CHAPTER 5: ACCOUNTING FOR REVENUE AND OTHER RECEIPTS
Scenario Analysis: Revenue Recognition in Philippine Government Service Transactions
Instructions:
On a whole sheet of yellow paper, choose one scenario and analyze it and answer the following
questions:
1. Can the outcome of the transaction be reliably estimated based on IPSAS 9 criteria? Explain your
reasoning.
2. If estimation is reliable, which method (percentage of completion, surveys of work performed, costto-cost ratio, etc.) would be most suitable to determine the stage of completion? Justify your choice.
3. How should the government agency recognize revenue throughout the service period?
Scenario 1:
The Philippine Statistics Authority (PSA) offers various civil registry services to the public, including
issuing birth certificates, marriage certificates, and death certificates. Citizens pay a fee for requesting
and obtaining these documents.
Scenario 2:
The Philippine Postal Corporation (PhilPost) offers various delivery services to the public, ranging from
simple letters to packages. Customers pay a fee based on weight, distance, and service type (regular
mail, registered mail, etc.).
Scenario 3:
The Bureau of Fire Protection (BFP) conducts fire safety inspections for various establishments
(buildings, businesses) and issues fire safety clearances upon meeting fire code compliance.
Businesses pay a fee for the inspection and clearance.
Scenario 4:
The Professional Regulation Commission (PRC) offers professional license renewal services to
registered professionals across various disciplines. Professionals pay a fee to renew their licenses,
allowing them to continue practicing their professions legally.
Scenario 5:
The National Irrigation Administration (NIA) manages irrigation systems nationwide, supplying water
to agricultural lands. Farmers pay irrigation service fees based on the area of land they cultivate.
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