2013 Timeline - Ayala Foundation, Inc.

Transcription

PESOS MONTHLY
is what a family of five needs to meet their food and non-food needs
(Source: National Statistical Coordination Board, 2012)
Vision
Mission
Values
Communities where people are
productive, creative, self-reliant, and
proud to be Filipino.
• Understanding community realities
and engaging people in the change
process
• Acting as catalyst for inclusion to
bridge community and business
aspirations
• Building and nurturing partnerships
with public and private groups, civil
society and Ayala to achieve impact,
scale, and sustainability for everyone
involved
We have a deep love of country.
We believe in shared prosperity.
We are creative and innovative.
We act with integrity.
We strive for excellence.
We collaborate and work as a team.
CONTENTS
2
3
4
6
7
8
12
Message from the Chairmen
Message from the President
Ayala Foundation, As One We Can
Our Reach and Impact
Where We Are
Education
Center of Excellence in Public Elementary Education, Text2Teach
Youth Leadership
Ayala Young Leaders Congress, Leadership Communities, Careers for Street Youth, LEAD ASEAN Summit, Filipino American Young Leaders Program
16
Iraya-Mangyan Project; Calauan, Laguna; El Nido, Palawan; Product Fairs
20
Ayala Museum, Filipinas Heritage Library
24
Sustainable Livelihood
Arts and Culture
Special Projects
Strengthening the Capacity of Civil Society Organizations in the Philippines,
Buklod Bahayan Daycare Center
26
Disaster Response
28
Our Board of Trustees
30
Special Section: Ayala 180 Years
34
Report of Independent Auditors
88
Our Management and Staff
90Directory
2013 Annual Report
Message from the Chairmen
We believe
that developing
inclusive
programs that
create value and
prosperity for
all stakeholders
is the
sustainable path
forward.
Throughout its 52 years in operation, the Ayala Foundation has continued to evolve from a purely philanthropic
organization to an organization that seeks to provide viable, sustainable, and lasting solutions for the many
communities it works with. This path was in large part shaped by the challenges and realities of our times. Today
we are faced with the ever-increasing needs of marginalized communities and the challenge of addressing these
in a sustainable manner over the long-term. The socioeconomic problems we face today call for more permanent
solutions that must go beyond pure philanthropy. Increasingly, they require deeper community engagement and a
more holistic understanding of needs that result in integrated and systemic solutions that will put communities in a
sustainable path to progress.
We believe that the Ayala Foundation can play a role in this cycle of sustainability and progress. As a bridge
between marginalized communities and the business sector, we are in a unique position to help bring together
business solutions and market discipline to addressing social issues. We aim to empower the broader base of the
pyramid by working with communities through strategic planning, employing relevant programs, and bringing in the
right partnerships.
Clearly, this involves multi-sectoral collaboration. Central to this is developing and strengthening our relations
with an ever-widening network of stakeholders. Stakeholder engagement is imperative in crafting holistic community
solutions and it is an imperative that must be shared among the public, private, and socio-civic sectors. It is important
that we build a high level of trust in this process by demonstrating accountability and the responsible stewardship of
resources.
Ultimately, the Ayala Foundation believes that developing inclusive programs that create value and prosperity
for all stakeholders is the sustainable path forward. This will require imagination and innovative thinking that result in
effective and long-lasting programs. We hope to constantly foster a culture of innovation, creativity, and sustainability
as we work with our many partners in bringing about progressive solutions to achieve more inclusive growth.
Finally, we remain committed to our goals of enhancing the nation’s pride in its history and culture. We continue
to celebrate our artistic achievements, our national cultural heritage and our emerging talent through our museum
and Filipinas Heritage library activities.
We thank our many partners, our management team and staff, and the multiple communities we have come to
work with for sharing our aspirations and vision for a progressive and inclusive path forward.
Jaime Augusto Zobel de Ayala
CO-CHAIRMAN
Fernando Zobel de Ayala
CO-CHAIRMAN
2
Message from the President
Collaboration and Community Solutions—these defined our activities at Ayala
Foundation in 2013, which we started by introducing our four program pillars.
Focusing on Education, Youth Leadership, Sustainable Livelihood, and Arts and Culture,
our end in mind is communities where people are productive, innovative, self-reliant, and
proud to be Filipino.
Aside from these program areas, we have defined certain criteria to guide us in
conceptualizing, designing, and implementing projects. Two key factors were public–private
partnerships and strategic alliances. Without these, combined with our other criteria, we
would not have achieved the milestones of today.
Our Center of Excellence in Public Elementary Education (CENTEX) has seen 39 alumni,
out of 75 students that graduated 6th Grade in 2005, fresh out of college holding degrees in
Mathematics, Psychology, Nursing, to name a few. The collaboration with the Department of
Education was integral in the success of this endeavor.
The Text2Teach alliance, a partnership with various local government units and
community advocates, has reached 340 public elementary schools. The project has become
an international model for tech-based learning intervention.
In collaboration with the Ayala group of companies, we produced 81 alumni for the Ayala
Young Leaders Congress (AYLC), bringing our alumni base to 1,124 in all sectors, all over the
nation. Leadership Communities (LeadCom) is all about servant leadership and skill-building.
Our partnership with the local government in Calauan, Laguna enabled us to reach out to the
youth in that community.
Strong relationships with private collectors and cultural institutions, both local and
international, allowed the Ayala Museum to present imaginative exhibitions and compelling
educational programs, thus helping it exceed the 100,000 patronage mark. The Filipinas
Heritage Library also marked a milestone in its history. It reopened as “a contemporary space
for the contemporary researcher” on the sixth floor of the Ayala Museum, with a stronger
commitment to harnessing technology for Filipiniana research.
Our most recent program pillar, Sustainable Livelihood, is an encouraging work in
progress. Encouraging because, in just a year, we have taken the first steps in helping heads
of families become more employable or gain diversified sources of income. We are excited to
see what milestones 2014 and beyond will bring to El Nido (Palawan), Calauan (Laguna), and
Talipanan (Oriental Mindoro).
According to the National Statistical Coordination Board, the monthly income of the
average Filipino family must be at least =P7,890 to meet its basic needs. 7,890—This number
is so important that we put it on the cover of our annual report as a reminder that we each
have a role to play in helping our communities move past the threshold of poverty.
Improving the quality of life of underserved Filipinos is, without a doubt, a collective
effort. We are thankful to you, our partners and stakeholders. We look forward to our
continued collaboration in providing integrated and sustainable solutions in Education, Youth
Leadership, Sustainable Livelihood, and Arts and Culture, to provide that advantage our
fellow Filipinos need to attain a brighter future.
AS ONE, WE CAN. As ONE Nation, We Can.
7,890—This number is so
important that we put it
on the cover of our annual
report as a reminder
that we each have a role
to play in helping our
communities move past
the threshold of poverty.
Maria Lourdes Heras-de Leon
PRESIDENT
3
Every Filipino has their own vision of a better future. These visions may
vary from Filipino to Filipino; each Filipino’s vision for a brighter future
may even cover different areas of concern.
If one takes these individual dreams and aspirations together, one
would discover they are closely related—they form a bigger picture
that breaks boundaries, multiplies possibilities, and includes virtually
everybody. The challenge is to for everyone to come together and make
their vision of a better future come true.
This is why we developed our official tagline—“As One We Can.”
4
In August, the “Pilipinas: As One We Can” cinema ad premiered in Ayala Cinemas
nationwide. This is our way of encouraging Filipinos from all walks of life to come
together in building the nation’s future.
The 45-second ad features artworks specially created by some of the most
promising young artists in the country today. Each artwork displays a multiplicity
of techniques, colors, and styles, and reflects each artist’s unique sensibility
and approach to art. However, when the paintings are put beside one another,
the word, “PILIPINAS” appears—a symbol for how Filipinos can harness their
respective strengths and harmonize the elements together, so they can form a
bigger, more compelling picture that celebrates both unity and diversity.
We also launched the “Anthem” campaign in Ayala Cinemas nationwide. By
flashing an image of the Philippine flag and the words of the Philippine National
Anthem without any musical accompaniment, cinema goers are encouraged to
sing the words aloud. By doing so, we hope to see Filipinos singing the National
Anthem with pride and conviction.
5
Our Reach and Impact
We invested PhP292,444,798 in our program pillars across the country. Our group of Corporate Enablers—Finance
and Corporate Services; Human Resources and Administration; and Strategy, Communications, and Partner Care—also
ensured the smooth implementation of our projects.
Program Spending 2013
Education
18.5% • 54,025,914
Youth Leadership
18.5%
Corporate Enablers
9.7%
15.4% • 44,943,818
Sustainable Livelihood and Other
Community Development Projects
15.4%
Arts and Culture
29.4% • 86,000,975
27.1%
29.4
EDUCATION
9.7% • 28,298,524
YOUTH LEADERSHIP
27.1% • 79,175,567
Total 292,444,798
SUSTAINABLE LIVELIHOOD
ARTS & CULTURE
Iraya Mangyan
Calauan
Careers for Street Youth
El Nido
*AFI as contractor
Our Program Pillars
• • • • • 6
Under Education, we have the Center of Excellence in Public Elementary Education (CENTEX) and Text2Teach.
Under Youth Leadership, we have the Ayala Young Leaders Congress (AYLC), Leadership Communities (LeadCom), and Careers for Street Youth.
We are implementing Sustainable Livelihood in the following areas—El Nido, Palawan; Calauan, Laguna; Talipanan, Oriental Mindoro, for the Iraya Mangyans; and for
CENTEX parents in Tondo, Manila, and Bauan, Batangas.
Under Arts and Culture, we have the Ayala Museum and Filipinas Heritage Library.
We have a special project, Strengthening the Capacity of Civil Society Organizations in the Philippines, which we implement under a grant from the
United States Agency for International Development (USAID).
We are in
Where We Are
48
of the country’s
81 provinces
7
EDUCATION
CENTEX
CENTEX offers
quality education
for bright children
from economically
disadvantaged
families. CENTEX also
provides teacher and
principal training, with
emphasis on thinking
skills and classroom
management
techniques.
Project Partners
Department of Education,
City Government of Manila,
Provincial Government of Batangas,
and Private Donors
Geographic Reach
Tondo, Manila
Bauan, Batangas
Year Started
1998 (Manila)
2000 (Batangas)
8
EDUCATION
2013 Highlights
TOTAL ENROLLMENT
997
162
PROJECT HIGHLIGHTS
1998-2013
NAT SCORES
84.29 83.81
MANILA
BATANGAS
1,250
Total CENTEX alumni
GRADE 6 GRADUATES
>95%
Grade 6 cohort survival rate
2013 Timeline
High achievement scores
CENTEX students continued to
excel academically, exceeding
the national average of the
National Achievement Test (NAT)
administered by DepEd. CENTEX
Manila students had an average
score of 84.29, while CENTEX
Batangas students scored 83.81 (vs.
68.15, national average).
First batch of students
finish college
Thirty-nine students from the
first batch of 75 CENTEX Manila
students have completed their
college education. The first was
Lester Lampano, who graduated with
a degree in Mathematics from the
De La Salle University. Asbel Elpos,
a psychology major from the Far
Eastern University with a degree in
Psychology, was the first CENTEX
student to graduate magna cum laude.
Students recognized
internationally
Elwince Magbitang, a grade six
CENTEX Manila student, was one
of the 18 ﬁnalists at the 2013 Asian
Grand Prix held in Hong Kong in
August. He is a talented ballet
dancer under the mentorship of the
STEPS Dance Studio.
Mikoy, a short film by four
CENTEX Manila alumni (Timothy
Mendoza, Lowell Mongcal,
Nichole Camille Castillo, and
Jomelle Tanudra), premiered at
the Cinepambata Film Festival in
October, where it won the Special
Jury Prize. It was screened at the
Auburn International Film Festival
(Australia) and the 20th Filipino
American Cine Festival (United
States), and will be screened in 2014
at the Los Angeles Asian Pacific Film
Festival. Mikoy was made during a
summer workshop in filmmaking
and shadow play production at
CASA San Miguel in Zambales.
After Hours Music Program
Twenty-four CENTEX Manila students participated in the “After Hours Music
Program” recital held at the Ayala Museum on March 23. Renowned violinist
Alfonso “Coke” Bolipata served as the mentor of the violin and cello students
in the program. Also serving as mentors were members of the Pundaquit
Virtuosi, the resident string ensemble of Creative Alternatives for Social
Action (CASA) San Miguel Foundation. The After Hours Music Program
Recital was supported by The Department of Education, JPMorgan Chase &
Co., CASA San Miguel, and Prospero World.
Principal and Teacher Training
CENTEX held two major runs of its Principal and Teachers Training program
during the year. The first run was held in April, with 200 teachers and 50
principals. The summer training carried the theme “Breaking the Chains of
Poverty through Education,” focusing on pedagogy, teaching methodology,
and values integration with focus on classroom management, brain-based
education, and values education. CENTEX also held the annual training for
its teachers and partner schools in November. It carried the theme “Weaving
Connections” and had 84 participating teachers. The focus of the training
was on critical and caring thinking skills. The training program was supported
by JPMorgan Chase & Co. and Prospero World.
9
EDUCATION
Text2Teach
The local version of the BridgeIT program, Text2Teach uses mobile
technology as a learning intervention for grade five and six students
from public elementary schools. The materials cover such subjects as
English, Mathematics, Science, and Values Education.
Project Partners
Nokia, Globe Telecom, Department
of Education, Pearson Foundation,
Toshiba, and Local Government Units
Geographic Reach
Nationwide
Year Started
2003
10
EDUCATION
2013 Highlights
PROJECT
PHASE
PHASE 4 GOAL
850
4
340
680
barangay captains / PTA
trained in sustainability
NEW SCHOOLS REACHED
SCHOOLS
TEACHERS REACHED
STUDENTS REACHED
2,000
30,000
PROJECT HIGHLIGHTS
2003-2013
897
Total Text2Teach Schools
300,000
3,744
Total Students Reached
Total Teachers Trained
Antique Community Launch
Silay City Launch
Nominet 100
Together with the members of the Text2Teach alliance, we
celebrated the connection of 116 public elementary schools in
Antique province. On January 17, a community launch was held
in partnership with local government units of the province of
Antique as well as the local Department of Education.
Thirteen LGUs in the Visayas signed up for
Text2Teach. This now brings the project to 172
public elementary schools in the Visayas. This was
celebrated in a launch—the biggest to date—held on
August 27 in Silay City.
Text2Teach made it to the list
of the 100 most inspiring social
tech innovations as compiled
by UK funder for tech projects,
Nominet Trust.
2013 Timeline
Text2Teach website
In May, Text2Teach launched its official website
(www.text2teach.org.ph).
Partnership with ULAP
We signed an advocacy agreement with the the Union of
Local Authorities of the Philippines (ULAP), an organization
of local government officials, on June 28. ULAP will serve as
Text2Teach’s advocate among LGUs.
‘Exemplary ICT
Innovation’
Text2Teach was hailed as one
of the “exemplary Information
Communications Technology
(ICT) innovations for education”
at the Asia-Pacific Ministerial
Forum on ICT in Education
(AMFIE) 2013 in China. The
event was organised by the
United Nations Educational,
Scientific, and Cultural
Organisation.
11
YOUTH LEADERSHIP
Ayala Young Leaders Congress
The Ayala Young Leaders Congress (AYLC) is the flagship youth
leadership program of the Ayala group of companies. AYLC gathers
81 of the most promising student leaders from the best colleges
and universities in the country for a congress designed to hone their
leadership skills, nurture their commitment to integrity and principled
leadership, foster nationalism and idealism, and encourage faithful
stewardship of their communities and the country’s future.
12
Project Partners
Ayala group of companies
Geographic Reach
Nationwide
Year Started
1998
YOUTH LEADERSHIP
2013 Highlights
PROJECT HIGHLIGHTS
1998-2013
81
1,124
NUMBER OF
DELEGATES
Total Alumni
22 2,641
community-based
LEADERSHIP CAMPS
organized by alumni
community-based
STUDENT LEADERS
trained by alumni
22
Number Of Alumni Chapters Nationwide
2013 Timeline
15th Congress
Grand Alumni Homecoming
Eighty-one students from 52 colleges and universities and
representing 12 regions participated in the 15th Ayala Young Leaders
Congress held on February 5 to 8. With the congress theme “The
Leadership Imperative: Confronting and Adapting to Changing
Realities,” the congress featured keynote speaker Justice Marvic
Leonen, associate justice of the Supreme Court.
To celebrate its 15th year, AYLC held the third AYLC Grand Reunion on February 9 at the
Circuit, Makati, with more than 500 alumni present. The grand reunion was highlighted by
the Starfish Fair 2013, a showcase of 10 development projects AYLC alumni have initiated
over the years. The fair served as an avenue for alumni to share best practices in running
community projects.
Ayala Young Leaders Alumni Association
AYLC alumni shared the “AYLC experience” with other partner schools and organizations
by way of the Ayala Young Leaders Alumni Association (AYLAA). Now an independent
organization registered with the Securities and Exchange Commission, AYLAA has
established its own Servant Leadership Camp pool of facilitators and trainers. In 2013
alone, it facilitated 23 camps and trained 2,641 youth leaders all over the country. This is
one way for AYLC alumni to pay forward what they have learned from their own congress.
13
YOUTH LEADERSHIP
Leadership Communities
Leadership Communities (LeadCom) empowers the youth to help
address pressing needs and issues in their local community through
projects they themselves will propose, plan, and implement. 2013 Highlights
4
YOUTH-LED
PROJECTS
IMPLEMENTED
25
YOUTH
TRAINED
PROJECT
HIGHLIGHTS
2011-2013
11
Communities Reached
Project Partners
Private Funders, Local Government
Units, Local Colleges and Universities,
Youth Organizations, and YouthServing Organizations
Geographic Reach
Nationwide
Year Started
2011
833
Youth Trained
2013 Timeline
Project Update
LeadCom Calauan
During the year, LeadCom reached out to community-based
youth organizations, hoping to build in the youth a sense of
shared responsibility for their community. At the same time,
LeadCom challenges the youth to act on community concerns
rather than wait for others to do it for them.
LeadCom was brought to Southville 7, the resettlement site in Calauan, Laguna. In
partnership with the municipal government of Calauan and the Don Bosco Brothers,
LeadCom took the youth through the process of developing self-confidence and positive
character, diagnosing community needs, identifying opportunities for youth-led action,
and mobilizing stakeholders and community resources for projects that address priority
needs. We trained 25 young people and helped them identify community projects that
they could work on.
14
YOUTH LEADERSHIP
Careers for Street Youth
Through Careers for Street Youth (CSY), we establish and nurture
partnerships that will help Filipino out-of-school youth develop
skills, which can open up for them livelihood opportunities, including
employment.
Project Partners
PROJECT HIGHLIGHT
Street Kids International, and Business
Process Association of the Philippines
In 2013, Ayala Foundation took on
the program. The AFI-led project
will be officially launched in 2014.
Year Started
2012
LEAD ASEAN Youth Summit
Project Partner
United States Embassy in Manila
Geographic Reach
Southeast Asia
Brunei Pre-Summit
Twenty-five ASEAN youth leaders met in Brunei
for a pre-event workshop on October 10. United
States Secretary of State John Kerry held a
dialogue with the youth leaders.
Manila Summit
Year Started
2013
PROJECT HIGHLIGHTS
150
ASEAN
Youth Reached
4
cross-country
collaborative projects
One hundred fifty ASEAN youth leaders attended
a leadership summit in Manila on December 3
to 5. Geared toward building a youth network
and addressing pressing issues in the region,
the LEAD ASEAN Youth Summit featured
interactive sessions, inspirational talks, and
field trips focusing on economic development,
environment, education and awareness, and
human development. United States President
Barack Obama delivered a special message for
the delegates via video.
Filipino American Young
Leaders Program
Project Partners
Embassy of the
Philippines in
Washington, D.C.
Other Supporters
ABS-CBN–The Filipino
Channel (media
partner), Ayala
Corporation, Chevron,
SGV and Co., Planters
Bank, Philamlife, Phinma
Foundation, and CLSA
Geographic Reach
Philippines, United
States, and Guam
Year Started
2012
The Filipino American Youth
Leadership Program (FYLPro) was
staged in 2013, inviting a group
of 10 exceptional young Filipino
Americans from the United States
and Guam. The delegates took part
in an immersive program in the
Philippines from July 7 to 9, where
they met some of the country’s
highest officials and policymakers,
as well as other industry leaders,
artists and cultural experts,
entrepreneurs both traditional
