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As of 10.14.

09

PROPOSED CHART OF ACCOUNTS FOR BROKER DEALER IN SECURITIES

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The Chart of Accounts is aimed at organizing bookkeeping procedures, informing the public about any economic and administrative information needed, as well as elaborating financial statements and other established reports. The Chart of Accounts is based on generally accepted accounting principles in the Philippines with reference to Philippine Financial eporting !tandards. The Chart of Accounts has the following structure" #. Accounts are grouped in classes" a$ Class # % Assets b$ Class & % 'iabilities c$ Class ( % )*uity d$ Class + % evenues e$ Class , % Cost of !ervices f$ Class - % ).penses )ach class is divided into groups, which in turn is divided into subgroups. /umbers are used to designate each account. !even0digit numbers are used to designate the accounts. a$ b$ The first digit of the account number reflects the class of the account, specifying whether it is part of Assets, 'iabilities, )*uity, evenues, Cost of !ervice, and ).penses. The second and third digits reflect the group and subgroup of accounts.

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The last four digits reflect the concrete ob1ect of bookkeeping. ,. The balances on accounts within 2Assets2, 2'iabilities2, 2)*uity2 are used to draw up the 3alance !heet4 balances on accounts within classes 2 evenues2, 5Cost of !ervice6 and 2).penses 2 are used to draw up the !tatement of 7ncome. The Chart of Accounts specifies the account number and name. The description, application, and reflection on accounts 8to debit and to credit$ are also provided.

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Acronyms 9 As used in this document, unless the conte.t indicates otherwise" #. &. (. +. ,. -. @. A. B. #C. ##. #&. #(. TP0 Trading Participant:s4 used interchangeably with 5broker6, 5broker dealer6; or 5dealer !)C % refers to the !ecurities and ).change Commission P!) 0 refers to the Philippine !tock ).change CT<F % refers to the Clearing Trade <uaranty Fund =>?F % refers to the =ome >evelopment ?utual Fund4 also known as Pag0ibig Central >epository % may refer to the Philippine Central >epository or any other firm offering depository services 37 % refers to the 3ureau of 7nternal evenue Phil=ealth % the /ational =ealth 7nsurance Program which is administered by the Philippine =ealth 7nsurance Corporation AF! % Available0for0!ale DAT % Dalue Added Ta. )CC % )mployee Compensation Contribution PA! % Philippine Accounting !tandards PF ! % Philippine Financial eporting !tandards

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Assets

1000000 – 1999999

A resource that the TP owns or controls, has economic value, is e.pected to provide future benefit, and can be measured reliably. 1100000 Current Assets These accounts are used to record assets that are reasonably e.pected to be realized in cash, or is intended for sale or consumption in the entityEs normal operating cycle4 it is held primarily for the purpose of being traded and e.pected to be realized within twelve months after the balance sheet date4 or it is cash or a cash e*uivalent unless it is restricted from being e.changed or used to settle a liability for at least twelve months after the balance sheet date. ##C#CCC Cash and Cash )*uivalents These include cash on hand and peso or foreign currency deposits in banks which are unrestricted and immediately available for use in current operations. These are also highly li*uid investments that are readily convertible to known amount of cash with original maturities of three months or less from dates of placements and that are sub1ect to an insignificant risk of changes in value. ##C##CC Cash on =and This account is used to record cash in the form of notes and coins under the custody of the cash custodian. >ebit this account for" All cash receipts not yet deposited to a bank Credit this account for" All cash disbursements, cash deposits and other cash investments ##C###C Petty Cash Fund This account is used to record funds to defray minimal cash disbursements. All petty cash payments shall be evidenced or supported by duly accomplished and approved petty cash vouchers. >ebit this account for" !et up and replenishment of petty cash fund and increase in petty cash fund Credit this account for" Cash disbursements from the petty cash fund ##C##&C Cash in 3ank % 'ocal Currency This account is used for all peso0denominated bank accounts. >ebit this account for" All cash and check deposits, interest received 8net of withholding ta.$, and bank credit advices or memos

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Credit this account for" All bank withdrawals, check payments, and bank debit advices or memos ##C##(C Cash in 3ank 0 Foreign Currency This account is used for all foreign currency0 denominated bank accounts. >ebit this account for" All cash and check deposits denominated in currencies other than the Philippine currency, interest received 8net of withholding ta.$, and bank credit advices or memos Credit this account for" All bank withdrawals, check payments, conversion of such accounts to Philippine peso, and debit advices or memos ##C##+C Cash in 3ank0 eserve 3ank Account This account is used for bank deposits for the e.clusive benefit of customers as re*uired by the ! C ule +B.& % + !pecial eserve 3ank Account for the ).clusive 3enefit of Customer 8referred by the ! C as the 5 eserve 3ank Account6$. All customer funds should be deposited under this account. >ebit this account for" All cash and check deposits pursuant to ! C ule +B.& % + !pecial eserve 3ank Account for the ).clusive 3enefit of Customer, interest received 8net of withholding ta.$, and bank credit advices or memos Credit this account for" All bank withdrawals, check payments, and bank debit advices or memos ##C##,C Cash % Clearing =ouse This account is used for bank deposits pertaining to transactions entered into between the broker and the clearing house. >ebit this account for" All cash and check deposits Credit this account for" All payments and withdrawals made ##C##-C Cash )*uivalents This account is used for highly li*uid investments that are readily convertible to known amounts of cash and which are sub1ect to insignificant risk of changes in value, the maturity of which, is normally BC days or less from date of ac*uisition. >ebit this account for" All investments with maturity of less than BC days Credit this account for" ?aturity or termination of investments

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##C&CCC Trade eceivables These include amounts due from customers resulting from brokerage services rendered and other activities arising from the core business operations and e.pected to be collected in the regular course of business. ##C&#CC eceivable from Customers % Cash Accounts This account is used to record the amount due from customers resulting from brokerage services rendered, including value of securities bought in behalf of clustomers, commission, and other charges on cash accounts. >ebit this account for" Amount due from customers for brokerage services rendered Credit this account for" Collections on the amounts due from customers for brokerage services rendered and authorized write0offs of the accounts after determining that the receivable is no longer collectible ##&C&##C Allowance for Credit 'osses % eceivable from Customers % Cash Accounts This account is used to record valuation reserves for non0collectibility of receivables from customer0cash accounts, which is estimated based on regulatory re*uirements, industry or TP standards. >ebit this account for" Accounts of customers, which have been determined to be uncollectible for which authority to write0off has been granted Credit this account for" )stimated amount of credit losses ##C&#&C eceivable from Customers % ?argin Accounts This account is used to record the amount due from customers arising from margin transactions. >ebit this account for" Amount due from customers for brokerage services rendered for margin accounts Credit this account for" Collections on the amounts due from customers for brokerage services rendered and authorized write0offs of the accounts after determining that the receivable is no longer collectible ##C&#(C Allowance for Credit 'osses % eceivable from Customers % ?argin Accounts This account is used to record valuation reserves for non0collectibility of receivables from customers0margin accounts, which is estimated based on regulatory re*uirements, industry or TP standards.

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>ebit this account for" Accounts of margin customers, which have been determined to be uncollectible for which authority to write0off has been granted Credit this account for" )stimated amount of credit losses ##C&#+C eceivable from Fther 3rokers This account is used to record claims due from other brokers for the purchase of securities and other trade0related transactions. >ebit this account for" All claims from other brokers arising from the purchase of securities and other trade0 related transactions Credit this account for" Collections of amounts due from other brokers, authorized write0offs, and reclassifications from other accounts ##C&#,C eceivable from Clearing =ouse This account is used to record the cash settlement entitlement of TPs; to be received from the clearing house during or after the settlement of their 5clearing house0eligible trades6. These receivables arise from selling transactions for the account of customers and TP;s own account on settlement date. >ebit this account for" /et receivable from clearing house for proceeds from selling transactions Credit this account for" Collections of amounts due to TP ##C&#-C eceivable from !ecurities Failed to >eliver This account is used to record the amount of receivable from buying brokers or dealers covering the purchase price of securities sold but not yet delivered. The related long value represents the market value of securities, which the brokerage concern is obliged to deliver. >ebit this account for" ?arket value of securities failed to deliver Credit this account for" >elivery of securities, collections of amounts due, and authorized write0offs after determining that the receivable is no longer collectible

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##C&#@C

eceivable from !ecurities 3orrowed This account is used to record the amount advanced to lending brokers or dealers as collateral for the borrowed securities 8market value of security at the time of transaction plus or minus subse*uent mark0to0market$ and thus the amount to be received when the borrowed security is returned. The related long value represents the current market value of the securities borrowed. >ebit this account for" ?arket value of securities borrowed Credit this account for" >elivery of securities, collections of amounts due, and authorized write0offs after determining that the receivable is no longer collectible

##C&#AC >ividends eceivable This account is used to record cash and property dividends earned but not yet received on shares of stocks owned by the TP. >ebit this account for" Cash and property dividends declared but not yet received Credit this account for" eceipt of cash and property dividends ##C&#BC Allowance for Credit 'osses % Fther Trade eceivables This account is used to record valuation reserves for non0collectibility of trade receivable other than receivable from customers, which is estimated based on regulatory re*uirements, industry or TP standards. >ebit this account for" Accounts due from other parties arising from other trade0related activities which have been determined to be uncollectible for which authority to write0off has been granted Credit this account for" )stimated amount of credit losses ##C(CCC Fther eceivables These accounts are used to record /otes /otes, and other receivables. ##C(#CC /otes eceivable This account is used to record receivable due to the TP, in the form of a promissory note, arising from a loan e.tended by the TP. eceivable, 7nterest eceivable, !ecured >emand

