CaMIA Annual Report 2013

Transcription

1
Our Vision
To become top-of-mind insurance agency of Micro-insurance products and
services.
Our Mission
To provide life and non-life insurance products and services in real-time at
the most affordable premium rate to client-members of CARD MRI and its
affiliates.
About the Cover
After every winter comes a bountiful spring. With flowers blossoming after the harsh
cold, spring signals the start of something new. It represents life and hope. The same is
true for CARD MRI Insurance Agency. The flower represents CaMIA’s assuring spirit as
the institution brings to life its commitment to the clients during times of uncertainties.
The General Manager’s Report
Once again, CARD MRI Insurance Agency demonstrated that we
have the strength of character to back up our commitments. Our
purpose is to deliver unparalleled value to our clients through simple
but accurate processes in terms of their insurance needs.
This year, our country was beset with two natural disasters - an
earthquake in Bohol and a typhoon in Eastern Visayas and other
nearby regions. These occurrences resulted to damaged properties
and lives lost. It was a challenging year for our country and fellowmen.
Our institution, together with the rest of CARD MRI, served as a
glimmer of hope as we bring immediate response to our disasterstricken clients. We stood by our promise as we released claims right
away - no long lines needed and with just the minimal paperworks
required.
We are humbled to share that your insurance of choice has served
a total of 311,267 clients, and disbursed claims amounting to PhP
95,325,100 for 18,256 policy holders. We are even more humbled to
share that all these were disbursed within either one, three or five
days. Please see below how we ended our 2013:
Vener S. Abellera
General Manager, CaMIA
Performance indicators as of December 2013
Number of PAID Plan sold
302,807
Number of other non-life products sold
CARD CARE
5,385
C-CAP
3,075
Gross Premium – PAID Plan
PhP 77,853,950.00
Gross Premium – CARD CARE
PhP 586,570.00
Gross Premium – C-CAP
PhP 462,560
These figures serve as a good foundation as we take on another
year of service. Our company continues to undergo important
transformations; changes readied us for significant growth and
development.
3
Assurance in times of need
We are all vulnerable to the risks posed by unforeseen
circumstances. This vulnerability hinders us from
moving forward and our way out of poverty becomes
more difficult. CaMIA prevents this from happening.
When Typhoon Yolanda (Haiyan) devastated the
Visayas and the nearby islands, many of our clients and
their families were affected. CAMIA demonstrated to
our clients the true meaning of an insurance policy
that is simple, transparent and easy to understand as
well as the true meaning of a claims process that is
careful yet quick. A few days after the disaster, our
agents were on the field validating claims and within
a few more days, our 15,667 policy holders in the
affected areas received their claims amounting to a
total of Php 85,263,450. We are also recognizing the
assistance we received from other CARD institutions
especially CARD MBA, CARD Bank Inc and CARD
Inc.
This product insures the profit loss of clients and is
offered for CARD members only. The program was
pilot tested on July 2013 and covered five thousand
members from six provincial offices such as Tarlac,
Bataan, Bulacan, Ilocos, Nueva Vizcaya and Palawan.
This product line is done in partnership with Pioneer.
New endeavors
Our team continuously tests new products that will
bring more valuable assurance to our clients. In 2013, we
tested new products that will provide more significant
safety nets for the clients. These are the CARD Crop
Assistance Program (CCAP) and the CARD Care.
Future plans
CaMIA expects an exciting 2014. Members, staff and
clients can expect additional benefits in CaMIA PAID
Plan. Its premium will increase from Php 250.00 to
Php 450.00 annually and the insured will get higher
benefits that can amount to Php 200,000.
The CARD Crop Assistance Program provides
assistance to clients whose agricultural business was
damaged due to natural calamities. This provides a
“business interruption” assurance to the clients which
will make them less vulnerable to repayment problems.
Furthermore, the cash flow of the family is protected.
With continued guidance we get from our vision and
mission, we look forward to another year of growth
and another year of continuously finding ways to
provide clients with simple products but those which
will greatly reduce their vulnerabilities.
The product was tested in Pangasinan, Cagayan
Valley, Samar, Leyte, Agusan del Sur and Agusan
del Norte. The pilot ran from June to December
2013 and served 3,075 members. In support to
this new product, trainings were given to the
staff agents to improve their selling and claims
validation skills. The testing if the product is done in
cooperation with Pioneer Insurance and CARD, Inc.
Meanwhile, CARD Care was developed to provide the
daily hospitalization income benefit for the clients.
4
Institutional Partners
Bank of the Philippine Islands/Mitsui Sumitomo Insurance (BPI/MS), Philippines
Blue Cross Insurance Inc. (Blue Cross), Philippines
Measure for Economic and Accelerated Development for All (MEADA), Cambodia
Philippine Crop Insurance Corporation (PCIC), Philippines
Pioneer Intercontinental Insurance Corporation, Philippines
Pioneer Life Inc., Philippines
RIMANSI Mutual Solutions Inc. (RMSI), Philippines
Sunlife of Canada Inc. (Sunlife), Philippines
UCPB General Insurance Inc. (UCPB Gen), Philippines
United Coconut Planters Life Assurance Corporation (Cocolife), Philippines
Union Life Insurance, Co., Ltd. (ULife), Thailand
Our Areas of Coverage
While our main office is located in San Pablo City,
Laguna, our agents are deployed all over the country.
5
Our Team
The Management Committee
Board of Directors
Vener S. Abellera
Vener S. Abellera
Lailanie L. Moral
General Manager
General Manager
Finance Manager
May S. Dawat
Chairman of the Board
Lailanie L. Moral
Dominador F. Manalo
Ely B. Rodriguez
Finance Manager
Regional Director
Assistant Manager for Operations
Aristeo A. Dequito
Director
Dominador F. Manalo
Regional Director
Deverna dT. Briones
Director
Ely B. Rodriguez
Assistant Manager for Operation
Atty. Clifford C. Burkley
Director
Vener S. Abellera
Director
Efren Ramon Felix S. Belen
Director
Roselito A. Magpantay
Director
Marilyn M. Manila
Director
Dr. Enrique L. Navarro
Corporate Secretary
6
Partnership with
other organizations
In 2013, we partnered with Pioneer
Intercontinental Insurance Corporation,
Inc., International Finance Corporation
(IFC), Measure for Economic and
Accelerated Development for All
(MEADA), RIMANSI Mutual Solutions
Inc. (RMSI), Union Life Insurance
Co., Ltd. (ULife), and Philippine Crop
Insurance Coporation (PCIC).
7
Disbursal of claims in Visayas
Disbursed benefits amounting to Php 85,263,450
for 15,667 policyholders including claims in the
provinces of Leyte, Samar, Ilo-Ilo, Capiz, Cebu and Bohol
severely affected by earthquake and typhoon Yolanda.
8
Product promotion
and selling
CaMIA implemented the selling of PAID
Plan through any of CARD Inc. offices. We
also conducted PAID Plan marketing and
promotion to organized groups in Laguna
(San Pablo Chambers, San Pablo Bankers
and San Pablo Teachers). We also rolledout the eCaMIA Version 2.0 to CARD MBA
Provincial Offices in Visayas and Mindanao.
9
Training and seminar
Staff and microinsurance agents are continously
trained to ensure excellence in their work.
10
Reward and
incentive
Lakbay-Aral for MI-Supervisors and MIAgents are regularly conducted to recognize
their valuable contributions to the company.
11
Financial Statements
12
CARD MRI INSURANCE AGENCY, INC.
STATEMENTS OF FINANCIAL POSITION
2013
2012
(As restated
Note 3)
January 1
2012
(As restated
Note 3)
P
=4,714,329
3,668,630
3,000,000
113,085,129
=9,395,195
P
3,561,045
3,000,000
16,819,520
=7,528,410
P
541,166
–
14,932,083
11,021,246
1,059,539
1,564,022
3,679,908
P
=141,792,803
40,766
1,323,322
1,298,954
1,746,453
=37,185,255
P
40,766
462,437
877,124
45,764
=24,427,750
P
P
=123,989,010
4,238,733
–
128,227,743
=26,131,264
P
3,338,075
–
29,469,339
=17,936,951
P
176,095
876,653
18,989,699
9,500,000
1,770,500
2,813,500
–
1,000,000
562,500
December 31
ASSETS
Cash and Cash Equivalents
(Notes 6, 16 and 18)
Short-term Investments (Notes 7 and 18)
Long-term Investments (Note 8)
Receivables (Notes 9 and 18)
Available-for-sale Financial Assets
(Note 10)
Property and Equipment (Note 11)
Deferred Tax Assets (Note 17)
Other Assets (Note 12)
LIABILITIES AND EQUITY
Liabilities
Trade and other payables (Notes 13 and 18)
Net pension liability (Note 16)
Income tax payable (Note 17)
Equity (Notes 14 and 18)
Capital stock
Deposits for future stock subscription
Retained earnings
Appropriated
Unappropriated
Remeasurement loss on defined benefit plan
–
5,049,464
(2,754,904)
13,565,060
P
=141,792,803
2,450,117
4,756,659
(2,304,360)
7,715,916
=37,185,255
P
1,205,000
2,796,885
(126,334)
5,438,051
=24,427,750
P
See accompanying Notes to Financial Statements.
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13
STATEMENTS OF COMPREHENSIVE INCOME
Years Ended December 31
2012
2013
(As restated
Note 3)
REVENUE
Commission income (Note 20)
Interest income (Notes 6, 7 and 8)
Reversal of provision for bad debts (Note 9)
Other income
EXPENSES
Training and development
Salaries and allowances
Commissions
Transportation and travel
Taxes and licenses
Program monitoring and evaluation
Pension expense (Note 16)
Depreciation (Note 11)
Supplies
Security and janitorial
Professional fees
Insurance
Communication and postage
Rent (Note 19)
Light and water
Repairs and maintenance
Provision for impairment losses (Notes 9)
Representation and entertainment
Other expenses
INCOME BEFORE INCOME TAX
PROVISION FOR INCOME TAX (Note 17)
NET INCOME
OTHER COMPREHENSIVE INCOME/(LOSS)
Items that will not to be reclassified to profit or loss in
subsequent periods
Remeasurement loss on defined benefit plan (Note 16)
Income tax effect
TOTAL COMPREHENSIVE INCOME
P
=18,937,663
503,022
73,778
7,062
19,521,525
=14,671,806
P
443,596
1,672,951
4,558
16,792,911
5,188,634
3,150,675
2,422,531
964,785
713,968
716,929
712,699
438,248
350,065
266,318
222,267
215,392
158,935
120,000
106,024
75,791
72,000
30,494
619,646
16,545,401
4,445,152
1,822,475
1,407,784
315,017
442,478
422,910
254,954
271,528
151,841
91,846
291,547
222,666
118,729
120,000
74,098
11,377
–
69,678
549,554
11,083,634
2,976,124
5,709,277
850,926
1,651,857
2,125,198
4,057,420
(643,634)
193,090
P
=1,674,654
( 3,111,466)
933,440
=1,879,394
P
14
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15
Deposits during the year
Issuance of shares
Dividends
Appropriation
Net income
Other comprehensive income
Total comprehensive income
At December 31, 2013
As restated
Effect of adoption of revised accounting standard on
employee benefits (Note 3)
As previously reported
At January 1, 2013
P
=2,450,117
–
2,450,117
–
–
–
(2,450,117)
–
–
–
P
=–
–
2,813,500
–
6,686,500
–
–
–
–
–
P
=9,500,000
Appropriated
Retained Earnings
(Notes 14 and 18)
P
=2,813,500
Capital Stock
(Notes 14 and 18)
STATEMENTS OF CHANGES IN EQUITY
(953,387)
4,756,659
–
–
(4,282,510)
2,450,117
2,125,198
–
2,125,198
P
= 5,049,464
P
= 5,710,046
–
–
3,371,000
(1,600,500)
–
–
–
–
–
P
=1,770,500
P
=–
(3,257,747)
7,715,916
3,371,000
5,086,000
(4,282,510)
–
2,125,198
(450,544)
1,674,654
P
=13,565,060
P
=10,973,663
Total
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(2,304,360)
(2,304,360)
–
–
–
–
–
(450,544)
(450,544)
(P
= 2,754,904)
P
=–
Deposits for
Unappropriated
Remeasurement
Future Stock
Retained Earnings
Loss on Defined
Subscription
(Notes 14 and 18) Benefit Plan (Note 16) (Notes 14 and 18)
16
Net income
At December 31, 2012
At January 1, 2012
As previously reported
Effect of adoption of revised accounting standard on
employee benefits (Note 3)
As restated
Deposits during the year
Issuance of shares
Dividends
Appropriation
Transaction costs
=1,205,000
P
–
1,205,000
–
–
–
1,245,117
–
–
–
=2,450,117
P
=1,000,000
P
–
1,000,000
–
1,813,500
–
–
–
–
–
=2,813,500
P
Capital Stock
(Notes 14 and 18)
Appropriated
Retained Earnings
(Notes 14 and 18)
-2-
(54,143)
2,796,885
–
–
(842,696)
(1,245,117)
(9,833)
4,057,420
–
4,057,420
=4,756,659
P
=2,851,028
P
–
–
=–
P
–
562,500
172,000
(734,500)
–
–
–
=562,500
P
(180,477)
5,438,051
172,000
1,079,000
(842,696)
–
(9,833)
4,057,420
(2,178,026)
1,879,394
=7,715,916
P
=5,618,528
P
Total
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(2,178,026)
(2,178,026)
(P
=2,304,360)
(126,334)
(126,334)
–
–
–
–
–
=–
P
Deposits for
Unappropriated
Remeasurement
Future Stock
Retained Earnings
Loss on Defined
Subscription
(Notes 14 and 18) Benefit Plan (Note 16) (Notes 14 and 18)
STATEMENTS OF CASH FLOWS
Years Ended December 31
2012
2013
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax
Adjustments for:
Depreciation (Note11)
Net reversal of provision for bad debts (Note 9)
Interest income (Notes 6, 7 and 8)
Operating income before working capital changes
Changes in operating assets and liabilities:
Decrease (increase) in:
Receivables
Other assets
Deferred tax asset
Increase (decrease) in:
Trade and other payables
Net pension liability
Net cash generated from operations
Income tax paid
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
Acquisitions of:
Available-for-sale financial asset (Note 8)
Property and equipment (Note 11)
Short-term investment
Long-term investment
Net cash used in investing activities
P
=2,976,124
=5,709,277
P
438,248
(1,778)
(503,022)
2,909,572
271,528
(1,672,951)
(443,596)
3,864,258
(96,199,695)
(1,933,459)
(265,068)
(3,138,537)
1,943,894
(421,830)
97,857,746
8,737,474
450,114
2,819,210
(784,713)
2,034,497
372,677
(10,980,480)
(174,465)
(107,585)
–
(10,889,853)
(3,172,239)
7,813,020
(2,016,900)
5,796,120
347,768
–
(1,132,412)
–
(3,000,000)
(3,784,644)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of shares
Deposit for future stock subscription
5,086,000
3,371,000
Dividends paid (Note 14)
Net cash used in financing activities
(4,282,510)
4,174,490
(1,395,692)
(144,692)
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
(4,680,866)
1,866,784
CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR
9,395,195
7,528,411
CASH AND CASH EQUIVALENTS
AT END OF YEAR (Note 6)
P
=4,714,329
=9,395,195
P
1,251,000
–
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17
NOTES TO FINANCIAL STATEMENTS
1. Corporate Information
CARD MRI Insurance Agency, Inc. (the Company) was incorporated in the Philippines and
registered with the Philippine Securities and Exchange Commission (SEC) on August 2, 2007
primarily to engage in the business of selling life and non life insurance and other related services.
37% of the Company’s common stock is owned CARD Inc., a social development incorporated in
the Philippines.
The registered office address of the Company is M. L. Quezon St., City Subdivision, San Pablo
City, Laguna.
The accompanying financial statements were authorized for issue by the Board of Directors
(BOD) on March 31, 2014.
2.
Basis of Preparation
The accompanying financial statements of the Company have been prepared on a historical cost
basis. The financial statements are presented in Philippine Peso (P
=), the Company’s functional
and presentation currency. All amounts are rounded off to the nearest peso, unless otherwise
indicated.
Statement of Compliance
The financial statements of the Company have been prepared in compliance with Philippine
Financial Reporting Standards (PFRS).
3.
Changes in Accounting Policies
The accounting policies adopted are consistent with those of the previous financial years except
for the adoption of the following amended PFRSs which became effective beginning
January 1, 2013.