and social, as well as innovators in
different fields.FYLPro was started
in 2012 by Philippine Ambassador to
Washington, D.C., Jose Cuisia.
PROJECT
HIGHLIGHT 2012-2013
20
FYLPro Alumni
15
We introduced our latest program pillar, Sustainable Livelihood, during the year, as part of our commitment to nurture communities
where people are productive, creative, self-reliant, and proud to be Filipino.
Through Sustainable Livelihood, we hope to establish and strengthen partnerships that will help families in our project communities have
gainful employment or diversified sources of income. We believe that the bottom of the pyramid and other vulnerable groups can be
engaged, even mainstreamed, into the socioeconomic life of their respective communities as providers, suppliers, and producers of human
capital, goods, and services.
Our Sustainable Livelihood projects are present in three main locations: Talipanan, Oriental Mindoro, among the Iraya-Mangyans;
Calauan, Laguna; and El Nido, Palawan.
Iraya-Mangyan
The Iraya-Mangyans are an
indigenous people living at
the foot of Mt. Malasimbo
and near the coast of
Puerto Galera, Talipanan,
Oriental Mindoro. Many
of them continue to live in
poverty, with no access to
basic services. Aside from
providing interventions in
health and education, we are
implementing sustainable
livelihood projects and skills
training for the Mangyans.
Project Partners
Ayala group of companies, Sisters
of Charity of St. Anne, Technical
Education Skills Development
Authority
PROJECT HIGHLIGHTS
3
product fairs joined to showcase the
products of Iraya-Mangyan weavers
56
Iraya-Mangyan students who
received educational assistance
Geographic Reach
Talipanan, Oriental Mindoro
Year Started
1991
2013 Timeline
16
Nito Weaving
Additional Support
We are helping our Iraya-Mangyan community revive its tradition
of weaving beautiful and functional baskets made from nito,
a locally growing vine. These baskets have been showcased
in several product fairs, and are available for retail buyers at
Greenbelt 5, Ayala Museum Shop, and Glorietta 1.
Aside from growing the nito weaving enterprise, we also
partnered with various organizations including TESDA to provide
training in dressmaking, electrical skills, masonry, and agriculture,
among others.
With the assistance of the Sisters of Charity of St.
Anne, Mangyan children and youth receive early
childhood care, education, and feeding. Fiftysix Mangyan students were given educational
assistance. A computer center was set up for
educational and additional livelihood-skills
training.
Calauan, Laguna
Southville 7 in Calauan,
Laguna, is a 107-hectare
relocation site for families
displaced by Typhoon
Ondoy and the Pasig River
rehabilitation. Owned by the
National Housing Authority,
the property is home to
roughly 4,500 families.
Together with partners, we
are implementing sustainable
livelihood projects for
families in the area.
PROJECT HIGHLIGHTS
23
Calauan residents hired on the spot at
a specially organized job fair
25
22
Calauan residents
trained in landscaping
families participating
in new enterprises
Project Partners
Municipal Government of Calauan,
Salesians of Don Bosco, Franciscan
Sisters of the Sacred Heart, e-Skills
Network, Consuelo Foundation,
Habitat for Humanity, and ABS-CBN
Foundation
Geographic Reach
Calauan, Laguna
Year Started
2013
2013 Timeline
Calauan Job Fair
In partnership with the Municipal
Government of Calauan, Makati
Development Corporation, and other
partner organizations, we organized
a job fair for residents of Southville
7. The job fair attracted over 200 job
aspirants, with 23 residents hired on
the spot.
Landscape
Training
Twenty-five residents
of Southville 7 received
training in landscaping,
in partnership with
TESDA, Makati
Development
Corporation, and
Dualtech. The training
aimed to equip them
with marketable skills
and prepare them for
employment.
Mushroom and Ube Enterprises
Avviare
We piloted mushroom and ube-growing
enterprises in Calauan to provide residents and
their families a sustainable source of income.
We started our mushroom-growing
enterprise with 10 families, and our ube-growing
enterprise with 12 families. The goal is to expand
these enterprises in 2014.
Avviare is the brand for our
sustainable livelihood initiatives.
From the Italian verb avviare, which
means “to start, to launch,” the
brand signifies our commitment to
helping these communities move
toward progress. It will be launched
in 2014.
17
El Nido, Palawan
El Nido, Palawan is one
of the prime tourist
destinations in the country.
We are working with local
organizations in developing
and strengthening local
industries, such as weaving,
cashew production, local
tourism, and others.
Project Partners
Department of Social Welfare
and Development, El Nido Local
Government, Barangay Council of
Sibaltan, and the Sibaltan Heritage
Council
Geographic Reach
Barangay Sibaltan and Barangay Villa
Libertad, El Nido, Palawan
Year Started
2013
PROJECT HIGHLIGHT
50
women weavers reached
through the Sibaltan
Buri-Pandan Weavers
Association
2013 Timeline
Sibaltan Buri-Pandan Weavers
Skills Inventory Training and Scaling Up
Tucked away in El Nido, Palawan, is Barangay
Sibaltan, known for its efforts toward discovery
and preservation of their rich heritage, customs,
and culture. We work with the women weavers
of Sibaltan and leverage their weaving talents
in producing beautiful buri bags and other buri
products. Our goal is to scale their production,
improve production processes, and connect
weavers to the market.
We provided training for the weavers of Sibaltan in production scale. We also studied the production
time for the weaving process to understand the products and their labor process. As a result, master
women weavers have been identified to help speed up the weaving process.
Aside from working with women weavers, we also made initial steps toward supporting and
scaling up community-based enterprises focusing on cashew production and local “way of life” tourism,
in partnership with the Sibaltan Heritage Council.
18
Product Fairs
Part of our commitment
to bringing the products of
our communities closer to
the public is through our
participation in product
fairs and other trade events.
Through these events,
we generate awareness
on the products of our
communities, while allowing
our communities to gain an
experience of what it’s like
to sell to a larger market,
and how to elevate their
activities to the level of a
sustainable enterprise or
business.
PROJECT HIGHLIGHTS
Project Partners
Ayala group of companies, through the
Ayala Group Sustainability Council
PRODUCTS SOLD:
• baskets and other woven products from the Iraya-
Mangyan communities
• processed cashew from El Nido, Palawan
• bags and baskets made from buri-pandan,
from El Nido, Palawan
• laundry soap and dish-washing liquid from Silang, Cavite
P104,390
total sales in three
product fairs
Geographic Reach
Metro Manila
Year Started
2013
2013 Timeline
Ayala Group Fair Share Store
Maarte Fair
The Ayala Group Sustainability Council launched the Ayala Group My Fair Share on July 18 at the Makati Stock Exchange Building
in Makati City, as a venue for Ayala-supported communities to showcase their products. Four of our communities—IrayaMangyan, El Nido, CENTEX, and Buklod Bahayan (Silang, Cavite) participated.
After the success of the initial run, a second Ayala Group Fair Share Store was held on October 10, coinciding with the
Ayala Group Sustainability Summit held at the Hotel Intercontinental.
Iraya-Mangyan and
CENTEX products
were also showcased
at the Maarte Fair
organized by the
Museum Foundation
of the Philippines on
August 23 to 25 at the
Rockwell Tent.
19
ARTS AND CULTURE
Ayala Museum
As a leading private museum in the country, the Ayala
Museum is committed to making history and art more
accessible to the public through creative programming,
innovative marketing, and strategic partnerships.
20
Project Partners
Private Collectors, Japan Foundation, the Embassy of Japan in the
Philippines, the Embassy of France in Manila, Australian Embassy
Manila in the Philippines, and PowerMac Center
Geographic Reach
Nationwide and global
Year Founded
1967
ARTS AND CULTURE
2013 Highlights
111,501
37
workshops and other
educational programs
TOTAL VISITORS
2,743
participants
in educational
programs
2013 Timeline
New Artist Space
Botong Francisco: Film and Traveling Exhibit
The new ArtistSpace opened on January 24, with
an exhibition of works by 50 Ilonggo artists.
In August, the short film Botong Francisco: A Nation Imagined, directed by Peque Gallaga was screened
at the Cinemalaya Independent Film Festival. It was produced as part of the Botong Francisco exhibit
(December 4, 2012 - March 31, 2013).
We also launched the Botong Francisco traveling exhibition on August 27 at The District North
Point Mall, Talisay, Negros Occidental. The exhibit featured 25 reproductions of Botong’s paintings
from institutional and private collections. It was also brought to the Museo Negrense de La Salle in
Bacolod City, Negros Occidental and Museo Iloilo in Iloilo City, Iloilo.
Philippines: Archipel des Échanges
Musée du quai Branly in Paris, France, hosted
Philippines: Archipel des Échanges, one of the largest
exhibitions of Philippine precolonial art and artifacts
outside the Philippines. A total of 310 precolonial
treasures were on display, including the Ayala
Museum’s gold kinnari, limestone burial jars, and
musical instruments.
Images of Nation:
H.R. Ocampo
An exhibition on National
Artist H.R. Ocampo ran
from June to November,
with pieces from the Paulino
and Hetty Que collection.
The exhibit was supported
by a ST’ART workshop.
Musical Performances
With the Manila Chamber
Orchestra Foundation
(MCOF) and the Manila
Symphony Orchestra
(MSO), we organized
musical performances to
put classical music in a new
light. These included the
Chamber Music Festival
(February to April), Rush
Hour Concerts (6:30 to
7:30 p.m., March and April),
and Season’s Symphonies
(December).
I Love Kusama
ImaginArt
The art of acclaimed Japanese
artist Yayoi Kusama was
the subject of our inaugural
Collectors’ Series. I Love
Kusama featured pieces from
the private collection of Lito
and Kim Camacho. Collectors
Series, through curated
thematic exhibitions, aims
to expand the understanding
and appreciation of local and
international art. It provides
the opportunity to view
artworks that are usually not
seen in public, especially a
body of work of a single artist.
Globe Telecom partnered with the Ayala Museum for
ImaginArt, a competition that offered young artists the
chance to exhibit at the Globe Art Gallery in Globe’s
headquarters in Bonifacio Global City. The winner was film
and television makeup artist Leo Velasco.
Greenstallations
Nuvali, the Ayala Land development in Santa Rosa, Laguna,
partnered with the Ayala Museum to bring art to nature
in August through Greenstallations, featuring artworks by
sculptors Mario Mallari Jr., Juan Carlo Calma, Michael
Cacnio, and Eduardo Castrillo.
Other Notable
Exhibitions and
Educational
Programs
To keep art and
culture relevant and
intriguing to the public,
we organized other
exhibitions, including
Terrain: The Works of
Nelfa Querubin, Media
Art Kitchen Sensorium
(with Japan Foundation),
and Constancio Bernardo:
1913-2013. Also popular
were the History Comes
Alive series with historian
Ambeth Ocampo,
DesignTalks session with
ProudRace, the graphic
design masterclass with
Lucille Tenazas of The
New School, and Design
Co.Mission (design
solutions for social
problems) with Plus63.
21
ARTS AND CULTURE
Filipinas Heritage Library
A library of rare and contemporary volumes on Philippine
history, art, and culture, the Filipinas Heritage Library
has reinvented itself as a “contemporary space for the
contemporary researcher,” as it moves to make its collections
more accessible to the public through digital technology,
community programs, and literary events.
22
Project Partners
Local Government Units, National Book
Development Board, BPI Foundation, Ayala Land, and
Globe Telecom
Geographic Reach
Nationwide and global
Year Started
1996
ARTS AND CULTURE
2013 Highlights
450
RARE
BOOKS
DIGITIZED
1,543
217
researchers served
RARE BOOKS FUMIGATED / RESTORED
323
people reached through
educational programs
350,341
total visitorship of five
FHL-managed websites
2013 Timeline
FHL’s New Home
Armengol Collection
Herencia
After 16 years at the
historic Nielson Tower,
the Filipinas Heritage
reopened on the sixth
floor of the Ayala
Museum on March 19.
The new FHL offers
enhanced services and
facilities, with focus on
digitization.
The family of former Spanish Ambassador to the
Philippines Pedro Ortiz Armengol turned over a
prized collection of 573 books on April 20. Armengol
was a distinguished writer, historian, traveler, and
Philippine scholar, and is considered the primary
Spanish scholar on the history and urbanity of Manila.
To help improve the skills of public school teachers in teaching art, BPI
Foundation and FHL partnered for the Herencia Lectures. Now on its
fourth year, the lectures were held at the BenCab Museum in Baguio
City (April 24-25) with 49 teachers, and the Negros Museum in Bacolod
(October 23 to 25) with 41 teachers. The seminar was an offshoot of the
Herencia book published in 2008, featuring BPI’s art collection.
POPtastik Pinoy!
OurLibrary
Eat Bulaga! Grant
With the National Book Development Board (NBDB), we hosted
the 4th Philippine International Literary Festival on November
15, where Filipino writers discussed folk and popular literature
as shown in komiks, TV, and film. Entitled “POPtastik Pinoy!,”
the event featured lectures and sharing sessions on Filipino pop
literature. It was supported by an exhibition of costumes from
GMA Television Network’s popular fantaseryes (fantasy serials).
The exhibit, held at Glorietta and Greenbelt 3, was supported
by GMA and Ayala Malls.
We help communities develop their
own libraries through the OurLibrary
project. In February we signed a
memorandum of agreement with the
Local Government Units of Gumaca,
Atimonan, and Tagkawayan,
Quezon Province. OurLibrary
hopes to improve the collection of
resource and reading materials in
public or school libraries in cities
and municipalities; improve library
facilities and services; and set up
activities that promote a love of
reading and learning.
The Filipinas Heritage Library received a grant
from TAPE Inc. to archive more than 30 years’
worth of video materials from the longest running
noontime show in the country, Eat Bulaga!
23
SPECIAL PROJECTS
Strengthening the Capacity of Civil Society
Organizations in the Philippines
2013 Highlights
131
CSOs who
received
organizational
development
assistance from
SCCSOP
747
participants who
attended the training
sessions
22
training sessions
conducted across
five training
programs
A project supported by the
United States Agency for
International Development
(USAID), SCCSOP seeks to
strengthen the organizational
effectiveness and
accountability of at least 120
civil society organizations
(CSOs), increase the pool of
trainers and mentors who
can assist CSOs in meeting
good governance and
organizational management
standards, and develop the
capacities of CSO networks
to create mechanisms
to proactively respond
to capacity gaps of their
members.
Project Partners
USAID, Association of Foundations,
Caucus of Development NGO
Networks (CODE NGO), Philippine
Business for Social Progress, Philippine
Council for NGO Certification,
University of the Philippines Public
Administration Research and
Extension Services Foundation
Geographic Reach
Nationwide
Year Started
2011
2013 Timeline
Continuing provision of package of capacitybuilding interventions
SCCSOP conducted training sessions in five capacity areas:
effective governance; resource mobilization and development;
program design, implementation and management, monitoring
and evaluation; financial management; and administrative
and personnel management. We also fielded one volunteer
organizational development mentor per participating CSO,
provided technical assistance and templates for manuals.
24
Midproject assessment
Other workshops
Fieldwork for the midproject
assessment was conducted from
June to August. The project team
facilitated the self-assessment
of 103 participating CSOs. They
assessed how far they have
progressed in attaining their OD/
capacity-buidling plans.
Special workshops on organizational diagnosis,
strategic planning, and the Non-US Organization
Pre-Award Survey (NUPAS) training were also
held. NUPAS is an important tool to determine
how fit a non-US nonprofit is to be considered for
a USAID grant.
SPECIAL PROJECTS
Buklod Bahayan Daycare Center
Buklod Bahayan
Daycare Center
serves the children of
residents of Buklod
Bahayan, a socialized
housing project in
Barangay Tartaria,
Silang, Cavite.
Project Partners
Private Donors, Department of Social
Welfare and Development, Local
Government of Silang, Residents
Geographic Reach
Silang, Cavite
Year Started
1998
Project Timeline
Daycare operations
Livelihood project
The daycare center had a total
enrollment of 92 students, for whom
various activities were regularly
implemented, such as educational
trips, feeding program, and others.
A hand-soap and laundry-soapmaking project was started for
residents of the community.
The Entire Nation (TEN) Moves
We implemented TEN Moves, a multi-stakeholder initiative
that raised funds for the construction of 10,000 public school
classrooms from 2011 to 2013. We officially turned it over to the
Philippine Business for Social Progress (PBSP) this year.
Project Partners
57-75 Education Reform Movement (Ateneo Center
for Educational Development, Eugenia Apostol
Foundation, League of Corporate Foundations,
Philippine Business for Education, Philippine
Business for Social Progress, Synergeia Foundation)
Geographic Reach
Nationwide
Year Started
2011
25
Disaster Response
We undertook fund-raising activities, using both traditional and innovative platforms, for the
benefit of our communities. But as the country experienced one disaster after another in the
last quarter of the year, we launched several disaster relief drives not only for communities in
immediate need, but also for those in need of long-term rehabilitation.
26
DISASTER RESPONSE
2013 Highlights
P40,041,118
P 1,475,858
CASH DONATIONS FOR BOHOL EARTHQUAKE
cash donations for Typhoon Yolanda
P 1,145,512
cash donations sent through
Laging Handa general disaster fund
P267,645
cash donations for children
affected by Zamboanga unrest
2013 Timeline
Laging Handa
Tugon sa Bohol
Typhoon Yolanda (Haiyan)
We launched Laging Handa, a year-round disaster
relief channel through which people could send
their cash donations, even before a calamity
strikes. Through Laging Handa, we received
a total of =
P 1,145,512, of which =
P 432,355 was
used for the needs of students displaced by the
Zamboanga siege in October.
Bohol was one of the hardest-hit provinces during
the 7.2 earthquake that struck Central Visayas on
October 15. It resulted in deaths, injury, damage
to property, and the destruction of several
heritage churches. In response, the Ayala group
launched Tugon sa Bohol, a campaign to raise
funds for the rehabilitation of a Bohol heritage
church. We partnered with Ayala Land Inc. to hold
the Tugon sa Bohol fund-raising concert, which
brought to Metro Manila the acclaimed Loboc
Children’s Choir. Under the leadership of the
Ayala Museum and in partnership with Executive
Secretary Paquito Ochoa Jr., we restaged the
Kisame exhibition, featuring the ceiling paintings
of Bohol’s heritage churches. Many of these
paintings are now gone. Through the sale of
commemorative items and outright donations, we
raised =
P 1,475,858. The funds were allocated for
the pre-rehabilitation work to be undertaken by
the Diocese of Tagbilaran.
Dubbed the strongest typhoon in recent history,
Supertyphoon Yolanda brought unprecedented
damage and destruction to many parts of
the Visayas in November. Immediately after
the typhoon struck, we opened our donation
channels and mobilized funds for immediate
relief. We partnered with the Department of
Social Welfare and Development, World Food
Programme of the United Nations, and the Ayala
Business Club Cebu. We released =
P 5.058 million
for immediate relief between November and
December, and developed a plan for long-term
rehabilitation. Focusing on the cities of Sagay and
Cadiz in Negros Occidental, we are implementing
education and sustainable livelihood programs
over the long term.
By the end of the year, we received =
P 40.04
million in cash donations.
We also joined the One Big Ayala Volunteer
Night to pack relief goods for Yolanda victims.
Zamboanga fund-raising
Conflict between extremist groups and the
military in Zamboanga displaced numerous
families and put the lives of thousands of
children in danger. In response to the call from
the Department of Education to provide school
supplies and other educational needs for the
affected school kids. We raised =
P 267,645,
supplemented with =
P 432,355 raised through
the Laging Handa channel. Our partners for this
initiative were the DepEd, National Book Store
Foundation, and LBC Foundation.
27
Our Board
of Trustees
CHAIRMEN OF THE BOARD OF TRUSTEES
PRESIDENT AND MEMBER OF THE
BOARD OF TRUSTEES
28
Alfredo Ayala
MEMBER OF THE BOARD OF TRUSTEES
Antonino Aquino
Gerardo Ablaza
John Philip Orbeta
MEMBERS OF THE BOARD OF TRUSTEES
Victoria
Garchitorena
MEMBER OF THE
BOARD OF TRUSTEES
Jaime Laya
Ernest Cu
Mercedita Nolledo
MEMBERS OF THE BOARD OF TRUSTEES
MEMBER OF THE
BOARD OF TRUSTEES
29
SPECIAL SECTION
A Brief History
of the Philippines’
Oldest Business House
A
yala in 2014 celebrates its
180th year. How it evolved into
one of the largest and most
innovative Philippine conglomerates—
with businesses ranging from
real estate, financial services, and
telecommunications to investments in
water, electronics, automotive, business
process outsourcing, power, and transport
infrastructure—is the longest narrative in
the country’s business history.
30
The story begins in 1834 in what was Las Islas
Filipinas. At a time when Manila’s business houses
were engaged mainly in executing customers’ orders
for buying and selling of commodities for a fee,
landowner and entrepreneur Domingo Roxas and his
young industrial partner Antonio de Ayala created a
company that would engage in agribusiness. They
built a distillery to derive greater value from cane sugar.
It was small but it represented a Philippine step from
the purely agricultural to the little-unexplored realm
of industry.
banking. Banco Español-Filipino—which issued the
first Philippine paper currency—later became Bank of