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>ebit this account for" /otes receivable at outstanding balance Credit this account for" Collection of notes receivable ##C(##C 7nterest eceivable This account is used to record interest income already earned but not yet collected or received on investments in government securities and on loans considered under e.isting rules and regulations. >ebit this account for" 7nterest earned for the period Credit this account for" Collection of interest receivable ##C(#&C !ecured >emand /otes This account is used to record notes receivable from a lender whose claim is subordinated to the claims of creditors pursuant to a satisfactory subordination agreement in conformity with ! C ule &B.# 8<$. >ebit this account for" The outstanding balance of secured demand note Credit this account for" Payment of subordinated liability to lender ##C(#(C Advances to Ffficers and )mployees This account is used to record the amounts due from officers and employees of the TP. >ebit this account for" All cash advances sub1ect to li*uidation and other receivables from officers and employees Credit this account for" 'i*uidation of cash advances, collection of receivables from officers and employees, and authorized write0off of accounts ##C(#+C >ue from elated Parties This account is used to record all receivables arising from transactions with stockholders and related parties other than TP officers or employees. >ebit this account for" Advances to and other transfers of assets to related parties Credit this account for" Collection of receivables from related parties, credit memos,and authorized write0off

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##C(#,C Fthers 0 eceivables This account is used to record receivables from other sources which cannot be classified under the specific receivable accounts. >ebit this account for" Futstanding balance of other receivables Credit this account for" Collections Accounts which have been determined to be uncollectible for which authority to write0off has been granted and reclassifications to other accounts ##C(#-C Allowance for Credit 'osses % Fther eceivables This account is used to record valuation reserves for non0collectibility of other receivables which is estimated based on regulatory re*uirements, industry or TP standards. >ebit this account for" Accounts due from other parties arising from non0trade0related activities which have been determined to be uncollectible for which authority to write0off has been granted Credit this account for" )stimated amount of credit losses ##C+CCC Financial Assets at Fair Dalue through Profit or 'oss These are financial assets which are either classified as held for trading or upon recognition it is designated at fair value through profit and loss which shall be accounted for in accordance with PA! (B. ##C+#CC =eld for Trading !ecurities This account is used for e*uity securities that are ac*uired principally for the purpose of selling or repurchasing them in the near term4 or part of a portfolio of identified securities that are managed together and for which there is evidenced of a recent actual pattern of short0term profit0taking. >ebit this account for" Cost 8fair value of consideration given plus transaction costs$ of financial asset ac*uired and reclassification from other financial assets Fair value changes Credit this account for" !ale or disposal of financial asset Fair value changes ##C+##C Financial Assets >esignated at Fair Dalue This account is used for financial assets that are designated on initial recognition as one to be measured at fair value with fair value changes in profit or loss.

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>ebit this account for" Cost 8fair value of consideration given plus transaction costs$ of financial asset ac*uired and reclassification from other financial assets Fair value changes Credit this account for" !ale or disposal of financial asset Fair value changes ##C+#&C 7nvestments in !ecurities with /o eady ?arket This account is used to record investment in securities, which have no ready market, including delisted or suspended issues. >ebit this account for" 7nvestments made and reclassifications from other accounts Credit this account for" 7nvestments sold, reclassified to other accounts, or written0off ##C,CCC Prepayments ##C,#CC Prepaid ent This account is used to record the advance payment and deposit for lease or rental of buildings, land, e*uipment, office space, vehicles, and other property, plant, and e*uipment for use in operations. >ebit this account for" Advance payment and deposit for lease or rental of property, plant, and e*uipment for use in operations Credit this account for" ).pired or e.pensed portion at the end of the accounting period ##C,##C Prepaid 7nsurance This account is used to record the advance payment for surety bond premiums and insurance premiums of TP properties, etc. >ebit this account for" Advance payment for surety bond premiums and insurance premiums of TP properties Credit this account for" ).pired or e.pensed portion at the end of the accounting period ##C,#&C Prepaid Ta.es and 'icenses This account is used to record the advance payments for ta.es and licenses including business permits, real property ta.es, etc.

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>ebit this account for" Advance payment for ta.es and licenses Credit this account for" ).pired or e.pensed portion at the end of the accounting period ##C,#(C Fther Prepayments This account is used to record other prepaid e.penses not included in any specific prepaid e.pense accounts. >ebit this account for" Fther prepaid e.penses Credit this account for" The e.pired or e.pensed portion of other prepaid e.penses at the end of the accounting period ##C-CCC Available0for0!ale 7nvestments % Current Portion This account is used to account for the current portion of any non0derivative financial assets designated on initial recognition as Available0for0!ale. AF! assets are measured at fair value in the balance sheet. Fair value changes on AF! assets are recognised directly in e*uity, through the statement of changes in e*uity, e.cept for interest on AF! assets 8which is recognised in income on an effective yield basis$, impairment losses, and 8for interest0bearing AF! debt instruments$ foreign e.change gains or losses. This must be accounted for under PA! (B. ##C-#CC Available0for0!ale 7nvestments % Current Portion % with eady ?arket This account is used to account for the current portion of any non0derivative financial assets designated on initial recognition as Available0for0!ale with ready market. >ebit this account for" Cost 8fair value of consideration given plus transaction costs$ of Available0for0!ale investments >iscount accretion as it is subse*uently measured at amortized cost using the effective interest method in cases when the ac*uisition cost is less than the par value of the instrument <ains arising from the change in the fair value of securities Credit this account for" !ale or divestment of Available0for0!ale investments Premium amortization as it is subse*uently measured at amortized cost using the effective interest method in cases when the ac*uisition cost is greater than the par value of the instrument 'osses arising from the change in the fair value of securities ##C-##C Available0for0!ale 7nvestments % Current Portion % with /o eady ?arket This account is used to account for the current portion of any non0derivative financial assets designated on initial recognition as Available0for0!ale with no ready market.

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>ebit this account for" Cost 8fair value of consideration given plus transaction costs$ of Available0for0!ale investments >iscount accretion as it is subse*uently measured at amortized cost using the effective interest method in cases when the ac*uisition cost is less than the par value of the instrument <ains arising from the change in the fair value of securities Credit this account for" !ale or divestment of Available0for0!ale investments Premium amortization as it is subse*uently measured at amortized cost using the effective interest method in cases when the ac*uisition cost is greater than the par value of the instrument 'osses arising from the change in the fair value of securities ##C@CCC =eld0to0?aturity 7nvestments 0Current Portion This account is for the current portion of =eld0to0?aturity investments in debt securities. =eld0to0 ?aturity investments are non0derivative financial assets with fi.ed or determinable payments and fi.ed maturity that an entity has the positive intention and ability to hold to maturity. This must be accounted for under PA! (B. >ebit this account for" Current portion of =eld0to0?aturity investments >iscount accretion as it is subse*uently measured at amortized cost using the effective interest method in cases when the ac*uisition cost does not e*ual to the par value of the instrument Credit this account for" ?aturity or termination of investment or reclassification to other accounts Premium amortization ##CACCC Fther Current Assets This account is used to record all other current assets which cannot be properly classified in specific current asset accounts. >ebit this account for" Fther current assets not accounted specifically in preceding accounts Credit this account for" Authorized write0offs and reclassification to other accounts 1500000 Non-Current Assets These accounts are used to record assets that are not reasonably e.pected to be realized in cash or sold or consumed within one year, and which cannot be properly classified in specific non0 current asset accounts. #,C#CCC Available0For0!ale 7nvestments 0 /on0Current Portion This account is used to account for the long0term portion of securities that are designated as Available0for0!ale.

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#,C##CC Available0For0!ale 7nvestments % /on0Current Portion 0 with eady ?arket This account is used to account for the long0term portion of securities that are designated as Available0for0!ale with ready market. >ebit this account for" Cost 8fair value of consideration given plus transaction costs$ of Available0for0!ale investments >iscount accretion as it is subse*uently measured at amortized cost using the effective interest method in cases when the ac*uisition cost is less than the par value of the instrument <ains arising from the change in the fair value of securities Credit this account for" !ale or divestment of Available0for0!ale investments Premium amortization as it is subse*uently measured at amortized cost using the effective interest method in cases when the ac*uisition cost is greater than the par value of the instrument 'osses arising from the change in the fair value of securities #,C###C Available0For0!ale 7nvestments % /on0Current Portion % without eady ?arket This account is used to account for the long0term portion of securities that are designated as Available0for0!ale without ready market. >ebit this account for" Cost 8fair value of consideration given plus transaction costs$ of Available0for0!ale investments >iscount accretion as it is subse*uently measured at amortized cost using the effective interest method in cases when the ac*uisition cost is less than the par value of the instrument <ains arising from the change in the fair value of securities Credit this account for" !ale or divestment of Available0for0!ale investments Premium amortization as it is subse*uently measured at amortized cost using the effective interest method in cases when the ac*uisition cost is greater than the par value of the instrument 'osses arising from the change in the fair value of securities #,C&CCC =eld0to0?aturity 7nvestments % /on0Current Portion This account is used to account for the long0term portion of =eld0to0?aturity investments in debt securities. >ebit this account for" 'ong0term portion of =eld0to0?aturity investments >iscount accretion as it is subse*uently measured at amortized cost using the effective interest method in cases when the ac*uisition cost does not e*ual to the par value of the instrument Credit this account for" Premium amortization Termination of investments or reclassification to other accounts

