ATENEO DE MANILA MULTI-PURPOSE COOPERATIVE

Ateneo De Manila University, Katipunan Avenue,

Loyola Heights, Quezon City

STATEMENT OF MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL STATEMENTS

The management of ATENEO DE MANILA MULTI-PURPOSE COOPERATIVE is

responsible for all information and representations contained in the financial statements for
the years ended December 31, 2014 and 2013. The financial statements have been
prepared in conformity with Financial Reporting Standards applicable to Cooperatives in the
Philippines and reflect amounts that are based on the best estimates and informed judgment
of management with an appropriate consideration to materiality.

In this regard, management maintains a system of accounting and reporting which provides
for the necessary internal controls to ensure that transactions are properly authorized and
recorded, assets are safeguarded against unauthorized use or disposition and liabilities are
recognized.

The Board of Directors reviews the financial statements before such statements are
approved and submitted to the members of the Cooperative.

FERNANDO O. VIESCA, JR., the independent auditor and appointed by the Board of
Directors, has examined the financial statements of the Cooperative in accordance with the
Philippine Standards on Auditing and the Standard Audit System for Cooperatives and has
expressed his opinion on the fairness of presentation upon completion of such examination,
in his report to members of the Cooperative.

TIMOTHY G. GABUNA CHRISTINA R. BARZABAL REGINALDO M. MARCELO

Board Chairman General Manager Treasurer
 FERNANDO O. VIESCA, JR. CERTIFIED PUBLIC ACCOUNTANT
Member: Philippine Institute of Certified Public Accountants (PICPA)
CDA Accredited Cooperative Auditor

INDEPENDENT AUDITOR’S REPORT

TO THE BOARD OF DIRECTORS

Ateneo De Manila Multi-Purpose Cooperative
Ateneo De Manila University, Katipunan Avenue,
Loyola Heights, Quezon City

I have audited the accompanying financial statements of ATENEO DE MANILA MULTI-PURPOSE COOPERATIVE,
which comprise the statements of financial condition as at December 31, 2014 and 2013, and the statements of operation,
statements of changes in equity and statements of cash flows for the years then ended, and a summary of significant
accounting policies and other explanatory notes.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with
Financial Reporting Standards applicable to Cooperatives in the Philippines, taking into consideration Cooperative laws,
rules, regulations and principles. This responsibility includes designing, implementing and maintaining internal control
relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether
due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are
reasonable in the circumstances.

Auditor’s Responsibility

My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in
accordance with Philippine Standards on Auditing. Those standards require that I comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material
misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I
have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion

In my opinion, the financial statements present fairly, in all material respects, the financial position of ATENEO DE
MANILA MULTI-PURPOSE COOPERATIVE, as of December 31, 2014 and 2013, and of its financial performance,
changes in equity, and its cash flows for the years then ended in accordance with Financial Reporting Standards
applicable to Cooperatives in the Philippines, taking into consideration Cooperative laws, rules, regulations and principles.

FERNANDO O. VIESCA, JR.

CPA No. 43051
TIN No. 137-764-917
PTR No. 9238648 Dated January 20, 2015, Quezon City
PRC–BOA Registration No. 0864
CDA CEA No. 886
BIR Accreditation No. 05-004375-1-2012
March 06, 2015
Caloocan City

Block 3, Lot 1, Coopville, Bagumbong Dulo, Caloocan City

Cell No. 0906-4647749, Email add: fviescajr@gmail.com
 FERNANDO O. VIESCA, JR. CERTIFIED PUBLIC ACCOUNTANT
Member: Phil. Institute of Certified Public Accountants (PICPA)
CDA Accredited Cooperative Auditor

STATEMENT OF REPRESENTATION

TO THE COOPERATIVE DEVELOPMENT AUTHORITY:

In connection with my examination of the financial statements of the ATENEO DE MANILA MULTI-
PURPOSE COOPERATIVE covering the period ended December 31, 2014 that are herewith submitted to
the Cooperative Development Authority, I hereby represent the following:

1. That said financial statements herewith attached are prepared and presented in conformity with the
financial reporting standards applicable to cooperatives in the Philippines;

2. That in the conduct of my audit, I adhered to the Philippine Standards on Auditing and the Standard
Audit System for Cooperatives (SASC) as required by the Cooperative Development Authority;

3. That I am qualified as provided for in Section 8 of the Code of Professional Ethics for Certified
Public Accountants and Article 81 of R.A. No. 9520 (Cooperative Code of the Philippines);

4. That I am fully aware of my responsibility as an independent auditor for the audit report issued and
attached to the financial statements and the sanctions to be bestowed on me for my
misrepresentations that I may have willingly or unwillingly committed.

