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Based on the FS you have researched thoroughly discuss your observations on the FS.

Focus on the ff:

1. What FS are reported by the company?
The FS reported by the Company are:
 Statement of Financial Position
 Income Statement
 Statement of Comprehensive
Income

 Statement of Changes in Equity
 Statement of Cash Flows
 Notes to the Financial Statements

2. On the Statement Financial Position:
2.1

The presentation and classification used in the presentation of the SFP

The Statement of Financial Position presented by the Company is a report format
which simply shows the assets, followed by the liabilities then by the shareholder’s equity in
vertical sequence. It shows the net balances at the end of the period
The order or format in which the company presents items in the statement is the
classification of current and non-current distinction for assets and liabilities. Assets can be
presented current then non-current, or vice versa. Liabilities and equity can be presented
current liabilities then non-current liabilities then equity, or vice versa.
San Miguel Corporation’s consolidated total assets as of December 2014 amounted to P1.2
trillion, P47 billion higher than 2013 mainly due to investments in property, plant and
equipment, particularly by Power and Petron; as well as project development costs for the
company’s infrastructure business, On the liabilities side, short-term debt increased by about
P37 billion while long-term debt declined by P4.5 billion, with the increased short-term
requirements of Petron, coupled with the decline in long-term debt of San Miguel Brewery Inc.
Total interest-bearing debt amounted to P483 billion, while consolidated net debt is at P224.4
billion. Total equity attributable to equity holders of the parent company increased to P240.5
billion in 2014 from P237.7 billion in 2013, primarily due to income during the year net of
dividend declarations. The company’s dividends to common and preferred shares amounted to
P3.3 billion and P6.1 billion, respectively. On the other hand, non-controlling interest increased
to P149.0 billion in 2014 from P128.1 billion in 2013 with SMC Global Power’s issuance of
US$300 million undated subordinate capital securities, coupled with Petron’s issuance of P9.9
billion preferred shares.

2.2

The accounts included in the SFP

The accounts included in the Statement of Financial Position includes; Assets, Liabilities
and Equity.
In the Asset section the accounts are:
o Cash and cash equivalents
o Current portion of biological assets
o Trade and other receivables
o Prepaid expenses and other current
o Inventories
assets

administrative and other operating activities. 103 for the year of 2014.o Investments and advances o Available-for-sale financial assets o Property. cost of sales and operating expenses 3. Interest Expense and other Financing Charges. Selling and Administrative Expense.1 The form of the IS used by the company The Income Statement which the SMC prepared and used is the FUNCTIONAL APPROACH or Cost of Sales Method.132 for the last period of 2014. The Company uses the format of Condensed Income Statement. Cost of Sales. 4. plant and equipment o Investment property and so on While in the Liabilities and Equity section includes: o Loans payable o Finance lease liabilities o Accounts payable and accrued o Equity Attributable to Equity Holders of expenses the Parent Company o Finance lease liabilities o Additional paid-in capital o Income and other taxes payable o Revaluation increment o Dividends payable o Reserve for retirement plan o Long-term debt o Cumulative translation adjustments o Finance lease liabilities o Retained earnings o Deferred tax liabilities o Treasury stock and etc. Other Income and so on to arrive at the NET INCOME which will be attributable or distributable to the Equity holders of the Parent Company. It classifies expenses according to their function as part of cost of sales. they presented two consecutive years as a comparison which shows the total Comprehensive Income for the year ended.2 The accounts and the arrangement as presented in the IS They arranged the accounts first by classifying the Sales.1 Discuss how the comprehensive income was presented The comprehensive income was presented as an extension of the income statement. 4. Equity in Net Earnings of Associates and Joint Ventures. 3.2 What items formed part of the CI? Items that may not be reclassified to profit or loss are: o Equity reserve for retirement o Income tax benefit o Share in other comprehensive income . On Comprehensive Income 4. Gross Profit. such as one line each for sales. Interest Income. And compared to the 2013 it decreased in amount. On the Income Statement: 3. the format aggregates the entire income statement into just a few lines. It shows first the account of Net Income which costs 28. The total Comprehensive Income was divided and distributed to Parent Company that costs P12.