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#,C(CCC 7nvestments in !ubsidiaries This account is used to account for investments in the e*uity instruments of unconsolidated subsidiaries, which shall be accounted for in accordance with PA! &@. As provided under PA! &@, a subsidiary is an entity that is controlled by another entity 8known as the parent$. Control is presumed to e.ist when the parent owns, directly or indirectly through subsidiaries, more than half of the voting power of an entity, unless in e.ceptional circumstances, it can be directly demonstrated that such ownership does not constitute control. >ebit this account for" Cost of investment in subsidiaries eversal of impairment loss Credit this account for" !ale or divestment of investment in subsidiaries 7mpairment loss, if any #,C+CCC 7nvestment in Associates This account is used to account for the e*uity instruments of associates, which shall be accounted for under PA! &A. An associate is an entity over which the investor has significant influence and that is neither a subsidiary nor an interest in a 1oint venture. !ignificant influence is presumed to e.ist if an investor holds, directly or indirectly through subsidiaries, &C percent or more of the voting power of the investee, unless it can be clearly demonstrated that that is not the case. Conversely, if the investor holds, directly or indirectly through subsidiaries, less than &C percent of the voting power of the investee, it is presumed that the investor does not have significant influence, unless such influence can be clearly demonstrated. >ebit this account for" Cost of investment in associate eversal of impairment loss Credit this account for" !ale or divestment of investment in associate 7mpairment loss, if any #,C,CCC 7nvestment in Goint Denture This account is used for investments in a contractual arrangement sub1ect to 1oint control. This can be treated as follows" 8a$ 1ointly controlled ventures recognized by the venture by including the assets and liabilities, e.penses and income in the venture4 8b$ 1ointly controlled assets recognized on a proportional basis4 or 8c$ 1ointly controlled entities recognized in consolidated statements. >ebit this account for" Cost of investment in 1oint ventures eversal of impairment loss Credit this account for" !ale or divestment of investment in 1oint ventures 7mpairment loss, if any

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#,C-CCC 7nvestment Property This account is used to record a property 8land or building 0 or part of a building 0 or both$ held 8by the owner or by the lessee under a finance lease$ to earn rentals or for capital appreciation or both, rather than for" 8a$ use in the production or supply of goods or services or for administrative purposes4 or 8b$ sale in the ordinary course of business. This is accounted for under PA! +C. >ebit this account for" Purchases of investment property or reclassifications thereto eversal of impairment Credit this account for" !ale or disposal of investment property or reclassifications therefrom 7mpairment loss, if any #,C-,CC Accumulated >epreciation % 7nvestment Property This account is used to record the accumulated depreciation of investment property owned by the TP, which is to be set up monthly against current operations. >ebit this account for" Accumulated balance upon sale, disposal or retirement of the asset Credit this account for" Allocation of the cost of investment property over its estimated useful life #,C@CCC Property, Plant H )*uipment #,C@#CC 'and This account is used to record the ac*uisition cost of the land or lots by the TP as e.isting or for future sites of its offices. >ebit this account for" Purchases of land and costs incidental to such purchase Credit this account for" >isposal of land holdings 7mpairment loss, if any #,C@##C 'easehold 7mprovements This account is used for those repairs and:or improvement made by the TP on a leased asset or facility that increases the value of the asset. >ebit this account for" epairs and:or improvements made on leased assets Credit this account for" emoval or disposition of improvements 7mpairment loss, if any

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#,C@##, Accumulated Amortization % 'easehold 7mprovements This account is used to record the accumulated amortization of leasehold improvements made by the TP on its leased asset, which is to be set up monthly against current operations. >ebit this account for" Accumulated balance upon sale, disposal or retirement of the asset Credit this account for" Allocation of the cost of leasehold improvement over its estimated useful life or term of lease, whichever is shorter #,C@#&C 3uilding This account is used to record the cost of buildings owned or controlled and used or to be used by the TP for its businesses. This e.cludes property investments. >ebit this account for" Ac*uisition cost of building owned or controlled Credit this account for" !ale, disposal or retirement of the asset 7mpairment loss, if any #,C@#&, Accumulated >epreciation 0 3uilding This account is used to record the accumulated depreciation of building owned by the TP, which is to be set up monthly against current operations. >ebit this account for" Accumulated balance upon sale, disposal or retirement of the asset Credit this account for" Allocation of the cost of building over its estimated useful life #,C@#(C Condominium This account is used to record the cost of condominium owned or controlled and used or to be used by the TP for its businesses. This e.cludes property investments. >ebit this account for" Ac*uisition cost of condominium owned or controlled Credit this account for" !ale, disposal or retirement of the asset 7mpairment loss, if any

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#,C@#(, Accumulated >epreciation 0 Condominium This account is used to record accumulated depreciation of condominium owned or controlled by the TP, which is to be set up monthly against current operations. >ebit this account for" Accumulated balance upon sale, disposal or retirement of the asset Credit this account for" Allocation of the cost of condominium over its estimated useful life #,C@#+C Furniture, Fi.tures and )*uipment This account is used to record fi.ed assets such as furniture, shelves, cabinets, and electronic e*uipment including telephone e*uipment, computer, printer, scanner and other e*uipment. >ebit this account for" Addition or ac*uisition of furniture, fi.tures and e*uipment Credit this account for" !ale, disposal or retirement of the asset 7mpairment loss, if any #,C@#+, Accumulated >epreciation % Furniture, Fi.tures and )*uipment This account is used to record the accumulated depreciation of furniture, fi.tures and e*uipment of the TP, which is to be set up monthly against current operations. >ebit this account for" Accumulated balance upon sale, disposal or retirement of the asset Credit this account for" Allocation of the cost of furniture, fi.tures and e*uipment over its estimated useful life #,C@#,C Transportation )*uipment This account is used to record all TP0owned or controlled transportation e*uipment such as cars, motorcycles, etc. >ebit this account for" Ac*uisition of transportation e*uipment Credit this account for" !ale, disposal or retirement of the transportation e*uipment 7mpairment loss, if any

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#,C@#,, Accumulated >epreciation % Transportation )*uipment This account is used to record the accumulated depreciation of transportation e*uipment of the TP, which is to be set up monthly against current operations >ebit this account for" Accumulated balance upon sale, disposal or retirement of the asset Credit this account for" Allocation of the cost of transportation e*uipment over its estimated useful life #,C@#-C evaluation 7ncrement % Property, Plant and )*uipment This account is used to record appraisal increase or revaluation of an asset which increases the value of the asset. >ebit this account for" 7ncrease in the value of fi.ed asset as appraised or revalued Credit this account for" !ale, disposal or retirement of the asset revalued #,C@#-, Accumulated >epreciation% evaluation 7ncrement%Property Plant H )*uipment This account is used to record the accumulated depreciation of the appraisal increase or revaluation of an asset of the TP, which is to be set up monthly against current operations. >ebit this account for" Accumulated balance upon sale, disposal or retirement of the asset Credit this account for" Allocation of the cost of revalued asset over its estimated useful life #,C@#@C Fthers % Property, Plant and )*uipment This account is used to record all other property, plant and e*uipment not classified in the preceding accounts. >ebit this account for" Ac*uisition cost of fi.ed assets Credit this account for" !ale, disposal or retirement of the asset #,C@#@, Accumulated >epreciation % Fthers % Property, Plant and )*uipment This account is used to record the accumulated depreciation of other property, plant and e*uipment of the TP, which is to be set up monthly against current operations.

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>ebit this account for" Accumulated balance upon sale, disposal or retirement of the asset Credit this account for" Allocation of costs of other fi.ed assets over their estimated useful life #,CACCC 7ntangible Assets This account is used to record identifiable nonmonetary assets without physical substance. #,CA#CC Computer !oftware 8/et of Amortization$ This account is used to record ac*uisition of operating system for computer hardware. >ebit this account for" Ac*uisition of computer software Credit this account for" Amortization of software cost over its useful life 7mpairment, if any #,CA##C <oodwill This account is used to record goodwill arising on business combination, which represents the e.cess of the cost of ac*uisition over the TPEs interest in the fair value of the identifiable assets and liabilities of a subsidiary, associate or 1ointly controlled entity at the date of ac*uisition. >ebit this account for" !et0up of goodwill Credit this account for" 7mpairment, if any #,CA#&C Trading ights This account is used to record the cost of the seat in the Philippine !tock ).change which carries right to trade in the e.change. >ebit this account for" Ac*uisition of trading right eversal of impairment loss Credit this account for" 7mpairment, if any #,CA#(C Fther 7ntangible Assets 8/et of Amortization$ This account is used to record all other intangible assets not specifically identified in the accounts above, and which are allowed to be recognized as intangibles in accordance with PA! (A.