PFRS 7, Financial instruments: Disclosures - Offsetting Financial Assets and Financial
Liabilities (Amendments)
These amendments require an entity to disclose information about rights of set-off and related
arrangements (such as collateral agreements). The new disclosures are required for all
recognized financial instruments that are set off in accordance with PAS 32, Financial
Instruments: Presentation. These disclosures also apply to recognized financial instruments
that are subject to an enforceable master netting arrangement or ‘similar agreement’,
irrespective of whether they are set-off in accordance with PAS 32. The amendments require
entities to disclose, in a tabular format unless another format is more appropriate, the
following minimum quantitative information. This is presented separately for financial assets
and financial liabilities recognized at the end of the reporting period:
a) The gross amounts of those recognized financial assets and recognized financial liabilities;
b) The amounts that are set off in accordance with the criteria in PAS 32 when determining
the net amounts presented in the statement of financial position;
c) The net amounts presented in the statement of financial position;
18
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-2d) The amounts subject to an enforceable master netting arrangement or similar agreement
that are not otherwise included in (b) above, including:
i. Amounts related to recognized financial instruments that do not meet some or all of
the offsetting criteria in PAS 32; and
ii. Amounts related to financial collateral (including cash collateral); and
e) The net amount after deducting the amounts in (d) from the amounts in (c) above.
The amendments to PFRS 7 are to be retrospectively applied and are effective for annual
periods beginning on or after January 1, 2013. The amendments did not have an impact on the
Company’s financial position of performance since the Company did not have financial
instruments that are set off in accordance with criteria in PAS 32.

PFRS 10, Consolidated Financial Statements
PFRS 10 replaces the portion of PAS 27, Consolidated and Separate Financial Statements,
that addresses the accounting for consolidated financial statements. It also includes the issues
raised in SIC 12, Consolidation - Special Purpose Entities. PFRS 10 establishes a single
control model that applies to all entities including special purpose entities. The changes
introduced by PFRS 10 required the management to exercise significant judgment to
determine which entities are controlled, and therefore, are required to be consolidated by a
parent, compared with the requirements that were in PAS 27. The amendment did not have an
impact on the Company’s financial position and performance since it does not have an
investment in subsidiaries.

PFRS 11, Joint Arrangements
It replaces PAS 31, Interests in Joint Ventures and SIC-13, Jointly-controlled Entities –
Nonmonetary Contributions by Venturers. It also removes the option to account for jointly
controlled entities (JCEs) using proportionate consolidation. Instead, JCEs that meet the
definition of a joint venture must be accounted for using the equity method. The standard
does not apply to the Company since the Company has not entered into any joint
arrangements.

PFRS 12, Disclosure of Interest in Other Entities
It includes all of the disclosures related to consolidated financial statements that were
previously in PAS 27, as well as all the disclosures that were previously included in PAS 31
and PAS 28. These disclosures relate to an entity’s interests in subsidiaries, joint
arrangements, associates and structured entities. The adoption will affect disclosures if it has
no impact on the Company’s financial position or performance (see Note .

PFRS 13, Fair Value Measurement
PFRS 13 establishes a single source of guidance under PFRSs for all fair value measurements.
PFRS 13 does not change when an entity is required to use fair value, but rather provides
guidance on how to measure fair value under PFRS when fair value is required or permitted.
This standard should be applied prospectively as of the beginning of the annual period in
which it is initially applied. Its disclosure requirements need not be applied in comparative
information provided for periods before initial application of PFRS 13. The amendments
affect disclosures only and had no impact on the Company’s financial position or performance
(see Note 10).
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19
-3
PAS 1, Presentation of Financial Statements - Presentation of Items of Other
Comprehensive Income (OCI) (Amendments)
The amendments to PAS 1 change the grouping of items presented in OCI. Items that can be
reclassified (or “recycled”) to profit or loss at a future point in time (for example, upon
derecognition or settlement) will be presented separately from items that will never be
recycled. The amendment is applied retrospectively and resulted to the modification of the
presentation of items in OCI.

PAS 19, Employee Benefits (Revised)
On January 1, 2013, the Company adopted the Revised PAS 19 Employee Benefits.
For defined benefit plans, the Revised PAS 19 requires all actuarial gains and losses to be
recognized in other comprehensive income and unvested past service costs previously
recognized over the average vesting period to be recognized immediately in profit or loss
when incurred.
Prior to adoption of the Revised PAS 19, the Company recognized actuarial gains and losses
as income or expense when the net cumulative unrecognized gains and losses for each
individual plan at the end of the previous period exceeded 10% of the higher of the defined
benefit obligation and the fair value of the plan assets, and recognized unvested past service
costs as an expense on a straight-line basis over the average vesting period until the benefits
become vested. Upon the adoption of the revised PAS 19, the Company changed its
accounting policy to recognize all actuarial gains and losses in other comprehensive income
and all past service costs in profit or loss in the period they occur.
The Revised PAS 19 replaced the interest cost and expected return on plan assets with the
concept of net interest on defined benefit liability or asset which is calculated by multiplying
the net balance sheet defined benefit liability or asset by the discount rate used to measure the
employee benefit obligation, each as at the beginning of the annual period.
The Revised PAS 19 also amended the definition of short-term employee benefits and requires
employee benefits to be classified as short-term based on expected timing of settlement rather
than the employee’s entitlement to the benefits. In addition, the Revised PAS 19 modifies the
timing of recognition for termination benefits. The modification requires the termination
benefits to be recognized at the earlier of when the offer cannot be withdrawn or when the
related restructuring costs are recognized.
The Company reviewed its existing employee benefits and determined that the amended
standard has significant impact on its accounting for retirement benefits. The Company
obtained the services of an external actuary to compute the impact to the financial statements
upon adoption of the standard.
20
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-4The effects are detailed below:
Statement of financial position
Increase (Decrease) in:
Net pension liabilities
Retained earnings
December 31
2012
January 1
2012
P
=3,257,747
(2,304,360)
(953,387)
P180,477
=
(126,334)
(54,143)
2012
Statement of comprehensive income
Increase (decrease) in:
Pension expense
Income tax expense
Net income
(P
=34,196)
933,440
(899,244)
(2,178,026)
The adoption did not have an impact on the Company’s statements of cash flows.
Change of presentation
Upon adoption of the Revised PAS 19, the presentation of the statement of comprehensive
income statement was updated to reflect these changes. Net interest is now shown under the
interest expense line item (previously under salaries, wages and employee benefits). This
presentation better reflects the nature of net interest since it corresponds to the compounding
effect of the long-term net defined benefit liability. In the past, the expected return on plan
assets reflected the individual performance of the plan assets, which were regarded as part of
the operating activities.

PAS 27, Separate Financial Statements (as revised in 2011)
As a consequence of the issuance of the new PFRS 10 and PFRS 12, what remains of PAS 27
is limited to accounting for subsidiaries, JCEs and associates in the separate financial
statements. The amendment had no impact on the Company’s financial position or
performance since it has no subsidiaries, JCE and associates.

PAS 28, Investments in Associates and Joint Ventures (as revised in 2011)
As a consequence of the issuance of the new PFRS 11 and PFRS 12, PAS 28 has been
renamed and describes the application of the equity method to investments in joint ventures in
addition to associates. The amendment did not have an impact on the Company’s financial
statements since the Company does not have investments in associates and joint ventures.

Philippine Interpretation IFRIC 20, Stripping Costs in the Production Phase of a Surface Mine
This interpretation applies to waste removal costs (“stripping costs”) that are incurred in
surface mining activity during the production phase of the mine (“production stripping costs”).
The interpretation is not relevant to the Company as the Company is not involved in mining
activities.
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21
-5The Annual Improvements to PFRS (2009-2011 cycle) contain non-urgent but necessary
amendments to PFRS. The adoption of the following amendments resulted in changes to
accounting policies but did not have impact on the financial position of performance of the
Company.

