GLIMPSE OF A CPA'S MIND

Government, any of its political subdivision, instrumentality, or agencies, including government-owned or controlled corporations (GOCCs) is also subject to value-added taxes in the Philippines, unless otherwise exempted. Sales to Government of goods, properties, or services are subject to 12% value-added tax. However there are special rules that accountants and businessmen must be aware of in dealing with the government sales. (1) Final withholding VAT on sales to government in the Philippines, and; (2) Accounting & filling-out VAT return forms in the Philippines. FINAL WITHHOLDING VAT ON SALES TO GOVERNMENT As a rule, government or any of its political subdivision, instrumentality, or agencies, including GOCCs are mandated to withhold 5% (out of 12% regular VAT) on VATable sales upon payment to to value-added tax sellers of goods or services. Such 5% withholding tax shall represent net VAT payable by the seller to government . This would mean that the seller will not b...

Overview IAS 38 Intangible Assets outlines the accounting requirements for intangible assets, which are non-monetary assets which are without physical substance and identifiable (either being separable or arising from contractual or other legal rights). Intangible assets meeting the relevant recognition criteria are initially measured at cost, subsequently measured at cost or using the revaluation model, and amortised on a systematic basis over their useful lives (unless the asset has an indefinite useful life, in which case it is not amortised). IAS 38 was revised in March 2004 and applies to intangible assets acquired in business combinations occurring on or after 31 March 2004, or otherwise to other intangible assets for annual periods beginning on or after 31 March 2004. History of IAS 38 Date Development Comments February 1977 Exposure Draft E9 Accounting for Research and Development Activities July ...