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>ebit this account for" Ac*uisition of other intangible asset not classified above eversal of impairment loss Credit this account for" 7mpairment, if any #,CBCCC >eferred Ta. Assets >eferred ta. assets are recognized for future ta. conse*uences attributable to" 8a$ the temporary differences between the financial reporting bases of assets and their related ta. bases4 8b$ the carryforward benefits of minimum corporate income ta. 8?C7T$4 and 8c$ net operating loss carryover 8/F'CF$. A deferred ta. asset is recognized as described above to the e.tent that it is probable that future ta.able profit will be available against which the deferred ta. asset can be used. >eferred ta. assets and deferred ta. liabilities should be offset on the balance sheet only if the enterprise has the legal right to settle on a net basis and they are levied by the same ta.ing authority on the same entity or different entities that intend to realize the asset and settle the liability at the same time. >ebit this account for" >eferred ta. asset set0up Credit this account for" eversal of deferred ta. assets. This occurs when the provision on the assets is actually sustained or when the ?C7T or /F'CF is actually utilized or when they e.pire #,#CCCC Fther /on0Current Assets #,#C#CC efundable >eposit This account is used to account for all sums of money given as security for an item ac*uired for temporary use. >ebit this account for" All types of refundable deposits, e.g. rental deposit, telephone deposit, etc. Credit this account for" Iithdrawal of all types of refundable deposits #,#C##C 7nput Ta. This account is used to record input DAT for purchase of goods and services from DAT registered entities. This offset against output ta. in the DAT declaration to get the DAT payable. >ebit this account for" 7nput DAT upon purchase of goods and services Credit this account for" Fffset of input DAT with output DAT 'apse of input DAT

20

#,#C#&C Creditable Iithholding Ta. This account is used to record the creditable withholding ta., which is an amount withheld from income payments. >ebit this account for" Iithheld amount of revenues Credit this account for" !ettlement of income ta. obligation #,#C#(C etirement Pension Asset This account is used to record the prepaid amount of retirement benefit of employees which shall be accounted for in accordance with PA! #B and PA! (B. >ebit this account for" Contribution to the plan Credit this account for" ecognized service cost and e.pected liability #,#C#+C ?iscellaneous Assets This account is used to record all other types of non0current assets, which cannot be classified under any specific non0current asset accounts. >ebit this account for" All other types of non0current assets Credit this account for" !ale or disposition of other types of assets and reclassification of other asset accounts L !" # t es $000000 - $999999

This includes obligation of TP that is recognized when it is probable that an outflow of resources embodying economic benefits will result from the settlement of a present obligation and the amount at which the settlement will take place can be measured reliably. $100000 Current L !" # t es &#C#CCC Trade Payables &#C##CC Payable to Customers This account is used to record the amount due to customers arising from brokerage services rendered, including value of securities sold in behalf of customers, commission, and other charges.

21

>ebit this account for" Payments of amounts due to customers Credit this account for" Amount due to customers &#C###C Payable to Clearing =ouse This account is used to record cash settlement obligations of TPsE for payment to clearing house to facilitate the settlement of their 5Clearing =ouse0)ligible Trades6. >ebit this account for" Payment of matured dues to clearing house Credit this account for" Contract values of the securities bought on behalf of the customers or for its own account &#C##&C Payable to 3rokers This account is used to record claims due to other brokers for the sale of securities and other trade0related transactions. >ebit this account for" Payments of amounts due to other brokers Credit this account for" All claims from other brokers arising from the sale of securities, etc. &#C##(C Payable for !ecurities Failed to eceive This account is used to record the amount payable to selling brokers or dealers for securities purchased by the brokerage concern but which have not been received. The related short value represents the current market value of the securities which the selling broker or dealer is obliged to deliver. >ebit this account for" ?arket value of the securities at the contract date upon receipt of the securities Credit this account for" Amount payable to selling brokers or dealers for securities purchased by the brokerage concern but not yet received &#C##+C Payable for !ecurities 'oans This account is used to record the cash collateral advanced by the borrowing brokers or dealers 8market value of securities at time of transaction plus or minus subse*uent mark0to0market$ and thus the amount to be repaid upon return of securities loaned. The related short value represents the current market value of the securities loaned to the borrowing broker.

22

>ebit this account for" Payments or return of loaned securities to other brokers or customers Credit this account for" ?arket value of the loaned securities from other brokers or customers &#C##,C >ividends Payable 0 Customers This account is used to record dividends received in behalf of beneficial owners of securities held in the name of the broker0dealers. >ebit this account for" >istributions of dividends to eligible beneficial owners Credit this account for" Cash or property dividends received in behalf of beneficial owners of securities held in the name of the broker0dealers &#C&CCC Payable to /on0Customers This account is used to record claims due to other parties which are non trade0related. >ebit this account for" Payments of non trade0related payables to non0customers Credit this account for" Claims payable to non0customers 7nterest accruals &#C(CCC !hort0Term 3orrowings This account is used to record borrowings which are maturing within the ne.t balance sheet date. >ebit this account for" Payments of matured short0term borrowings Credit this account for" Amount of borrowings which are maturing within the ne.t balance sheet date &#C+CCC Current Portion of 'ong0Term 3orrowings &#C+#CC !ubordinated 'iability % Current Portion This account is used to record current portion of indebtedness subordinated to the claims of creditors pursuant to a satisfactory subordination agreement in conformity with ! C ule &B.# 8<$. This is accounted for in accordance with PA! (B.

23

>ebit this account for" Payments made to lenders, conversion of subordinated liability to e*uity, or reclassification to other accounts Credit this account for" Approved subordinated loan &#C+##C 'oans Payable 0 Current Portion This account is used to record portion of loans maturing within one year after the balance sheet date. This is accounted for in accordance with PA! (B. >ebit this account for" Payments or settlement of loans Credit this account for" The current portion of loans payable after one year &#C+#&C /otes Payable 0 Current Portion This account is used to record portion of promissory notes maturing within one year after the balance sheet date. This is accounted for in accordance with PA! (B. >ebit this account for" Payments or settlement of promissory notes Credit this account for" Portion of the promissory notes payable within one year &#C+#(C 3onds Payable0 Current Portion This account is used to record portion of bonds payable maturing within one year after the balance sheet date. >ebit this account for" Payments or settlement of bonds Credit this account for" Portion of bonds payable within one year &#C,CCC 7ncome Ta. Payable This account is used to record income ta. payable due within one year after the balance sheet date. >ebit this account for" Payments or settlement of income ta. payable Credit this account for" ecognition of income ta. payable

24

&#C-CCC Provisions 0 !hort0Term This account is used to record for the current portion of a present obligation 8legal or constructive$, where as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be re*uired to settle the obligation and a reliable estimate can be made on the amount of the obligation. This is accounted for in accordance with PA! (@. >ebit this account for" Payment or settlement of obligation Credit this account for" Current portion of the provision 8legal or constructive$ &#C@CCC Fther Current 'iabilities &#C@#CC >ue to elated Parties This account is used to record all receivables arising from transactions with stockholders and related parties other than TP officers or employees. >ebit this account for" Payment of due to related parties, debit memos, and liability condoned Credit this account for" Payables, advances from, and transfers of assets &#C@##C >ue to 37 This represents the ta. deducted or withheld by the TP, as withholding agent and ta.es owed by the TP for remittance or payment to the 37 , in accordance with e.isting rules and regulations. &#C@### >ue to 37 0 DAT Payable This account is used to record ta. dues for the DAT, which is levied on the performance of services, i.e., dealings in securities. >ebit this account for" Payment of monthly DAT dues to 37 Credit this account for" The amount of DAT dues for the service performed in dealings in securities &#C@##& >ue to 37 0 Iithholding Ta. % Compensation This account is used to record ta.es withheld from income payments to individuals receiving purely compensation income arising from an employer0 employee relationship.

25

>ebit this account for" emittances of withheld ta. on compensation to the 37 Credit this account for" Amount of ta. withheld on the employee;s salaries and other compensation &#C@##( >ue to 37 0 Iithholding Ta. 0 ).panded This account is used to record ta.es withheld as re*uired by law for professional fees, rentals of real and personal properties in e.cess of P#C,CCC annually, payment to certain contractors, and others as re*uired by applicable provisions of the ta. law. >ebit this account for" emittances of withheld ta.es to the 37 Credit this account for" Amount withheld out of payments for professional fees, rentals of real and personal property, payments for contractors and others as re*uired by applicable provisions of the ta. law &#C@##+ >ue to 37 0 Iithholding Ta. % Final This account is used to record ta.es withheld as re*uired by law for cash and:or property dividends distributed, capital gains presumed to have been realized from the sale, e.change or other disposition of real property, fringe benefit granted to the employees e.cept rank and file employees, and others as re*uired by applicable provisions of the ta. law. >ebit this account for" emittances to the 37 of withheld ta.es on transactions sub1ect to Final Ta. Credit this account for" Ta.es withheld for cash and:or property dividends distributed, capital gains from sale, e.change or other disposition of real property, fringe benefits and others as re*uired by applicable provisions of the ta. law &#C@##, >ue to 37 0 Iithholding Ta. % Fthers This account is used to record other ta.es which cannot be properly classified in the preceding withholding ta. accounts. >ebit this account for" emittances of ta.es withheld to 37 Credit this account for" Amount of ta.es withheld for other transactions sub1ect to withholding ta. not covered on the preceding accounts

26

&#C@##- >ue to 37 0 >ocumentary !tamp Ta. Payable This account is used to record the ta. on documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation, right or property incident thereto. >ebit this account for" Payments to 37 for the documentary stamp ta. liability Credit this account for" >ocumentary stamp ta. due &#C@##@ >ue to 37 0 !tock Transaction Ta. Payable This account is used to record ta. dues for stock transactions which is computed at #:& of #J of gross selling price imposed on the sale, barter, e.change or other disposition of shares through the facilities of stock e.change. >ebit this account for" Payment of stock transaction ta. due to 37 Credit this account for" !tock transaction ta. due &#C@##A >ue to 37 0 Fther Ta.es Payable This account is used to record other ta.es due which cannot be properly classified in the preceding ta. accounts. >ebit this account for" Payments of other ta.es Credit this account for" Amount of ta.es due other than those included in the preceding accounts &#C@#&C !!! 'oan Payable This account is used to record the amount withheld from employees; salary for payment of their loan with !!! for remittance to the latter. >ebit this account for" emittance of amounts withheld from employees for payment of their loans Credit this account for" Amount withheld from employees; salary for their payment on their !!! 'oan &#C@#(C !!! Premium Payable This account is used to record the monthly !!! contributions by the TP employees by way of salary deductions for remittance with the !!!.