5. That I nor any member of my immediate family do not have any direct or indirect financial interest
with the cooperative;

6. That I am not an employee nor an officer of a secondary cooperative or tertiary cooperative of which
this cooperative is a member;

7. That I am not an employee of the Cooperative Development Authority nor have I engaged an
employee of the CDA in the course of audit;

8. That I make this representation in my individual capacity;

9. That I am a member of the North Caloocan Chapter of the PICPA.

It is however, understood that my accountability is based on matter within the normal coverage of an audit
conducted in accordance with Philippine Standards on Auditing and the Standard Audit Systems for
Cooperatives.

FERNANDO O. VIESCA, JR.

CPA No. 43051
TIN No. 137-764-917
PTR No. 9238648 Dated January 20, 2015, Quezon City
PRC–BOA Registration No. 0864
CDA CEA No. 886
BIR Accreditation No. 05-004375-1-2012

March 06, 2015

Caloocan City
 ATENEO DE MANILA MULTI-PURPOSE COOPERATIVE
Ateneo de Manila University, Katipunan Avenue, Loyola Heights, Quezon City
CDA Registration No. 9520-16012560
STATEMENTS OF FINANCIAL CONDITION
AS OF DECEMBER 31, 2014 and 2013
(Amounts in Philippine Pesos)

NOTES 2014 2013

A S S E T S
CURRENT ASSETS:
Cash and Cash Equivalents 2.3, 3 7,243,703.14 1,181,219.34
Loans and Receivables, Net 2.5, 2.6, 4 35,316,142.61 37,475,300.26
Inventories 2.7 997,246.18 871,696.25
Other Current Assets 301,502.71 468,402.73
Total Current Assets 43,858,594.64 39,996,618.58

NON-CURRENT ASSETS:
Property, Plant and Equipment, Net 2.8, 5 838,693.13 578,069.93
Other Non-Current Assets 6 3,636,416.93 3,636,416.93
Total Non-Current Assets 4,475,110.06 4,214,486.86
TOTAL ASSETS 48,333,704.70 44,211,105.44

LIABILITIES AND EQUITY

LIABILITIES
CURRENT LIABILITIES:
Deposit Liabilities 22,805,314.41 18,270,400.03
Trade, Non-Trade and Other Payables 7 2,049,908.07 2,726,373.18
Interest on Share Capital Payable 2.13 2,532,331.88 2,397,956.18
Patronage Refunds Payable 2.13 425,171.66 328,110.65
Other Current Liabilities 8 690,351.12 649,423.82
Total Current Liabilities 28,503,077.14 24,372,263.86

NON-CURRENT LIABILITIES:
Retirement Fund Payable 2.10 1,607,022.63 1,576,966.34
Members' Benefit and Other Funds Payable 1,020,257.29 1,020,257.29
Total Non-Current Liabilities 2,627,279.92 2,597,223.63
TOTAL LIABILITIES 31,130,357.06 26,969,487.49

EQUITY
Paid-Up Share Capital 2.11 12,138,760.82 12,220,953.65
Donations and Grants (63,246.36) 18,479.64
Statutory Funds 2.13, 9 5,127,833.18 5,002,184.66
Total Equity 17,203,347.64 17,241,617.95
TOTAL LIABILITIES AND EQUITY 48,333,704.70 44,211,105.44

See Accompanying Notes to Financial Statements

 ATENEO DE MANILA MULTI-PURPOSE COOPERATIVE
Ateneo de Manila University, Katipunan Avenue, Loyola Heights, Quezon City
CDA Registration No. 9520-16012560
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2014 and 2013
(Amounts in Philippine Pesos)

NOTES 2014 2013

REVENUES: 2.12
Gross Income on Sales 10 11,799,572.49 12,514,184.23
Interest Income from Loans 2.12.1 5,512,423.61 5,340,935.49
Service Fees 2.12.2 1,369,372.11 1,916,091.44
Fines, Penalties, Surcharges 2.12.2 22,404.56 6,815.98
Membership Fees 2.12.3 5,600.00 7,100.00
Concession Income 2.12.3 3,699,350.66 4,248,249.02
Rental Income 2.12.3 240,261.10 291,881.15
Income/Interest from Investments/Deposits 2.12.4 14,618.38 5,293.33
Miscellaneous Income 2.12.5 760,664.79 721,882.04
Total Revenues 23,424,267.70 25,052,432.68

