Summary
RMO No. 30-2021 amends RMO Nos. 83-2010 and 13-2014 on recording absolutely forfeited properties in the National Government (NG) Books of Accounts.
Key points
- When and how recorded. Absolutely forfeited real properties are recorded in the NG Books of Accounts of the Regional Finance Division after the one-year redemption period lapses. They are recorded at fair value, which is the zonal value at the date of forfeiture.
- Disclosure. Properties with legal issues or encumbrances are disclosed in the quarterly Notes to Financial Statements, with their fair value and the nature of the issues or encumbrances. An aging and breakdown of all absolutely forfeited real properties by classification is also disclosed there.
- Held for sale. Forfeited Properties Held for Sale are recorded under the account title Merchandise Inventory (Account Code 10401010), following COA Circular No. 2020-001 on the Revised Chart of Accounts Updated 2019, effective January 1, 2020.
Who is affected
- Regional Finance Divisions
Deadlines and effectivity
- Recorded after the one-year redemption period
- COA chart of accounts effective January 1, 2020
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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