PFRS 1, First-time Adoption of PFRS - Borrowing Costs
The amendment clarifies that, upon adoption of PFRS, an entity that capitalized borrowing
costs in accordance with its previous generally accepted accounting principles, may carry
forward, without any adjustment, the amount previously capitalized in its opening statement of
financial position at the date of transition. Subsequent to the adoption of PFRS, borrowing
costs are recognized in accordance with PAS 23, Borrowing Costs. The amendment does not
apply to the Company as it is not a first-time adopter of PFRS.

PAS 1, Presentation of Financial Statements - Clarification of the Requirements for
Comparative Information
The amendments clarify the requirements for comparative information that are disclosed
voluntarily and those that are mandatory due to retrospective application of an accounting
policy, or retrospective restatement or reclassification of items in the financial statements. An
entity must include comparative information in the related notes to the financial statements
when it voluntarily provides comparative information beyond the minimum required
comparative period. The additional comparative period does not need to contain a complete
set of financial statements. On the other hand, supporting notes for the third balance sheet
(mandatory when there is a retrospective application of an accounting policy, or retrospective
restatement or reclassification of items in the financial statements) are not required. The
amendment did not have impact on the Company’s financial statements since the comparative
information disclosures are already in accordance with the requirements of revised PAS 1.

PAS 16, Property, Plant and Equipment - Classification of Servicing Equipment
The amendment clarifies that spare parts, stand-by equipment and servicing equipment should
be recognized as property, plant and equipment when they meet the definition of property,
plant and equipment and should be recognized as inventory if otherwise. The amendment did
not have an impact on the Company’s financial position or performance since the Company
does not have this type of equipment.

PAS 32, Financial Instruments: Presentation - Tax Effect of Distribution to Holders of Equity
Instruments
The amendment clarifies that income taxes relating to distributions to equity holders and to
transaction costs of an equity transaction are accounted for in accordance with PAS 12,
Income Taxes. The amendment did not have an impact on the Company’s financial position
or performance since no transaction occurred during the year.

PAS 34, Interim Financial Reporting - Interim financial reporting and segment information
for total assets and liabilities
The amendment clarifies that the total assets and liabilities for a particular reportable segment
need to be disclosed only when the amounts are regularly provided to the chief operating
decision maker and there has been a material change from the amount disclosed in the entity’s
previous annual financial statements for that reportable segment. The amendment did not
have any significant impact on the Company’s financial position or performance since it is not
required to issue interim financial statements nor any segment information.
22
*SGVFS004628*
-6Standards Issued but not yet Effective
Enumerated below are standards issued but not yet effective up to the dates of issuance of the
Company’s financial statements. The Company will adopt the relevant standards when they
become effective. The Company did not expect the adoption of these new and amended PFRS to
have significant impact on the financial statements.
Effective 2014

PAS 19, Employee Benefits – Defined Benefit Plans: Employee Contributions (Amendments)
The amendments apply to contributions from employees or third parties to defined benefit
plans. Contributions that are set out in the formal terms of the plan shall be accounted for as
reductions to current service costs if they are linked to service or as part of the
remeasurements of the net defined benefit asset or liability if they are not linked to service.
Contributions that are discretionary shall be accounted for as reductions of current service cost
upon payment of these contributions to the plans.

PAS 32, Financial Instruments: Presentation - Offsetting Financial Assets and Financial
Liabilities (Amendments)
The amendments clarify the meaning of “currently has a legally enforceable right to set-off”
and also clarify the application of the PAS 32 offsetting criteria to settlement systems (such as
central clearing house systems) which apply gross settlement mechanisms that are not
simultaneous.

PAS 36, Impairment of Assets - Recoverable Amount Disclosures for Non-Financial Assets
(Amendments)
These amendments remove the unintended consequences of PFRS 13 on the disclosures
required under PAS 36. In addition, these amendments require disclosure of the recoverable
amounts for the assets or cash-generating units (CGUs) for which impairment loss has been
recognized or reversed during the period.

Amendments to PAS 39, Financial Instruments: Recognition and Measurement - Novation of
Derivatives and Continuation of Hedge Accounting
These amendments provide relief from discontinuing hedge accounting when novation of a
derivative designated as a hedging instrument meets certain criteria.

Investment Entities (Amendments to PFRS 10, PFRS 12 and PAS 27)
These amendments are effective for annual periods beginning on or after January 1, 2014.
They provide an exception to the consolidation requirement for entities that meet the
definition of an investment entity under PFRS 10. The exception to consolidation requires
investment entities to account for subsidiaries at fair value through profit or loss.

Philippine Interpretation IFRIC 21, Levies (IFRIC 21)
The interpretation clarifies that an entity recognizes a liability for a levy when the activity that
triggers payment, as identified by the relevant legislation, occurs. For a levy that is triggered
upon reaching a minimum threshold, the interpretation clarifies that no liability should be
anticipated before the specified minimum threshold is reached.
*SGVFS004628*
23
-7Annual Improvements to PFRSs (2010-2012 cycle)
The Annual Improvements to PFRSs (2010-2012 cycle) contain non-urgent but necessary
amendments to the following standards:

PFRS 2, Share-based Payment – Definition of Vesting Condition
The amendment revised the definitions of vesting condition and market condition and added
the definitions of performance condition and service condition to clarify various issues. The
amendment will not have any impact on the Company’s financial statements.

PFRS 3, Business Combinations – Accounting for Contingent Consideration in a Business
Combination
The amendment clarifies that a contingent consideration that meets the definition of a
financial instrument should be classified as a financial liability or as equity in accordance with
PAS 32. Contingent consideration that is not classified as equity is subsequently measured at
fair value through profit or loss whether or not it falls within the scope of PFRS 9 (or PAS 39,
if PFRS 9 is not yet adopted). The Company shall consider this amendment for future
business combinations.

PFRS 8, Operating Segments – Aggregation of Operating Segments and Reconciliation of the
Total of the Reportable Segments’ Assets to the Entity’s Assets
The amendments require entities to disclose the judgment made by management in
aggregating two or more operating segments. This disclosure should include a brief
description of the operating segments that have been aggregated in this way and the economic
indicators that have been assessed in determining that the aggregated operating segments share
similar economic characteristics. The amendments also clarify that an entity shall provide
reconciliations of the total of the reportable segments’ assets to the entity’s assets if such
amounts are regularly provided to the chief operating decision maker. The amendments affect
disclosures only and have no impact on the Company’s financial position or performance.

PFRS 13, Fair Value Measurement – Short-term Receivables and Payables
The amendment clarifies that short-term receivables and payables with no stated interest rates
can be held at invoice amounts when the effect of discounting is immaterial.

PAS 16, Property, Plant and Equipment – Revaluation Method – Proportionate Restatement
of Accumulated Depreciation
The amendment clarifies that, upon revaluation of an item of property, plant and equipment,
the carrying amount of the asset shall be adjusted to the revalued amount, and the asset shall
be treated in one of the following ways:
a. The gross carrying amount is adjusted in a manner that is consistent with the revaluation
of the carrying amount of the asset. The accumulated depreciation at the date of
revaluation is adjusted to equal the difference between the gross carrying amount and the
carrying amount of the asset after taking into account any accumulated impairment losses.
b. The accumulated depreciation is eliminated against the gross carrying amount of the asset.
The amendment will not have any impact on the Company’s financial position or
performance.
24
*SGVFS004628*
-8
PAS 24, Related Party Disclosures – Key Management Personnel
The amendments clarify that an entity is a related party of the reporting entity if the said
entity, or any member of a group for which it is a part of, provides key management personnel
services to the reporting entity or to the parent Company of the reporting entity. The
amendments also clarify that a reporting entity that obtains management personnel services
from another entity (also referred to as management entity) is not required to disclose the
compensation paid or payable by the management entity to its employees or directors. The
reporting entity is required to disclose the amounts incurred for the key management
personnel services provided by a separate management entity. The amendments affect
disclosures only and have no impact on the Company’s financial position or performance.

PAS 38, Intangible Assets – Revaluation Method – Proportionate Restatement of Accumulated
Amortization
The amendments clarify that, upon revaluation of an intangible asset, the carrying amount of
the asset shall be adjusted to the revalued amount, and the asset shall be treated in one of the
following ways:
a. The gross carrying amount is adjusted in a manner that is consistent with the revaluation
of the carrying amount of the asset. The accumulated amortization at the date of
revaluation is adjusted to equal the difference between the gross carrying amount and the
carrying amount of the asset after taking into account any accumulated impairment losses.
b. The accumulated amortization is eliminated against the gross carrying amount of the asset.
The amendments also clarify that the amount of the adjustment of the accumulated
amortization should form part of the increase or decrease in the carrying amount accounted for
in accordance with the standard. The amendments have no impact on the Company’s financial
position or performance since it is has no intangible assets.
Annual Improvements to PFRSs (2011-2013 cycle)
The Annual Improvements to PFRSs (2011-2013 cycle) contain non-urgent but necessary
amendments to the following standards:

PFRS 1, First-time Adoption of Philippine Financial Reporting Standards – Meaning of
‘Effective PFRSs’
The amendment clarifies that an entity may choose to apply either a current standard or a new
standard that is not yet mandatory, but that permits early application, provided either standard
is applied consistently throughout the periods presented in the entity’s first PFRS financial
statements. This amendment is not applicable to the Company as it is not a first-time adopter
of PFRS.

PFRS 3, Business Combinations – Scope Exceptions for Joint Arrangements
The amendment clarifies that PFRS 3 does not apply to the accounting for the formation of a
joint arrangement in the financial statements of the joint arrangement itself.

PFRS 13, Fair Value Measurement – Portfolio Exception
The amendment clarifies that the portfolio exception in PFRS 13 can be applied to financial
assets, financial liabilities and other contracts. The amendment has no significant impact on
the Company’s financial position or performance.
*SGVFS004628*
25
-9
PAS 40, Investment Property
The amendment clarifies the interrelationship between PFRS 3 and PAS 40 when classifying
property as investment property or owner-occupied property. The amendment stated that
judgment is needed when determining whether the acquisition of investment property is the
acquisition of an asset or a group of assets or a business combination within the scope of
PFRS 3. This judgment is based on the guidance of PFRS 3. The amendment has no
significant impact on the Company’s financial position or performance since it has no
investment property.
Interpretation with Deferred Effectivity Date

Philippine Interpretation IFRIC 15, Agreements for the Construction of Real Estate
This interpretation covers accounting for revenue and associated expenses by entities that
undertake the construction of real estate directly or through subcontractors. The SEC and the
Financial Reporting Standards Council have deferred the effectivity of this interpretation until
the final Revenue standard is issued by the International Accounting Standards Board and an
evaluation of the requirements of the final Revenue standard against the practices of the
Philippine real estate industry is completed.