LESS: EXPENSES: 11
Financing Costs 636,852.69 521,116.50
Selling Costs 16,001,918.88 17,292,405.94
Administrative Costs 4,760,869.21 5,676,478.59
Total Expenses 21,399,640.78 23,490,001.03
NET SURPLUS FOR THE YEAR (FOR ALLOCATION) 2.13 2,024,626.92 1,562,431.65
Reserve Fund 202,462.69 156,243.17
Education and Training Fund (Local) 202,462.69 156,243.17
Optional Fund 141,723.88 109,370.22
Community Development & Social Fund 60,738.81 46,872.95
Interest on Capital & Patronage Refunds 1,417,238.85 1,093,702.14
NET SURPLUS (AS ALLOCATED) 2,024,626.92 1,562,431.65

See Accompanying Notes to Financial Statements

 ATENEO DE MANILA MULTI-PURPOSE COOPERATIVE
Ateneo de Manila University, Katipunan Avenue, Loyola Heights, Quezon City
CDA Registration No. 9520-16012560
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2014 and 2013
(Amounts in Philippine Pesos)

NOTES 2014 2013

CASH FLOWS FROM OPERATING ACTIVITIES:
Net Surplus for the Year 2.12 2,024,626.92 1,562,431.66
Adjustments to Reconcile Net Surplus to Net
Cash Provided by Operating Activities:
Depreciation 2.8 140,865.80 214,733.24
Retirement Benefit Expense 2.10 495,147.67 568,929.91
Change in Assets and Liabilities:
Decrease (Increase) in:
Short-Term Investments 2.4 - 2,607,089.88
Loans and Receivables 2.5, 2.6, 4 2,159,157.65 (2,046,525.58)
Inventories 2.7 (125,549.93) 92,417.89
Other Current Assets 166,900.02 (233,462.41)
Increase (Decrease) in:
Deposit Liabilities 4,534,914.38 621,905.23
Trade, Non-Trade and Other Payables 7 (676,465.11) 1,988,332.60
Other Current Liabilities 8 40,927.30 58,207.06
Net Cash Provided by Operating Activities 8,760,524.70 5,434,059.48
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of Property, Plant and Equipment 2.8, 5 (401,489.00) (111,274.50)
Net Cash Used in Investing Activities (401,489.00) (111,274.50)
CASH FLOWS FROM FINANCING ACTIVITIES:
Withdrawal/Addition of Share Capital 2.11 (82,192.83) 115,863.48
(Decrease)in Donations and Grants (81,726.00) (1,100.00)
Payment of Interest on Share Capital & Patronage
Refunds Payables 2.13 (1,185,802.14) (1,800,229.21)
(Decrease) in Retirement Fund Payable 2.10 (465,091.38) (565,792.51)
(Decrease) in Members' Benefit & Other Funds Payable - (32,271.27)
Change in Statutory Funds 2.13, 9 (481,739.55) (3,581,106.08)
Net Cash Used in Financing Activities (2,296,551.90) (5,864,635.59)
NET INCREASE (DECREASE) IN CASH 6,062,483.80 (541,850.61)
CASH AND CASH EQUIVALENTS, JANUARY 01 1,181,219.34 1,723,069.95
CASH AND CASH EQUIVALENTS, DECEMBER 31 2.3, 3 7,243,703.14 1,181,219.34

See Accompanying Notes to Financial Statements

 ATENEO DE MANILA MULTI-PURPOSE COOPERATIVE
Ateneo de Manila University, Katipunan Avenue, Loyola Heights, Quezon City
CDA Registration No. 9520-16012560
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2014 and 2013
(Amounts in Philippine Pesos)

NOTES 2014 2013

SHARE CAPITAL 2.11
Beginning Balance 12,220,953.65 12,105,090.17
Add: Additional Capital Build-Up 692,307.70 115,863.48
Less: Withdrawals in Capital (774,500.53) -
Ending Balance 12,138,760.82 12,220,953.65
DONATIONS AND GRANTS
Beginning Balance 18,479.64 19,579.64
Add: Additional/Credits - -
Less: Charges (81,726.00) (1,100.00)
Ending Balance (63,246.36) 18,479.64
STATUTORY FUNDS: 2.13
RESERVE FUND: 9
Beginning Balance 2,163,147.00 3,208,199.21
Add: Allocation: 10% net surplus from Operations 202,462.69 156,243.17
Less: Charges (0.02) (1,201,295.38)
Ending Balance 2,365,609.67 2,163,147.00
EDUCATION AND TRAINING FUND 9
Beginning Balance 1,397,237.62 2,529,887.66
Add: Allocation: 10% net surplus from Operations 202,462.69 156,243.17
Less: Charges (262,903.24) (1,288,893.21)
Ending Balance 1,336,797.07 1,397,237.62
OPTIONAL FUND 9
Beginning Balance 1,437,628.11 2,020,814.06
Add: Allocation: 7% net surplus from Operations 141,723.88 109,370.22
Less: Charges - (692,556.17)
Ending Balance 1,579,351.99 1,437,628.11
COMMUNITY DEVELOPMENT AND SOCIAL FUND 9
Beginning Balance 4,171.93 355,660.30
Add: Allocation 60,738.81 46,872.95
Credits - -
Less: Charges (218,836.29) (398,361.32)
Ending Balance (153,925.55) 4,171.93
TOTAL STATUTORY FUNDS 5,127,833.18 5,002,184.66
TOTAL EQUITY 17,203,347.64 17,241,617.95