The Cash Flows reported by the company shows the amount of cash received and disbursed. Cash Flows from Investing Activities and Cash Flows from Financing Activities. 6. 6. The total or net Comprehensive Income is presented in the statement as well as the beginning balance of each component in the statement and the movements under them that brought about the ending balances. On the Cash Flow Statement 6. The statement prepared by the San Miguel Corporation shows the net increase in the cash during the last period of 2014 compared to the 2013 statement. Their presentation of the Cash Flows helps project the future net cash flows of entity. Cash flows from SMC are generally the cash effects of the transactions that enter during the year of 2014 and 2013 that will determine the profit or loss at the end of the period. The SMC used Direct Method in preparing their Statement of Cash Flows.Items that may be reclassified to profit or loss are: o Gain (loss) on exchange differences on translation of foreign operations o Net gain (loss) on available-for-sale financial assets o Income tax benefit o And Other Comprehensive Income that will arrive at the total comprehensive income which will be attributable to the Parent Company 5. On the Statement of Changes in Equity: 5. and producing and delivering goods.1 Discuss how the cash flow statement is presented Operating activities generally involve providing services. and the share in the comprehensive income. 5. Issuance of common shares. Changes in an enterprise’s equity between two balance sheet dates reflect the increase or decrease in its net asset during the period. They have been separated or determined the major classes of operating cash flows by using Cash Inflows/Outflows. the entity’s net cash provided by the company is obtained by adding the individual operating cash inflows and then subtracting the individual operating cash outflows.2 What items worth noting were included in the statements The Items that are worth noting in the statement includes the beginning balance and additional investments the cash dividends and its distribution to common and preferred shares. investing and financing activities.2 What items worth noting were included in the statement? .1 Discuss how the statement was presented The Statement of Changes in equity prepared by the company summarizes the changes that occurred in owner’s equity. It is a formal statement that classifies cash receipts and cash payments into operating.

Plant and Equipment o Summary of Significant o Investment Property Accounting Policies o Significant Accounting o Biological Assets Judgments. Interest expense and other financing charges. In the Cash flows from investing activities includes making and collecting loans. each of the statements have notes that can provide information that cannot be disclosed or showed on the face of the financial statements. acquiring and disposing of investment in debt or equity securities. Estimates and o Cost of Sales Assumptions o Selling and Administrative o Business Combinations Expenses o Investments in Shares of Stock o Significant Agreements and of Subsidiaries Lease Commitments o Segment Information o Retirement Plans o Assets Held for Sale o Financial Risk and Capital o Cash and Cash Equivalents Management Objectives and o Trade and Other Receivables Policies o Financial Assets and Financial o Inventories Liabilities . and obtaining and selling of property and equipment and other productive assets like Additions to property. The Notes to the Financial Statements made by the company is very long. 7. 7. Additions to investments and advances while in the Cash flows from financing activities includes obtaining owners and creditors like Cash dividends paid.The Items that are worth noting in the statement includes the Cash received from clients. plant and equipment. Since they are not found on the face of the financial statements and have a bearing in interpreting the financial statements. Proceeds from issuance of capital stock.1 Discuss the outline in the presentation of the notes to FS.2 What salient items are worth noting in the part of the notes to FS? The salient items are worth noting in the part of the notes to Financial Statements are: o Company’s Information o Investments and Advances o Reporting Entity o Prepaid Expenses and Other o Basis of Preparing the Financial Current Assets o Available-for-Sale Financial Statements o Statement of Compliance Assets o Property. Cash generated from operations and of course the Income taxes paid. they are placed to the notes to the financial statement section of the auditor’s report. This information presented by the company provides quantitative and qualitative info and can be used in interpreting the financial statements made by the year of 2014. On the Notes to the FS 7.

o o o o o o o o o o o o o o o o o FINANCIAL STATEMENTS o o (Preliminary Exam) o o o o o o o o o o o o o o o o o o o o Prepared by: o o .

Pie Zeta Acoba o Financial Management Teacher . CATALINA o BSA-3B o o o o o Ms.o ARA MAE STA.