effective date yet
 PFRS 9, Financial Instruments
PFRS 9, as issued, reflects the first and third phases of the project to replace PAS 39 and
applies to the classification and measurement of financial assets and liabilities and hedge
accounting, respectively. Work on the second phase, which relate to impairment of financial
instruments, and the limited amendments to the classification and measurement model is still
ongoing, with a view to replace PAS 39 in its entirety. PFRS 9 requires all financial assets to
be measured at fair value at initial recognition. A debt financial asset may, if the fair value
option (FVO) is not invoked, be subsequently measured at amortized cost if it is held within a
business model that has the objective to hold the assets to collect the contractual cash flows
and its contractual terms give rise, on specified dates, to cash flows that are solely payments of
principal and interest on the principal outstanding. All other debt instruments are
subsequently measured at FVPL. All equity financial assets are measured at fair value either
through OCI or profit or loss. Equity financial assets held for trading must be measured at
FVPL. For liabilities designated as at FVPL using the fair value option, the amount of change
in the fair value of a liability that is attributable to changes in credit risk must be presented in
OCI. The remainder of the change in fair value is presented in profit or loss, unless
presentation of the fair value change relating to the entity’s own credit risk in OCI would
create or enlarge an accounting mismatch in profit or loss. All other PAS 39 classification and
measurement requirements for financial liabilities have been carried forward to PFRS 9,
including the embedded derivative bifurcation rules and the criteria for using the FVO. The
adoption of the first phase of PFRS 9 will have an effect on the classification and
measurement of the Company’s financial assets, but will potentially have no impact on the
classification and measurement of financial liabilities.
On hedge accounting, PFRS 9 replaces the rules-based hedge accounting model of PAS 39
with a more principles-based approach. Changes include replacing the rules-based hedge
effectiveness test with an objectives-based test that focuses on the economic relationship
between the hedged item and the hedging instrument, and the effect of credit risk on that
economic relationship; allowing risk components to be designated as the hedged item, not
only for financial items, but also for non-financial items, provided that the risk component is
26
*SGVFS004628*
- 10 separately identifiable and reliably measurable; and allowing the time value of an option, the
forward element of a forward contract and any foreign currency basis spread to be excluded
from the designation of a financial instrument as the hedging instrument and accounted for as
costs of hedging. PFRS 9 also requires more extensive disclosures for hedge accounting.
PFRS 9 currently has no mandatory effective date. PFRS 9 may be applied before the
completion of the limited amendments to the classification and measurement model and
impairment methodology.
4.
Summary of Significant Accounting Policies
Cash and cash equivalents
Cash includes cash on hand and in banks. Cash equivalents are short-term, highly liquid
investments that are readily convertible to known amounts of cash with original maturities of three
months or less from dates of placement and that are subject to an insignificant risk of changes in
value.
Short-term Investments
Short-term investments are short-term, highly liquid investments that are readily convertible to
known amounts of cash with original maturities of more than three months but less than one year
from dates of placement. These earn interests at the respective short-term investment rates.
Long-term Investments
Long-term investments are investments that are convertible to known amounts of cash with
original maturities of more than one year from dates of placement. These earn interest at the
respective long-term investment rates.
Receivables
Receivables are recognized on policy inception dates and measured on initial recognition at the
fair value of the consideration receivable for the period of coverage. Subsequent to initial
recognition, receivables are measured at amortized cost. The carrying value of receivables is
reviewed for impairment whenever events or circumstances indicate that the carrying amount may
not be recoverable, with the impairment loss recorded in statement of comprehensive income.
Financial Instruments
Date of recognition
Financial instruments are recognized in the statement of financial position when the Company
becomes a party to the contractual provisions of the instrument. Purchases or sales of financial
assets that require delivery of assets within the time frame established by regulation or convention
in the marketplace are recognized on the trade date.
Initial recognition of financial instruments
Financial instruments are initially recognized at fair value of the consideration given (in case of an
asset) or received (in case of a liability). Except for financial instruments at fair value through
profit or loss (FVPL), the initial measurement of financial assets includes transaction costs. The
Company classifies its financial assets in the following categories: loans and receivables and AFS
investment (under other assets). The Company classifies its financial liabilities into other
financial liabilities. Management determines the classification of its investments at initial
recognition and, where allowed and appropriate, re-evaluates such designation at every end of the
reporting period.
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27
- 11 Fair Value Measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:
 In the principal market for the asset or liability, or
 In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible to the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their
economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant's ability
to generate economic benefits by using the asset in its highest and best use or by selling it to
another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable
inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorized within the fair value hierarchy, described as follows, based on the lowest level
input that is significant to the fair value measurement as a whole:



Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable
For assets and liabilities that are recognized in the financial statements on a recurring basis, the
Company determines whether transfers have occurred between Levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
Day 1 profit
Where the transaction price in a non-active market is different from the fair value from other
observable current market transactions in the same instrument or based on a valuation technique
whose variables include only data from observable market, the Company recognizes the difference
between the transaction price and fair value (a ‘Day 1’ profit) in statement of comprehensive
income unless it qualifies for recognition as some other type of asset. In cases where an
unobservable data is used, the difference between the transaction price and model value is only
recognized in statement of comprehensive income when the inputs become observable or when the
instrument is derecognized. For each transaction, the Company determines the appropriate
method of recognizing the ‘Day 1’ profit amount.
28
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- 12 Loans and receivables
Loans and receivables are financial assets with fixed or determinable payments and fixed
maturities that are not quoted in an active market. They are not entered into with the intention of
immediate or short-term resale and are not classified as financial assets held for trading,
designated as AFS or FVPL. This accounting policy relates to the “Cash and cash equivalents”,
“Short-term investments” and “Receivables” account.
After initial measurement, the loans and receivables are subsequently measured at amortized cost
using the effective interest rate method, less allowance for impairment. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees that are an
integral part of the effective interest rate. The amortization is included in the Investment and other
income account in statement of comprehensive income. The losses arising from impairment of
such loans and receivables are recognized in statement of comprehensive income.
AFS investments
AFS investments are those which are designated as such or do not qualify to be classified as
designated at FVPL, HTM or loans and receivables. They are purchased and held indefinitely,
and may be sold in response to liquidity requirements or changes in market conditions.
After initial measurement, AFS investments are subsequently measured at cost. Dividends earned
on holding AFS investments are recognized in statement of comprehensive income when the right
to receive the payment has been established. The unrealized gains and losses arising from the fair
valuation of AFS investments are reported in other comprehensive income. The losses arising
from impairment of such investments are recognized in statement of comprehensive income.
When the security is disposed of, the cumulative gain or loss previously recognized in other
comprehensive income is recognized as realized gains or losses in statement of comprehensive
income. When the Company holds more than one investment in the same security, the cost is
determined using the weighted average method.
When the fair value of AFS investments cannot be measured reliably because of lack of reliable
estimates of future cash flows and discount rates necessary to calculate the fair value of unquoted
equity instruments, these investments are carried at cost.
Other financial liabilities
Issued financial instruments or their components, which are not designated at FVPL are classified
as other financial liabilities, where the substance of the contractual arrangement results in the
Company having an obligation either to deliver cash or another financial asset to the holder, or to
satisfy the obligation other than by the exchange of a fixed amount of cash or another financial
asset for a fixed number of own equity shares.
After initial measurement, other financial liabilities are subsequently measured at amortized cost
using the effective interest rate method. Amortized cost is calculated by taking into account any
discount or premium on the issue and fees that are an integral part of the effective interest rate.
Any effects of restatement of foreign currency-denominated liabilities are recognized in the
statement of comprehensive income.
This accounting policy applies primarily to the Company’s “Trade and other payables” and other
obligations that meet the above definition (other than liabilities covered by other accounting
standards such as income tax payable).
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29
- 13 Impairment of Financial Assets
The Company assesses at each end of the reporting period whether there is objective evidence that
a financial asset or a group of financial assets is impaired. A financial asset or a group of financial
assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a
result of one or more events that has occurred after the initial recognition of the asset (an incurred
‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the
financial asset or the group of financial assets that can be reliably estimated.
Evidence of impairment may include indications that the borrower or a group of borrowers is
experiencing significant financial difficulty, default or delinquency in interest or principal
payments, the probability that they will enter bankruptcy or other financial reorganization and
where observable data indicate that there is measurable decrease in the estimated future cash
flows, such as changes in arrears or economic conditions that correlate with defaults.
Loans and Receivables
For loans and receivables carried at amortized cost, the Company first assesses whether objective
evidence of impairment exists for financial assets that are individually significant, or collectively
for financial assets that are not individually significant. If the Company determines that no
objective evidence of impairment exists for individually assessed financial asset, whether
significant or not, it includes the asset in a group of financial assets with similar credit risk
characteristics and collectively assesses for impairment.
Assets that are individually assessed for impairment and for which an impairment loss is, or
continues to be, recognized are not included in a collective assessment for impairment.
If there is objective evidence that an impairment loss has been incurred, the amount of the loss is
measured as the difference between the asset’s carrying amount and the present value of the
estimated future cash flows. The carrying amount of the asset is reduced through the use of an
allowance account and the amount of loss is charged to the statement of comprehensive income.
Receivables, together with the associated allowance accounts, are written off when there is no
realistic prospect of future recovery and all collateral has been realized. If, in a subsequent period,
the amount of the estimated impairment loss decreases because of an event occurring after the
impairment was recognized, the previously recognized impairment loss is reversed.
Any subsequent reversal of an impairment loss is recognized in the statement of comprehensive
income, to the extent that the carrying value of the asset does not exceed its amortized cost at the
reversal date.
The present value of the estimated future cash flows is discounted at the financial asset’s original
effective interest rate. Time value is generally not considered when the effect of discounting is not
material. If a loan has a variable interest rate, the discount rate for measuring any impairment loss
is the current effective interest rate, adjusted for the original credit risk premium. The calculation
of the present value of the estimated future cash flows of a collateralized financial asset reflects
the cash flows that may result from foreclosure less costs for obtaining and selling the collateral,
whether or not foreclosure is probable.
For the purpose of a collective evaluation of impairment, financial assets are grouped on the basis
of credit risk characteristics such as type of borrower, collateral type, past-due status and term.
30
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- 14 Future cash flows in a group of financial assets that are collectively evaluated for impairment are
estimated on the basis of historical loss experience for assets with credit risk characteristics similar
to those in the group. Historical loss experience is adjusted on the basis of current observable data
to reflect the effects of current conditions that did not affect the period on which the historical loss
experience is based and to remove the effects of conditions in the historical period that do not exist
currently. The methodology and assumptions used for estimating future cash flows are reviewed
regularly by the Company to reduce any difference between loss estimates and actual loss
experience.
AFS investments carried at cost
If there is an objective evidence that an impairment loss on an unquoted equity instrument that is
not carried at fair value because its fair value cannot be reliably measured, or on a derivative asset
that is linked to and must be settled by delivery of such unquoted equity instrument has been
incurred, the amount of the loss is measured as the difference between the asset’s carrying amount
and the present value of estimated future cash flows discounted at the current market rate of return
for a similar financial asset.
Offsetting of Financial Instruments
Financial assets and financial liabilities are offset and the net amount is reported in the statement
of financial position if, and only if, there is a currently enforceable legal right to offset the
recognized amounts and there is an intention to settle on a net basis, or to realize the asset and
settle the liability simultaneously.
Derecognition of Financial Assets and Liabilities
Financial Asset
A financial asset (or, where applicable a part of a financial asset or part of a group of similar
financial assets) is derecognized where:



