Does COA allow the write-off of dormant receivables arising from loans?

No. COA Circular No. 2016-005 dated December 19, 2016 states that it shall not cover the write-off of loans and advances of Government Financial Institutions which are governed by pertinent provisions of the General Banking Act. Likewise, it shall not cover the following:

  • Receivables arising from disallowances and charges;
  • Receivables arising from cash shortages; and
  • Claims from entities’ officers and employees and other parties for transactions which are the subject of a pending case in court or before investigative authorities.
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