27

>ebit this account for" emittances of withheld premium contributions to !!! Credit this account for" !!! Premium contributions by the TP employees &#C@#+C =>?F 'oan Payable This account is used to record the amount withheld from employees; salaries for payment of their loan with Pag0ibig Fund for remittance to the latter. >ebit this account for" emittance of amounts withheld from employees for payment of their loans Credit this account for" Amount withheld from employees; salaries for their payment on their Pag0ibig Fund 'oan &#C@#,C Phil=ealth Premium Payable This account is used to record the monthly Phil=ealth contributions withheld from TP employees by way of salary deductions for remittance to Phil=ealth. >ebit this account for" emittances of withheld premium contributions to Phil=ealth Credit this account for" Premium contributions by the TP employees &#C@#-C )CC Payable This account is used to record employer )C contributions to !!!. >ebit this account for" Payment of )CC due to !!! Credit this account for" Amount of employer;s contribution to !!! &#C@#@C =>?F Fund Payable This account is used to record the amount due to =>?F for employees; contributions. >ebit this account for" emittances to =>?F of the contributions Credit this account for" Amount due to =>?F for employees; contributions

28

&#C@#AC Transfer Fee Payable This account is used to record fees to the transfer office for issuance of certificates of stocks. >ebit this account for" Payment for the re*uest issuance of certificates to the transfer office Credit this account for" Amount payable to the transfer office for the issuance of certificates &#C@#BC Central >epository Fees Payable This account is used to record the fees incurred at Central >epository for lodgment and upliftment re*uests, and terminal fees for the access of the Central >epository !ystem. >ebit this account for" Payment of dues to the Central >epository Credit this account for" Fees payable to the Central >epository &#C@&CC Clearing =ouse Fee Payable This account is used to record charges by clearing house which is normally based on volume. >ebit this account for" Payment of due to clearing house Credit this account for" Amount due to clearing house &#C@&#C Transaction Fee Payable This account is used to record the monthly dues to the ).change. >ebit this account for" Payment made to the ).change for the transaction fees Credit this account for" Amount due to the ).change &#C@&&C 7nterest Payable This account is used to record unpaid interests on borrowings such as on loans on banks and other financial institutions, notes payables, and other borrowings to other entities with interest clauses.

29

>ebit this account for" Payment of the interest Credit this account for" 7nterest incurred and due on borrowings such as on loans on banks and other financial institutions, notes payables, and other borrowings to other entities with interest clauses &#C@&(C !ecurities >ifferences This account is used to record unresolved short security differences in the monthly securities counts, which were not resolved within seven 8@$ days after discovery. This is recorded for 3CA purposes only and /FT for general ledger. >ebit this account for" ?arket values of the securities bought back as replacement of unresolved securities differences at the time of discovery Credit this account for" ?arket values of short securities differences at the time of discovery &#C@&+C !ecurities !old not yet epurchased This account is used to record securities sold which are not carried long and not yet repurchased on the day after the settlement period. >ebit this account for" The contract value of repurchased securities Credit this account for" The contract value of the securities to be repurchased &#C@&,C >ividends Payable 0 !tockholders This account is used to record the unpaid cash or property dividends declared by the TP 3oard of >irectors to stockholders on record. >ebit this account for" Payment of cash or property dividends to stockholders Credit this account for" Amount of cash or property dividends to be distributed &#C@&-C ?ortgage Payable The amount of mortgage, which is a debt instrument by which the borrower 8mortgagor$ gives the lender 8mortgagee$ a lien on property as security for the repayment of a loan that remains to be paid.

30

>ebit this account for" Payment of mortgage due Credit this account for" Amount of mortgage availed &#C@&@C >eposits >ue This account is used to record deposits received for considerations other than those emanating from the leasing of TP properties. >ebit this account for" efund of deposits Credit this account for" >eposit received for considerations other than rentals of properties &#C@&AC ental >eposit Payable This account is used to record deposits received from other party for rentals of buildings, e*uipment and other properties that is refundable at a specified date. >ebit this account for" Cash refund to lessee Credit this account for" eceipt of deposit from lessee for rentals of buildings, e*uipment and other properties &#C@&BC Advances for Future !ervices This account is used to record collected revenues that are not recognized as income pending completion of the earning process. 7f related to an asset account, this account should be presented net of related asset account. >ebit this account for" )arned portion of the fees received in advance Credit this account for" Consideration received in advance &#C@(CC Accrued ?anagement 3onus This account is used to record accrual of bonuses to officers. >ebit this account for" Payment of bonuses to officers eversal of accruals at the beginning of the accounting period Credit this account for" Accrual of approved bonuses to officers

31

&#C@(#C Accrued ).penses This account is used to record accrual of e.penses such as utilities, salaries, and other regularly accrued e.penses. >ebit this account for" Payment of accrued e.penses eversal of accruals at the beginning of the accounting period Credit this account for" Accrual of e.penses &#C@(&C ?iscellaneous Payable This account is used to record other current liabilities which cannot be properly classified in the preceding accounts. >ebit this account for" Payment of miscellaneous liabilities Credit this account for" Amount of liability incurred $$00000 Non-Current L !" # t es These accounts are used generally to record liabilities payable more than one year after the balance sheet date. &&C#CCC /on0Current Portion of 'ong0term 3orrowings &&C##CC !ubordinated 'iability % /on0Current Portion This account is used to record indebtedness subordinated to the claims of creditors pursuant to a satisfactory subordination agreement in conformity with ! C ule &B.# 8<$. This is accounted for in accordance with PA! (B. >ebit this account for" Payments made to lenders, Conversion of subordinated liability to e*uity eclassification to other accounts Credit this account for" Approved subordinated loan &&C###C 'oans Payable % /on0Current Portion This account is used to record loans e.tended to the TP by banks and other lending institutions not maturing within one year from the balance sheet date. This is accounted for in accordance with PA! (B.

32

>ebit this account for" eclassifications to current portion !ettlement of the loan Credit this account for" /on0current portion for loans payable not maturing within one year from the balance sheet date &&C##&C /otes Payable % /on0Current Portion This account is used to record payable due from the TP, in the form of promissory note, arising from loan e.tended to TP, not payable within one year from the balance sheet date. This is accounted for in accordance with PA! (B. >ebit this account for" eclassifications to current portion !ettlement of loans Credit this account for" Portion of promissory notes payable after one year &&C##(C 3onds Payable0 /on0Current Portion This account is used to record indebtedness due from the TP arising from issuance of bond certificate not payable within one year from the balance sheet date. >ebit this account for" eclassifications to current portion !ettlement of loans Credit this account for" Portion of bonds payable after one year &&C&CCC >eferred Ta. 'iability This account is used to record ta. liability recognized for temporary differences that will result in net ta.able amounts in future years. >ebit this account for" eduction to the e.tent that those deductible amounts offset ta.able amounts from other temporary differences in future years Credit this account for" ecognition of deferred ta. liability &&C(CCC etirement 'iability This account is used to record retirement benefit of employees which shall be accounted for in accordance with PA! #B and PA! (B.

33

>ebit this account for" ecognition of retirement e.pense paid to employees Credit this account for" Accrual of retirement cost &&C+CCC Fbligation under Finance 'ease This account is used to record the future lease payments payable under finance lease that shall be accounted for in accordance with PA! #@. >ebit this account for" Payment of lease obligation Credit this account for" Cost of the leased asset &&C,CCC edeemable Preferred !hares This is used to record preferred shares issued which provides for redemption on a specific date at the option of the holder and with guaranteed dividends. This shall be measured at amortized cost using effective interest method. >ebit this account for" edemption of preferred shares issued Credit this account for" Cost of preferred shares issued &&C-CCC Provisions % 'ong0term This account is used to record for the non0current portion of a present obligation 8legal or constructive$, where as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be re*uired to settle the obligation and a reliable estimate can be made on the amount of the obligation. This is accounted for in accordance with PA! (@. >ebit this account for" Payment or settlement of obligation Credit this account for" /on0current portion of the provision 8legal or constructive$ &&C@CCC Fther /on0Current 'iabilities This account is used to record all other non0current liabilities which cannot be properly classified in other accounts. >ebit this account for" Payments of liability or reclassification to other accounts Credit this account for" /on0current liability incurred

34

E%u t&

'000000 - '999999

(#CCCCC )*uity Attributable to !hareholders of the Parent (#C#CCC !hare Capital This account is used to record the issuance of shares of the TP as authorized by its Articles of 7ncorporation. This is accounted for in accordance with PF ! &. (#C##CC Common !hare Capital This account is used to record shares having no preferences generally in terms of dividends, voting rights or distributions. >ebit this account for" Transfer of common shares from capital account to treasury shares, preference shares, or share premium 8during *uasi0reorganization$ Credit this account for" 7ssuance of shares for an amount e*ual to par value times the number of shares issued, when subscription for common shares sold have been fully paid (#C###C !ubscribed Common !hares Capital This account is used to record shares sold on a subscription basis, the full price of the stock is not received initially and not until the full subscription price is received will the shares be issued to the buyer. >ebit this account for" 7ssuance of common shares once the shares have been fully paid for Credit this account for" !ubscription of common shares (#C##&C !ubscription eceivable 0 Common !hares This account is used to record the outstanding portion of subscribed common shares. This is reported as a deduction from e*uity. >ebit this account for" The unpaid balance of the full subscription price of the common shares bought by the investor Credit this account for" The payment of the remaining balance of the subscription