the Philippine Islands.
When it had grown and become well known, the
distillery exported various products to Europe and
garnered awards and recognition for their quality.
This showed that an enterprise in the rural and
remote Philippines could compete in the international
arena and win. Its best selling brand, Ginebra San
Miguel, remains today.
After the turn of the 20th century, the tramcar service
was sold to an American company that renamed it
Manila Electric Railway and Light Co., or MERALCO.
The distillery was also sold, to businessman Carlos
Palanca; at the time, it had 3,000 employees,
including Filipino and French scientists. It had
become a de facto incubator of the country’s
chemical industry.
One of de Ayala’s sons-in-law was the multitalented
Jacobo de Zobel: businessman, numismatist,
archaeologist, writer; mayor of Manila at age 30;
he read and spoke 11 languages, including Arabic
and Etruscan. While engaged in the family business
and serving on the Banco Español-Filipino board, he
introduced the first streetcar system in Manila.
When a Spanish royal decree established El Banco
Español-Filipino de Isabela II, Southeast Asia’s first
private commercial bank, Antonio de Ayala was
appointed director representing the Manila business
community. Thus began the Ayala involvement in
31
SPECIAL SECTION
INTO MODERN TIMES
A decision attributed to Roxas’ son Jose Bonifacio was the purchase of
land in San Pedro de Makati that extended all the way to the banks of
the Pasig River. The property was deemed to have little value and had
undergone a series of ownership changes when the company bought it
for P52,800 in 1851.
When the family’s assets were apportioned in 1914, the Makati
property went to the cousins Jacobo, Alfonso, and Mercedes Zobel
de Ayala. They and their successors would bring Ayala to what it
is today.
Mercedes’ husband, Col. Joseph McMicking, provided a new vision
for Ayala, and for developing what remained of the Makati property. The venture was uncertain and at first difficult. When success came,
it signified an unprecedented leap in the evolution of local real estate
development. From it emerged the Philippines’ first modern Central
Business District.
Ayala moved further from being a family business to being more
corporate in character. After a century, it began to employ professional
managers. It incorporated in 1968 and became publicly listed in 1976.
With professional teams, Colonel McMicking and his successors in
management—Jacobo’s son Enrique Zobel and Alfonso’s son Jaime
Zobel—steered Ayala to great success in the 20th century. Today,
Jaime Augusto and Fernando Zobel de Ayala share leadership of a
modern conglomerate with a much broader impact on the life of
the nation.
32
BEYOND 180 YEARS: ENABLING ENTREPRENEURSHIP
Ayala has found that the entrepreneurial spirit that has driven it for 18
decades is shared by many Filipinos, including merchants in its malls,
retailers of Globe products, overseas workers’ families that bank with
BPI, residents’ cooperatives in Manila Water’s distribution zone, and
micro-entrepreneurs who benefit from BanKO’s microfinance services.
As Ayala continues its expansion and diversification, it keeps an
enthusiastic eye for the many thousands of people who will begin and
build their own businesses through the ones it creates.
“By emphasizing a social purpose, we achieve a more complete form of
doing business and generate a cycle of prosperity,” says the chairman
and chief executive officer, Jaime Augusto Zobel de Ayala.
“We have always believed that the development of every individual
foregrounds the development of the whole,” adds his brother Fernando,
president and chief operating officer.
Ayala’s reputation for integrity, product and service quality, financial
strength and prudence, and high professionalism has made it a partner
of choice for major international corporations and the employer of
choice for many of the best and brightest talents. The respect and trust
it enjoys is deemed to have been earned by few other businesses in the
Philippines, and these are the core values that it treasures the most.
The conglomerate’s leadership, with Jaime Zobel de Ayala as chairman
emeritus, constantly promotes these values, including a deep
commitment to Philippine development and to the Filipino.
Ayala’s narrative of pioneering innovation continues into a future full of
new opportunity and promise.
33
FS divider
choose pic from El Nido
Report of
Independent
Auditors
34
STATEMENT OF MANAGEMENT’S RESPONSIBILITY
FOR FINANCIAL STATEMENTS
The management of Ayala Foundation, Inc. is responsible for the preparation and fair
presentation of the financial statements for the years ended December 31, 2013 and 2012, including
the additional components attached therein, in accordance with the Philippine Financial Reporting
Standards. This responsibility includes designing and implementing internal controls relevant to the
preparation and fair presentation of the financial statements that are free from material misstatement,
whether due to fraud or error, selecting and applying appropriate accounting policies, and making
accounting estimates that are reasonable in the circumstances.
The Board of Trustees reviews and approves the financial statements and submits the same to the
members.
Sycip Gorres Velayo & Co., the independent auditors appointed by the members, has examined
the financial statements of the company in accordance with Philippine Standards on Auditing and in its
report to the members, has expressed its opinion on the fairness of presentation upon completion of such
examination.
JAIME AUGUSTO ZOBEL DE AYALA
Co-Chairman
FERNANDO ZOBEL DE AYALA
Co-Chairman
MARIA LOURDES HERAS – DE LEON
President
ADITAS VIVIAN L. SANTAMARIA
Chief Financial Officer
4th day of____________
March, 2014
Signed this____
35
SyCip Gorres Velayo & Co.
6760 Ayala Avenue
1226 Makati City
Philippines
Tel: (632) 891 0307
Fax: (632) 819 0872
ey.com/ph
BOA/PRC Reg. No. 0001,
December 28, 2012, valid until December 31, 2015
SEC Accreditation No. 0012-FR-3 (Group A),
November 15, 2012, valid until November 16, 2015
INDEPENDENT AUDITORS’ REPORT
The Board of Trustees
Ayala Foundation, Inc.
10th Floor, BPI Main Building
Ayala Avenue corner Paseo de Roxas
Legaspi Village, Makati City
Report on the Financial Statements
We have audited the accompanying financial statements of Ayala Foundation, Inc. (a non-stock,
non-profit corporation), which comprise the statements of financial position as at December 31, 2013
and 2012, and the statements of activities, statements of changes in fund balances and statements of
cash flows for the years then ended, and a summary of significant accounting policies and other
explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with Philippine Financial Reporting Standards, and for such internal control as
management determines is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with Philippine Standards on Auditing. Those standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
36
A member firm of Ernst & Young Global Limited
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of
Ayala Foundation, Inc. as at December 31, 2013 and 2012, and the statements of activities and its cash
flows for the years then ended in accordance with Philippine Financial Reporting Standards.
Report on the Supplementary Information Required Under Revenue Regulations 15-2010
Our audits were conducted for the purpose of forming an opinion on the basic financial statements
taken as a whole. The supplementary information required under Revenue Regulations 15-2010 in
Note 15 to the financial statements is presented for purposes of filing with the Bureau of Internal
Revenue and is not a required part of the basic financial statements. Such information is the
responsibility of the management of Ayala Foundation, Inc. The information has been subjected to the
auditing procedures applied in our audit of the basic financial statements. In our opinion, the
information is fairly stated in all material respects in relation to the basic financial statements taken as
a whole.
SYCIP GORRES VELAYO & CO.
Jessie D. Cabaluna
Partner
CPA Certificate No. 36317
SEC Accreditation No. 0069-AR-3 (Group A),
February 14, 2013, valid until February 13, 2016
Tax Identification No. 102-082-365
BIR Accreditation No. 08-001998-10-2012,
April 11, 2012, valid until April 10, 2015
PTR No. 4225155, January 2, 2014, Makati City
March 4, 2014
37
SyCip Gorres Velayo & Co.
6760 Ayala Avenue
1226 Makati City
Philippines
Tel: (632) 891 0307
Fax: (632) 819 0872
ey.com/ph
BOA/PRC Reg. No. 0001,
December 28, 2012, valid until December 31, 2015
SEC Accreditation No. 0012-FR-3 (Group A),
November 15, 2012, valid until November 16, 2015
INDEPENDENT AUDITORS’ REPORT
ON SUPPLEMENTARY SCHEDULE
The Board of Trustees
10th Floor, BPI Main Building
Ayala Avenue corner Paseo de Roxas
Legaspi Village, Makati City
We have audited in accordance with Philippine Standards on Auditing, the financial statements of
Ayala Foundation, Inc. (the Foundation) as at December 31, 2013 and 2012 and for the years ended
December 31, 2013 and 2012, and have issued our report thereon dated March 4, 2014. Our audits
were made for the purpose of forming an opinion on the basic financial statements taken as a whole.
The accompanying schedule of all the effective standards and interpretations as of December 31, 2013
is the responsibility of the Foundation’s management. This schedule is presented for purposes of
complying with Securities Regulation Code Rule 68, As Amended (2011) and is not part of the basic
financial statements. This schedule have been subjected to the auditing procedures applied in the audit
of the basic financial statements and, in our opinion, fairly state, in all material respects, the
information required to be set forth therein in relation to the basic financial statements taken as a
whole.
SYCIP GORRES VELAYO & CO.
Jessie D. Cabaluna
Partner
CPA Certificate No. 36317
SEC Accreditation No. 0069-AR-3 (Group A),
February 14, 2013, valid until February 13, 2016
Tax Identification No. 102-082-365
BIR Accreditation No. 08-001998-10-2012,
April 11, 2012, valid until April 10, 2015
PTR No. 4225155, January 2, 2014, Makati City
March 4, 2014
38
AYALA FOUNDATION, INC.
(A Non-Stock, Non-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION
December 31
2012
2013
ASSETS
Current Assets
Cash and cash equivalents (Notes 4 and 13)
Receivables - net (Notes 5 and 13)
Merchandise inventories - net (Note 6)
Other current assets (Note 7)
Total Current Assets
Noncurrent Assets
Property and equipment (Note 8)
Available-for-sale financial assets
(Notes 9 and 13)
Total Noncurrent Assets
P
=133,069,407
16,945,581
16,341,275
7,832,928
174,189,191
=93,752,612
P
18,265,005
16,284,204
8,501,607
136,803,428
161,813,423
148,202,196
2,290,996,965
2,452,810,388
1,711,200,034
1,859,402,230
P
=2,626,999,579
=1,996,205,658
P
P
=75,126,583
=70,190,540
P
20,555,787
95,682,370
32,114,399
102,304,939
LIABILITIES AND NET ASSETS
Current Liability
Accounts and other payables (Notes 10 and 13)
Noncurrent Liability
Pension liability (Note 11)
Total Liabilities
Net Assets (Note 12)
Unrestricted
Temporarily restricted
Permanently restricted
Unrealized gain on available-for-sale financial assets (Note 9)
Remeasurement loss on defined benefit obligation (Note 11)
Total Net Assets
18,553,135
288,317,350
2,187,714,273
57,285,726
(20,553,275)
2,531,317,209
P
=2,626,999,579
1,113,186
190,570,834
1,653,150,699
83,954,992
(34,888,992)
1,893,900,719
=1,996,205,658
P
See accompanying Notes to Financial Statements.
39
40
NET ASSETS AT END OF YEAR
NET ASSETS AT BEGINNING OF YEAR
CHANGES IN NET ASSETS
Excess of revenue, gains and other supports
over expenses and losses
Fund allocation (disbursements)
Unrealized loss on available-for-sale financial
assets
Remeasurement gain on defined benefit obligation
Expenses and losses:
Project
General and administrative
Net loss from other activities (Note 14)
Revenue, gains and other supports:
Public support
Investment and interest (Notes 4 and 9)
Project
Net assets released from restrictions
Others
STATEMENTS OF ACTIVITIES
–
–
9,063,326
9,063,326
104,310,090
(6,563,574)
–
–
221,547,505
41,339,007
–
262,886,512
17,439,949
–
–
–
P
=18,553,135
1,113,186
P
=288,317,350
190,570,834
97,746,516
P
=266,377,033
38,452,054
2,024,914
(195,026,461)
1,545,876
113,373,416
P
=–
85,300,000
–
195,026,461
–
280,326,461
17,439,949
Temporarily
Restricted
(Note 12)
Unrestricted
(Note 12)
P
=2,187,714,273
1,653,150,699
534,563,574
–
–
528,000,000
6,563,574
–
–
–
–
P
=528,000,000
–
–
–
–
528,000,000
P
=57,285,726
83,954,992
(26,669,266)
(26,669,266)
–
–
–
–
–
–
–
P
=–
–
–
–
–
–
December 31, 2013
Unrealized
Gain (Loss) on
Permanently
AFS Financial
Restricted
Assets
(Note 12)
(Note 9)
(P
=20,553,275)
(34,888,992)
14,335,717
–
14,335,717
–
–
–
–
–
–
P
=–
–
–
–
–
–
Remeasurement
Gain (Loss) on
Defined Benefit
Obligation
(Note 11)
P
=2,531,317,209
1,893,900,719
637,416,490
(26,669,266)
14,335,717
649,750,039
–
221,547,505
41,339,007
9,063,326
271,949,838
P
=794,377,033
123,752,054
2,024,914
–
1,545,876
921,699,877
Total
41
=240,723,890
P
33,402,538
5,533,084
(158,507,361)
945,947
122,098,098
–
–
9,042,956
9,042,956
113,055,142
(368,425,599)
–
–
(255,370,457)
445,941,291
=190,570,834
P
=–
P
25,198,013
–
158,507,361
–
183,705,374
266,167,312
41,836,330
–
308,003,642
(124,298,268)
–
–
–
(124,298,268)
125,411,454
=1,113,186
P
CHANGES IN NET ASSETS
NET ASSETS AT BEGINNING OF YEAR
NET ASSETS AT END OF YEAR
Excess of revenue, gains and other supports
over expenses and losses (expenses over
revenue)
Unrealized gain on available-for-sale financial
assets
Remeasurement loss on defined benefit obligation
Expenses and losses:
Project
General and administrative
Net loss from other activities (Note 14)
Revenue, gains and other supports:
Public support
Investment and interest (Notes 4 and 9)
Project
Net assets released from restrictions
Others
Temporarily
Restricted
(Note 12)
Unrestricted
(Note 12)
=1,653,150,699
P
954,809,584
698,341,115
–
–
330,008,081
368,333,034
–
–
–
–
=255,400,000
P
74,608,081
–
–
–
330,008,081
=83,954,992
P
83,597,752
357,240
357,240
–
–
–
–
–
–
–
=–
P
–
–
–
–
–
(P
=34,888,992)
(4,247,835)
(30,641,157)
–
(30,641,157)
–
–
–
–
–
–
=–
P
–
–
–
–
–
December 31, 2012
Unrealized Gain
Remeasurement
Permanently
on AFS
Loss on Defined
Financial Assets Benefit Obligation
Restricted
(Note 12)
(Note 9)
(Note 11)
=1,893,900,719
P
1,605,512,246
288,388,473
357,240
(30,641,157)
318,764,955
(92,565)
266,167,312
41,836,330
9,042,956
317,046,598
=496,123,890
P
133,208,632
5,533,084
–
945,947
635,811,553
Total
42
FUND BALANCES
Net assets at beginning of year
Excess of revenue, gains and other supports over
expenses and losses (expenses over revenue)
Net unrealized gain
Net assets at end of year
FUND BALANCES
Net assets at beginning of year
Excess of revenue, gains and other supports over
expenses and losses
Net unrealized loss
Remeasurement gain on defined benefit obligation
Net assets at end of year
Temporarily
Restricted
P
=190,570,834
104,310,090
(6,563,574)
–
–
P
=288,317,350
Temporarily
Restricted
=445,941,291
P
113,055,142
(368,425,599)
–
–
=190,570,834
P
Unrestricted
P
=1,113,186
17,439,949
–
–
–
P
=18,553,135
Unrestricted
=125,411,454
P
(124,298,268)
–
–
–
=1,113,186
P
STATEMENTS OF CHANGES IN FUND BALANCES
330,008,081
368,333,034
–
–
=1,653,150,699
P
=954,809,584
P
–
–
357,240
–
=83,954,992
P
=83,597,752
P
–
–
–
(30,641,157)
(P
=34,888,992)
(P
=4,247,835)
318,764,955
(92,565)
357,240
(30,641,157)
=1,893,900,719
P
=1,605,512,246
P
Total
P
=1,893,900,719
Year Ended December 31, 2012
Unrealized
Remeasurement
Permanently
Gain on AFS
Loss on Defined
Restricted
Financial Assets Benefit Obligation
(P
=34,888,992)
Total
649,750,039
–
(26,669,266)
14,335,717
P
=2,531,317,209
–
–
(26,669,266)
–
P
=57,285,726
P
=83,954,992
Remeasurement
Gain (Loss) on
Defined Benefit
Obligation
–
–
–
14,335,717
(P
=20,553,275)
528,000,000
6,563,574
–
–
P
=2,187,714,273
P
=1,653,150,699
Year Ended December 31, 2013
Unrealized
Gain (Loss) on
Permanently
AFS
Restricted Financial Assets
STATEMENTS OF CASH FLOWS
Years Ended December 31
2012
2013
CASH FLOWS FROM OPERATING ACTIVITIES
Changes in net assets
Adjustments for:
Remeasurement loss (gain) on defined benefit obligation
(Note 11)
Depreciation and amortization (Note 8)
Loss (gain) on disposal of property and equipment
Provision for doubtful accounts (Notes 5 and 12)
Unrealized loss (gain) on AFS financial assets (Note 9)
Pension expense (Note 11)
Investment and interest income (Notes 4 and 9)
Changes in net assets before changes in working capital
Decrease (increase) in:
Receivables
Merchandise inventories
Other current assets
Increase (decrease) in:
Accounts and other payables
Pension liability (Note 11)
Net cash provided by operating activities
P
=637,416,490
=288,388,473
P
(14,335,717)
10,223,149
(241,866)
–
26,669,266
8,351,561
(123,752,054)
544,330,829
30,641,157
15,492,425
10,665,840
5,283,010
(357,240)
3,043,024
(133,208,632)
219,948,057
1,113,657
(57,071)
668,679
(2,833,357)
163,130
(3,386,162)
4,936,043
(5,574,456)
545,417,681
(12,352,249)
(9,014,350)
192,525,069
(606,466,197)
(23,834,376)
–
241,866
123,957,821
(506,100,886)
(649,989,264)
(13,129,554)
68,900,000
−
133,002,865
(461,215,953)
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
39,316,795
(268,690,884)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR
93,752,612
362,443,496
CASH AND CASH EQUIVALENTS AT
END OF YEAR (Note 4)
P
=133,069,407
=93,752,612
P
CASH FLOWS FROM INVESTING ACTIVITIES
Net disposals (additions) to:
AFS financial assets (Note 9)
Property and equipment (Note 8)
Decrease in restricted cash equivalents
Proceeds on disposal of property and equipment
Investment and interest income received
Net cash used in investing activities
43
NOTES TO FINANCIAL STATEMENTS
1. Organization and Tax Exemption
Ayala Foundation, Inc. (the Foundation) was registered with the Securities and Exchange
Commission (SEC) on December 28, 1961 as a non-stock, non-profit corporation primarily for the
following purposes:
a. To provide financial support, within the Philippines and abroad, for the studies of selected
students and for the attendance at scientific conferences by qualified and competent scholars;
b. To undertake community development and livelihood projects designed to improve the quality
of life of disadvantaged Filipinos;
c. To undertake ventures that will transfer appropriate technology to urban and rural groups that
will give them additional income and allow them to put up profitable enterprises that will
benefit themselves and the community;
d. To provide scholarships to poor but deserving urban and rural youth in vocational, technical,
livelihood and entrepreneurial courses;
e. To preserve and enhance Philippine Art and Culture by, among other things, establishing and
maintaining museums, supporting ethnic artisans and craftsmen, and undertaking related
activities that will encourage Filipinos, especially our youth, to appreciate their heritage;
f.
To organize, staff and finance research projects which may be established in furtherance of the
purposes and objectives of the Foundation; and
g. To promote, support, and finance the publication of reports prepared under the auspices of the
Foundation.
On February 15, 2010, the Foundation amended its Articles of Incorporation: (a) extending the
term for which the Foundation is to exist for another fifty (50) years from December 28, 2011 and
(b) to declassify the Foundation as a science and research foundation.
As a non-stock, non-profit corporation, the Foundation falls under Section 30 (E) of the Republic
Act No. 8424 entitled, “An Act Amending the National Internal Revenue Code, as Amended, and
for Other Purposes”. The receipts from activities conducted in pursuit of the objectives for which
the Foundation was established are exempt from income tax. However, any income arising from
its real or personal properties, or from activities conducted for profit, regardless of the disposition
made of such income, is subject to income tax.
The Foundation is duly accredited by the Philippine Council for Non-Government Organization
Certification (PCNC) and renewed its registration as a donee institution on August 6, 2010 in
accordance with the provisions of Revenue Regulation No. 13-98. Donations received shall entitle
the donors to full or limited deduction pursuant to Section 34 (H) (paragraphs 1 or 2) and
exemption from donor’s tax pursuant to Section 101 (A) (3) of the National Internal Revenue
Code of 1997. The Certificate of Registration shall be valid until July 01, 2015 unless sooner
44
revoked by the Bureau of Internal Revenue (BIR) or upon withdrawal of the Certificate of
Accreditation by PCNC.
The Foundation’s registered office address is at 10th Floor, BPI Main Building, Ayala Avenue
corner Paseo de Roxas, Legaspi Village, Makati City.
The accompanying financial statements were approved and authorized for issue by the Board of
Trustees on March 4, 2014.
2. Summary of Significant Accounting Policies
Basis of Preparation
The financial statements of the Foundation have been prepared using the historical cost basis,
except for available-for-sale (AFS) financial assets that have been measured at fair value. The
accompanying financial statements are presented in Philippine Peso (P
=) which is the Foundation’s
presentation and functional currency. All amounts are rounded off to the nearest peso unit unless
otherwise indicated.
Consistent with the requirement of Philippine Accounting Standard (PAS) 8, Accounting Policies,
Changes in Accounting Estimates and Errors, the Foundation applied Statement of Financial
Accounting Standards No. 117, Financial Statements of Not-for-Profit Organizations. This
Statement establishes standards for general-purpose external financial statements provided by a
not-for-profit organization. It specifies that those statements include a statement of financial
position, a statement of activities, statement of changes in fund balances and a statement of cash
flows.
Statement of Compliance
The accompanying financial statements have been prepared in compliance with Philippine
Financial Reporting Standards (PFRS).
Adoption of New and Amended Accounting Standards and Interpretations
The Foundation will adopt the following amended standards and Philippine Interpretations
enumerated below when these become effective on January 1, 2013. Except as otherwise
indicated, the adoption of the new and amended Standards and Interpretations did not have a
significant impact on the Foundation’s financial statements.