See Accompanying Notes to Financial Statements

 ATENEO DE MANILA MULTI-PURPOSE COOPERATIVE
Ateneo de Manila University, Katipunan Avenue, Loyola Heights, Quezon City
CDA Registration No. 9520-16012560
AUDIT ADJUSTMENTS
AS OF DECEMBER 31, 2014

AJE NO. PARTICULARS CREDIT DEBIT

1 Retail Sales 62.00
Canteen Wares Deposit Income 62.00
To correct erroneous recording of O.R. No. 129898 dated
10/15/14.

2 Loans Receivable
Time Deposits (MIF) 5,000.00
Paid-Up Share Capital 4,450.00
To correct erroneous recording of O.R. No. 131053, 131078 550.00
dated 12/05/14 received from Chardarello Policarpio, Jebriel
Puno, respectively.

3 Sub-Concession Income 1,300.00

Petty Cash Loans Receivable 1,300.00
To correct erroneous recording of O.R. No. 131171 dated
12/12/14 received from Larry Palaming.

4 Accounts Receivable - Sub-concessionaires 26.95

Fines, Penalties & Surcharges 26.95
To correct erroneous recording of O.R. No. 131183 dated
12/12/14 received from Julieto Amora.

5 Accounts Payable - Suppliers 6,879.40

Purchases - Canteen 75.00
Canteen Supplies 6,804.40
To correct erroneous recording of CV. Nos. 1200002145,
1200002151 dated 11/03/14, 11/05/14 paid to LCP General
Merchandise.

6 Canteen Supplies 22,875.00

Purchases - Canteen 22,875.00
To correct erroneous recording of CV Nos. 1200002176,
1200002203, 1200002205, 1200002232 dated 11/05/14,
11/20/14, 11/28/14.

7 Purchases - Canteen 72,161.15

Accounts Payable - Suppliers 72,161.15
To record unrecorded purchases as per CV No. 1200002232
dated 11/28/14 paid to LCP General Merchandise and to
reverse adjustments made as per CV Nos. 1201018,1201592
,1201594, 1201601, 1201975 dated 02/18/14, 05/06/14,
05/08/14, 09/05/14 paid to Joenne Enterprises, Dimax Dist.
Enterprises, MEC Foxt Express, Suncoast Brands
International and Contrade Integrated, respectively.
AJE NO. PARTICULARS CREDIT DEBIT
8 Catering Sales 2,377.50
Retail Sales 74.00
Service Fees - Canteen 1,814.50
Puchases - Canteen 637.00
To correct erroneous recording of SI. Nos. 75385, 75388,
75390, 75455, 75462, 75505, 75506, 75524,75526, 75539 dated
10/08/14, 10/11/14, 10/14/14, 10/15/14, 10/17/14, 10/18/14.

9 Service Fees - Canteen 187.50

Purchases Canteen 187.50
To correct erroneous recording of SI No. 75453 dated
10/11/2014.

10 Retail Sales 250.00

Counter Sales 250.00
To correct erroneous recording of SI No. 75492 dated 10/14/14.

11 Counter Sales 190.00

Service Fees - Canteen 28.50
Accounts Receivable - Canteen 218.50
To adjust the overstatement of SI No. 75832 dated 11/07/14
sold to ADMU/HRMO.

12 Employee Charge Sales - Counter Sales 9.00

Employee Charge Sales - Retail Sales 9.00
To correct erroneous recording of SI No. 76117 dated
11/22/14.

13 Equipment Rental Income 50.00

Accounts Receivable - Canteen 50.00
To correct erroneous recording of SI No. 76431 dated
12/17/14 sold to ADMU/History

14 Accounts Receivable - Canteen 0.90

Service Fees - Canteen 0.90
To adjust the understatement of SI No. 76521 dated 12/20/14
sold to ADMU/SOM.

