The agency found that previous years' financial reports contained mistakes, including expenses and income that were not recorded in the correct year. This required correcting prior period financial statements, and the total impact exceeded 4.8 billion Philippine pesos.

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Original Audit Finding Excerpt

"21 Cost includes the following: • its purchase price, including import duties and non -refundable purchase taxes, after deducting trade discounts and rebates; • expenditure that is directly attributable to the acquisition of the items; and • initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired, or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period. Measurement after Recognition After recognition, all property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. When significant parts of property, plant and equipment are required to be replaced at intervals, the Agency recognizes such parts as individual assets with specific useful lives and depreciates them accordingly. Likewise, when a major repair/replaceme"

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