35

(#C##(C Preference !hare Capital 0 /on0Cumulative This account is used to record shares that carry certain preferences over common share such as dividends and a claim on TP;s assets upon li*uidation. /on0cumulative preference shares, however, does not present a steady claim on dividends in the event of dividend suspension and may not be paid any missed dividends once payment for the accumulated unpaid dividends has resumed. >ebit this account for" Transfer of preference shares % non0cumulative from capital account to treasury shares Credit this account for" 7ssuance of shares for an amount e*ual to par value times the number of shares issued, when subscription for preference shares 8non0cumulative$ sold has been fully paid (#C##+C !ubscribed Preference !hares 0 /on0Cumulative This account is used to record all subscriptions of the TP;s non0cumulative preference shares. >ebit this account for" 7ssuance of preference shares 8non0cumulative$ once the shares have been fully paid for Credit this account for" !ubscription of preference shares 8non0cumulative$ (#C##,C !ubscription eceivable 0 Preference !hares 0 /on0Cumulative This account is used to record the outstanding portion of the subscribed non0 cumulative preference shares. This is reported as a deduction from e*uity. >ebit this account for" The unpaid balance of the full subscription price of the non0cumulative preference shares bought by the investor Credit this account for" The payment of the remaining balance of the subscription (#C##-C Preference !hare Capital % Cumulative This account is used to record shares that carry certain preferences over common shares and shall be entitled to all past and present dividends once payment for any unpaid dividends has resumed but not redeemable at the option of the holder.

36

>ebit this account for" Transfer of preference shares 0 cumulative from capital account to treasury shares Credit this account for" 7ssuance of shares for an amount e*ual to par value times the number of shares issued and when subscription for preference shares 8cumulative$ sold has been fully paid (#C##@C !ubscribed Preference !hares 0 Cumulative This account is used to record all subscriptions of the TP;s cumulative preference shares. >ebit this account for" 7ssuance of preference shares 8cumulative$ once the shares have been fully paid for Credit this account for" !ubscription of preference shares 8cumulative$ (#C##AC !ubscription eceivable 0 Preference !hares % Cumulative This account is used to record the outstanding portion of the subscribed cumulative preference shares. This is reported as a deduction from e*uity. >ebit this account for" The unpaid balance of the full subscription price of the cumulative preference shares bought by the investor Credit this account for" The payment of the remaining balance of the subscription (#C##BC !tock >ividend >istributable This account is used to record distributions of the earnings of the TP in the form of its own shares of stock. The amount capitalized is e*ual to the par value of the stock. >ebit this account for" 7ssuance of stock dividends Credit this account for" >eclaration of stock dividend (&CCCCC eserves (&C#CCC !hare Premium This account is used to record any amount received in e.cess of the par value of the stocks issued.

37

>ebit this account for" !ale of treasury stock below cost, absorption of a deficit in a recapitalization 8*uasi reorganization$, and declaration of a 5small6 8ordinary$ stock dividend Credit this account for" ).cess of par value of stocks issued !ale of treasury stock above cost Additional capital arising from the recapitalization or revisions in the capital structure 8*uasi reorganization$ Additional assessments on stockholders Conversion of convertible bonds or preference stock >eclaration of a 5small6 8ordinary$ stock dividend (&C&CCC >onated Capital This account is used to record voluntary contributions of resources to the TP. >ebit this account for" etirement or sale of the asset donated Credit this account for" 7nitial recognition of the asset donated to the TP (&C(CCC >eposit for Future !ubscription This account is used to record all payments received for subscription from all the authorized stocks issued to stockholders with pending application to !)C for increase of capital shares. 7n the absence of said application, payment should be classified as liability. >ebit this account for" The transfer of deposit to share of capital account when approval from !)C for increase in capital shares is received Credit this account for" All payments received for subscriptions pending approval from !)C (&C+CCC evaluation eserves This account is used to record the increase in the carrying amount of the assets as a result of revaluation. >ebit this account for" !ubse*uent revaluation decrease etirement or disposal of the revalued asset ecognition of the deferred ta. liability on the appraisal increase Credit this account for" ecognition of the increase in the asset;s carrying amount

38

(&C,CCC Fption Premium on Convertible 3onds This account is used to record the e*uity component of convertible debt instruments and compound instruments. ).amples include a convertible bond with the holder;s option to convert into common shares and debt issued with detachable share purchase warrants. Ihen the initial carrying amount of a compound financial instrument is re*uired to be allocated to its e*uity and liability components, the e*uity component is assigned the residual amount after deducting from the fair value of the instrument as a whole the amount separately determined for the liability component. >ebit this account for" Payment of convertible debt instrument or reclassification to other accounts Credit this account for" )*uity component of convertible debt instruments and compound instruments (&C-CCC /et Knrealized <ains:8'osses$ on AF! 7nvestments This account is used to record increase or decrease in fair value of AF! investments in accordance with PA! (B. This should be net of deferred ta. liability. >ebit this account for" >ecline in value of AF! investments Credit this account for" Any reversal or ad1ustment made in the same year the decline was recognized to take into account appreciation of market values of non0current investments (&C@CCC Cumulative Translation Ad1ustment This account is used to record imbalances resulting from different e.change rates used to remeasure different line items in the balance sheet and income statement when financial statements of foreign affiliates stated in foreign currency are restated in the parent TP;s reporting currency for the consolidation. >ebit this account for" 'osses caused by translation ad1ustments Credit this account for" <ains caused by translation ad1ustments ((CCCCC Treasury !hares 8T!$ This account is used to record shares that have been reac*uired and are available for retirement or resale4 it cannot vote and pays no dividends. This is shown in the balance sheet as a deduction from the total of all owners; e*uity accounts. ((C#CCC Common shares 8T!$ This account is used to record common shares treasury stock.

39

>ebit this account for" The reac*uisition of common share capital Credit this account for" The reissuance of treasury shares ((C&CCC Preference shares % Cumulative 8T!$ This account is used to record preference shares % cumulative treasury stock. >ebit this account for" The reac*uisition of preference 0 cumulative shares Credit this account for" The reissuance of treasury shares ((C(CCC Preference shares 0 /on0Cumulative 8T!$ This account is used to record preference shares 0 non0cumulative treasury stock. >ebit this account for" The reac*uisition of preference 0 non0cumulative shares Credit this account for" The reissuance of treasury shares (+CCCCC etained )arnings These accounts are used to record the undistributed earnings of the TP. (+C#CCC etained )arnings 0 Appropriated0 eserve Fund This account is used to record undistributed earnings reserved for capital build up pursuant to !)C ?emorandum Circular #- series of &CC+, otherwise known as the 3CA rules. >ebit this account for" >eclaration of stock dividends Credit this account for" The segregation of the appropriated reserve fund from the unrestricted retained earnings (+C&CCC etained )arnings 0 Appropriated0Fthers This account is used to record undistributed earnings reserved for future pro1ects of the TP and is restricted for dividend declaration.

40

>ebit this account for" The transfer of the appropriated earnings to unrestricted retained earnings after completion of the pro1ects Credit this account for" The segregation of the appropriated retained earnings from the unappropriated retained earnings (+C(CCC etained )arnings:8>eficit$ 0 Knappropriated This account is used to record accumulated earnings after appropriation to or transfer from reserves and distribution of dividends. >ebit this account for" The transfer of the unrestricted retained earnings to appropriated retained earnings >eclaration of dividends Credit this account for" /et income for the current period (+C+CCC Prior Period Ad1ustments This account is used to record prior period ad1ustments. >ebit this account for" eductions in retained earnings Credit this account for" Additions to retained earnings (,CCCCC ?inority 7nterest This account is used to record the portion of the profit or loss and net assets of a subsidiary attributable to e*uity interests that are not owned, directly or indirectly through subsidiaries, by the TP. PA! &@ re*uires the presentation of minority interest within e*uity in the consolidated balance sheet. Credit this account for" The recognition of the portion of e*uity in TPEs subsidiary not directly or indirectly owned by the TP during consolidation. Re(enues )000000 - )999999 +#C#CCC Commission evenue This account is used to record commissions earned from stock brokerage services rendered to customers.

