 globalization has brought about ever increasing collaboration,

international trade and commerce among the countries of the world.

Because it initially affected the economic field, globalization promises a
new reality with profound implications in the social, political legal and
cultural fields, thus the inevitability affecting the public sector

 For that reason, the International Public Sector Accounting Standards

Board (IPSASB) issued the International Public Sector Accounting
Standards (IPSAS). Their objective is to unify the economic systems for
the public sectors in these countries.

 Before, the Cash-Basis Accounting was used by the Government.

Pursuant to Commision on Audit (COA) Resolution No. 2014-003 dated
January 24, 2014, the COA resolves to adopt the Philippine Public Sector
Accounting Standards (PPSAS), as aligned with the prevailing
international standards thereby enhancing the quality and uniformity in
financial reporting by the Philippine public sector entities, and ensuring
accountability, transparency and comparability of financial information
with other public sector entities around the world.

 According to Budding et.al, (2010), the adoption and implementation of a

new accounting system involves changes that affect the functioning of a
government as a whole. Existing differences between accounting systems
and modification process around the world towards the IPSAS will be
different in every country, jurisdiction or organization.

 Therefore, it is important to pinpoint the challenges encountered in

complying with PPSAS and be given enough attention to obtain the
expected benefits provided by PPSAS compliance.

 adoption of international accounting standards ensures comparative and

standardized information on finances and the economic situation of public
sector entities across jurisdictions. it i

 Descriptive method of research is suitable for this study since it is a

purposive process of gathering, analyzing, classifying and tabulating data
 about prevailing conditions, practices, beliefs, process, trends and cause
effect relationships.

 The area selected of the researchers is Batangas Province. This is

because the area is located nearby the place of the researchers. It would
be more convenient for them to conduct their study for they would
optimize their time and they are already familiar with the place.

 The instrument is made up of three parts. The first part includes the profile
of the local government units in terms of income classification and
legislative district. he second part was the questionnaire proper which
answers the extent of compliance of the Batangas Local Government
Units to Philippine Public Sector Accounting Standards The third part
answers the challenges encountered by the local government units

 it is used in determining the profile of the LGU in terms of income class

and legislative district

 In this study, it was used to determine the extent of application of

Philippine Public Sector Accounting Standards (PPSAS) in connection
with the second objective.