BIR Ruling No. 057-82

March 4, 1982 BIR RULING NO. 057-82 321-00 000-00 057-82 Fisher Engineering and Maintenance Co., Inc. 750 EDSA Pasay City Attention: Mr . Ernesto D . Senseng Chief, Accounting Department Gentlemen : This refers to your letter dated June 25, 1981, requesting our opinion whether or not your accounting treatment of Package I project is in order and does not violate any Bureau regulations. It is represented that on February 22, 1980 a joint venture agreement between that Corporation (FEMCO for short) and Chin Yang General Construction Co., Ltd. (Chin Yang for short) was entered into for the construction of Package II of the Tagaytay City, Batangas City Road and its associated minor road projects; that on August 14, 1980, said joint venture agreement was amended to include all other contract that were and may be awarded to FEMCO; that when the contract for the construction of Package I of the Tagaytay-Batangas road project was awarded to FEMCO all the transactions relative thereto are presently being reflected in the joint Venture Books of Accounts. In reply, please be informed that since the joint venture agreement was amended to include all other contracts that were and may be awarded to FEMCO, and that the contract works for Package No. I and II shall be executed and performed as a joint venture project, all the transactions relative to the Package I project that was awarded to FEMCO are, like Package No. II, joint venture transactions; hence the same should be entered in the joint venture books of accounts. This is in compliance with Section 321 of the Tax Code which requires that books of taxpayers should show all transactions and results of operations. Very truly yours, RUBEN B. ANCHETA Acting Commissioner