41

>ebit this account for" Closing of revenue at the end of financial year to retained earnings:8deficit$ Credit this account for" Commissions earned during the period +#C&CCC Fther evenues These accounts are used to record revenues other than the commission revenue. +#C&#CC ental evenue This account is used to record income earned from rental of buildings, land, e*uipment, office space, vehicles, and other property, plant, and e*uipment. >ebit this account for" Closing of rental revenue at the end of financial year to retained earnings:8deficit$ Credit this account for" ent earned during the period +#C&##C >ividend evenue This account is used to record dividends earned from securities owned by TP as principal. >ebit this account for" Closing of dividend revenue at the end of financial year to retained earnings:8deficit$ Credit this account for" >ividend earned during the period +#C&#&C 7nterest evenue This account is used to record interests earned from deposit in banks, investments in government securities and on loans considered under e.isting rules and regulations. >ebit this account for" 7nterest earned during the year Credit this account for" Closing of interest revenue at the end of financial year to retained earnings:8deficit$

42

+#C&#(C <ain:8'oss$ on !ale of Financial Assets at Fair Dalue through Profit or 'oss This account is used to record gains and losses on sale of financial assets that were ac*uired or incurred principally for the purpose of generating profit from short0term fluctuations in price or dealer;s margin. This is the difference between the carrying amount of the financial asset held for trading versus its selling price. >ebit this account for" 'oss on sale of financial assets held for trading Closing of net realized gain at the end of financial year to retained earnings:8deficit$ Credit this account for" <ain on sale of financial assets held for trading Closing of net realized loss at the end of financial year to retained earnings:8deficit$ +#C&#+C Knrealized ?arket <ain:8'oss$ on Financial Assets at Fair Dalue through Profit or 'oss This account is used to record gains and losses from the change in the fair value of financial assets held for trading. >ebit this account for" ?ark to market loss on financial assets held for trading Closing of net unrealized gain at the end of financial year to retained earnings:8deficit$ Credit this account for" ?ark to market gain on financial assets held for trading Closing of net unrealized loss at the end of financial year to retained earnings:8deficit$ +#C&#,C Foreign ).change <ain:8'oss$ This account is used when there is:are" · · · · · ).change differences arising on settlement of monetary items or on translating monetary items A change on the e.change rate between the transaction date and settlement date, and the transaction is settled within the same accounting period. Ihen a gain or loss on a non0monetary item is recognized in profit and loss. ).change differences arising on monetary item that form part of a reporting entity;s net investment in foreign operation ).change differences arising from translation of a foreign operation previously classified in e*uity which are not recognized in profit and loss until the disposal of the operation.

43

>ebit this account for" ).change loss on settlement and translation of unsettled monetary items resulting to loss Closing of net foreign e.change gain at the end of financial year to retained earnings:8deficit$ Credit this account for" ).change gain on settlement and translation of unsettled monetary items resulting to gain Closing of net foreign e.change loss at the end of financial year to retained earnings:8deficit$ +#C&#-C Knrealized Foreign ).change <ain:8'oss$ This account is used to record unrealized gains:losses arising from revaluation of foreign currency denominated accounts. This shall be accounted for in accordance with PA! &#. >ebit this account for" ).change loss on revaluation of foreign currency denominated account Closing of net unrealized foreign e.change gain at the end of financial year to retained earnings:8deficit$ Credit this account for" ).change gain on revaluation of foreign currency denominated account Closing of net unrealized foreign e.change loss at the end of financial year to retained earnings:8deficit$ +#C&#@C <ain:8'oss$ on !ale of Fther Assets This account is used to record gains and losses incurred in the disposition of other assets, which is the difference between the carrying amount and its selling price. >ebit this account for" 'oss on sale of other assets Closing of net gain on sale of other assets at the end of financial year to retained earnings:8deficit$ Credit this account for" <ain on sale of other assets Closing of net loss on sale of other assets at the end of financial year to retained earnings:8deficit$ +#C&#AC ?iscellaneous evenues This account is used to record other gains or revenues, which cannot be properly classified in preceding accounts.

44

>ebit this account for" Closing of revenue at end of financial year to retained earnings:8deficit$ Credit this account for" Fther gains or revenues +#C&#BC !hare of Profit:8'oss$ of Associates This account is used to record share of TP in profit or loss of associates in accordance with PA! &A. >ebit this account for" !hare in losses of associates Credit this account for" !hare in profit of associates +#C&&CC !hare of Profit:8'oss$ of Goint Dentures This account is used to record share of TP in profit or loss of 1oint ventures in accordance with PA! &A. >ebit this account for" !hare in losses of 1oint ventures Credit this account for" !hare in profit of 1oint ventures Cost o* Ser( +e 5000000 - 5999999

,#C#CCC Commissions ).penses This account represents commissions paid to licensed salesmen, either employees or authorized agents. >ebit this account for" Commissions paid or accrued for a period Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized ,#C&CCC !alaries and 3enefits 0 Fperations These accounts are used to record salaries and other benefits of employees directly engaged in effecting transactions in securities.

45

,#C&#CC !alaries and Iages 0 Fperations This account is used to record salaries and benefits of employees directly involved in the operations. >ebit this account for" !alaries and benefits paid or accrued to employees directly involved in operations Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized ,#C&##C #(th ?onth H Compensation0 elated 3enefits 0 Fperations This account is used to record #(th month benefits H other employee benefits of employees directly involved in the operations. >ebit this account for" #(th month and other employee benefits accrued or paid to employees directly involved in operations Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized ,#C&#&C )mployeesE Ielfare 0 Fperations This account is used to record any aid in the form of money or necessities to promote the well being of TP employees directly involved in the operations. >ebit this account for" Cost of employee welfare benefits Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized ,#C&#(C !!! Contributions 0 Fperations This account is used to record the employer;s share of the premium contributions to !!! for employees directly involved in the operations. >ebit this account for" Premium contributions accrued or paid to !!! for employees directly involved in operations Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal:ad1ustment made in the same year the e.pense was recognized

46

,#C&#+C Phil=ealth Contributions 0 Fperations This account is used to record Phil=ealth contributions of employers for employees directly involved in operations. >ebit this account for" Phil=ealth contributions accrued or paid for employees directly involved in operations Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized ,#C&#,C )C Contributions 0 Fperations This account is used to record the employer )C contributions to !!! for employees directly involved in operations. >ebit this account for" )mployer contributions accrued or paid for employees directly involved in operations Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized ,#C&#-C =>?F Fund Contributions 0 Fperations This account is used to record employerEs share to =>?F for employees directly involved in the operations. >ebit this account for" Contributions accrued or paid to =>?F for employees directly involved in the operations Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized ,#C&#@C )mployee etirement Cost % Fperations This account is used to record employer;s contributions for the post0 employment benefits of its employees. >ebit this account for" Payment or accrual of contributions payable to a contribution plan Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal:ad1ustment made in the same year the e.pense was recognize

47

,#C(CCC !tock ).change >ues and Fees This account is used to record dues to the ).change for transaction fees and other fees incidental to its membership with the e.change such as but not limited to terminal fees, use of ).change facilities, etc. >ebit this account for" >ues accrued or paid to the ).change Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized ,#C+CCC Central >epository Fees This account is used to record charges by the Central >epository for lodgment and upliftment re*uests, and terminal fees for the access of the Central >epository system. >ebit this account for" 'odgment and upliftment re*uests, and terminal fees Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized ,#C,CCC esearch Fees This account is used to record charges for access to 3loomberg, similar data providers. >ebit this account for" Access or subscription fees for data use Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized euters, and other

O,er!t n- E.,enses -#CCCCC Administrative ).penses

/000000 - /999999

-#C#CCC Compensation and 3enefits 0 Admin -#C##CC !alaries and Iages 0 Admin This account is used to record salaries and wages of employees other than those involved in operations.

48

>ebit this account for" Payment or accrual of salaries and wages of employees other than those involved in operations Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -#C###C #(th ?onth H Fther Compensation0 elated 3enefits 0 Admin This account is used to record #(th month H other benefits of employees other than those directly involved in operations. >ebit this account for" Payment or accrual of #(th month H other benefits of employees other than those directly involved in operations Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -#C##&C )mployeesE Ielfare 0 Admin This account is used to record any aid in the form of money or necessities 8such as medical care, housing, car plan, uniforms, etc.$ to promote the well0 being of TP employees other than those directly involved in operations. >ebit this account for" Cost of employee welfare benefits other than those directly involved in operations Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -#C##(C !!! Contributions 0 Admin This account is used to record employers premium contributions for employees other than those directly involved in operations to !!!. >ebit this account for" Payment or accrual of !!! premium contributions of employees other than those involved in operations Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized

49

-#C##+C Phil=ealth Contributions 0 Admin This account is used to record Phil=ealth contributions of employees other than those directly involved in operations. >ebit this account for" Payment or accrual of Phil=ealth contributions of employees other than those involved in operations Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -#C##,C )C Contributions 0 Admin This account is used to record employer )C contributions to !!! for employees other than those directly involved in operations. >ebit this account for" )mployer contributions accrued or paid for employees other than those directly involved in operations Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -#C##-C =>?F Fund Contributions 0 Admin This account is used to record premium contributions by employees to =>?F. >ebit this account for" Premium contributions by employees to =>?F Credit this account for" Closing of e.pense at the end of financial year to retained earnings:deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -#C##@C )mployee etirement Cost 0 Admin This account is used to record employer;s contributions for the post0 employment benefits of its employees. >ebit this account for" Payment or accrual of contributions payable to a contribution plan Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized

50

-#C&CCC Trainings and !eminars This account is used to record training and seminar costs of employees. >ebit this account for" Training and seminar costs of employees Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -#C(CCC ?anagement 3onus This account is used to record management bonus given to officers e.cluding #( th month pay and statutory bonuses >ebit this account for" ?anagement bonus given to officers Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -#C+CCC Transportation and Travel This account is used to record e.penses for the official travel of directors, officers and employees such as fares, hotel bills, subsistence, porterage and tips. This account also includes e.penses of directors, officers and employees incurred for fuel and minor repairs in using personally owned vehicles for official travel. >ebit this account for" Transportation and travel costs Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -#C,CCC ?eetings and Conferences This account is used to record costs of business meetings and conferences. >ebit this account for" 3usiness meetings and conferences costs Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -#C-CCC )ntertainment, Amusement and ecreation This account is used to record fi.ed allowances and:or actual e.penses for client solicitations, public relations activities, and business development activities.

