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REPUBLIC OF THE PHILIPPINES
COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City, Philippines |
| CIRCULAR |
No. |
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2003-007
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Date |
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December 11, 2003 |
| TO |
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All Heads of
National, Local and Corporate Government Agencies, Heads of
Finance/Comptrollership/Financial Management Services, Chief
Accountants/Heads of Accounting Units; COA Directors, Auditors; and
All Others Concerned |
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| SUBJECT |
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REVISED
ESTIMATED USEFUL LIFE IN COMPUTING DEPRECIATION FOR GOVERNMENT
PROPERTY, PLANT AND EQUIPMENT |
| 1.0 |
This
Circular is issued to provide policies and guidelines on the
computation of depreciation of government property, plant and
equipment for allocating the same over their useful life and fair
presentation of the financial statements. |
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| 2.0 |
The straight-line method of
computing the depreciation for government property, plant and
equipment shall be adopted. |
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| 3.0 |
For
uniformity in the application of useful life and simplification in its
computation, the Estimated Useful Life of PPE by classification are
presented as Annex A of this Circular. |
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| 4.0 |
A residual value equivalent to
ten percent (10%) of the acquisition cost/appraised value shall be
deducted before dividing the same by the Estimated Useful Life. |
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| 5.0 |
Any adjustments arising from
this revision of useful life shall be charged against "Prior
Years’ Adjustments" account (Code 684). |
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| 6.0 |
This circular shall take effect
January 1, 2004. |
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| ATTACHMENT: |
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| Annex A - |
Table of Estimated Useful Life of Property, Plant and Equipment |
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- 29 KB;
- 64 KB |
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