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. 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;
45
c) The net amounts presented in the statement of financial position;
d) 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 have no impact on the Foundation’s financial position or performance.

PFRS 10, Consolidated Financial Statements
PFRS 10 replaced the portion of PAS 27, Consolidated and Separate Financial Statements,
that addressed the accounting for consolidated financial statements. It also included the issues
raised in SIC 12, Consolidation - Special Purpose Entities. PFRS 10 established a single
control model that applied to all entities including special purpose entities. The changes
introduced by PFRS 10 require 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.

PFRS 11, Joint Arrangements
PFRS 11 replaced PAS 31, Interests in Joint Ventures, PFRS 11 and SIC 13, Jointly
Controlled Entities - Non-Monetary Contributions by Venturers. PFRS 11 removes the option
to account for jointly controlled entities using proportionate consolidation. Instead, jointly
controlled entities that meet the definition of a joint venture must be accounted for using the
equity method.

PFRS 12, Disclosure of Interests in Other Entities
PFRS 12 sets out the requirements for disclosures relating to an entity’s interests in
subsidiaries, joint arrangements, associates and structured entities. The requirements in PFRS
12 are more comprehensive than the previously existing disclosure requirements for
subsidiaries (for example, where a subsidiary is controlled with less than a majority of voting
rights).

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. PFRS 13 defines fair value as an exit
price. PFRS 13 also requires additional disclosures.
As a result of the guidance in PFRS 13, the Foundation re-assessed its policies for measuring
fair values, in particular, its valuation inputs such as non-performance risk for fair value
measurement of liabilities. The Foundation has assessed that the application of PFRS 13 has
not materially impacted the fair value measurements of the Foundation. Additional
disclosures, where required, are provided in the individual notes relating to the assets and
liabilities whose fair values were determined. Fair value hierarchy is provided in Note 13.
46

PAS 1, Presentation of Financial Statements - Presentation of Items of Other Comprehensive
Income or OCI (Amendments)
These Amendments introduce a grouping of items presented in OCI. Items that will 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 Amendments affect presentation only and have no impact on the Foundation’s
financial position or performance.