51

>ebit this account for" epresentation and entertainment costs Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -#C@CCC ?anagement Fees This account is used to record management fees incurred and sub1ect to a management fee agreement. >ebit this account for" ?anagement fees Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -#CACCC Professional Fees This account is used to record e.penses for services rendered by individuals or firms on a retainer or contractual basis such as the legal counsel, e.ternal auditors and consultants. >ebit this account for" 3illed or accrued e.penses for services of legal counsel, e.ternal auditors and consultants Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -#CBCCC >irectors Fees This account is used to record per diems and fees granted to directors in accordance with management policy. >ebit this account for" Per diems and other fees granted to directors Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -##CCCC ent This account is used to record costs incurred or accrued from rental of buildings, land, e*uipment, office space, vehicles, and other property, plant, and e*uipment.

52

>ebit this account for" ental dues Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -###CCC Ktilities This account is used to record cost of power, light, and water consumption. >ebit this account for" Cost of power, light, and water consumption Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -##&CCC 7nsurance This account is used to record insurance costs including among others, insurance for fire, burglary. >ebit this account for" 7nsurance costs including among others, insurance for fire, burglary Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -##(CCC Fffice !upplies This account is used to record costs of office supplies used. >ebit this account for" Costs of office supplies used Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -##+CCC Postage, Telephone H Communication This account is used to record costs for mailing, telephone, facsimile, telegram and other form of communications used in the business operations.

53

>ebit this account for" Costs of postage, telephone, and other form of communications used in the business operations Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -##,CCC !ecurity, ?essengerial and Ganitorial This account is used to record costs for security, messengerial, and 1anitorial services provided by other entities it has service agreements with. >ebit this account for" Costs of security, messengerial, and 1anitorial services Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -##-CCC <as H Fil This account is used to record costs for gas H oil of TP0owned vehicles. >ebit this account for" <as H oil costs Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -##@CCC epairs H ?aintenance This account is used to record repairs H maintenance of property, plant and e*uipment. >ebit this account for" Cost of repairs and maintenance Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -##ACCC Advertising H Promotions This account is used to record cost of handbills, pamphlets, billboards, brochures and give0aways, print advertisements, and other promotional materials or activities.

54

>ebit this account for" Cost of advertisements and promotions Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -##BCCC 3ank Charges This account is used to record all bank charges other than interest. >ebit this account for" 3ank charges Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -#&CCCC Photocopies This account is used to record costs for photocopying or reproduction of documents. >ebit this account for" Photocopying costs Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -#&#CCC !ubscription and Periodicals This account is used to record cost incurred for subscriptions of periodicals, newspapers, magazines and newsletters. >ebit this account for" Costs incurred for the purchase or subscription of periodicals. Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -#&&CCC Condominium >ues and Fees This account is used to record all condominium dues and other related fees incurred. >ebit this account for Condominium dues and other fees related thereto Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized

55

-#&(CCC Ta.es H 'icenses This account is used to record all ta.es H licenses such as real property ta.es, business permits, motor vehicles registration fees, privilege ta., firearms ta., gross receipts ta. and other ta.es e.cluding income ta.es and DAT payables. >ebit this account for" Ta.es H licenses Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -#&+CCC Fther Fperating ).penses This account is used to record other operating e.penses which cannot be properly classified in the preceding e.pense accounts. >ebit this account for" Cost of other operating e.penses Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -&CCCCC >epreciation and Amortization These accounts are used to record the periodic write0off of capital assets over the asset;s useful life. -&C#CCC >epreciation % 'easehold 7mprovements This account is used to record periodic allocations of costs of leasehold improvements with finite useful life. >ebit this account for" Amortization e.pense for the period Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -&C&CCC >epreciation 0 3uilding This account is used to record the periodic allocation of the cost of building over its useful life. >ebit this account for" Periodic depreciation of building Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized

56

-&C(CCC >epreciation 0 Condominium This account is used to record the periodic allocation of the cost of condominiums over its useful life. >ebit this account for" Periodic depreciation of condominium Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -&C+CCC >epreciation % Furniture, Fi.tures and )*uipment This account is used to record the periodic allocation of the costs of furniture, fi.tures and e*uipment over its useful life. >ebit this account for" Periodic depreciation of furniture, fi.tures and e*uipment Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -&C,CCC >epreciation 0 Transportation )*uipment This account is used to record the periodic allocation of the costs of transportation e*uipment over its useful life. >ebit this account for" Periodic depreciation of transportation and automotive e*uipment Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -&C-CCC >epreciation % evaluation This account is used to record periodic allocation of appraisal increase on fi.ed assets over its useful life. >ebit this account for" Periodic depreciation of appraisal increase of fi.ed assets Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -&C@CCC >epreciation 0 Fthers0Property, Plant and )*uipment This account is used to record the periodic allocation of the costs of other fi.ed assets not included on the preceding accounts over its useful life.

57

>ebit this account for" Periodic depreciation of other fi.ed assets Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -&CACCC Amortization % 7ntangible Assets This account is used to record periodic allocation of intangible assets over its finite useful life. >ebit this account for" Periodic amortization of intangible assets Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -(CCCCC Provision for Credit 'osses -(C#CCC Provision for Credit 'osses % eceivables from Customers % Cash Accounts This account is used to record bad and doubtful accounts of customers maintaining cash accounts estimated in accordance with !)C Circular, industry or PF !. >ebit this account for" ecognition of credit losses Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -(C&CCC Provision for Credit 'osses % eceivables from Customers % ?argin Accounts This account is used to record bad and doubtful accounts of customers maintaining margin accounts estimated in accordance with !)C Circular, industry or PF !. >ebit this account for" ecognition of credit losses Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -(C(CCC Provision for Credit 'osses % Fther Trade eceivables This account is used to record bad and doubtful accounts of the parties in a trade0 related activity estimated in accordance with !)C Circular, industry or PF !.

58

>ebit this account for" ecognition of credit losses Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -+CCCCC 7mpairment 'osses -+C#CCC 7mpairment 'osses % 7nvestments This account is used to record the amount by which the carrying amount of an investment e.ceeds its estimated recoverable amount. The recoverable amount must be estimated if there is evidence that suggests an asset is impaired. >ebit this account for" ecognition of impairment losses Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -+C&CCC 7mpairment 'osses % 7nvestment Property This account is used to record the amount by which the carrying amount of an investment property e.ceeds its estimated recoverable amount. The recoverable amount must be estimated if there is evidence that suggests an asset is impaired. >ebit this account for" ecognition of impairment losses Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -+C(CCC 7mpairment 'osses % Property, Plant and )*uipment This account is used to record the amount by which the carrying amount of a property, plant and e*uipment e.ceeds its estimated recoverable amount. The recoverable amount must be estimated if there is evidence that suggests an asset is impaired. >ebit this account for" ecognition of impairment losses Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized

59

-+C+CCC 7mpairment 'osses % 7ntangible Assets This account is used to record the amount by which the carrying amount of an intangible asset e.ceeds its estimated recoverable amount. The recoverable amount must be estimated if there is evidence that suggests an asset is impaired. >ebit this account for" ecognition of impairment losses Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -+C,CCC 7mpairment 'osses % Fther /on0Current Asset This account is used to record the amount by which the carrying amount of other non0 current asset e.ceeds its estimated recoverable amount. The recoverable amount must be estimated if there is evidence that suggests an asset is impaired. >ebit this account for" ecognition of impairment losses Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -,CCCCC 7nterest e.pense This account is used to record the amount of interest incurred on loans and other borrowings. >ebit this account for" 7nterest incurred for the period including accruals Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized --CCCCC ?iscellaneous ).pense This account is used to record all other e.penses not accounted for in other accounts. >ebit this account for" ).penses incurred Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized

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-@CCCCC Provision for 7ncome Ta. -@C#CCC Provision for 7ncome Ta. % egular Corporate 7ncome Ta. 8 C7T$ This account is used to record ta. payable for the fiscal:calendar year, e.cept to the e.tent that the ta. arises from a transaction or event which is recognized in the same or different period directly in e*uity and in a business combination, if that is an ac*uisition. >ebit this account for" ecognition of current income ta. for the ta.able period, e.cept to the e.tent that the ta. arises from a transaction or event which is recognized in the same or different period directly in e*uity and in a business combination, if that is an ac*uisition Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -@C&CCC Provision for 7ncome Ta. 0 >eferred This account is used to record the provision for income ta. deferred in respect of ta.able temporary differences, e.cept to the e.tent that the ta. arises from a transaction or event which is recognized in the same or different period directly in e*uity and in a business combination, if that is an ac*uisition. >ebit this account for" >eferred portion of the income ta. e.pense in respect of ta.able temporary differences, e.cept to the e.tent that the ta. arises from a transaction or event which is recognized in the same or different period directly in e*uity and in a business combination, if that is an ac*uisition Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized -@C(CCC Provision for 7ncome Ta. % ?inimum Corporate 7ncome Ta. 8?C7T$ This account is used to record ta. applied whenever the corporation has zero or negative ta.able income or when the amount of the ?C7T is greater than the normal income ta. due. This shall be accounted for in accordance with evenue egulation B0BA. >ebit this account for" ecord applicable ?C7T for the year Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized

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-@C+CCC Provision for 7ncome Ta. % Final This account is used to record final corporate ta. applied to the corporation;s income sub1ect to final ta.. >ebit this account for" ecord applicable corporate final ta. for the year Credit this account for" Closing of e.pense at the end of financial year to retained earnings:8deficit$ Any reversal or ad1ustment made in the same year the e.pense was recognized

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