Non-compliance with IPSAS 41 on Financial Instruments
National Housing Authority · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency did not follow international accounting standards for financial instruments, causing errors in reported financial asset balances and missing required disclosures.
Why It Matters
Recommended Actions
- Formulate a policy on financial instruments that harmonizes with the provisions of IPSAS 41 on Financial Instruments for submission and approval of the NHA governing Board
- Accordingly. apply the policy embedded in the NHA Accounting Manual, ensuring it is compliant with IPSAS 41, for the impairment of all financial instruments of NHA
- Provide the disclosures in the FS required under IPSAS 30
- And Stay updated on changes in accounting standards to ensure compliance, assess impact on financial reporting and implement necessary changes in a timely manner.
Original Audit Finding Excerpt
"The requirements of the International Public Sector Accounting Standards (IPSAS) 41 on Financial Instruments were not complied with, thus, the balances of various financial asset accounts totaling P58.836 billion as at December 31, 2023, are misstated by undetermined amounts. Additionally, the Notes to the consolidated financial statements did not adequately disclose the information required by IPSAS 30 related to these financial assets."