CREDIT OPERATION
15 Other Interest Income 1,760.00
Interest Income from Loans 1,760.00
To correct erroneous recording of CV Nos. 120000486,
120000488 dated 12/13/14.
 ATENEO DE MANILA MULTI-PURPOSE COOPERATIVE
Ateneo de Manila University, Katipunan Avenue, Loyola Heights, Quezon City
CDA Registration No. 9520-16012560

NOTES TO FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2014

NOTE 1 – ORGANIZATION AND TAX EXEMPTIONS

The ATENEO DE MANILA MULTI-PURPOSE COOPERATIVE formerly known as

Ateneo Consumers Cooperative, Inc. was incorporated and registered with the
defunct Bureau of Agricultural Cooperatives Development (BACOD) as full-fledged
Consumers Cooperative under the repealed Presidential Decree No. 175 and Letter
of Implementation No. 23. It was confirmed as a full-fledged Multi-Purpose
Cooperative with the Cooperative Development Authority (CDA) under repealed
Republic Act No. 6938 known as Cooperative Code of the Philippines. The
Cooperative was registered with the Cooperative Development Authority under
Republic Act No.9520 with Registration No.9520-16012560 dated April 28, 2010.

The Cooperative was exempt from income and sales taxes for five (5) years from
the date of registration as provided in Section 5 of the repealed Presidential Decree
No. 175. It was also exempt from the payment of income and sales taxes for a period
of ten (10) years which reckoned from March 10, 1987, the effectivity of Executive
Order No. 93, as provided in Article 62 (b) of the repealed Republic Act. 6938. It is
likewise exempt from all national, city, provincial, municipal or barangay taxes of
whatever name and nature as its accumulated reserves and undivided net savings
do not exceed ten million pesos (P10,000,000.00) as provided in Article 61 (1) of the
Republic Act No.9520 . It is also exempt from the value-added tax (VAT) under
Section 109, pars. (r), (s), (t) and (u), three percentage (3%) tax under Section 116,
and five hundred pesos (P500.00) annual registration fee under Section 236 (B) all of
the Tax Code of 1997.
As provided in the articles of cooperation of the Cooperative, its objectives and
purposes among others are as follows:

a) To encourage thrift and savings mobilization among the members for capital
formation;
b) To create funds in order to grant loans for productive and providential
purposes to its members; and
c) To provide goods and services and other requirements of the members.

The Cooperative has been engaged in the operation of canteen business through
concession with the Ateneo de Manila University in Loyola Heights, Quezon City,
to provide foods and drinks of best quality at reasonable prices, and providing
credit/lending services to its members by availing productive and providential
loans at reasonable rate of interest. It is also accepting sub-concessions not only
to augment its revenues but likewise to provide more and better foods and drinks
not only among its members but as well as to other Ateneans.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of Financial Statements presentation

The accompanying financial statements have been prepared in accordance

with the generally accepted accounting principles in the Philippines based on
 the historical cost convention. The accounting policies have been consistently
applied by the Cooperative and are consistent with those used in the previous
year, except for the adoption of the new standards.

2.2 Adoption of revised and new standards

The Accounting Standards Council (ASC) approved the issuance of the new
and revised accounting standards that are based on the revised International
Accounting Standards (IAS) and the new International Financial Reporting
Standards (IFRS) issued by the International Accounting Standards Board
(IASB). The new standards are effective for the annual periods beginning on
or after January 1, 2005.

The ASC has renamed the Standards that it issues to correspond better with
the issuances of the IASB. These new standards have been renamed
Philippine Accounting Standards (PAS) to correspond to the adopted IAS
while Philippine Financial Reporting Standards (PFRS) to correspond to the
adopted IFRS. Previously, Standards issued by the ASC were designated as
Statement of Financial Accounting Standards (SFAS).

The cooperative, as a qualified entity, has chosen to defer the application of

certain standards, which became effective January 1, 2005.

The following are the Standards that are applicable to the Cooperative:

 PAS 1, Presentation of Financial Statements, provides a framework

within an entity assesses how to present fairly the effects of transaction
and other events; provides the base criteria for classifying liabilities as
current or non-current, prohibits the presentation of income from operating
activities and extraordinary items as separate line items in the statements
of income and expenses; and specifies the disclosures about key sources
of estimation, uncertainly and judgments that management has made in
the process of applying the entity’s accounting principles. It also requires
changes in the presentation of minority interest in the balance sheets and
statements of income and expenses.
 PAS 7, Cash Flow Statements, requires the provision of information
about the historical changes in cash and cash equivalents of an entity by
means of a cash flow statement, which classifies cash flows during the
period from operating, investing and financing activities.
 PAS 8, Accounting Policies, Changes in Accounting Estimates and
Errors, removes the concept of fundamental error and the allowed
alternative to retrospective application of voluntary changes in accounting
policies and retrospective restatement to correct prior period errors. It
defines material omissions or misstatements, and describes how to apply
the concept of materiality when applying accounting policies and
correcting errors.
 PAS 10, Events After Balance Sheet Date, which prescribes when the
Company should adjust its financial statements for events after the
balance sheet date and the disclosures that an entity should give about
when the financial statements were authorized for issue and about events
after the balance sheet date. This standard also requires the Company
not to prepare its financial statement on a going concern assumption is not
appropriate.
  PAS 16, Property, Plant and Equipment, provides additional guidance
and clarification on recognition and measurement of items of property,
plant and equipment with a cost that is significant in relation to the total
cost of the item shall be depreciated separately.
 PAS 18, Revenue, prescribes the accounting treatment of revenue arising
from certain types of transactions and events. The primary issue in
accounting for revenue is determining when to recognize revenue.
Revenue is recognized when it is probable that future economic benefits
will flow to the entity and these benefits can be measured reliably. It also
identifies the circumstances in which these criteria will be met and,
therefore, revenue will be recognized. It also provides practical guidance
on the application of these criteria.
 PAS 19, Employee Benefits, which prescribe the accounting and
disclosure for employee benefits. The Standard requires an entity to
recognize a liability when an employee has provided service in exchange
for employee benefits to be paid in the future; and an expense when the
entity consumes the economic benefit arising from service provided by an
employee in exchange for employee benefits.
 PAS 24, Related Party Disclosures, provides additional guidance and
clarity in the scope of the standard, the definitions and disclosures for the
related parties. It also requires disclosure of the compensation of the key
management personnel by benefit type.
 PAS 36, Impairment of Assets, which prescribe the procedures that an
entity applies to ensure that its assets are carried at no more than its
recoverable amount; requires recognition of impairment losses and
reversal of this; and prescribe disclosures.
 PAS 37, Provisions, Contingent Liabilities and Contingent Assets,
ensures that appropriate recognition criteria and measurement bases are
applied to provisions, contingent liabilities and contingent assets and that
sufficient information is disclosed in the notes to the financial statements to
enable users to understand their nature, timing and amount.
 PFRS 1, First Time Adoption of PFRS, which sets out the procedures
that an entity must follow when it adopts PFRS for the first time as the
basis for preparing its general purpose financial statements. It provides
guidance on the accounting policies, reporting periods, recognition, de-
recognition, reclassification and measurement of assets and liabilities. The
standard sets out optional and mandatory exemptions from the general
restatement and measurement principles of assets and liabilities, guidance
and clarification on recognition and measurement of its items of property,
plant and equipment with a cost that is significant in relation to the total
cost of the item shall be depreciated separately. It further provides each
part of an item of property, plant and equipment with a cost that is
significant in relation to the total cost of the item shall be depreciated
separately.

2.3 Cash and Cash Equivalents

Cash is valued at face amount.

2.4 Short-Term Investment in Non-Marketable Equity Securities

This represents investment in financial institution that is readily convertible to

cash.
2.5 Loans and Receivables

Loans are stated at the amount of unpaid principal. Interest on loans is

recognized as income when collected and earned. Unearned interest on loans
are adjusted at the end of the year.

2.6 Allowance for Probable Losses on Loans

Allowance for probable losses is the estimated amount of losses from loans
based on the historical loss experience, current economic conditions,
subsequent and possible collections and other risk factors obtained during the
review of the status of existing receivables. It is established through
provisions for probable losses charged to current operations and reduced by
write offs and reversal based on the Cooperative’s standard chart of accounts.
Loans are written off against the allowance for probable losses when
management believes that the collectibility of the principal is unlikely.

2.7 Inventories

The inventories are stated at cost determined by using first-in, first-out

method.

2.8 Property, Plant and Equipment

Property and equipment are stated at cost less accumulated depreciation.

The cost of an asset comprises its purchase price and directly attributable
costs of bringing the asset to working conditions for its intended use.
Expenditures for additions, improvements and renewals are capitalized;
expenditures for repairs and maintenance are charged to expense as
incurred. When assets are sold, retired or otherwise disposed of, their cost
and related accumulated depreciation are removed from the accounts and
any resulting gain or loss is reflected in income for the period.

Depreciation is computed on the straight-line basis over the

estimated useful lives of the assets.

2.9 Other Non-Current Assets

This account includes investment in common trust fund for the retirement
fund of the employees of the Cooperative, and deposit with the bank as cash
bond to its surety bond as required by the Ateneo de Manila University for its
exclusive use and full operation of the kitchens and cafeterias.

2.10 Retirement Cost

The Cooperative has funded, non-contributory defined benefit retirement plan

covering all employees. Retirement costs are actuarially determined using the
Projected Unit Credit Method. This method reflects the years of service
rendered by employees to the date of valuation and incorporates assumptions
concerning employees’ projected salaries. Retirement costs include current
service cost plus amortization of past service cost, experience adjustments
and changes in actuarial assumptions over the expected average remaining
working lives of the covered employees. The Cooperative has established a
 retirement fund to comply with the Republic Act No.7641 known as the New
Retirement Law.