PAS 19, Employee Benefits (Revised)
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. The Foundation applied revised PAS 19 for the first time in its financial
statements as at January 1, 2012. The Foundation 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.
Changes to definition of short-term employee benefits and timing of recognition for
termination benefits do not have any impact to the Foundation’s financial position and
financial performance.

PAS 27, Separate Financial Statements (as revised in 2011)
As a consequence of the issuance of the new PFRS 10, Consolidated Financial Statements,
and PFRS 12, Disclosure of Interests in Other Entities, PAS 27 has been amended. What
remains of PAS 27 is limited to accounting for subsidiaries, jointly controlled entities, and
associates in the separate financial statements.

PAS 28, Investments in Associates and Joint Ventures (as revised in 2011)
As a consequence of the issuance of the new PFRS 11, Joint Arrangements, and PFRS 12,
Disclosure of Interests in Other Entities, PAS 28 has been renamed PAS 28, Investments in
Associates and Joint Ventures, and describes the application of the equity method to
investments in joint ventures in addition to associates.

Philippine Interpretation IFRIC 20, Stripping Costs in the Production Phase of a Surface Mine
This Interpretation applies to waste removal (stripping) costs incurred in surface mining
activity, during the production phase of the mine. The Interpretation addresses the accounting
for the benefit from the stripping activity. This new Interpretation is not relevant to the
Foundation.
47

PFRS 1, First-time Adoption of International Financial Reporting Standards - Government
Loans (Amendments)
These Amendments require first-time adopters to apply the requirements of PAS 20,
Accounting for Government Grants and Disclosure of Government Assistance, prospectively
to government loans existing at the date of transition to PFRS. However, entities may choose
to apply the requirements of PAS 39, Financial Instruments: Recognition and Measurement,
and PAS 20 to government loans retrospectively if the information needed to do so had been
obtained at the time of initially accounting for those loans. These Amendments are not
relevant to the Foundation.
Annual Improvements to PFRSs (2009-2011 cycle)
The Annual Improvements to PFRSs (2009-2011 cycle) contain non-urgent but necessary
amendments to PFRSs. The Foundation adopted these amendments for the current year.
48

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 Foundation as it is not a first-time adopter of PFRS.

PAS 1, Presentation of Financial Statements - Clarification of the requirements for
comparative information
These 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. As a
result, the Foundation has not included comparative information in respect of the opening
statement of financial position as at January 1, 2012. The Amendments affect disclosures only
and have no impact on the Foundation’s financial position or performance.

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
does not have any significant impact on the Foundation’s financial position or performance.

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 does not have any significant impact on the Foundation’s
financial position or performance.

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 affects
disclosures only and has no impact on the Foundation’s financial position or performance.
Future Changes in Accounting Policies
The Foundation will adopt the following amended standards and Philippine Interpretations
enumerated below when these become effective. Except as otherwise indicated, the Foundation
does not expect the adoption of these new and amended PFRS and Philippine Interpretations to
have significant impact on the Foundation’s financial statements.
Effective 2014

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. These Amendments are effective retrospectively for
annual periods beginning on or after January 1, 2014 with earlier application permitted,
provided PFRS 13 is also applied.

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 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 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. IFRIC 21 is effective for
annual periods beginning on or after January 1, 2014.

PAS 39, Financial Instruments: Recognition and Measurement - Novation of Derivatives and
Continuation of Hedge Accounting (Amendments)
These Amendments provide relief from discontinuing hedge accounting when novation of a
derivative designated as a hedging instrument meets certain criteria. These Amendments are
effective for annual periods beginning on or after January 1, 2014.

PAS 32, Financial Instruments: Presentation - Offsetting Financial Assets and Financial
Liabilities (Amendments)
These Amendments clarify the meaning of “currently has a legally enforceable right to setoff” 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. The Amendments to PAS 32 are to be retrospectively applied for annual
periods beginning on or after January 1, 2014.
49

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. The Amendments to PAS 19 are to be
retrospectively applied for annual periods beginning on or after July 1, 2014.
amendments to the following standards:
50

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. This
Amendment shall be prospectively applied to share-based payment transactions for which the
grant date is on or after July 1, 2014. This Amendment does not apply to the Foundation as it
has no share-based payments.

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 Amendment shall be prospectively applied to business
combinations for which the acquisition date is on or after July 1, 2014.

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. These Amendments are
effective for annual periods beginning on or after July 1, 2014 and are applied retrospectively.
The Amendments are not applicable to the Foundation.

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 is effective for annual periods beginning on or after July 1, 2014. The
Amendment shall apply to all revaluations recognized in annual periods beginning on or after
the date of initial application of this amendment and in the immediately preceding annual
period. The amendment has no impact on the Foundation’s financial position or performance.

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 are effective for annual
periods beginning on or after July 1, 2014 and are applied retrospectively. The Amendments
affect disclosures only and have no impact on the Foundation’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 are effective for annual periods beginning on or after July 1, 2014. The
Amendments shall apply to all revaluations recognized in annual periods beginning on or after
the date of initial application of this amendment and in the immediately preceding annual
period. The Amendments have no impact on the Foundation’s financial position or
performance.
51
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 Foundation 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. The Amendment
is effective for annual periods beginning on or after July 1 2014 and is applied prospectively.

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 is effective for annual periods
beginning on or after July 1, 2014 and is applied prospectively. The Amendment has no
significant impact on the Foundation’s financial position or performance.