the right to receive cash flows from the asset has expired;
the Company retains the right to receive cash flows from the asset, but has assumed an
obligation to pay them in full without material delay to a third party under a ‘pass-through’
arrangement; or
the Company has transferred its right to receive cash flows from the asset and either (a) has
transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the
asset.
Where the Company has transferred its right to receive cash flows from an asset and has neither
transferred nor retained substantially all the risks and rewards of the asset nor transferred control
of the asset, the asset is recognized to the extent of the Company’s continuing involvement in the
asset.
Financial Liability
A financial liability is derecognized when the obligation under the liability is discharged,
cancelled or has expired. Where an existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as a derecognition of the original liability
and the recognition of a new liability, and the difference in the respective carrying amounts is
recognized in statement of comprehensive income.
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31
- 15 Property and Equipment
Property and equipment are stated at cost, net of accumulated depreciation and amortization and
any impairment in value.
The initial cost of property and equipment comprises its purchase price, including nonrefundable
taxes and any directly attributable costs of bringing the asset to its working condition and location
for its intended use. Subsequent costs are included in the asset’s carrying amount or recognized as
a separate asset, as appropriate, only when it is probable that future economic benefits associated
with the item will flow to the Company and the cost of the item can be measured reliably. All
other repairs and maintenance are charged to the statement of comprehensive income during the
financial period in which they are incurred.
Depreciation on computer equipment, office furniture and fixture and transportation equipment is
computed using the straight-line method over the estimated useful life (EUL) of three (3) years,
three (3) years and five (5) years, respectively.
Fully depreciated assets are retained in the accounts until they are no longer in use and no further
charge for depreciation is made with respect to these assets.
The estimated useful lives and depreciation and amortization method are reviewed periodically to
ensure that the period and method of depreciation and amortization are consistent with the
expected pattern of economic benefits from items of property and equipment.
When property and equipment are retired or otherwise disposed of, the cost and the related
accumulated depreciation and amortization and accumulated provision for impairment losses, if
any, are removed from the accounts. Any gain or loss arising on derecognition of the assets,
which is calculated as the difference between the net disposal proceeds and the carrying amount of
the asset, is included in the statement of comprehensive income in the year the asset is
derecognized.
Impairment of Nonfinancial Assets
The Company assesses at each end of the reporting period whether there is an indication that
property and equipment may be impaired. If any such indication exists, or when annual
impairment testing for an asset is required, the Company makes an estimate of the asset’s
recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating
unit’s fair value less costs to sell and its value in use and is determined for an individual asset,
unless the asset does not generate cash inflows that are largely independent of those from other
assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount,
the asset is considered impaired and is written down to its recoverable amount. In assessing value
in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset.
An assessment is made at each end of the reporting period as to whether there is any indication
that previously recognized impairment losses may no longer exist or may have decreased. If such
indication exists, the recoverable amount is estimated. A previously recognized impairment loss is
reversed only if there has been a change in the estimates used to determine the asset’s recoverable
amount since the last impairment loss was recognized. If that is the case, the carrying amount of
the asset is increased to its recoverable amount. That increased amount cannot exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss
been recognized for the asset in prior years. Such reversal is recognized in statement of
comprehensive income unless the asset is carried at revalued amount, in which case, the reversal is
32
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- 16 treated as a revaluation increase. After such reversal the depreciation charge is adjusted in future
periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic
basis over its remaining useful life.
Defined benefit plan
The net defined benefit liability or asset is the aggregate of the present value of the defined benefit
obligation at the end of the reporting period reduced by the fair value of plan assets (if any),
adjusted for any effect of limiting a net defined benefit asset to the asset ceiling. The asset ceiling
is the present value of any economic benefits available in the form of refunds from the plan or
reductions in future contributions to the plan.
The cost of providing benefits under the defined benefit plans is actuarially determined using the
projected unit credit method.
Defined benefit costs comprise the following:
 Service cost
 Net interest on the net defined benefit liability or asset
 Remeasurements of net defined benefit liability or asset
Service costs which include current service cost, past service cost and gains or losses on nonroutine settlements are recognized as expense in profit or loss. Past service costs are recognized
when plan amendment or curtailment occurs. These amounts are calculated periodically by
independent qualified actuaries.
Net interest on the net defined benefit liability or asset is the change during the period in the net
defined benefit liability or asset that arises from the passage of time which is determined by
applying the discount rate based on government bonds to the net defined benefit liability or asset.
Net interest on the net defined benefit liability or asset is recognized as expense or income in
profit or loss.
Remeasurements comprising actuarial gains and losses, return on plan assets and any change in
the effect of the asset ceiling (excluding net interest on defined benefit liability) are recognized
immediately in other comprehensive income in the period in which they arise. Remeasurements
are not reclassified to profit or loss in subsequent periods.
Plan assets are assets that are held by a long-term employee benefit fund or qualifying insurance
policies. Plan assets are not available to the creditors of the Company, nor can they be paid
directly to the Company. Fair value of plan assets is based on market price information. When no
market price is available, the fair value of plan assets is estimated by discounting expected future
cash flows using a discount rate that reflects both the risk associated with the plan assets and the
maturity or expected disposal date of those assets (or, if they have no maturity, the expected
period until the settlement of the related obligations). If the fair value of the plan assets is higher
than the present value of the defined benefit obligation, the measurement of the resulting defined
benefit asset is limited to the present value of economic benefits available in the form of refunds
from the plan or reductions in future contributions to the plan.
*SGVFS004628*
33
- 17 Equity
Capital stock is recognized as issued when the stock is paid for or subscribed under a binding
subscription agreement and is measured at par value. When the shares are sold at a premium, the
difference between the proceeds and the par value is credited to Additional Paid-in Capital
account. Share issuance costs incurred as necessary part of completing an equity transaction are
accounted for as part of that transaction and are treated as a deduction from Additional Paid-in
Capital from previous share issuance. If the Additional Paid-in Capital account is not sufficient,
the excess is deducted from retained earnings.
Deposits for future stock subscription (DFFSS) refer to the amount received by the Company as a
deposit with the possibility of applying the same as payment for the future issuance of capital
stock. DFFSS is classified as liability if the increase in authorized capital stock has not yet been
applied to the Securities and Exchange Commission (SEC). Otherwise, this is classified under
equity.
Revenue
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured. The following specific recognition criteria
must also be met before revenue is recognized:
Commission income
The Company recognizes commission income based on premium billings upon rendition of
services to the insured and upon issuance of policies by the insurer. Premiums due from insured
are collectible by the Company for the account of the insurer and are remittable to them within the
credit term.
Interest income
Interest income is recognized in the company statement of comprehensive income as it accrues,
taking into account the effective yield of the asset.
Other income
Income from other sources is recognized when earned.
General and Administrative Expenses
Expense is recognized when decrease in future economic benefits related to a decrease in an asset
or an increase of a liability has arisen and expense can be measured reliably. Expenses are
recognized in the statement of comprehensive income as they are incurred.
Leases
The determination of whether an arrangement is, or contains a lease, is based on the substance of
the arrangement and requires an assessment of whether the fulfillment of the arrangement is
dependent on the use of a specific asset or assets and the arrangement conveys a right to use the
asset. A reassessment is made after inception of the lease only if one of the following applies:
a. There is a change in contractual terms, other than a renewal or extension of the arrangement;
b. A renewal option is exercised or extension granted, unless that term of the renewal or
extension was initially included in the lease term;
c. There is a change in the determination of whether fulfillment is dependent on a specified asset
or;
d. There is a substantial change to the asset.
Where a reassessment is made, lease accounting shall commence or cease from the date when the
34
*SGVFS004628*
- 18 change in circumstances gave rise to the reassessment for scenarios (a), (c) or (d) above, and at the
date of renewal or extension period for scenario (b).
Company as a lessee
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are
classified as operating leases. Fixed lease payments are recognized as an expense in the company
statement of comprehensive income on a straight-line basis.
Income Tax
Current tax
Current tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted or substantively enacted at the end of the
reporting period.
Deferred tax
Deferred tax is provided, using the liability method, on all temporary differences at the end of the
reporting period between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
Deferred tax liabilities are recognized for all taxable temporary differences, including asset
revaluations. Deferred tax assets are recognized for all deductible temporary differences, to the
extent that it is probable that sufficient taxable profit will be available against which the deductible
temporary differences can be utilized. Deferred tax, however, is not recognized on temporary
differences that arise from the initial recognition of an asset or liability in a transaction that is not a
business combination and, at the time of the transaction, affects neither the accounting income nor
taxable income or loss.
The carrying amount of deferred tax assets is reviewed at each end of the reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profit will be available to
allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are
reassessed at each end of the reporting period and are recognized to the extent that it has become
probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are applicable to the period
when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the end of the reporting period. Movements in the deferred tax
assets and liabilities arising from changes in tax rates are charged against or credited to income for
the period.
Current tax and deferred tax relating to items recognized as other comprehensive income is also
recognized in the company statement of other comprehensive income.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set
off current tax assets against current tax liabilities and deferred taxes related to the same taxable
entity and the same taxation authority.
Provisions
Provisions are recognized when the Company has a present obligation (legal or constructive) as a
result of a past event and it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation. Where the Company expects some or all of a provision to be reimbursed, for example,
*SGVFS004628*
35
- 19 under an insurance contract, the reimbursement is recognized as a separate asset but only when the
reimbursement is virtually certain. The expense relating to any provision is presented in the
statement of income, net of any reimbursement. If the effect of the time value of money is
material, provisions are determined by discounting the expected future cash flows at a pre-tax rate
that reflects current market assessments of the time value of money and, where appropriate, the
risks specific to the liability. Where discounting is used, the increase in the provision due to the
passage of time is recognized as an interest expense.
Contingencies
Contingent liabilities are not recognized in the company financial statements but are disclosed
unless the possibility of an outflow of resources embodying economic benefits is remote.
Contingent assets are not recognized but are disclosed in the Company financial statements when
an inflow of economic benefits is probable.
Events after the End of the Reporting Period
Any post year-end event that provides additional information about the Company’s position at the
end of the reporting period (adjusting event) is reflected in the financial statements. Post year-end
events that are not adjusting events, if any, are disclosed when material to the financial statements.
5. Significant Accounting Judgments, Estimates and Assumptions
The preparation of the accompanying Company financial statements in accordance with PFRS
requires the Company to make judgments and estimates that affect the amounts reported in the
Company financial statements and accompanying notes. The estimates and assumptions used in
the accompanying Company financial statements are based upon management’s evaluation of
relevant facts and circumstances as of the date of the Company financial statements. Actual
results could differ from such estimates.
Judgments
Classification of financial assets
The Company classifies financial assets by evaluating, among others, whether the asset is quoted
or not in an active market. Included in the evaluation on whether a financial asset is quoted in an
active market is the determination on whether quoted prices are readily and regularly available,
and whether those prices represent actual and regularly occurring market transactions on an arm’slength basis.
Operating lease commitments - Company as lessee
The Company has entered into a contract of lease for the office space it occupies. The Company
has determined that all significant risks and rewards of ownership on these properties will be
retained by the lessor.
Management’s Use of Estimates
The key assumptions concerning the future and other key sources of estimation uncertainty at each
reporting date, that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are discussed below.
Estimation of allowance for impairment losses of receivables
The Company maintains allowance for impairment losses at a level considered adequate to
provide for potential uncollectible receivables. The level of this allowance is evaluated by
management on the basis of factors that affect the collectibility of the accounts. These factors
include, but are not limited to, age of balances, financial status of counterparties, and legal opinion
36
*SGVFS004628*
- 20 on recoverability in case of legal disputes. The Company reviews the age and status of
receivables, and identifies accounts that are to be provided with allowance on a regular basis.
The amount and timing of recorded expenses for any period would differ if the Company made
different judgments or utilized different estimates. An increase in allowance for impairment
losses would increase recorded expenses and decrease the related asset accounts.
The carrying value of receivables, net of impairment losses, amounted to P
=113,085,129 and
P16,819,520 as of December 31, 2013 and 2012, respectively (Note 9). The related allowance for
=
impairment losses amounted to P
=72,000 and P
=73,778 as of December 31, 2013 and 2012,
respectively (Note 9).
Estimation of useful lives of property and equipment
The Company reviews annually the estimated useful lives of property and equipment based on the
period over which the assets are expected to be available for use. It is possible that future results
of operations could be materially affected by changes in these estimates. A reduction in the
estimated useful lives of property and equipment would increase recorded depreciation and
decrease the related asset accounts.
As of December 31, 2013 and 2012, property and equipment amounted to P
=1,059,539 and
=1,323,322, respectively (Note 11).
P
Impairment of nonfinancial assets
The Company assesses the impairment of its nonfinancial assets (i.e., property and equipment)
whenever events or changes in circumstances indicate that the carrying amount of the asset may
not be recoverable. The factors that the Company considers important which could trigger an
impairment review include the following:



significant underperformance relative to expected historical or projected future operating
results;
significant changes in the manner of use of the assets; and
significant negative industry or economic trends.
The Company recognizes an impairment loss whenever the carrying amount of an asset exceeds
its recoverable amount. Recoverable amounts are estimated for individual asset or, if it is not
possible, for the cash-generating unit to which the asset belongs.
As of December 31, 2013 and 2012, the Company has not recognized any impairment loss on its
nonfinancial assets.
Recognition of deferred tax assets
Deferred tax assets are recognized for all deductible temporary differences to the extent that it is
probable that taxable income will be available against which these can be utilized. Significant
management judgment is required to determine the amount of deferred tax assets that can be
recognized. These assets are periodically reviewed for realization. Periodic reviews cover the
nature and amount of deferred income and expense items, expected timing when assets will be
used or liabilities will be required to be reported, reliability of historical profitability of businesses
expected to provide future earnings and tax planning strategies which can be utilized to increase
the likelihood that tax assets will be realized.
As of December 31, 2013 and 2012, the Company’s net deferred tax assets amounted to
P1,564,022 and P
=
=1,298,954, respectively (Note 17)
*SGVFS004628*
37
- 21 -
Retirement and other employee benefits
The cost of defined benefit pension plans and other post employment benefits as well as the
present value of the pension obligation are determined using actuarial valuations. The actuarial
valuation involves making various assumptions. These include the determination of the discount
rates, future salary increases, mortality rates and future pension increases. Due to the complexity
of the valuation, the underlying assumptions and its long-term nature, defined benefit obligations
are highly sensitive to changes in these assumptions. All assumptions are reviewed at each
reporting date. The net benefit liability amounted to P
=4,238,733 and P
=3,338,075 as at December
31, 2013 and 2012, respectively. Further details are provided in Note 16.
In determining the appropriate discount rate, management considers the interest rates of
government bonds that are denominated in the currency in which the benefits will be paid, with
extrapolated maturities corresponding to the expected duration of the defined benefit obligation.
The mortality rate is based on publicly available mortality tables for the specific country and is
modified accordingly with estimates of mortality improvements. Future salary increases and
pension increases are based on expected future inflation rates for the specific
6. Cash and Cash Equivalents
This account consists of:
Cash:
Cash on hand
Cash in banks
Time deposits
2013
2012
P
=10,000
4,704,329
–
P
=4,714,329
=10,000
P
5,248,128
4,137,067
=9,395,195
P
Cash in banks earns interest that ranged from 0.25% to 1.5% in 2013 and in 2012. Time deposits
are short-term, highly liquid investments made for varying periods of up to three (3) months, and
earned interest at 3.50% in 2013 and 2012. Interest income earned from cash and cash equivalents
amounted to P
=193,998 and P
=323,694 in 2013 and 2012, respectively.
7. Short-term Investments
As of December 31, 2013 and 2012, the Company’s short-term investments amounted to
P3,668,630 and P
=
=3,561,045, respectively.
Short-term investments are short-term time deposits with original maturities of three (3) months to
twelve (12) months and earned interest at 3.00% to 3.75% and 3.50% to 4.75% in 2013 and 2012,
respectively. Interest income earned from short term investment amounted to P
=129,024 and
=60,902 in 2013 and 2012, respectively.
P
38
*SGVFS004628*
- 22 8. Long-term Investments
Long-term commercial paper pertains to time deposit placement in CARD Bank with a term of
five (5) years earning interest at 6% per annum. If withdrawn before maturity, this shall earn
interest based on the prevailing interest rate of CARD Bank for regular deposits. Interest income
earned in 2013 and 2012 amounted to P
=180,000 and P
=59,000, respectively.
9. Receivables
Accounts receivable
Others
Related parties (Note 15)
Commissions receivable
Interest receivable
Less: Allowance for impairment losses
2013
2012
P
=100,427,502
10,416,935
2,096,330
216,362
113,157,129
72,000
P
=113,085,129
=10,013,652
P
4,673,226
2,120,402
86,018
16,893,298
73,778
=16,819,520
P
Accounts receivable are non-interest-bearing and are generally on 1-30 day terms. These consist
of receivables from CARD Mutual Benefit Association, Inc. (MBA) for unremitted premiums and
receivables from Pioneer Intercontinental Insurance Corporation for unpaid claims.
Commissions receivable are non-interest-bearing and are generally on 1-30 day terms. These
consist mostly of receivables from Pioneer Intercontinental Insurance Corporation for
commissions on PAID plans sold.
Interest receivable pertains mainly to interest accrued arising from cash and cash equivalents and
short-term investments.
The allowance for impairment losses on accounts receivable follows:
Balance at January 1
Provisions
Reversals
Write-off
Balance at December 31
2013
P
=73,778
72,000
(73,778)
–
P
=72,000
2012
=1,814,338
P
–
(1,672,951)
(67,609)
=73,778
P
*SGVFS004628*
39
- 23 10. Available-for-sale Financial Asset
Available-for-sale financial asset pertain to unquoted equity securities amounting to
P11,021,246 and P
=
=40,766 in 2013 and 2012, respectively. As of December 31, 2013 and 2012, no
provision for impairment loss was recorded by the Company for its available-for-sale financial
asset.
In 2013, the Company purchased 98,040 common shares or equivalent of 2% of CARD Pioneer
Microinsurance Inc. (CPMI) amounting to P
=10,980,480.
The Company measures its available-for-sale financial assets at cost since its fair value cannot be
reliably measured and unquoted equity securities.
11. Property and Equipment
The rollforward analysis of this account follows:
2013
Cost
Additions
Accumulated Depreciation
Depreciation
Net Book Value
Computer
equipment
Office
furniture and Transportation
fixture
equipment
Total
P
=873,820
165,265
1,039,085
P
=110,377
9,200
119,577
P
= 856,000
–
856,000
P
= 1,840,197
174,465
2,014,662
415,183
237,425
652,608
P
=386,477
58,892
29,623
88,515
P
= 31,062
42,800
171,200
214,000
P
= 642,000
516,875
438,248
955,123
P
= 1,059,539
Computer
equipment
Office
furniture and
fixture
Transportation
equipment
Total
=602,558
P
271,262
873,820
=105,227
P
5,150
110,377
219,397
195,786
415,183
=458,637
P
25,950
32,942
58,892
=51,485
P
2012
Cost
Additions
Accumulated Depreciation
Depreciation
Net Book Value
=–
P
856,000
856,000
–
42,800
42,800
=813,200
P
=707,785
P
1,132,412
1,840,197
245,347
271,528
516,875
=1,323,322
P
The cost of fully depreciated property and equipment still in active use amounted to P
=216,085 and
P125,545 as of December 31, 2013 and 2012, respectively.
=
Depreciation expense charged against operations amounted to P
=438,248 and P
=271,528 in 2013 and
2012, respectively.
40
*SGVFS004628*
- 24 12. Other Assets
Creditable withholding tax
Advances
Supplies inventory
Prepaid Pension
Prepaid expense
Less: Allowance for impairment losses
2013
P
=3,432,306
1,000,000
26,448
24,429
4,000
4,487,183
807,275
P
=3,679,908
2012
=2,508,255
P
–
21,044
24,429
–
2,553,728
807,275
=1,746,453
P
Creditable withholding tax pertains to unapplied taxes withheld on income payments and is
creditable against income tax due. The Company determined that the taxes withheld can be
recovered in future periods.
Advances amounting to P
=1,000,000, pertains to the amount paid to RIMANSI for an investment in
a new entity under the name of RIMANSI Mutual Solutions, Inc. which has not been incorporated
as of March 31, 2014.
13. Trade and Other Payables
Trade payables
Related parties (Note 15)
Others
Capiling fund
Accrued expenses
Held in trust
Taxes payable
Other payables (Note 14)
2013
2012
P
=105,551,072
9,754,663
6,280,992
1,108,076
=11,501,526
P
4,411,182
4,025,224
916,089
3,656,849
97,093
1,523,301
=26,131,264
P
–
–
1,294,207
P
=123,989,010
Trade payables are non-interest-bearing and are normally settled on 30 days term. These consist
mostly of payments received from assured for payout to principal insurers and payables to CARD
MBA for unpaid claims.
Capiling fund pertains to fund accumulated for long-term Capiling Awardee incentive program to
the Company’s Microinsurance Agents (MI Agents) for Packaged Assistance in Case of Disaster
(PAID) Plan sales.
Accrued expenses consist of unpaid selling costs and unpaid utility bills.
Held in trust pertains to unremitted payment to Pioneer for Packaged Assistance in Case of
Disaster (PAID) Plan awaiting receipt of accomplished return stubs. It is noninterest-bearing and
payable on demand.
*SGVFS004628*
41
- 25 -
Other payables are noninterest-bearing and generally consist of PAID Plan scholarship fund
amounting to P
=1,185,248 and P
=778,306 as of December 31, 2013 and 2012, respectively. In 2009,
the Company and Pioneer Intercontinental Insurance Corporation (PIIC) agreed to sponsor a
scholarship grant to all qualified children of CARD MBA members, contributing P
=5 each for
every PAID Plan purchased through CARD and/or the Company’s network. The amount of grant
per scholar is P
=12,000. Other payables also include employee related contributions.
14. Equity
Capital Stock
The rollforward analysis of the capital stock account follows:
Common Stock - P
=500 par value
Authorized:
At beginning and at the end
of the year
Issued and outstanding:
At beginning of year
Issuances during the year
At end of the year
2013
Shares
Amount
2012
Shares
20,000 P
=10,000,000
20,000 P
=10,000,000
5,627
13,373
19,000
P
=2,813,500
6,686,500
P
=9,500,000
2,000
3,627
5,627
Amount
=1,000,000
P
1,813,500
=2,813,500
P
Retained Earnings
Stock dividends
There were no stock dividend declarations as at December 31, 2013 and 2012.
Cash dividends
The Company’s BOD approved and ratified the declaration of cash dividends as follows:
Date of approval
Date of declaration
Date of payment
Number of stockholders as of
dividend declaration
Dividend per share
Total amount
Dividends paid
2013
March 27
October 12
March 27
October 12
April 2
November 18
16
P
=358
2,326,205
2,326,205
18
P
=301
1,956,305
1,956,305
2012
November 29
November 29
November 29
May 31
May 31
June 4
11
=1,524.51
P
762,254
762,254
11
=160.88
P
80,442
80,442
Deposits for Future Stock Subscription (DFFSS)
In 2012, the Company received additional subscriptions amounting to P
=172,000. DFFSS
amounting to P
=730,375 were converted to capital stock during the year after the Company’s
application for increase in capitalization from 2,000 to 20,000 shares was approved by the SEC on
May 4, 2012. The remaining P
=4,125 pertains to excess deposits which were returned to
stockholders in 2013. This was reclassified to accounts payable account in 2012 because it does
not contain the necessary characteristics to be classified as DFFSS.
In 2013, the Company received additional subscription amounting to P
=3,371,000 and has
converted P
=1,600,500 to capital during the year. As of December 31, 2013, the Company has
42
*SGVFS004628*
- 26 19,000 issued and outstanding shares amounting to P
=9,500,000 million. The Company did not
issue its remaining 1,000 shares since these are restricted for issuance of shares for future issuance
for the election of independent board member.
The rollforward analysis of the DFFSS account follows:
Beginning balance
Add additional deposits
Subtotal
Less: Issuance of shares
Excess deposits reclassified to accounts payable
(Note 13)
Ending balance
2013
P
=–
3,371,000
3,371,000
1,600,500
2012
=562,500
P
172,000
734,500
(730,375)
–
P
=1,770,500
(4,125)
=–
P
15. Related Party Transactions
Parties are related if one party has the ability, directly or indirectly, to control the other party or
exercise significant influence over the other party in making financial and operating decisions, or
if the parties are subject to common control or common significant influence. A related party may
be an individual or a corporate entity.
In the ordinary course of business, the Company has transactions with related parties. Significant
transactions with related parties follow:
December 31, 2013
Amount
Outstanding
Nature
P
= 33,000
Uncollected PAID Plan
enrollment from
CARD, Inc.
Accounts Receivable
CARD, Inc. Common control
CARD Mutual
Benefit
Association Common control
CARD MRI
Development
Institute, Inc. Common control
CARD Bank, Inc.
- Common
control
CARD MRI
Information
Technology, Inc.
(CMIT)_ Common control
BotiCARD Common control
Total
P
= 5,291,980
85,609,959
10,382,787
771,343
361
2,780,566
–
357,188
37
188,920
750
10,416,935
Terms
Conditions
Premiums uncollected
from CAMIA products
On demand;
noninterestbearing
Unsecured
enrollment from CARD
MRI
On demand;
noninterestbearing
Unsecured
Bank
CMIT
On demand;
noninterestbearing
On demand;
noninterestbearing
Unsecured
MRI
On demand;
noninterestbearing
Unsecured
Unsecured
*SGVFS004628*
43
- 27 -
Amount
Outstanding
Accounts Payable
CARD Mutual
Benefit
P
= 32,105
P
=1,888
172,556,538
105,530,386
22,989
18,198
4,530
–
1,371
600
105,551,072
CARD MRI
Development
CARD MRI
Information
Technology, Inc.
(CMIT)_ Common control
BotiCARD Common control
Total
CARD Bank, Inc.
- Common
control
CARD SME Common control
Total
2,075,142
2,186,252
249,971
249,971
2,436,223
Interest income
CARD Bank, Inc.
- Common
control
201,396
191,200
Total
107,628
309,024
24,102
Amount
Outstanding
Nature
Terms
Conditions
Unpaid expenses
incurred CARD Inc.
On demand;
noninterestbearing
On demand;
noninterestbearing
Unsecured
Unpaid expense
incurred by CARD
MRI for administration
expense
On demand;
noninterestbearing
Unsecured
Unpaid expense
incurred by CMITfor
maintenance of system
On demand;
noninterestbearing
Unsecured
Unpaid expense
incurred by
BOTICARD for
medicine incurred
On demand;
noninterestbearing
Unsecured
Various
On demand;
interest at
0.25% to
1.50% for
regular
savings
deposit and
3.50% for
cash
equivalents
On demand;
interest at
1.50% to
3.50%
Unsecured
On
demand;inte
rest at 1.50%
to 6.00%
On demand;
interest at
1.50% to
3.75%
Unsecured
Terms
Conditions
Claims unpaid to
members who avail
CAMIA products
Various
Interest earned on time
deposits and savings
account
account
Unsecured
Unsecured
Unsecured
(Forward)
44
Nature
*SGVFS004628*
(Forward)
- 28 Amount
Outstanding
Short term investment
CARD Bank, Inc.
- Common
control
Total
Terms
Conditions
*SGVFS004628*
Placement of funds on
time deposits
P
=541,167
P
= 578,630
3,090,000
3,090,000
3,668,630
Long-term commercial paper
CARD Bank, Inc.
- Common
control
3,000,000
Rent Expense
CARD Mutual
Benefit
Nature
3,000,000
time deposits
long term deposits
On
demand;inte
rest at 3.75%
to 4.75%
On
demand;inte
rest at 3.75%
Unsecured
Unsecured
On
demand;inte
rest at 6.00%
Rent incurred from
office rental
120,000
–
Amount
Outstanding
Nature
=5,092,068
P
=8,258
P
enrollment from CARD,
Inc.
CARD Mutual
Benefit
CARD MRI
Development
CARD Bank, Inc. Common control
51,860,174
4,298,227
Premiums uncollected
from CAMIA products
476,043
363,112
MRI
2,320,218
954
Bank
CARD MRI
Information
Technology, Inc. Common control
109,486