2.11 Share Capital

This represents the paid-up share capital of regular members of the

Cooperative and is withdrawable only upon termination of membership. It
earns interest depending on the net surplus realized by the Cooperative but
not to exceed the normal rate of return on investment as determined by
Cooperative Development Authority (CDA).

2.12 Income recognition

Income is recognized to the extent that it is probable that the economic

benefits will flow to the Cooperative and the income can be reliably measured.
The following specific recognition criteria must also be met before income is
recognized.

2.12.1 Interest Income from loans

As discussed under policy loans receivable, unearned interest is

recognized as income over the life of the receivable using accrual
method. Interest Income from loans is recognized as income when
collected and earned.

2.12.2 Service fees, fines, penalties and surcharges

Service fees, filing fees, fines, penalties and surcharges are

immediately recognized as income upon collection.

2.12.3 Membership fees, concession income,rental income

Membership fees are recognized as income immediately upon

collection. These are payments other than the share capital
contribution of the members.
2.12.4 Income/Interest from investments/Deposits

Income/interest income from investments is recognized as income

periodically on accrual basis

2.12.5 Miscellaneous Income

These are income that are not classified under the above criteria.

2.13 Statutory Funds

The mandatory order of distribution of the net surplus of the Cooperative is set
forth in Article 86, Act No. 9520, as follows:

1. An amount for the reserve fund which shall be at least ten per
centum(10%) of net surplus: Provided, That, in the first five(5) years of
operation after registration, this amount shall not be less than fifty per
centum(50%) of the net surplus..
 2. An amount for the education and training fund, shall not be more than ten
per centum(10%) of the net surplus. Half of the amounts transferred to the
education and training fund annually under this subsection shall be spent
by the cooperative for education and training purposes; while the other half
may be remitted to a union or federation chosen by the cooperative or of
which it is a member.
3. An amount for the community development fund, which shall not
be less than three per centum(3%) of the net surplus.
4. An optional fund, a land and building, and any other necessary fund the
total of which shall not exceed seven per centum(7%).
5. The remaining net surplus shall be made available to the members in the
form of interest on share capital not to exceed the normal rate of return on
investments and patronage refunds: Provided, that any amount remaining
after the allowable interest and the patronage refund have been deducted
shall be credited to the reserve fund.

This year, the Cooperative has allocated 10% for the reserve fund, 10% for
the education and training fund, 7% for optional fund/land and building fund,
3% for the community development fund while the remaining goes to interest
on share capital and patronage refunds.

NOTE 3 – CASH AND CASH EQUIVALENTS

This account consists of the following:

2014 2013
Revolving Fund 600,208.84 259,364.08
Cash on Hand 108,512.23 100,000.00
Petty Cash Fund 5,605.55 18,671.62
Cash in Banks 6,529,376.52 803,183.64
Tota Cash 7,243,703.14 1,181,219.34

NOTE 4 – LOANS AND RECEIVABLES, NET

This account consists of the following:

2014 2013
Loans:
Current 41,832,560.38 45,188,747.33
Past Due - -
Total Loans Receivable 41,832,560.38 45,188,747.33
Less: Allowance for Probable Losses (1,152,773.61) (1,152,773.61)
Net Loans Receivable 40,679,786.77 44,035,973.72
Unearned Interests and Discounts (9,592,554.54) (10,039,341.07)
Receivables:
Advances to Officers and Employees 342,759.73 170,275.28
Accounts Receivable - Trade 3,780,022.32 3,143,208.06
Other Current Receivables 106,128.33 165,184.27
Total Receivables 4,228,910.38 3,478,667.61
Total Loans and Receivables 35,316,142.61 37,475,300.26
 NOTE 5 – PROPERTY, PLANT AND EQUIPMENT
This account consists of:

Furniture, Fixtures and Office Equipment 4,148,168.83 3,746,679.83

Leasehold Improvements 402,969.14 402,969.14
Total Property, Plant and Equipment 4,551,137.97 4,149,648.97
Less: Accumulated Depreciation (3,712,444.84) (3,571,579.04)
Net Property, Plant and Equipment 838,693.13 578,069.93

NOTE 6 – OTHER NON-CURRENT ASSETS

This account consists of:

Other Funds and Deposits 3,327,654.76 3,327,654.76

Computerization Costs 308,762.17 308,762.17
Total 3,636,416.93 3,636,416.93

NOTE 7 – TRADE, NON-TRADE AND OTHER PAYABLES

This account consists of:

Accounts Payable - Suppliers 963,386.31 1,134,002.20

Accounts Payable - Ateneo 1,030,881.52 1,607,346.31
Withholding Tax Payable (79,784.76) (7,715.59)
SSS, Philhealth, ECC, Pag-ibig Contributions Payable 84,601.62 (9,578.88)
SSS and Pag-ibig Loans Payable 50,823.38 2,319.14
Total Payables 2,049,908.07 2,726,373.18

NOTE 8 – OTHER CURRENT LIABILITITES

This account consists of:

2014 2013
Subcon Deposits Payable 380,000.00 340,000.00
Accrued Expenses 302,304.20 300,805.65
Other Current Liabilities 8,046.92 8,618.17
Total 690,351.12 649,423.82

NOTE 9 – STATUTORY FUNDS

This account consists of the following:

Reserve Fund 2,365,609.67 2,163,147.00

Education and Training Fund 1,336,797.07 1,397,237.62
Optional Fund 1,579,351.99 1,437,628.11
Community Development & Social Fund (153,925.55) 4,171.93
Total Statutory Funds 5,127,833.18 5,002,184.66
NOTE 10 – GROSS INCOME ON SALES
This account consists of:

REVENUES:
SALES:
Counter Sales 14,399,357.21 15,879,135.33
Retail Sales 11,322,124.93 13,821,993.54
Catering Sales 6,794,663.03 6,170,583.43
Employees Charge Sales 262,670.29 283,177.70
Total Sales 32,778,815.46 36,154,890.00
LESS: COST OF SALES:
Merchandise Inventory , Beginning 871,696.25 964,114.14
Add: Purchases 21,104,792.90 23,548,287.88
Total Merchandise Available for Sale 21,976,489.15 24,512,402.02
Less: Merchandise Inventory, Ending 997,246.18 871,696.25
Cost of Sales 20,979,242.97 23,640,705.77
GROSS INCOME ON SALES 11,799,572.49 12,514,184.23
 NOTE 11 – EXPENSES
2014 2013
Financing Costs:
Interest Expense on Deposits 636,852.69 521,116.50
Total Financing Costs 636,852.69 521,116.50
Selling Costs:
Salaries and Wages 7,808,017.89 8,684,756.97
SSS, ECC, Philhealth, Pag-ibig Contributions 405,644.70 475,970.30
Employees' Benefits 1,589,352.38 1,387,742.14
Retirement Benefit Expense 443,124.07 462,807.66
Kitchen and Canteen Wares 186,775.00 533,679.00
Laundry 61,300.00 62,500.00
Fuel 818,884.13 689,091.60
Ice and Refrigeration 244,309.40 295,731.50
Spoilage Breakage and Losses 599,642.28 545,185.03
Canteen Supplies 855,248.35 1,205,333.25
Concession Fees 2,320,756.34 2,459,479.43
Rentals 132,718.30 109,440.39
Repairs and Maintenance 204,793.05 262,346.65
Depreciation 63,858.28 114,534.24
Travel and Transportation 138,475.00 -
Representation 107,166.32 -
Advertising and Promotion 2,981.39 -
Miscellaneous Expenses 18,872.00 3,807.78
Total Selling Costs 16,001,918.88 17,292,405.94
Administrative Costs:
Salaries and Wages 861,065.10 970,442.46
SSS, ECC, Philhealth, Pag-ibig Contributions 53,831.80 83,229.60
Employees' Benefits 65,458.93 102,864.37
Retirement Benefit Expense 52,023.60 106,122.25
Officers' Honorarium and Allowances 575,232.20 693,200.00
Representation 86,006.87 233,405.13
Meetings and Conferences 72,108.37 111,424.48
Office Supplies 183,667.50 263,808.00
Travel and Transportation 66,809.00 247,976.90
Power, Light and Water 2,199,179.20 1,818,479.71
Professional Fees 29,822.22 61,111.17
Taxes, Fees and Charges 5,740.00 13,796.18
Communication 115,532.54 100,825.58
Advertising and Promotion 7,281.99 16,536.90
Insurance 10,513.96 20,856.51
Litigation Expense - 48,400.00
Depreciation 77,007.52 100,199.00
Garbage Fees 68,640.00 68,640.00
General Assembly Expense 224,370.41 600,154.35
Social and Community Service Expense 3,000.00 -
Miscellaneous Expenses 3,578.00 15,006.00
Total Administrative Costs 4,760,869.21 5,676,478.59
Total Expenses 21,399,640.78 23,490,001.03

NOTE 12 – STATEMENT PRESENTATION

Certain accounts have been reclassified to conform with the standard chart of
accounts for all types of Cooperatives and financial statement presentation as
prescribed by the Cooperative Development Authority (CDA) and the
Philippine Financial Reporting Standards (PFRS).