Understatement of Allowance for Impairment Loss and Accumulated Surplus
National Housing Authority · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency made mistakes in calculating and applying impairment allowances, causing these accounts to be understated by significant amounts.
Why It Matters
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Original Audit Finding Excerpt
"Error in retrospective application of changes in accounting estimates and inconsistent application of existing accounting policy on Allowance for impairment loss resulted in the understatement of the Allowance for impairment loss, Provision for impairment loss, and Accumulated surplus by P727.778 million, P1.636 billion, and P907.811 million, respectively, for the identified Receivables accounts in arrears."