750
CMIT
51,923
17
MRI
December 31, 2012
Terms
Conditions
Accounts Receivable
Total
4,671,318
On
demand;
noninteres
t-bearing
On
demand;
noninteres
t-bearing
On
demand;
noninteres
t-bearing
On
demand;
noninteres
t-bearing
Unsecured
Terms
Conditions
Unsecured
Unsecured
Unsecured
(Forward)
Amount
Outstanding
Nature
*SGVFS004628*
45
(Forward)
- 29 Nature
Amount
Outstanding
=22,417
P
=99
P
Unpaid expenses incurred
CARD Inc.
CARD Mutual
Benefit
58,779,294
11,497,365
Claims unpaid to members
who avail CAMIA
products
CARD MRI
Development
413
413
Unpaid expense incurred
by CARD MRI for
administration expense
3,649
3,649
Unpaid expense incurred
by CMIT for maintenance
of system
Accounts Payable
CARD MRI
Information
Technology, Inc. Common control
Total
Terms
Conditions
*SGVFS004628*
On
demand;
noninteres
t-bearing
On
demand;
Unsecured
On
demand;
interest at
1.50% to
2.50% for
regular
savings
deposit
and 3.50%
for cash
equivalent
s
On
demand;
interest at
1.50% to
3.50%
Unsecured
On
demand;
interest at
1.50% to
3.75%
On
demand;
interest at
1.50% to
6.00%
Unsecured
Unsecured
11,501,526
Cash and cash equivalent
5,058,981
5,058,981
Various
434,585
434,585
Various
Total
5,493,566
Unsecured
Interest income
35,000
28,000
account
230,217
58,018
account
Total
265,217
Unsecured
(Forward)
Commission expense
46
*SGVFS004628*
(Forward)
- 30 Commission expense
Rent expense
CARD Mutual
Benefit
=81,545
P
=–
P
Expenses incurred for
selling PAID Plan
On
demand;
noninteres
t-bearing
Unsecured
Rent incurred from office
rental
On
demand;
noninteres
t-bearing
Unsecured
*SGVFS004628*
120,000
–
*SGVFS004628*47
48
Present value
of defined
benefit
obligation
Fair value of
plan assets
P
= 560,534
–
P
= 560,534
(996,225)
P
= 3,338,075
Current
service cost
P
= 4,334,300
At January-1
–
P
=–
P
=–
Past
service
cost
P
= 152,165
(117,428)
P
= 269,593
Net
interest
Net benefit cost in statement of income
P
=712,699
(117,428)
P
= 830,127
Subtotal
Changes in net defined benefit liability of funded funds are as follows:
58,363
P
= 58,363
P
=–
P
=–
(1,327,695)
P
= 1,327,695
Transfer to
plan
P
= 799,336
–
P
= 799,336
Actuarial
changes
arising from
experience
P
= 643,634
58,363
P
= 585,271
Subtotal
(P
= 455,675)
(455,675)
P
=–
Contribution
by employer
P
=4,238,733
(2,838,660)
P
= 7,077,393
At December
31
*SGVFS004628*
(P
= 214,065)
–
(P
= 214,065)
Actuarial
changes
arising from
changes in
financial
assumptions
Remeasurements in other comprehensive income
Return on
plan assets
(excluding
amount
included in
net interest)
2013
Under the existing regulatory framework, Republic Act 7641 requires a provision for retirement pay to qualified private sector employees in the absence
of any retirement plan in the entity, provided however that the employee’s retirement benefits under any collective bargaining and other agreements shall
not be less than those provided under the law. The law does not require minimum funding of the plan. The Association also provides additional post
employment healthcare benefits to certain senior employees.
The Company maintains a funded and formal noncontributory retirement plan - the CARD Multi-Employer Retirement Plan - covering all regular
employees. The plan has a Projected Unit Cost (PUC) format and is financed by the Company. The plan complies with the requirement of Republic Act
No. 7641 and provides lump sum benefits upon retirement, death, total and permanent disability, involuntary separation (except for cause) or voluntary
separation after completion of at least ten (10) years of service with the participating companies.
16. Retirement Plan
- 30 -
49
Present value of
defined benefit
obligation
Fair value of
plan assets
Present value of
defined benefit
obligation
Fair value of
plan assets
=176,095
P
–
–
=66,000
P
(550,505)
(P
=226,905)
=225,400
P
=225,400
P
Past
service
cost
=66,000
P
Current
service cost
=323,600
P
At January 1
=5,156
P
–
=–
P
–
=249,798
P
(1,283,705)
=3,100
P
(27,500)
=30,600
P
Net interest
(96,738)
=–
P
=101,894
P
Net interest
=249,798
P
Past
service
cost
=1,459,800
P
At January 1
Current
service cost
=294,500
P
(27,500)
=322,000
P
Subtotal
=254,954
P
(96,738)
=351,692
P
Subtotal
=–
P
=588,658
P
588,658
=–
P
=–
P
–
=–
P
–
=–
P
=–
P
–
=–
P
=–
P
=231,800
P
(12,200)
=244,000
P
Subtotal
=3,111,466
P
588,658
=2,522,808
P
Subtotal
(P
=123,300)
(123,300)
=–
P
Contribution by
employer
(P
=204,440)
(204,440)
=
P–
Contribution by
employer
=176,095
P
(1,283,705)
=1,459,800
P
At December 31
=3,338,075
P
(996,225)
=4,334,300
P
At December 31
*SGVFS004628*
=231,800
P
(12,200)
=244,000
P
Return on plan
Actuarial
assets
changes
(excluding
Actuarial
arising from
amount
changes
changes in
included in net
arising from
financial
interest)
experience
assumptions
=2,522,808
P
–
=2,522,808
P
Return on plan
Actuarial
assets
changes
(excluding
Actuarial
arising from
amount
changes
changes in
included in net
arising from
financial
interest)
experience
assumptions
2012
January 1, 2012
(570,200)
=570,200
P
Transfer to
plan
=–
P
–
=–
P
Transfer to
plan
- 31 -
- 32 The principal actuarial assumptions used in determining retirement liability for the Company’s
retirement plan are shown below:
January 1
2012
(As restated
Note 2)
6.98%
12.00%
December 31
Discount rate
Salary increase rate
2013
6.38%
12.00%
2012
(As restated
Note 2)
6.22%
12.00%
The sensitivity analysis below has been determined based on reasonably possible changes of each
significant assumption on the defined benefit obligation as of the end of the reporting period,
assuming if all other assumptions were held constant:
December 31, 2013
Discount rates
Future salary increases
Increase
(decrease)
+250 basis points
+100 basis points
Effect on
defined pension
plan
(2,557,860)
1,468,807
+200 basis points
+100 basis points
2,863,726
(1,089,250)
The Company expects to contribute P
=0.96 million to the defined pension plan in 2014.
The average duration of the defined benefit obligation at the end of the reporting period is
21.1 years.
Shown below is the maturity analysis of the undiscounted benefit payments:
Less than 1 year
More than 1 year to 5 years
More than 5 years to 10 years
More than 20 years
December 31, 2013
=–
P
–
–
–
34,738,178
185,819,280
17. Income Tax
The Company’s provision for income tax consists of:
Current
Final
Deferred
50
2013
P
=813,908
108,996
(71,978)
P
=850,926
2012
=1,068,094
P
72,153
511,610
=1,651,857
P
*SGVFS004628*
- 33 The significant components of the Company’s deferred tax assets as of December 31, 2013 and
2012 represent the tax effects of the following:
Deferred tax assets on:
Allowance for impairment losses
Unamortized past service cost
Net pension liability
Deferred tax assets
2013
2012
P
=263,783
28,620
1,271,619
P
=1,564,022
=264,316
P
33,216
1,001,422
=1,298,954
P
The reconciliation of statutory income tax rate to effective income tax rate follows:
Statutory income tax rate
Interest income already subjected to final tax
Effective income tax rate
2013
30.00%
(5.07%)
24.93%
2012
30.00%
(2.34)
27.66%
18. Capital and Financial Risk Management Objectives and Policies
Governance Framework
The primary objective of the Company’s risk and financial management framework is to protect
the Company’s shareholders from events that hinder the sustainable achievement of financial
performance objectives, including failing to exploit opportunities. Key management recognizes
the critical importance of having efficient and effective risk management systems in place.
The BOD approves the Company’s risk management policies and meets regularly to approve any
commercial, regulatory and organizational requirements of such policies. These policies define
the Company’s identification of risk and its interpretation, limit structure to ensure the appropriate
quality and diversification of assets and specify reporting requirements.
Fair Value of Financial Instruments
Due to the short-term nature of cash and cash equivalents, accounts receivable, commissions and
trade payables, held in trust, accrued expenses and other payables, their fair values approximate
the carrying values as of the reporting date.
The main purpose of the Company’s financial instruments is to fund its operations and capital
expenditures. The main risks arising from the Company’s financial instruments are liquidity risk
and credit risk. The Company does not actively engage in the trading of financial assets for
speculative purposes nor does it write options.
Fair Value Hierarchy
The Company uses the following hierarchy for determining and disclosing the fair values of
financial instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair
value are observable, either directly or indirectly
Level 3: techniques which uses inputs which have a significant effect on the recorded fair value
that are not based on observable market data
*SGVFS004628*
51
- 34 Liquidity risk
Liquidity or funding risk is the risk that an entity will encounter difficulty in raising funds to meet
commitments associated with financial instruments.
The Company seeks to manage its liquidity profile to be able to finance its capital expenditures
and operations. The Company maintains a level of cash deemed sufficient to finance operations.
As part of its liquidity risk management, the Company regularly evaluates its projected and actual
cash flows.
Payable on Demand
2012
2013
Financial Assets
Loans and receivables
Accounts receivables
Commissions receivables
Interest receivable
Advances
AFS financial assets
Total financial assets
P
=4,714,329
110,772,437
2,096,328
216,362
3,668,630
3,000,000
1,000,000
11,021,246
136,489,332
P9,395,195
=
14,539,322
2,120,402
86,018
3,561,045
3,000,000
–
40,766
32,742,748
Financial Liabilities
Other financial liabilities
Trade payables
Accrued expenses
Held in trust
Other payables
Total other financial liabilities
Net Financial Assets
115,305,735
1,108,076
–
1,294,207
117,708,018
P
=18,781,314
15,912,708
916,089
3,656,849
1,523,301
22,008,947
=10,733,801
P
Management believes that the Company’s exposure to liquidity risk is minimal because the
maturities of the financial liabilities, which is payable upon demand, matches the maturities of the
financial assets.
Credit risk
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation
and cause the other party to incur a financial loss.
The Company’s receivables are actively monitored to avoid significant concentrations of credit
risk.
The Company has adopted a no-business policy with customers lacking appropriate credit history
where credit records are available.
52
*SGVFS004628*
- 35 The Company manages the level of credit risk it accepts through a comprehensive credit risk
policy setting out the assessment and determination of what constitutes credit risk for the
Company; setting up of exposure limits by each counterparty or group of counterparties; invoking
the right of offset where counterparties are both debtors and creditors; reporting of credit risk
exposures; monitoring of compliance with credit risk policy; and reviewing of credit risk policy
for pertinence and the changing environment. In addition, receivables are monitored on an
ongoing basis to manage the Company’s exposure to impairment losses.
The table below shows the maximum exposure of the Company to credit risk for the components
of its statements of financial position.
Cash and cash equivalents (excluding cash on hand
amounting P
=10,000 in 2013 and 2012,
respectively)
Accounts receivables
Commissions receivables
Interest receivable
2013
2012
P
=4,704,329
110,844,437
2,096,328
216,362
3,668,630
3,000,000
P
=124,530,086
P9,385,195
=
14,613,100
2,120,402
86,018
3,561,045
3,000,000
=32,765,760
P
The credit risk is concentrated to the following customers:
Type of customer
Affiliates
Non affiliates
2013
15.75%
84.25%
100.00%
Percentage
2012
68.76%
31.24%
100.00%
Capital Management
The Company treats equity as capital. The primary objective of the Company’s capital
management is to ensure that it maintains a healthy capital in order to support its business and
maximize shareholder value.
The Company manages its capital structure and makes adjustments to it, in light of changes in
economic conditions. To maintain or adjust the capital structure, the Company may adjust the
dividend payment to shareholders, return capital to shareholders or issue new shares.
As of December 31, 2013 and 2012, the Company’s net equity follows:
Capital stock
Unappropriated retained earnings
Appropriated retained earnings
Actuarial loss on defined benefit plan
Deposit for future stock subscription
2013
P
=9,500,000
5,049,464
–
(2,754,904)
1,770,500
P
=13,565,060
2012
=2,813,500
P
4,756,659
2,450,117
(2,304,360)
–
=7,715,916
P
*SGVFS004628*
53
- 36 19. Lease Commitment
In 2011, the Company entered into a one (1) year operating lease agreement with CARD MBA
with renewal terms included in the contracts. Renewals are at the option of the lessee. There are
no restrictions placed upon the lessee by entering into the lease. Rent expense included in the
statements of comprehensive income in 2013 and 2012 amounted to P
=120,000. As of December
31, 2013 and 2012, the amount of future minimum rentals payable for the existing contract is P
=
80,000.
20. Brokerage Agreement
The Company has agreements with various insurance companies to: (1) be the exclusive
distributor of PAID Plan; (2) collect all premiums due on all insurance directly solicited by and/or
credited to the Company; and (3) remit premiums, taxes and charges collected for a policy issued
by Insurance Company. Under the terms of these agreements, the Company is entitled to
remuneration equal to a percentage of the premiums written, net of taxes. Expenses incurred in
connection with its brokerage services are for the Company’s account.
Commission income derived from brokerage services amounted to P
=18,937,663 and P
=14,671,806
in 2013 and 2012, respectively.
21. Note to Statement of Cash Flows
The Company’s principal noncash financing activity pertains to transfer of DFFSS to capital stock
amounting to P
=1.6 million in 2013.
22. Supplementary Information Required Under Revenue Regulations 15-2010
The Company reported and/or paid the following types of taxes in 2013:
a. Value added tax (VAT)
The Company became VAT-exempt on September 18, 2013.
b. Information on the Company’s importations
The Company does not undertake importation activities.
c. Documentary Stamps Tax
The documentary stamps taxes paid for the share issuances in 2013 amounted to P
=98,887
d. Taxes and Licenses
This includes all other taxes, local and national, including real estate taxes, licenses and permit
fees lodged under the caption ‘Taxes and Licenses’ under the ‘Expenses’ section in the
54
*SGVFS004628*
- 37 Company’s statement of comprehensive income. This consists of license and permit fees
amounting P
=713,968.
e. Withholding Taxes
Details of withholding taxes follow:
Expanded withholding taxes
Withholding taxes on compensation and benefits
f.
=228,697
P
114,572
=343,269
P
Tax Assessments and Cases
The Company has not been involved in any tax cases under preliminary investigation,
litigation and/or prosecution in courts or bodies outside the BIR.
*SGVFS004628*
55
PHILIPPINE FINANCIAL REPORTING STANDARDS AND
INTERPRETATIONS
Effective as of December 31, 2013
Adopted
Framework for the Preparation and Presentation of Financial
Statements
Conceptual Framework Phase A: Objectives and qualitative
characteristics


