So, next sources of funds is the non-exchange transactions.

These are revenues that an entity receives

without directly providing something of equal value in return. Included dito yung taxes for example yung
business taxes na kinocollect ng gobyerno sa mga negosyante. Next is yung Fines and penalties example
naman dito yung traffic violations at lastly yung pagbibigay ng gifts, donations, and goods/services in-
kind.

Next, Recognition of revenue from Non-Exchange transacations. Sabi jan ( basahin ang nasa slide) it
means kung kelan lang marereceive yung cash dun lang magrerecognize at kapag nakabuo na ng
consistent and accurate way/method para madetermine ang fair value of asset arising from non-
exchange transactions. Once na nakapagdeveloped na ng reliable measurement model from cash basis
recognition pwede na magshift to accrual basis recognition which the revenue can be recognized when
it is earned and measurable even if the cash has not yet been collected. Next, (basahin ang slide), it
means na kung magkano yung total amount of taxes collected, ayon dapat yung irerecognize. Dun sa
sinasabing expenses paid through the tax system ay yung mga expenses na kailangang bayaran ng
government regardless kung magkano yung tax revenue na nacollect for example yung social programs
or subsidies paid through the tax system. Next, basahin no. 2. Next, may mga type of tax under tax
revenue. First, income tax (read taxable event) Example, kapag natanggap mo yung salary mo ang
taxable event don ay yung income mo. Next, VAT. Eto naman nangyayari kapag may exchange of goods
tulad ng sales. Goods and Services tax (read) Customs Duty, ito naman chinacharge kapag nagkakaroon
tayo ng imported or exported goods from other countries. Death Duty or Estate tax, dito nangyayari
yung transfer of property once yung owner ay namatay na. Lastly, Property Tax, Dito naman included
yung pagbabayad ng amilyar annually.

Transfers(read nalang)

Fines and penalties  Recognized as income in the year they are collected.
 Recognized as revenue when the receivable meets the recognition
criteria for asset
 Measured at best estimate
Gifts, donations and  Recognized as revenue when it is probable that future economic
goods in kind benefits of service potential will flow to the entity.
Services in kind  Not recognized as revenue due to the uncertainties affecting entity’s
ability to control those services and measure them at fair value.
Debt Forgiveness  When a lender cancels the debt of a government entity, the debtor
recognizes revenue equal to the CA of the debt forgiven. Ex.
Nangutang yung government sa isang bank ng 1M after non sabe ng
bank wag na bayaran yung inutang sa kanila. So yung government
irerecognize yon as revenue kasi it effectively increases their financial
resources.
 However, if a controlling entity cancels the debt of its wholly owned
controlled entity, the canceled debt is not recognized as revenue.
Instead, it is treated as a contribution from the owners. Dito naman
may parent and subsidiary relationship yung entity, For example, yung
Subsidiary Co. may utang na 500k kay Parent Co. and si Parent Co.
wholly owned niya si Sub. Co. nagdecide na wag na bayaran ni Sub.
 Co. yung 500k. Since may parent and subsidiary relationship sila hindi
irerecognize ni Subsidiary Co. as revenue yung 500k instead
irerecognized niya yon as an equity contribution.
Bequest  is an asset left to an organization (such as a charity, government
entity, or nonprofit) through the will of a deceased person.
 Recognized as revenue measured at fair value
For example, Si Mr. X nakalagay sa will niya ang Charity A as a
beneficiary na kapag namatay siya ay makakareceive ng 1M cash. So,
Yung Charity magrerecognize ng revenue na 1M.
Grant with a Condition  Initially recognized as liability and recognized as revenue only when
the condition is satisfied.
Pledges  are unenforceable undertakings to transfer assets to the recipient
entity. (promise)
 not recognized as revenue
 The pledge may be disclosed in the notes to the financial statements
as a contingent asset.
For example, Nakareceive si Charity X ng pledge from a donor worth
200k para sa gagawin nilang programs. At the time of pledge hindi
irerecognize as revenue yung 200k kasi wala pa siyang control/di pa
niya narereceive yung 200k. It’s simply a promise. Kapag lang
nareceive na yung 200k ni Charity X tsaka palang magrerecognize ng
revenue as a donation or gift.
Concessionary loans  are loans received by an entity at below market terms.
 Difference between fair value and transaction price is recognized as
revenue if non-exchange transaction.

Impairment losses/expense account (read nalang) So dito magrerecognize ang NG ng revenue.

When an amount already recognized as revenue becomes uncollectible, it is recognized as an expense

(i.e., impairment loss) rather than as an adjustment to the revenue originally recognized.

Next part – So let’s say nagkaron ng bagyo nadelay yung project hindi nakaabot sa 2 years na deadline
edi may possibility na kelangan ibalik yung 10M sa grantor. Ang magiging journal entry jan ay (read).
Hindi ginalaw yung narecognized na revenue pero nagrecognize ng expense which is yung impairment
loss.

Next – Pano naman kapag The NG expects that some portion of the grant are not being used Let’s say
naestimate nila na 2M na amount ng grant ay hindi magagamit due to project delays. Ang magiging
journal entry jan ay (read).

So, for other receipts, Subsidy from NG and other NGAs recognized as revenue from assistance and
subsidy. Dun naman sa Receipts from excess cash advance, overpayment of expenses, performance
bonds and security deposits, collections on behalf of other entities, and inter or intra agency fund
transfers are not recognized as revenue because they are considered as receipts only. Dun sa entries sa
bawat receipts kindly refer nalang sa book since iba iba lang yung tawag sa accounts na ginamit
pagdating dito sa government accounting. And that’s all. May tanong po ba kayo? Kung wala na,
thankyou for listening.