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. This Amendment is effective for
annual periods beginning on or after July 1, 2014 and is applied prospectively. The
amendment has no significant impact on the Foundation’s financial position or performance.
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 fair value through profit or
loss. All equity financial assets are measured at fair value either through other comprehensive
income (OCI) or profit or loss. Equity financial assets held for trading must be measured at fair
value through profit or loss. 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
52
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 Group’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 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. The Company will not adopt the standard before the completion of the limited
amendments and the second phase of the project.
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 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.
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 from dates of acquisitions or less and that are subject to an insignificant risk of changes in
value.
Financial Instruments
Date of recognition
The Foundation recognizes a financial asset or a financial liability in the statement of financial
position when it 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
All financial assets and financial liabilities are initially recognized at fair value. Except for
financial assets and financial liabilities at fair value through profit or loss (FVPL), the initial
measurement of financial assets and liabilities includes transaction costs. The Foundation
classifies its financial assets in the following categories: financial assets at FVPL, held-to-maturity
(HTM) financial assets, available-for-sale (AFS) financial assets, and loans and receivables. The
Foundation classifies its financial liabilities into financial liabilities at FVPL and other financial
liabilities. The classification depends on the purpose for which the investments were acquired or
liabilities incurred and whether they are quoted in an active market. The Foundation determines
the classification of its investments at initial recognition and, where allowed and appropriate, reevaluates such designation at every reporting date.
53
The financial assets of the Foundation are of the nature of loans and receivables and AFS financial
assets, while its financial liabilities are of the nature of other financial liabilities (other than
liabilities covered by other accounting standards such as pension liability).
Determination of fair value
The Foundation measures financial instruments at each statement of financial position date. Also,
fair values of financial instruments measured at amortized cost are disclosed in Note 13.
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 by the Foundation.
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.
The Foundation 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, as described in Note 13.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the
Foundation 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.
For the purpose of fair value disclosures, the Foundation has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level
of the fair value hierarchy as explained in Note 13.
“Day 1” difference
Where the transaction price in a non-active market is different to 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 Foundation recognizes the
difference between the transaction price and fair value (a “Day 1” difference) in the statement of
activities under the “Investment and interest income” account. In cases where use is made of data
which is not observable, the difference between the transaction price and model value is only
recognized in the statement of activities when the inputs become observable or when the
instrument is derecognized. For each transaction, the Foundation determines the appropriate
method of recognizing the “Day 1” difference amount.
54
Loans and receivables
Loans and receivables are nonderivative 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 designated as AFS financial assets or
financial assets at FVPL. This accounting policy relates to the statement of financial position
captions “Cash and cash equivalents” and “Receivables.”
After initial measurement, the loans and receivables are subsequently measured at amortized cost
using the effective interest rate (EIR) 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 EIR. The amortization is included in the “Investment and interest” account in
the statement of activities. The losses arising from impairment of such loans and receivables are
recognized in the statement of activities.
Loans and receivables are included in current assets if maturity is within twelve (12) months from
the reporting date, otherwise these are classified as noncurrent assets.
AFS financial assets
AFS financial assets are those nonderivative financial assets which are designated as such or do
not qualify to be classified in any of the other three categories. They are purchased and held
indefinitely, and may be sold in response to liquidity requirements or changes in market
conditions. AFS financial assets include equity investments.
After initial measurement, AFS financial assets are measured at fair value. The unrealized gains
and losses arising from the fair valuation of AFS financial assets are excluded from reported
earnings and are reported as “Unrealized gain (loss) on AFS financial assets” account in the
statement of activities.
When the security is disposed of, the cumulative gain or loss previously recognized in the
statement of activities are then included under the “Revenue, gains and other supports” account.
Where the Foundation holds more than one investment in the same security these are deemed to be
disposed of on a first-in first-out basis. Interest earned on holding AFS financial assets are
reported as investment income using the EIR. Dividends earned on holding AFS financial assets
are recognized in the statement of activities when the right to receive payment is established. The
losses arising from impairment of such investments are recognized under “Unrealized gain (loss)
on AFS financial asset” account in the statement of activities.
When the fair value of AFS financial assets 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, less any allowance for
impairment losses.
AFS financial assets are classified as noncurrent assets unless the intention is to dispose such
assets within twelve (12) months from reporting date.
55
Other financial liabilities
Other financial liabilities pertain to issued financial instruments that are not classified or
designated at FVPL and contain contractual obligations to deliver cash or other financial assets to
the holder or to settle the obligation other than 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 EIR 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 EIR.
This accounting policy applies primarily to the Foundation’s “Accounts and other payables” and
other obligations that meet the above definition.
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 when:
a. the rights to receive cash flows from the asset has expired;
b. the Foundation 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
c. the Foundation has transferred its rights to receive cash flows from the asset and either (i) has
transferred substantially all the risks and rewards of the asset, or (ii) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the
asset.
Where the Foundation has transferred its rights to receive cash flows from an asset or has entered
into a pass-through arrangement, 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 Foundation’s continuing involvement in the asset. Continuing involvement that takes the form
of a guarantee over the transferred asset is measured at the lower of original carrying amount of
the asset and the maximum amount of consideration that the Foundation could be required to
repay.
Financial liability
A financial liability is derecognized when the obligation under the liability is discharged or
cancelled or 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 the statement of activities.
Impairment of Financial Assets
The Foundation assesses at each reporting date whether there is objective evidence that a financial
asset or 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.
56
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.
For loans and receivables carried at amortized cost, the Foundation first assesses whether objective
evidence of impairment exists individually for financial assets that are individually significant, or
collectively for financial assets that are not individually significant. If the Foundation 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. Those characteristics are relevant to the
estimation of future cash flows for groups of such assets by being indicative of the debtors’ ability
to pay all amounts due according to the contractual terms of the assets being evaluated. 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 (excluding future credit losses that have not been incurred). The
carrying amount of the asset is reduced through use of an allowance account and the amount of
loss is charged to the statement of activities. Interest income continues to be recognized based on
the original EIR of the asset. Loans and 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 year, 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
statement of activities, to the extent that the carrying value of the asset does not exceed its
amortized cost at the reversal date.
For the purpose of a collective evaluation of impairment, financial assets are grouped on the basis
of such credit risk characteristics as industry, past-due status and term.
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 Foundation to reduce any differences between loss estimates and actual loss
experience.
For AFS financial assets, the Foundation assesses at each reporting date whether there is objective
evidence that a financial asset or group of financial assets is impaired.
57
In case of equity investments classified as AFS financial assets, this would include a significant or
prolonged decline in the fair value of the investments below its cost. Where there is evidence of
impairment, the cumulative loss measured as the difference between the acquisition cost and the
current fair value, less any impairment loss on that financial asset previously recognized in the
statement of activities - is removed from the “Unrealized gain (loss) on AFS financial assets”
account and recognized as an expense. Impairment losses on equity investments are not reversed
through revenue. Increases in fair value after impairment are recognized directly under
“Unrealized gain (loss) on AFS financial assets” account in the statement of activities.
In the case of debt instruments classified as AFS financial assets, impairment is assessed based on
the same criteria as financial assets carried at amortized cost. Future interest income is based on
the reduced carrying amount and is accrued using the rate of interest used to discount future cash
flows for the purpose of measuring impairment loss and is recorded as part of “Investment
income” account in the statement of activities. If, in subsequent year, the fair value of a debt
instrument increases and the increase can be objectively related to an event occurring after the
impairment loss was recognized in the statements of activities, the impairment loss is reversed
through the statement of activities.
Offsetting Financial Instruments
Financial assets and financial liabilities are offset and the net amount 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.
Merchandise Inventories
Merchandise inventories consist of books and other items held for sale. Merchandise inventories
are valued at the lower of cost or net realizable value (NRV). Cost is determined using the
first-in, first-out method. NRV is the estimated selling price in the ordinary course of business
less estimated costs necessary to make the sale.
Property and Equipment
Property and equipment except for land, are carried at cost less accumulated depreciation and
amortization and any impairment in value. Land is carried at cost less any impairment in value.
The initial cost of property and equipment comprises its purchase price and any directly
attributable costs of bringing the asset to its working condition and location for its intended use.
Expenditures incurred after the property and equipment have been put into operation, such as
repairs and maintenance, are normally charged to expense in the period in which the costs are
incurred. In situations where it can be clearly demonstrated that the expenditures have resulted in
an increase in the future economic benefits expected to be obtained from the use of an item of
property and equipment beyond its originally assessed standard of performance, the expenditures
are capitalized as an additional cost of property and equipment.
Depreciation and amortization of property and equipment commences once the property and
equipment are available for use and is computed using the straight-line method over the following
estimated useful lives of the property and equipment:
Leasehold improvements
Office furniture and equipment
Transportation equipment
58
Years
5-25
3-5
5
Leasehold improvements are amortized over the estimated useful life (EUL) of the improvements
or the terms of the lease, whichever is shorter.
The useful lives and depreciation and amortization method are reviewed annually based on
expected asset utilization 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.
Construction in progress is stated at cost. This includes cost of construction of property and
equipment and other direct costs. Construction in progress is not depreciated until such time the
relevant assets are complete and are put into operational use.
When property and equipment are retired or otherwise disposed of, the cost and the related
accumulated depreciation and amortization are removed from the accounts and any resulting gain
or loss is credited to or charged against current operations.
Fully depreciated property and equipment are retained in the accounts until they are no longer
used and no further depreciation and amortization is charged against current operations.
Impairment of Non-financial Assets
The Foundation assesses at each reporting date whether there is an indication that an asset may be
impaired. If any such indication exists, or when annual impairment testing for an asset is required,
the Foundation 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. Impairment losses of
continuing operations are recognized in the statement of activities in those expense categories
consistent with the function of the impaired asset.
An assessment is made at each reporting date 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 the statement of activities unless the asset is
carried at revalued amount, in which case, the reversal is 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 EUL.
59
Provisions
Provisions are recognized when the Foundation has a present obligation (legal or constructive) as a
result of a past event, it is probable (i.e., more likely than not) 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 Foundation expects a provision to be
reimbursed, the reimbursement is recognized as a separate asset but only when the reimbursement
is virtually certain. Provisions, if any, are reviewed at each reporting date and adjusted to reflect
the current best estimate.
Restricted Net Assets
The Foundation reports gifts of cash and other assets as restricted support if they are received with
donor stipulations that limit the use of the donated assets. When a donor restriction expires, that
is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily
restricted net assets are reclassified to unrestricted net assets and reported in the statement of
activities as net assets released from restrictions.
Donations consisting of long-lived assets with explicit restrictions that specify how the assets are
to be used and gifts of cash or other assets that must be used to acquire long-lived assets are
reported as restricted net assets.
Revenue Recognition
Revenue is recognized when it is probable that the economic benefits associated with the
transaction will flow to the Foundation and the amount of the revenue can be reliably measured.
Public support
Public support revenue represents contributions received by the Foundation. Unconditional
contributions received, including unconditional promises to give cash or other assets, are
recognized as revenue in the period received at their fair value. Conditional promises to give are
recognized when the conditions are met. Assets received subject to conditions are accounted for
as refundable advances until the conditions are met.
Investment and interest income
Investment income represents interest income earned on cash and cash equivalents and AFS
financial assets and realized gains or losses on sale of investments. Income is recognized on a
time proportion basis computed on the outstanding principal using the applicable rate.
Project revenue
Project revenue represents sales of hand-woven products of the Mindoro Mangyan communities,
commemorative items such as plates, cards, program merchandise, and other similar items. It also
includes space rentals, and recoveries of telephone and internet expenses from locators at the UP
Technology Business Incubator facility.
Expenses
Expenses arise in the course of the ordinary operations of the Foundation. Expenses constitute
costs of administering the Foundation’s activities and are recognized in the Statement of Activities
as incurred. These usually take the form of an outflow of assets.
60
Museum Collections
Artworks, ethnographic, archeological and rare book collections purchased for or donated to the
museum are not included in the accompanying financial statements. Gifts of cash or property used
for the purchase of the museum collections are classified as public support revenue when
acquisitions are made in accordance with the terms of the gifts. The cost of objects purchased or
donated is reported as a project expense.
Defined Benefit Plan
Pension cost and net defined benefit liability or asset is calculated annually by independent
actuaries using the projected unit credit method.
Pension 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 costs, past service costs 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 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 the zero-coupon bond yields to the net defined liability or
assets. Net interest on the net defined benefit liability or asset is recognized as expense or income
in statement of activities.
Remeasurements comprising actuarial gains and losses and return on plan assets are recognized
immediately in other comprehensive income in the period in which they arise. Remeasurements
are not reclassified to statement of activities in subsequent periods.
Plan assets are assets that are held by a long-term employee benefit fund. Plan assets are not
available to the creditors of the Foundation, nor can they be paid directly to the Foundation. 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. 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 the economic benefits available in form of refunds from the plan or reductions in
the future contributions to the plan.
The net defined benefit liability or asset recognized in the Foundation’s statement of financial
position in respect of the defined benefit pension plan is the aggregate of the present value of the
defined benefit liability at the reporting date less the fair value of the plan assets. The present
value of the defined benefit liability is determined by discounting the estimated future cash
outflows using risk-free interest rates of government bonds that have terms to maturity
approximating to the terms of the related pension liability.
61
Termination benefits are employee benefits provided in exchange for the termination of an
employee’s employment as a result of either an entity’s decision to terminate an employee’s
employment before the normal retirement date , an employee’s decision to accept an offer of
benefits in exchange for the termination of employment or termination beyond the employee’s
control.
A liability or expense for a termination benefit is recognized at the earlier of when the entity can
no longer withdraw the offer of those benefits and when the entity recognizes related restructuring
costs. Initial recognition and subsequent changes to termination benefits are measured in
accordance with the nature of the employee benefit, as either post-employment benefits or shortterm employee benefits.
Foreign Currency Transactions
Transactions denominated in foreign currencies are recorded using the exchange rate at the date of
the transactions. Outstanding foreign currency-denominated monetary assets and liabilities at
year-end are translated to Philippine peso at prevailing Philippine Dealing System (PDS) rate at
reporting dates. Exchange gains or losses arising from foreign currency transactions are credited
to or charged against changes in net assets.
Contingencies
Contingent liabilities are not recognized in the financial statements. These are disclosed unless the
possibility of an outflow of resources embodying economic benefits is remote. Contingent assets
are not recognized in the financial statements but disclosed when an inflow of economic benefits
is probable.
Events After the Financial Reporting Period
Post year-end events that provide additional information about the Foundation’s position at the
reporting date (adjusting events) are reflected in the financial statements. Post year-end events
that are not adjusting events are disclosed in the notes to financial statements when material.
3. Significant Accounting Judgments and Estimates
The preparation of the accompanying financial statements in conformity with PFRS requires
management to make estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. The estimates and assumptions used in the accompanying
financial statements are based upon management’s evaluation of relevant facts and circumstances
as of the date of the financial statements. Actual results could differ from such estimates.
Judgments
In the process of applying the Foundation’s accounting policies, management has made the
following judgments, apart from those involving estimations, which have the most significant
effect on the amounts recognized in the financial statements:
Classification of financial instruments
The Foundation exercise judgment in classifying a financial instrument, or its component parts, on
initial recognition as a financial asset, financial liability or an equity instrument in accordance with
the substance of the contractual agreement and the definitions of a financial asset, financial
liability or an equity instrument. The substance of a financial instrument, rather than its legal form,
governs its classification in the statement of financial position.
62
In addition, the Foundation 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 these prices represent actual and regularly occurring market transaction on
an arm’s length basis.
Impairment of AFS financial assets
The Foundation treats AFS financial assets as impaired when there has been a significant or
prolonged decline in the fair value below its cost or where other objective evidence of impairment
exists. The determination of what is ‘significant’ or ‘prolonged’ requires judgment. The
Foundation treats ‘significant’ generally as 20% or more and ‘prolonged’ as greater than 6 months
for quoted equity securities. In addition, the Foundation evaluates other factors, including normal
volatility in share price for quoted equities and the future cash flows and the discount factors for
unquoted equities.
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, the amount of the loss
is measured as the difference between the carrying amount and the present value of estimated
future cash flows discounted at the current market rate of return for a similar financial asset.
Management’s Use of Estimates
The key assumptions concerning the future and other key sources of estimation uncertainty at the
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:
Estimating allowance for impairment losses
The Foundation maintains allowance for impairment losses based on the result of the individual
and collective assessment under PAS 39. Under the individual assessment, the Foundation is
required to obtain the present value of estimated cash flows using the receivable’s original EIR.
Impairment loss is determined as the difference between the receivables’ carrying balance and the
computed present value. The collective assessment would require the Foundation to group its
receivables based on the credit risk characteristics (industry, past-due status and term) of the
customers. Impairment loss is then determined based on historical loss experience of the
receivables grouped per credit risk profile. 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 the
individual and collective assessments are based on management's judgment and estimate.
Therefore, the amount and timing of recorded expense for any period would differ depending on
the judgments and estimates made for the year.
The carrying values of receivables amounted to P
=16.95 million and P
=18.27 million as of
December 31, 2013 and 2012, respectively (see Note 5).
Estimating allowance for inventory loss
The Foundation estimates its allowance for inventory loss based on periodic specific
identification. The Foundation provides 100% for previous year calendar, 10% for books and
catalogs and 50% allowance for inventory loss for other specifically identified as obsolete
inventories. Merchandise inventories of the Foundation, net of allowance for inventory loss as of
December 31, 2013 and 2012 amounted to P
=16.28 million, respectively.
Allowance for inventory loss amounted to P
=0.76 million as of December 31, 2013 and 2012
(see Note 6).
63
Estimating useful lives of property and equipment
The Foundation estimates the useful lives of its property and equipment based on the period over
which these assets are expected to be available for use. The estimated useful lives of property and
equipment are reviewed at least annually and are updated if expectations differ from previous
estimates due to physical wear and tear and technical or commercial obsolescence on the use of
these assets. It is possible that future results of operations could be materially affected by changes
in estimates brought about by changes in factors mentioned above.
As of December 31, 2013 and 2012, the carrying values of property and equipment amounted to
P
=148.20 million, respectively (see Note 8).
Evaluation of asset impairment
The Foundation reviews property and equipment and other current assets for impairment. This
includes considering certain indications of impairment such as significant changes in asset usage,
significant decline in assets’ market value, obsolescence or physical damage of an asset,
significant underperformance relative to expected historical or projected future operating results
and significant negative industry or economic trends. If such indications are present and where the
carrying amount of the asset exceeds its recoverable amount, the asset is considered impaired and
is written down to its recoverable amount.
As described in the accounting policy, the Foundation estimates the recoverable amount as the
higher of the net selling price and value in use. In determining the present value of estimated
future cash flows expected to be generated from the continued use of the assets, the Foundation is
required to make estimates and assumptions that may affect property and equipment and other
noncurrent assets. The Foundation believes that the carrying amounts of its assets approximate the
recoverable amounts and, as such, no impairment loss was recognized for the years ended
December 31, 2013 and 2012.
Estimating pension obligation and other retirement benefits
The cost of defined benefit pension plans and other retirement benefits as well as the present value
of the pension obligation are determined using actuarial valuations. The actuarial valuation
involves making various assumptions. Those assumptions are described in Note 11 and include,
among others, discount rates, future salary increases, mortality rates, turn-over rates and future
pension increases. Due to the complexity of the valuation, the underlying assumptions and its
long-term nature, defined benefit liability are highly sensitive to changes in these assumptions.
All assumptions are reviewed at each reporting dates. As of December 31, 2013 and 2012, the
pension liability amounted to P
=32.11 million, respectively (see Note 11).
The discount rate used is the single-weighted uniform discount rate using bootstrapped-derived
zero rates from PDST-R2 index, which when applied to the same cash flows, results in the same
present value as of reporting date. Present values of cash flows as of reporting date was
determined using the rates from derived zero yield curve.
The mortality rate is based on unisex annuity table and is modified accordingly with estimates of
mortality improvements (if any). Future salary increases are derived from the Foundation’s
estimated salary expenses for the next period. Further details about the assumptions used are
provided in Note 11.
64
Fair value of financial instruments
Where the fair values of financial assets and financial liabilities recorded and disclosed in the
statement of financial position cannot be derived from active markets, they are determined using
internal valuation techniques using generally accepted market valuation models. The inputs to
these models are taken from observable markets where possible, but where this is not feasible,
estimates are used in establishing fair values. These estimates may include considerations of
liquidity, volatility, and correlation. See Note 13 for the related balances.
4. Cash and Cash Equivalents
This account consists of:
Cash on hand and in banks
Cash equivalents
2013
P
=79,269,601
53,799,806
P
=133,069,407
2012
=27,752,612
P
66,000,000
=93,752,612
P
Cash in banks earn interests at the respective bank deposit rates. Cash equivalents are made for
varying periods of up to three months depending on the immediate cash requirements of the
Foundation and earn interest at the respective short-term investment rates 3.75% to 4.40% and
2.93% to 4.40% in 2013 and 2012, respectively.
As of December 31, 2013 and 2012, interest income earned on cash in banks and cash
=
=
equivalents amounted to P1.41
million and P5.22
million, respectively.
5. Receivables
This account consists of the following:
Trade:
Services
Products
Advances to cooperative