PFRSs Practice Statement Management Commentary
Not
Adopted
Not
Applicable

Philippine Financial Reporting Standards
PFRS 1
(Revised)
PFRS 2
First-time Adoption of Philippine Financial Reporting
Standards

Amendments to PFRS 1 and PAS 27: Cost of an
Investment in a Subsidiary, Jointly Controlled Entity or
Associate

Amendments to PFRS 1: Additional Exemptions for
First-time Adopters

Amendment to PFRS 1: Limited Exemption from
Comparative PFRS 7 Disclosures for First-time
Adopters

Amendments to PFRS 1: Severe Hyperinflation and
Removal of Fixed Date for First-time Adopters

Amendments to PFRS 1: Government Loans

Share-based Payment

Amendments to PFRS 2: Vesting Conditions and
Cancellations

Amendments to PFRS 2: Group Cash-settled Sharebased Payment Transactions

PFRS 3
(Revised)
Business Combinations

PFRS 4
Insurance Contracts

Amendments to PAS 39 and PFRS 4: Financial
Guarantee Contracts

PFRS 5
Non-current Assets Held for Sale and Discontinued
Operations

PFRS 6
Exploration for and Evaluation of Mineral Resources

PFRS 7
Financial Instruments: Disclosures

Amendments to PAS 39 and PFRS 7: Reclassification
of Financial Assets

of Financial Assets - Effective Date and Transition
56

*SGVFS004628*
--2--
INTERPRETATIONS
PFRS 7
Adopted
Amendments to PFRS 7: Improving Disclosures about

Amendments to PFRS 7: Disclosures - Transfers of
Financial Assets

Not
Adopted
Not
Applicable
Amendments to PFRS 7: Disclosures – Offsetting
Financial Assets and Financial Liabilities
Not early adopted
Amendments to PFRS 7: Mandatory Effective Date of
PFRS 9 and Transition Disclosures
Not early adopted
PFRS 8
Operating Segments
PFRS 9
Not early adopted
Amendments to PFRS 9: Mandatory Effective Date of
PFRS 9 and Transition Disclosures
Not early adopted
PFRS 10
Consolidated Financial Statements
Not early adopted
PFRS 11
Joint Arrangements

PFRS 12
Disclosure of Interests in Other Entities

PFRS 13
Fair Value Measurement

Not early adopted
Philippine Accounting Standards
PAS 1
(Revised)
Presentation of Financial Statements

Amendment to PAS 1: Capital Disclosures

Amendments to PAS 32 and PAS 1: Puttable Financial
Instruments and Obligations Arising on Liquidation

Amendments to PAS 1: Presentation of Items of Other
Comprehensive Income
Not early adopted
PAS 2
Inventories
PAS 7
Statement of Cash Flows

PAS 8
Accounting Policies, Changes in Accounting Estimates
and Errors

PAS 10
Events after the Reporting Period

PAS 11
Construction Contracts
PAS 12
Income Taxes



Amendment to PAS 12 - Deferred Tax: Recovery of
Underlying Assets

PAS 16
Property, Plant and Equipment

PAS 17
Leases

PAS 18
Revenue

*SGVFS004628*
57
--3--
INTERPRETATIONS
PAS 19
Adopted
Employee Benefits

Amendments to PAS 19: Actuarial Gains and Losses,
Group Plans and Disclosures

Employee Benefits
PAS 19
(Amended)
Not
Adopted
Not
Applicable
Not early adopted
PAS 20
Accounting for Government Grants and Disclosure of
Government Assistance
PAS 21
The Effects of Changes in Foreign Exchange Rates


Amendment: Net Investment in a Foreign Operation

PAS 23
(Revised)
Borrowing Costs

PAS 24
(Revised)
Related Party Disclosures
PAS 26
Accounting and Reporting by Retirement Benefit Plans

PAS 27
Consolidated and Separate Financial Statements


Separate Financial Statements
PAS 27
(Amended)
PAS 28
Not early adopted
Investments in Associates

Investments in Associates and Joint Ventures
PAS 28
(Amended)

PAS 29
Financial Reporting in Hyperinflationary Economies

PAS 31
Interests in Joint Ventures

PAS 32
Financial Instruments: Disclosure and Presentation

Amendments to PAS 32 and PAS 1: Puttable Financial
Instruments and Obligations Arising on Liquidation

Amendment to PAS 32: Classification of Rights Issues

Amendments to PAS 32: Offsetting Financial Assets
and Financial Liabilities
Not early adopted
PAS 33
Earnings per Share

PAS 34
Interim Financial Reporting

PAS 36
Impairment of Assets

PAS 37
Provisions, Contingent Liabilities and Contingent
Assets

PAS 38
Intangible Assets
58

*SGVFS004628*
--4--
INTERPRETATIONS
PAS 39
Adopted
Financial Instruments: Recognition and Measurement

Amendments to PAS 39: Transition and Initial
Recognition of Financial Assets and Financial
Liabilities

Not
Adopted
Not
Applicable
Amendments to PAS 39: Cash Flow Hedge Accounting
of Forecast Intragroup Transactions

Amendments to PAS 39: The Fair Value Option

Amendments to PAS 39 and PFRS 4: Financial
Guarantee Contracts

of Financial Assets

of Financial Assets – Effective Date and Transition

Amendments to Philippine Interpretation IFRIC–9 and
PAS 39: Embedded Derivatives

Amendment to PAS 39: Eligible Hedged Items

PAS 40
Investment Property

PAS 41
Agriculture

Philippine Interpretations
IFRIC 1
Changes in Existing Decommissioning, Restoration
and Similar Liabilities

IFRIC 2
Members' Share in Co-operative Entities and Similar
Instruments

IFRIC 4
Determining Whether an Arrangement Contains a
Lease

IFRIC 5
Rights to Interests arising from Decommissioning,
Restoration and Environmental Rehabilitation Funds

IFRIC 6
Liabilities arising from Participating in a Specific
Market - Waste Electrical and Electronic Equipment

IFRIC 7
Applying the Restatement Approach under PAS 29
Financial Reporting in Hyperinflationary Economies

IFRIC 8
Scope of PFRS 2

IFRIC 9
Reassessment of Embedded Derivatives

IFRIC 9
Amendments to Philippine Interpretation IFRIC–9 and
PAS 39: Embedded Derivatives

IFRIC 10
Interim Financial Reporting and Impairment

IFRIC 11
PFRS 2- Group and Treasury Share Transactions

*SGVFS004628*
59
--5--
INTERPRETATIONS
Adopted
Not
Adopted
Not
Applicable
IFRIC 12
Service Concession Arrangements

IFRIC 13
Customer Loyalty Programmes

IFRIC 14
The Limit on a Defined Benefit Asset, Minimum
Funding Requirements and their Interaction

Amendments to Philippine Interpretations IFRIC- 14,
Prepayments of a Minimum Funding Requirement

IFRIC 16
Hedges of a Net Investment in a Foreign Operation

IFRIC 17
Distributions of Non-cash Assets to Owners

IFRIC 18
Transfers of Assets from Customers

IFRIC 19
Extinguishing Financial Liabilities with Equity
Instruments

IFRIC 20
Stripping Costs in the Production Phase of a Surface
Mine

SIC-7
Introduction of the Euro

SIC-10
Government Assistance - No Specific Relation to
Operating Activities

SIC-12
Consolidation - Special Purpose Entities

Amendment to SIC - 12: Scope of SIC 12

SIC-13
Jointly Controlled Entities - Non-Monetary
Contributions by Venturers

SIC-15
Operating Leases - Incentives

SIC-25
Income Taxes - Changes in the Tax Status of an Entity
or its Shareholders

SIC-27
Evaluating the Substance of Transactions Involving the
Legal Form of a Lease

SIC-29
Service Concession Arrangements: Disclosures.

SIC-31
Revenue - Barter Transactions Involving Advertising
Services

SIC-32
Intangible Assets - Web Site Costs

60
*SGVFS004628*
61

CaMIA Annual Report 2013

Transcription

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