG)
prepared to suit the Philippine public sector situation.
The IPSAS 9 was issued in July 2001 by the International Public Sector
Accounting Standards Board (IPSASB) of the International Federation of
Accountants (IFAC). This includes amendments resulting from IPSASs
issued up to January 15, 2012.
The PAG (in italics) provides supplementary guidance on the proper
implementation of IPSAS 9.
Introduction to the IPSAS 9
IPSAS 9 prescribes the standards for identification, measurement and
disclosure of revenues of public sector entities derived from exchange
transactions. An exchange transaction is one in which the entity receives
assets or services, or has liabilities extinguished, and directly gives
approximately equal value to the other party in exchange.
These
transactions are rendering of services, sale of goods and use by others of
entity assets yielding interest, royalties, and dividends.
Philippine Application Guidance to IPSAS 9
Scope
PAG1.Paragraph 2 deals with the applicability of this Standard to all public
sector entities other than Government Business Enterprises (GBEs).
GBE is an entity that has all the following characteristics: (a) Is an
entity with the power to contract in its own name; (b) Has been
assigned the financial and operational authority to carry on a
business; (c) Sells goods and services, in the normal course of its
business, to other entities at a profit or full cost recovery; (d) Is not
reliant on continuing government funding to be a going concern
(other than purchases of outputs at arms length); and (e) Is
controlled by a public sector entity.

PPSAS 9 - Revenue from Exchange Transactions

January 2014

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This standard shall be applied to all National Government Agencies

(NGAs), Local Government Units (LGUs) and Government-Owned
and/or Controlled Corporations (GOCCs) not considered as GBEs.
Effective Date
PAG2.This PPSAS shall apply for annual financial statements covering
periods beginning January 1, 2014.

PPSAS 9 - Revenue from Exchange Transactions

January 2014

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Public Sector Auditing Standards

Board
(PSSB Auditing)