Nontrade
Advances to officers and employees
Accrued interest
Others
Less allowance for impairment losses
2013
2012
P
=11,811,851
471,799
5,912,346
4,107,971
2,528,128
–
2,388,896
27,220,991
10,275,410
P
=16,945,581
=12,227,898
P
1,915,152
6,263,147
5,431,803
1,876,713
205,767
1,995,929
29,916,409
11,651,404
=18,265,005
P
Trade receivables are collectibles from various entities arising from purchase of products and
availment of program services provided by the Foundation. These are collectible within one year.
Advances to cooperative pertain to cash advance for social credits which are collectible within one
year.
65
Nontrade receivables pertain to collectibles for activities outside the main revenue-generating
projects of the Foundation which are noninterest bearing and are due and demandable.
Advances to officers and employees pertain to salary loans and advances made by regular
employees of the Foundation for business related expenses and are subject for liquidation. This
amount is collectible within one year.
Others receivables are non-interest bearing and are due and demandable.
Receivables amounting to P
=11.65 million as of December 31, 2013 and 2012,
respectively, were individually impaired and fully provided for. Movements in the allowance for
impairment losses follow:
Balance at beginning of year
Provisions during the year (Note 12)
Written off during the year
Balance at end of year
2013
P
=11,651,404
–
(1,375,994)
P
=10,275,410
2012
=6,368,394
P
5,283,010
–
=11,651,404
P
2013
P
=17,042,064
9,409,125
26,451,189
9,352,963
17,098,226
756,951
P
=16,341,275
2012
=17,205,194
P
3,996,613
21,201,807
4,159,743
17,042,064
757,860
=16,284,204
P
2013
P
=5,448,577
2,043,081
341,270
P
=7,832,928
2012
=4,111,240
P
3,848,100
542,267
=8,501,607
P
6. Merchandise Inventories
Inventories consist of books, catalogs and other merchandise.
Movements in the inventories account are as follows:
Inventories at beginning of year
Add: Net cost of purchases
Total goods available for sale
Less cost of sales
Less allowance for inventory loss
7. Other Current Assets
Input tax
Deposits to suppliers
Prepaid expenses
Input VAT is applied against output VAT. The input VAT is recoverable in future periods.
Deposits to suppliers pertain to advance payments made by the Foundation to suppliers and other
entities.
66
Prepaid expenses include prepayments for insurance, rent, subscription fees, repairs and
maintenance and others.
8. Property and Equipment
The rollforward analysis of this account follows:
Cost
At January 1
Additions
Disposals
Transfers
At December 31
and Amortization
At January 1
Depreciation and
amortization
Disposals
At December 31
Net Book Value
Land
Leasehold
Improvements
P
=99,368,375
52,800
–
–
99,421,175
P
=43,270,594
–
–
19,879,337
63,149,931
P
=84,831,057
10,523,313
(1,264,372)
–
94,089,998
P
=2,992,048
1,879,000
(1,164,048)
–
3,707,000
–
12,948,248
75,295,884
2,577,348
–
–
–
P
=99,421,175
2,799,735
–
15,747,983
P
=47,401,948
7,170,497
(1,264,372)
81,202,009
P
=12,887,989
252,917
(1,164,048)
1,666,217
P
=2,040,783
Land
Cost
At January 1
Additions
Disposals
At December 31
and Amortization
At January 1
Depreciation and
amortization
Disposals
At December 31
Net Book Value
December 31, 2013
Office
Furniture and Transportation
Equipment
Equipment
=99,218,375
P
150,000
–
99,368,375
–
–
–
–
=99,368,375
P
Leasehold
Improvements
December 31, 2012
Office
Furniture and
Transportation
Equipment
Equipment
Constructionin-Progress
P
=8,561,602
11,379,263
–
(19,879,337)
61,528
Total
P
=239,023,676
23,834,376
(2,428,420)
–
260,429,632
–
–
–
–
P
=61,528
90,821,480
10,223,149
(2,428,420)
98,616,209
P
=161,813,423
Constructionin-Progress
=73,517,264
P
331,135
(30,577,805)
43,270,594
=81,820,357
P
4,086,817
(1,076,117)
84,831,057
=2,992,048
P
–
–
2,992,048
=–
P
8,561,602
–
8,561,602
29,939,006
63,972,383
2,405,748
–
3,105,355
(20,096,113)
12,948,248
=30,322,346
P
12,215,470
(891,969)
75,295,884
=9,535,173
P
171,600
–
2,577,348
=414,700
P
–
–
–
=8,561,602
P
Total
=257,548,044
P
13,129,554
(31,653,922)
239,023,676
96,317,137
15,492,425
(20,988,082)
90,821,480
=148,202,196
P
Depreciation and amortization charged against unrestricted net assets amounted to P
=10.22 million
and P
=15.49 million in 2013 and 2012, respectively.
Transfers from construction in progress to leasehold improvements pertain to completed
renovations made in the Museum during the year.
Land amounting to P
=92.65 million, which was donated in 2003, is subject to a leasehold right
existing thereon with a third party.
Fully depreciated property and equipment still being used by the Foundation amounted to
=38.21 million in 2013 and P
P
=35.15 million in 2012.
67
9. Available-for-sale Financial Assets
This account consists of investments in:
Common trust fund
Shares of stock:
Quoted securities
Unquoted securities
2013
P
=1,510,389,977
2012
=1,137,494,118
P
777,956,544
2,650,444
P
=2,290,996,965
571,774,215
1,931,701
=1,711,200,034
P
AFS financial assets consist of shares in various listed and unlisted companies held under a trust
fund and are carried at market value.
The rollforward of unrealized gain on AFS financial assets are as follows:
Balance at beginning of year
Unrealized gain recognized directly
in net assets
Realized gain transferred to income
2013
P
=83,954,992
2012
=83,597,752
P
33,820,633
(60,489,899)
P
=57,285,726
68,966,203
(68,608,963)
=83,954,992
P
The breakdown of investments’ income is as follow:
Realized gain from AFS
Debt instruments
Government securities
Dividends
Loans
Others
2013
P
=60,489,899
33,342,110
12,404,752
9,169,990
3,131,368
3,120,283
P
=121,658,402
2012
=68,608,963
P
28,462,130
14,931,393
10,124,631
2,200,050
2,778,437
=127,105,604
P
2013
P
=34,615,161
31,536,501
5,942,516
3,032,405
P
=75,126,583
2012
=23,503,551
P
38,061,974
6,700,376
1,924,639
=70,190,540
P
10. Accounts and Other Payables
Accrued expenses
Trade
Payable to consignors
Others
Accrued expenses pertain to the unbilled balances for completed renovations in the Museum and
other expenses incurred by the Foundation for its activities.
68
Trade payable and accrued expenses include payables to suppliers that are noninterest-bearing and
are normally settled on 30 to 60 day terms.
Payable to consignors pertain to proceeds on sale of goods consigned to the Foundation.
Other payables are non-interest bearing and are normally settled within one year.
11. Defined Benefit Plan
The Foundation has funded, noncontributory defined benefit retirement plan covering substantially
all of its regular permanent employees. The benefits are generally based on defined contribution
formula with minimum lump-sum guarantee of 1.5 months’ basic salary per year of service.
The Foundation’s annual contributions to the plan consist principally of payments which covers
the current service cost for the year and the required funding relative to the guaranteed minimum
benefits as applicable. The funds are administered by a trustee bank of the Foundation and subject
to the investment objectives and guidelines established by the Foundation’s Employee Welfare
and Retirement Fund Investment Committee (the Committee) and rules and regulations issued by
Bangko Sentral ng Pilipinas (BSP) covering assets under trust and fiduciary agreements. The
Committee is responsible for investment strategy of the plan.
Republic Act 7641, The New Retirement Law, 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 components of pension expense included in salaries, wages and employee benefits under
“General and administrative expenses” in the statements of activities are as follows (see Note 12):
Current service cost
Net interest expense
Transferred obligation
Total pension expense
2013
P
=6,488,926
1,862,635
–
P
=8,351,561
2012
=5,312,448
P
528,564
(2,797,988)
=3,043,024
P
The amounts recognized under pension liability in the statements of financial position are as
follows:
Benefit obligations
Plan assets
Liability to be recognized
2013
P
=67,201,834
(46,646,047)
P
=20,555,787
2012
=79,723,128
P
(47,608,729)
=32,114,399
P
69
Changes in the present value of the defined benefit obligation are as follows:
Balance at January 1
Current service cost
Interest expense
Benefits paid
Remeasurement loss (gain) arising from changes in
financial assumptions
Transferred obligation
Balance at December 31
2013
P
=79,723,128
6,488,926
4,623,941
(9,867,755)
2012
=41,697,676
P
5,312,448
2,960,535
(4,410,904)
(13,766,406)
–
P
=67,201,834
34,970,452
(807,079)
=79,723,128
P
2013
P
=47,608,729
5,574,456
2,761,306
569,311
–
(9,867,755)
P
=46,646,047
2012
=34,253,108
P
9,014,350
2,431,971
4,329,295
1,990,909
(4,410,904)
=47,608,729
P
Changes in the fair value of plan assets are as follows:
Contributions
Interest income on plan assets
Remeasurement gain on plan assets
Transferred asset
Benefits paid
The fair value of plan assets by each classes as at the end of the reporting period are as follows:
Debt instruments
Equity instruments
Cash
2013
P
=24,666,430
12,300,562
9,679,055
P
=46,646,047
2012
=35,468,503
P
12,140,226
–
=47,608,729
P
All equity instruments held have quoted prices in active market while debt instruments do not
have quoted market prices in active market. The plan assets do not have any concentration on
risk.
The assumptions used to determine pension benefits for the Foundation for the years ended
December 31, 2013 and 2012 are as follows:
Discount rate
Salary increase rate
Turn-over rate
Mortality rate
2013
5.40%
7.00
0.50 to 100.00
0.10 to 0.74
2012
5.80%
7.00
0.50 to 100.00
0.10 to 1.20
There were no changes from the previous period in the methods and assumptions used in
preparing sensitivity analysis.
70
Below shows the sensitivity analysis determined based on reasonably possible changes of each
significant assumptions stated above, assuming all other assumptions were held constant:
Accrued liability
Current fund assets
Unfunded accrued liability
2013
Discount Rate
+.50%
(.50%)
P
=65,220,061
P
=68,794,304
46,646,047
46,646,047
P
=18,574,014
P
=22,148,257
Salary Increase Rate
+.50%
(.50%)
P
=68,757,179 P
=65,237,401
46,646,047
46,646,047
P
=22,111,132 P
=18,591,354
2012
Accrued liability
Current fund assets
Unfunded accrued liability
Discount Rate
+.50%
(.50%)
=75,500,261
P
=84,311,763
P
47,608,729
47,608,729
=27,891,532
P
=36,703,034
P
Salary Increase Rate
+.50%
(.50%)
=83,859,479 P
P
=75,866,225
47,608,729
47,608,729
=36,250,750 P
P
=28,257,496
The Foundation does not perform any Asset-Liability Matching Study. The overall investment
policy and strategy of the retirement plan is based on the suitability assessment, as provided by its
trust bank, in compliance with the BSP requirements. It does not, however, ensure that there will
be sufficient assets to pay the retirement benefits as they fall due while attempting to mitigate the
various risks of the plan. For the current year, the allocation of assets consist of 26.37% of equity
instruments, 52.88% of debt instruments and 20.75% of cash.
The Foundation expects to make additional contributions of P
=5.93 million to its retirement fund in
2014.
The average duration of the defined benefit liability at the end of the reporting period is 13 years.
Amounts for the current and the previous periods follow:
Benefit obligation
Plan assets
Deficit
2013
P
=67,201,834
(46,646,047)
P
=20,555,787
2012
=79,723,128
P
(47,608,729)
=32,114,399
P
2011
=41,697,676
P
(34,253,108)
=7,444,568
P
2010
=31,735,889
P
(24,982,336)
=6,753,553
P
2009
=27,090,768
P
(20,881,334)
=6,209,434
P
The following table shows the maturity profile of the Foundation’s defined benefit obligation
based on undiscounted benefit payments:
2013
P
=17,924,893
21,772,709
–
P
=39,697,602
More than 1 year to 5 years
More than 5 years to 10 years
More than 10 years to 15 years
2012
=18,407,682
P
34,359,906
28,288,108
=81,055,696
P
Experience adjustments on plan assets and obligation are as follows:
Gain (loss) on experience adjustments
on defined benefit obligation
Gain (loss) on experience adjustments
on plan assets
2013
2012
=24,665,252)
P
=15,470,398 (P
(1,703,992)
(10,305,200)
2011
2010
=1,339,268
P
=294,644
P
(6,051,845)
2,639,310
71
Compensation of key management personnel by benefit type (included in the “Salaries, wages and
employee benefits” account) in the Foundation expenses (see Note 12) follows:
Short term employee benefits
Post-employment benefits
2013
P
=16,949,890
1,972,333
P
=18,922,223
2012
=11,338,022
P
7,087,685
=18,425,707
P
12. Net Assets
Unrestricted net assets are those net assets that are neither temporarily restricted nor permanently
restricted. It includes all net assets with uses not restricted by donors, by Board of Trustees or by
law.
Temporarily restricted net assets refer to those net assets whose use by the Foundation is limited
by donors to later periods of time or after specified dates or specified purposes.
Net assets were released from donor restrictions by incurring expenses satisfying the restricted
purposes or by occurrence of other events specified by donors.
Permanently restricted net assets are those assets that the donor stipulates must be maintained by
the Foundation in perpetuity. Permanently restricted net assets increase when Foundation receives
contributions for which donor-imposed restrictions limiting the Foundation’s use of an asset or its
economic benefits neither expire with the passage of time nor can be removed by the Foundation’s
meeting certain requirements. Permanently restricted net assets generally come from:
(1) contributions, with donor-imposed permanent restrictions; (2) increase or decrease in existing
assets that are subject to permanent restrictions by donor or by law (such as unrealized gains,
interest income); and (3) reclassification from another net asset class as a result of donor
stipulation or by law.
Details of the Foundation’s net assets are as follows:
Unrestricted
Temporarily restricted:
Property and equipment
Education programs
Programs for community development
Permanently restricted:
Investment in perpetuity, the
income of which is expendable to support
education and other programs
Endowment requiring income to be
added to original gift to build up the fund
Unrealized gain on AFS financial assets
72
2013
P
=18,553,135
2012
=1,113,186
P
161,813,424
43,471,856
83,032,070
288,317,350
148,202,196
35,223,796
7,144,842
190,570,834
2,187,714,273
704,994,160
948,156,539
–
1,653,150,699
2,187,714,273
83,954,992
57,285,726
(34,888,992)
(20,553,275)
P1,893,900,719
P
=2,531,317,209 =
Details of the Foundation’s expenses as of December 31 follow:
Project Expenses
Project implementation:
Special projects
Education
Youth Development
Arts and Culture
Sustainable Livelihood
Project management:
Salaries wages, and employee benefits
Monitoring and administrative
Building overhead
2013
2012
P
=60,260,817
46,080,537
18,387,632
17,527,135
4,610,655
=63,339,219
P
59,175,764
10,375,782
19,398,527
4,561,989
43,375,404
5,035,930
26,269,395
P
=221,547,505
55,557,955
20,218,528
33,539,548
=266,167,312
P
2013
P
=30,615,181
2,775,714
2,498,301
2,002,958
898,220
738,437
489,031
201,625
190,046
64,920
–
864,574
P
=41,339,007
2012
=22,644,711
P
5,284,867
1,426,830
1,904,174
1,240,857
1,092,779
343,443
322,723
628,708
27,319
5,283,010
1,636,909
=41,836,330
P
General and Administrative Expenses
Salaries, wages and employee benefits (Note 11)
Repairs and maintenance
Advocacy and public information services
Professional and service fees
Depreciation and amortization
Communication and postage
Supplies
Transportation and travel
Trainings and seminars
Taxes and licenses
Provision for doubtful accounts (Note 5)
Miscellaneous
Capital management
The primary objectives of the Foundation’s capital management policies are to devote its funds to
charitable projects, scholarship grants and cultural activities, to afford the financial flexibility to
support its operations and to protect and preserve capital to ensure financial sustainability of the
Foundation.
The Foundation’s source of capital is its total net assets, which is composed of unrestricted,
temporarily restricted and permanently restricted net assets, plus the net unrealized gain on AFS
financial assets.
Net Assets
Unrestricted
Temporarily restricted
Permanently restricted
Unrealized gain on AFS financial assets (Note 9)
2013
2012
P
=18,553,135
288,317,350
2,187,714,273
57,285,726
P
=2,551,870,484
=1,113,186
P
190,570,834
1,653,150,699
83,954,992
=1,928,789,711
P
73
13. Financial Instruments
Fair Value Measurement
The following table shows an analysis of the Foundation’s financial assets and liabilities by level
of the fair value hierarchy follows:
Assets measured at fair value:
Available-for-sale
Common trust fund
Quoted securities
Unquoted securities
December 31, 2013
Fair value measurement using
Quoted prices in
Significant
active markets observable inputs
Total
(Level 1)
(Level 2)
P
=1,510,389,977
777,956,544
2,650,444
P
=2,290,996,965
P
=1,510,389,977
777,956,544
–
P
=2,288,346,521
P
=−
−
2,650,444
P
=2,650,444
The Foundation uses the following hierarchy for determining and disclosing the fair value of its
assets and liabilities by valuation technique:
Level 1:
Level 2:
Level 3:
quoted (unadjusted prices) in active markets for identical assets and liabilities
other techniques for which all inputs which have a significant effect on the recorded
fair value are observable, either directly or indirectly
techniques which use inputs which have a significant effect on the recorded fair value
that are not based on observable market data
The fair value of the financial assets and liabilities is included at the amount at which the
instrument could be exchanged in a current transaction between willing parties, other than in a
forced or liquidation sale. The following methods and assumptions were used to estimate the fair
values:
AFS quoted financial assets - Fair values are based on quoted prices published in markets.
Management assessed that the fair values of loans and receivables and other financial liabilities
approximate their carrying amounts largely due to the short-term maturities of these instruments.
There were no transfers between fair value categories for assets and liabilities measured at fair
value in 2013 and 2012.
Financial Risk Management Objectives and Policies
The Foundation has various financial instruments such as cash and cash equivalents, receivables,
AFS financial assets, accounts and other payables which arise directly from its operations.
The main purpose of the Foundation’s financial instruments is to fund its operational and capital
expenditures. The main risks arising from the use of financial instruments are liquidity risk, credit
risk and foreign exchange risk.
74
The Foundation’s risk management policies are summarized below:
Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in raising funds to meet
commitments associated with financial instruments. Liquidity risk may result from either the
inability to sell financial assets quickly at their fair values; or the counterparty failing on
repayment of a contractual obligation; or inability to generate cash inflows as anticipated.
The Foundation maintains a level of cash and cash equivalents deemed sufficient to finance
operations. As part of its liquidity risk management, the Foundation regularly evaluates its
projected and actual cash flows. It also continuously assesses conditions in the financial markets
for opportunities to pursue fund-raising activities. Fund-raising activities may include investments
in quoted and unquoted securities.
As of December 31, 2013 and 2012, the carrying amounts of accounts and other payables will be
settled within one year.
The following table shows the maturity profile of the Foundation’s financial assets and liabilities
based on contractual undiscounted payments:
Financial Assets
Cash and cash equivalents
(excluding cash on hand)
Receivables
Trade
Nontrade
Advances to officers and
employees
Others
Common trust fund
Quoted securities
Unquoted securities
Total Financial Assets
Other Financial Liabilities
Accrued expenses
Trade
Payable to consignors
Others
Total Other Financial Liabilities
Within 1 Year
December 31, 2013
More than
1-5 Years
5 Years
Total Gross
P
=132,843,776
P
=–
P
=–
P
=132,843,776
4,958,194
5,912,346
1,158,017
−
−
−
−
−
−
4,958,194
5,912,346
1,158,017
2,528,128
2,388,896
149,789,357
−
–
–
−
–
–
2,528,128
2,388,896
149,789,357
– 1,510,389,977
–
777,956,544
–
–
– 2,288,346,521
P
=149,789,357 P
=2,288,346,521
P
=34,615,161
31,536,501
5,942,516
3,032,405
P
=75,126,583
P
=–
–
–
–
P
=–
– 1,510,389,977
–
777,956,544
2,650,444
2,650,444
2,650,444 2,290,996,965
P
=2,650,444 P
=2,440,786,322
P
=–
–
–
–
P
=–
P
=34,615,161
31,536,501
5,942,516
3,032,405
P
=75,126,583
75
Financial Assets
(excluding cash on hand)
Receivables
Trade
Nontrade
Advances to officers and
employees
Accrued interest
Others
Common trust fund
Quoted securities
Unquoted securities
Total Financial Assets
Other Financial Liabilities
Accrued expenses
Trade
Advances
Others
Total Other Financial Liabilities
Within 1 Year
December 31, 2012
More than
1-5 Years
5 Years
Total Gross
=93,486,592
P
=–
P
=–
P
=93,486,592
P
5,812,177
6,263,147
2,111,272
−
−
−
−
−
−
5,812,177
6,263,147
2,111,272
1,876,713
205,767
1,995,929
=
P111,751,597
−
–
–
=–
P
−
–
–
=
P–
1,876,713
205,767
1,995,929
P111,751,597
=– =
P
P1,137,494,118
–
571,774,215
–
–
– 1,709,268,333
=
=
P111,751,597
P1,709,268,333
=23,503,551
P
38,061,974
6,700,376
1,924,639
=70,190,540
P
=–
P
–
–
–
=–
P
=– =
P
P1,137,494,118
–
571,774,215
1,931,701
1,931,701
1,931,701 1,711,200,034
=
=
P1,931,701
P1,822,951,631
=–
P
–
–
–
=–
P
=23,503,551
P
38,061,974
6,700,376
1,924,639
=70,190,540
P
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument
or customer contract, leading to a financial loss. The Foundation’s holding of cash and cash
equivalents exposes the Foundation to credit risk of the counterparty. Credit risk management
involves dealing only with institutions for which credit limits have been established. The treasury
policy sets credit limits for each counterparty. Given the Foundation’s diverse base of
counterparties, it is not exposed to large concentrations of credit risk.
The table below shows the maximum exposure to credit risk for the components of the statements
of financial position:
Receivables
Trade
Nontrade
Accrued interest receivable
Others
(Forward)
76
2013
P
=132,843,776
2012
=93,486,592
P
4,958,194
5,912,346
1,158,017
2,528,128
–
2,388,896
5,812,177
6,263,147
2,102,085
1,876,713
205,767
1,995,929
Common trust fund
Quoted securities
Unquoted securities
2013
2012
=1,137,494,118
P
=1,510,389,977 P
571,774,215
777,956,544
1,931,701
2,650,444
=1,822,942,444
P
=2,440,786,322 P
Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market prices.
The Foundation’s exposure to the risk for change in market value relates primarily to the
Foundation’s AFS financial assets. The Foundation’s AFS financial assets are managed by a
trustee bank.
The following table demonstrates the sensitivity to a reasonably possible change in the market
prices, with all variables held constant, of the Foundation’s equity on December 31, 2013 and
2012.
Increase (decrease)
5%
(5%)
Effect on Net Assets
2012
2013
=85,560,002
P
P
=114,549,848
(85,560,002)
(114,549,848)
77
78
Trade
Nontrade
Accrued interest
Others
``
Trade
Nontrade
Others
<30 Days
P
= 896,120
–
121,432
−
−
P
= 1,017,552
<30 Days
=1,083,743
P
–
127,092
50,365
–
−
=1,261,200
P
Neither Past
Due nor
Impaired
P
=3,848,474
5,912,346
456,677
2,515,007
2,388,896
P
= 15,121,400
Neither Past
Due nor
Impaired
=1,424,671
P
6,263,147
4,155
1,822,574
205,767
1,995,929
=11,716,243
P
December 31, 2013
Past Due but not Impaired
30-60 Days
61-90 Days 91-120 Days
=948,133
P
=933,205
P
=160,681
P
–
–
–
177,150
48,924
203,241
−
−
3,774
–
–
–
−
−
−
=1,125,283
P
=982,129
P
=367,696
P
December 31, 2012
Past Due but not Impaired
30-60 Days
61-90 Days 91-120 Days
P
=17,265
P
=–
P
=69,369
–
–
–
68,880
91,227
140,428
−
−
−
−
−
−
P
=86,145
P
= 91,227
P
= 209,797
The aging analysis of receivables presented per class, are as follows:
>120 Days
=1,261,744
P
–
1,550,710
−
–
−
=2,812,454
P
>120 Days
P
= 126,966
–
279,373
13,121
−
P
= 419,460
Total
=4,387,506
P
–
2,107,117
54,139
–
−
=6,548,762
P
Total
P
=1,109,720
–
701,340
13,121
−
P
=1,824,181
Individually
Impaired
=8,330,873
P
–
3,320,531
−
–
−
=11,651,404
P
Individually
Impaired
P
= 7,325,456
–
2,949,954
−
−
P
= 10,275,410
Total
=14,143,050
P
6,263,147
5,431,803
1,876,713
205,767
1,995,929
=29,916,409
P
Total
P
=12,283,650
5,912,346
4,107,971
2,528,128
2,388,896
P
=27,220,991
79
Cash and cash equivalents (excluding cash on
hand)
Receivables:
Trade
Nontrade
Accrued interest
Others
AFS financial assets:
Common trust fund
Quoted securities
Unquoted securities
Cash and cash equivalents (excluding cash on
hand)
Receivables:
Trade
Nontrade
Others
AFS financial assets:
Common trust fund
Quoted securities
Unquoted securities
832,904
–
−
−
−
–
–
–
P
= 832,904
2,986,170
5,912,346
333,490
2,515,007
2,388,896
1,510,389,977
777,956,544
2,650,444
=
P2,437,976,650
–
–
–
=
P152,587
29,400
–
123,187
−
–
P
=–
=–
P
754,114
–
−
−
–
−
–
–
–
=754,114
P
=93,486,592
P
616,481
6,263,147
4,155
1,822,574
205,767
1,995,929
1,137,494,118
571,774,215
1,931,701
=1,815,594,679
P
–
–
–
=54,076
P
54,076
–
−
−
–
–
=–
P
Neither Past Due nor Impaired
High Grade
Medium Grade
Low Grade
P
=–
P
= 132,843,776
Neither Past Due nor Impaired
High Grade Medium Grade
Low Grade
The table below shows the credit quality of the Foundation’s financial assets:
1,137,494,118
571,774,215
1,931,701
=1,816,402,869
P
1,424,671
6,263,147
4,155
1,822,574
205,767
1,995,929
=93,486,592
P
Total
December 31, 2012
1,510,389,977
777,956,544
2,650,444
=
P2,438,962,141
3,848,474
5,912,346
456,677
2,515,007
2,388,896
P
= 132,843,776
Total
December 31, 2013
–
–
–
=6,548,762
P
4,387,506
–
2,107,117
54,139
–
−
=–
P
Past Due but
Not Impaired
–
–
–
=
P1,824,181
1,109,720
–
701,340
13,121
−
P
=–
Past Due but
Not Impaired
–
–
–
=11,651,404
P
8,330,873
–
3,320,531
−
–
−
=–
P
Individually
Impaired
–
–
–
P
=10,275,410
7,325,456
–
2,949,954
−
−
P
=–
Individually
Impaired
1,137,494,118
571,774,215
1,931,701
=1,834,603,035
P
14,143,050
6,263,147
5,431,803
1,876,713
205,767
1,995,929
=93,486,592
P
Total
1,510,389,977
777,956,544
2,650,444
P
=2,451,061,732
12,283,650
5,912,346
4,107,971
2,528,128
2,388,896
P
=132,843,776
Total
The credit quality of the financial assets was determined as follows:
Cash and cash equivalents - based on the nature of the counterparty and the Foundation’s internal
rating system.
Receivables - high grade pertains to receivables from Ayala Group of Companies and debtors
without past due accounts; medium grade pertains to receivables with past due accounts not
exceeding 12 months; and low grade pertains to receivables with past due accounts exceeding 12
months.
AFS financial assets - the quoted and unquoted financial assets are unrated.
Foreign exchange risk
The Foundation’s foreign exchange risk results primarily from movements of the Philippine Peso
against the United States Dollar (US$).
The Foundation’s foreign currency-denominated financial instruments are included in cash and
cash equivalents amounting to US$0.01 million in 2013 and US$0.04 million in 2012. The
Philippine peso values of these instruments amounted to P
=0.55 million and P
=1.75 million in 2013
and 2012, respectively.
In translating the foreign currency-denominated monetary assets into peso amounts, the exchange
rate used was P
=44.40:$1 and P
=41.05:$1, based on the Philippine Peso - U.S. dollar exchange rate
as of December 31, 2013 and 2012, respectively.
The following table demonstrates the sensitivity to a reasonably possible change in the US dollar
rate, with all variables held constant, of the Foundation’s result of activities (due to changes in the
fair value of monetary assets) as of December 31, 2013 and 2012:
US$ depreciates (appreciates)
=1.0
P
(1.0)
Effect on Net Assets
2012
2013
=42,579
P
P
=12,376
(42,579)
(12,376)
14. Other Activities
Statements of revenue and expenses on the Foundation’s museum and library operations for the
years ended December 31, 2013 and 2012 are as follows:
Revenue
Expenses
Net loss
80
2013
P
=20,494,960
29,558,286
P
=9,063,326
2012
=22,092,147
P
31,135,103
=9,042,956
P
15. Supplementary Tax Information Under Revenue Regulations (RR) 15-2010
RR No. 15-2010 are promulgated to amend certain provisions of RR No. 21-2002 prescribing the
manner of compliance with any documentary and/or procedural requirements in connection with
the preparation and submission of financial statements accompanying tax returns. In addition to
the disclosures mandated under PFRS, RR No. 15-2010 requires disclosures regarding information
on taxes, duties and license fees paid or accrued during the taxable year.
The Foundation also reported and/or paid the following types of taxes for 2013:
Value-added Tax (VAT)
The NIRC of 1997 also provides for the imposition of VAT on sales of goods and services.
Accordingly, the Foundation’s sales from other activities are subject to output VAT while its
importations and purchases from other VAT-registered individuals or corporations are subject to
input VAT. RA No. 9337 increased the value added tax rate from 10.0% to 12.0%, effective
February 1, 2006.
a. Output VAT
Taxable sales
Leasing income
Sales of services
Sale of goods
Net Sales/
Receipts
Output VAT
=11,916,608
P
5,288,881
3,289,471
=20,494,960
P
=1,429,993
P
634,666
394,737
=2,459,396
P
The Foundation’s sales of services are based on actual collections received, hence, may not be
the same as amounts accrued in the statement of activities.
b. Input VAT
Current year’s domestic purchases/payments for:
Services lodged under other accounts
Goods other than for resale or manufacture
Claims for tax credit/refund and other adjustments
=4,111,240
P
3,493,927
337,608
7,942,775
2,494,198
=5,448,577
P
c. Importations
The Foundation did not have any purchases from outside the country.
d. Excise Tax
The Foundation did not enter into any transaction subject to excise tax.
81
e. Documentary stamp tax
The Foundation did not enter into any transaction which requires payment of any documentary
stamp taxes.
f.
All other local and national taxes
This includes all other taxes, local and national, including real estate taxes, licenses and permit
fees lodged under the ‘Project Expenses’ and ‘General and administrative expenses’ accounts
both in the Foundation’s statement of activities:
Details consist of the following:
Real estate taxes
License and permits fees
Others
Project
Expenses
=2,231,792
P
62,799
26,058
=2,320,649
P
General and
Administrative
Expenses
=–
P
10,135
54,785
=64,920
P
Total
=2,231,792
P
72,934
80,843
=2,385,569
P
g. Withholding Taxes
Withholding taxes on compensation and benefits
Expanded withholding taxes
=14,747,351
P
2,937,960
=17,685,311
P
h. Tax assessments
As of December 31, 2013, the Foundation has not received any final assessment notice from
the BIR.
82
SCHEDULE OF ALL THE EFFECTIVE STANDARDS AND INTERPRETATIONS
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

