This Philippine Public Sector Accounting Standard (PPSAS) is drawn primarily from International Public Sector Accounting Standard (IPSAS) 27, (Issued 2009), Agriculture

Philippine Public Sector Accounting Standard 27

AGRICULTURE

Table of Contents

PAG Number

BACKGROUND

INTRODUCTION TO THE IPSAS 27

PHILIPPINE APPLICATION GUIDANCE TO IPSAS 27

Scope1

Effective Date2

Philippine Public Sector Accounting Standards 27AGRICULTUREBackground

This Philippine Public Sector Accounting Standard (PPSAS) 27 consists of International Public Sector Accounting Standard (IPSAS) 27, Agriculture, and the Philippine Application Guidance (PAG) prepared to suit the Philippine public sector situation.

The IPSAS 27 was issued in December 2009 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 27.

Introduction to the IPSAS 27IPSAS 27 prescribes the accounting treatment and disclosures related to agricultural activity. Agricultural activity is the management by an entity of the biological transformation of living animals or plants (biological assets) for sale, or for distribution at no charge or for a nominal charge or for conversion into agricultural produce or into additional biological assets.

Philippine Application Guidance to IPSAS 27

Scope

PAG1. Paragraph 7 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. 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 27 - Agriculture

Page 1January 2014