PFRS’s 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 Firsttime 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 Share-based
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

Financial Assets – Effective Date and Transition

Amendments to PFRS 7: Improving Disclosures about

83
INTERPRETATIONS
Amendments to PFRS 7: Disclosures - Transfers of
Financial Assets
Adopted
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


Amendments to PFRS 9: Mandatory Effective Date of
PFRS 9 and Transition Disclosures
Not Early Adopted
PFRS 10
Consolidated Financial Statements

PFRS 11
Joint Arrangements

PFRS 12
Disclosure of Interests in Other Entities

PFRS 13
Fair Value Measurement
Not Early Adopted
Philippine Accounting Standards
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

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 Date

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

PAS 19
Employee Benefits

Amendments to PAS 19: Actuarial Gains and Losses,
Group Plans and Disclosures

PAS 1
(Revised)
84

INTERPRETATIONS
Employee Benefits
PAS 19
(Amended)
PAS 20
Accounting for Government Grants and Disclosure of
Government Assistance
PAS 21
The Effects of Changes in Foreign Exchange Rates
Adopted
Not
Adopted
Not
Applicable



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

Investment 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
Not Early Adopted
Amendment to PAS 32: Classification of Rights Issues
Not Early Adopted
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
PAS 39
Financial Instruments: Recognition and Measurement

Amendments to PAS 39: Transition and Initial Recognition
of Financial Assets and Financial Liabilities


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



85
INTERPRETATIONS
Adopted
Financial Assets

Financial Assets – Effective Date and Transition

Not
Adopted
Not
Applicable
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
86
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

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

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


INTERPRETATIONS
Adopted
Not
Adopted
Not
Applicable
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




87
Ayala Foundation
Management and Staff
88
Arts and Culture
Senior Director
Strengthening The Capacity
Of Civil Society
Organizations In The
Philippines
Kenneth Esguerra
Socorro Camacho
Chairmen
Ma. Elizabeth Gustilo
Senior Manager, Ayala Museum
Chief of Party
Suzanne Yupangco
Gina Estipona
Programs
Senior Director
Ramon Miranda
Director, Education Adviser
Mercedes Barcelon
Senior Manager,
Sustainable Livelihood Adviser
Dino Rey Abellanosa
Senior Manager, Visayas Operations
Archimedes Velasco
Senior Manager,
Mindanao Operations
Maria Paz Baylon
Julie Bergania
Chiara Cruza
Ireneo Demecais Jr.
Mariecar Fernando
Cecilia Palma
Joseph Anthony Quesada
Managers
Zyriel Abejero
Libby Josephine Abesamis
Francis Ian Agatep
Mary Rose Erika Barja
John Tobit Cruz
Chester Lei Fabian
Maria Mia Farrah Falcis
John Christopher Paul Gulay
Dennis Mateo
Jessieree Anne Matienzo
Pepito Rabago
Mary Ann Santiago
Christine Joy Sarigumba
Melissa Yamson
Tyne Dignadice Jr.
Director
President
Rowena Lopez
Human Resources and
Administration
Erwin Ibarreta
Security Manager
Senior Manager,
Maria Bernadette Samson
Aprille Tijam
Senior Manager
Manager
Ma. Victoria Alcoseba
Rhandy Rowan
Managers
Managers
Miguel Carlos Acosta
Verne Alexander Ahyong
Andre Grego Angeles III
Maria Cecilia Ayson
Alezza Marie Buenviaje
Maria Loreta Busto
Roland Cruz
Faye Johanna Cura
Gilbert de Jesus
Felicia Marie de Vera
Marie Julienne Ente
Lucky Esteban
Paula Nikola Fernandez
Rosemarie Figuerres
Carla Gamalinda
Jo Ann Gando
Micaella Angelica Gonzales
Arnaldo Legaspi
Hannah Jade Lim
Jaime Martinez
Marinella Andrea Mina
Carla Margarita Muñoz
Julius Jacob Nolasco
Joy Kathleen Peña
Elena Robles
Pablo Ruiz
January Salvador
Ana Victoria Tamula
Arnold Torrecampo
Marjorie Villaflores
Staff
Staff
Nina Huang
Fiona Ting
Rosalina Acosta
Ebony Lautner
Jessica Sandra Claudio
Maria Meliza Tuba
Marcia Czarina Medina
Consultants
Sarah Sevilla
Liza Agullo
Candice Elaine Bismonte
Valentina Gangl
Michael Anthony Santos
Staff
Finance and Corporate
Services
Aditas Vivian Santamaria
Senior Director and
Chief Financial Officer
Ludette Christie Domingo
Senior Manager, Finance
Jose Barcelona
Senior Manager and
Chief Information Officer
Chaffee Alpha
Erwin Gopez
Managers
Francis Estolano
Celeste Katigbak
Rosalinda Navera
Mary Grace Parungao
Kathleen Jan Plandano
Maria Cindy Poyaoan
Roanna Sicat
Josie Viaña
Michael Villegas
Staff
Ramona Velasco
Consultant
Strategy, Communications,
and Partner Care
Jin Paul de Guzman
Manager
Bayani Alonto Jr.
Jennifer Bascoguin
Elisabeth Baumgart
Staff
Joysen Accad
Christian Martin Andrada
Arwin Ayson
Maureen Bañaga
Teresita Cailo
Rizza Erika Dangan
Philip Neri Dellosde
Imelda Fatalla
Kristel Ann Galvez
Shirley Grospe
Jocelyn Hernandez
Escolastica Nonog
Renie Pensotes
Tirzah Salonga
April Tamayo
Staff
Consultants
89
Directory
90
10F Ayala Wing, BPI Building 6768 Ayala Avenue cor. Paseo de Roxas Makati City, Philippines Tel (632) 717 5800
Fax (632) 813 4487 to 88
www.ayalafoundation.org
Visayas Operations 4F Krizia Building Gorordo Avenue, Lahug
Cebu City, Philippines Tel/Fax (6332) 412 2405
Mindanao Operations
2F Climbs Building, Tiano Pacana Street Cagayan de Oro City, Philippines Tel (638822) 729 497
Ayala Museum
Makati Avenue corner De la Rosa Street Greenbelt Park Makati City, Philippines Tel (632) 759 8288
Fax (632) 757 2787
www.ayalamuseum.org
6F Ayala Museum
Makati Avenue corner De la Rosa Street Greenbelt Park Makati City, Philippines Tel (632) 759 8288 local 36
www.filipinaslibrary.org.ph
91
Editorial and Design Direction
Ayala Foundation Strategy, Communications, and
Partner Care Group
Internal Audit
Ayala Foundation Finance and
Corporate Services
Cover Concept and Design
K2 Interactive (Asia) Inc.
Layout and Design
Studio Dialogo
Photography
Erik Liongoren (Operations and Management and Staff)
Wig Tysmans, Paco Guerrero (Board of Trustees)
Jay Fernando (El Nido, Palawan)
Ayala Foundation
Paper information
The cover of the 2013 Ayala Foundation Annual Report is printed on Naturalis uncoated paper, made from 55-percent post-consumer
waste. The main pages are printed on 100-percent wood-free Taiga, made from elemental chlorine free (ECF) unbleached pulp.
10F Ayala Wing, BPI Building
6768 Ayala Avenue corner Paseo de Roxas
Makati City, 1226 Philippines
www.ayalafoundation.org

2013 Timeline - Ayala Foundation, Inc.

Transcription

Similar documents

The e-AKaP Project and the Pinoy Health Innovations Project:

CaMIA Annual Report 2013

PureNet™ Asset Management

http://www.annsom.com http://www.myspace.com/annsommusic

SEC Form 17-A 2012

Maintenance, Facility Management, and Capital Planning Software

publicity - Rackcdn.com

TO STAY AMENITIES PRIMEA RESTAURANTS MAP CONTACT US

Integrating Asset Management Into the Transportation Planning

Ajilon – Asset Management