Fatima Integrated Farm School, Inc.

San Agustin, Iriga City

Financial Statement
For the Interim Period Ended
September 30, 2015

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Fatima Integrated Farm School, Inc.
STATEMENT OF FINANCIAL POSITION

September 30
2015
ASSETS
Current Assets
Accounts Receivable P
= 15,700
Noncurrent Assets
Buildings, Furniture and Fixtures, net (Note 4) 4,859,000
P
= 4,874,700

EQUITY
Equity, beginning 5,256,784
Retained deficit (382,084)
Equity, ending P
= 4,874,700

See notes to financial statements

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Fatima Integrated Farm School, Inc.
STATEMENT OF NET COMPREHENSIVE LOSS

September 30
2015

REVENUE
From donations (Note 5) P
= 1,660,000
Tuition fees 766,184
Miscellaneous 62,930
2,489,114

OPERATING EXPENSES
Salaries and Allowances 1,952,031
Depreciation 521,600
Learning Materials 132,103
Supplies 96,376
Utilities 71,997
Repairs and Maintenance 62,463
Trainings and Seminar 15,310
Representation 9,938
Transportation 6,310
Miscellaneous 3,070
2,871,198

LOSS BEFORE INCOME TAX (382,084)

PROVISION FOR INCOME TAX –

NET LOSS (382,084)
OTHER COMPREHENSIVE INCOME –
NET COMPREHENSIVE LOSS (P
= 382,084)

See notes to financial statements

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Fatima Integrated Farm School, Inc.
STATEMENT OF CHANGES IN EQUITY

September 30
2015
EQUITY FUND BALANCE
Beginning P
= 5,256,784
Net loss for the year (382,084)
Ending P
= 4,874,700

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Fatima Integrated Farm School, Inc.
STATEMENT OF CASH FLOWS

September 30
2015

CASH AT THE BEGINNING OF THE PERIOD –

CASH FLOWS FROM OPERATING ACTIVITIES

Cash inflows from:
Donations P
= 1,660,000
Tuition fees collected 766,184
Miscellaneous 62,930
2,489,114

Cash outflows for:

Salaries and Allowances 1,952,031
Learning Materials 132,103
Supplies 96,376
Utilities 71,997
Repairs and Maintenance 62,463
Trainings and Seminar 15,310
Representation 9,938
Transportation 6,310
Miscellaneous 3,070
2,349,598

Net operating cash inflow 139,516

CASH FLOWS FROM FINACING ACTIVITIES

Payment for liabilities (139,516)

CASH AT THE END OF THE PERIOD –

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Fatima Integrated Farm School, Inc.
NOTES TO FINANCIAL STATEMENTS

1. Company Information

The Fatima Integrated Farm School, Inc. (The Company) is a duly constituted
educational institution with office address at San Isidro, Iriga City.

The Company caters to provide education to orphans and to the children of the local
community. Majority of the students are orphans and the tuition paying students only
constitute a fraction of the student populace.

Statement of Compliance
The accompanying financial statements have been prepared in compliance with
Philippine Financial Reporting Standards for SMEs.

Subsequent events after the reporting date

There are no material events after the reporting date.

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2. Summary of Significant Accounting Policies

Basis of Preparation
The accompanying financial statements of the Company have been prepared on a
historical cost basis and are presented in Philippine Peso (P
= ), which is also the
Company’s functional currency.

Revenue Recognition
Revenue is recognized when it is probable that the economic benefits associated
with the transaction will flow to the enterprise and the amount of the revenue can be
measured reliably.

Interest Income
Revenue is recognized as the interest accrues taking into account the effective yield
on the asset.

Cash on hand and cash in banks

Cash on hand and cash in bank would also include cash equivalents which are
short-term, highly-liquid investments that are readily convertible to known amounts
of cash with original maturities of three months or less from dates of acquisition and
are subject to an insignificant risk of change in value. As of the end of the period, the
Company has no cash equivalents.

Accounts receivable
Accounts receivable are financial assets with fixed or determinable payments that
are not quoted in an active market. They are not entered into with the intention of
immediate or short-term resale and are not classified as financial assets held for
trading, designated as AFS financial assets or financial assets at FVPL.

After initial measurement, the loans and receivables are subsequently measured at
amortized cost using the effective interest rate method, less allowance for
impairment. Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees that are an integral part of the effective interest
rate. The amortization is included in the interest income in the statement of income.
The losses arising from impairment of such loans and receivables are recognized in
the statement of income.

Income tax
Current Tax
Current tax assets and liabilities for the current and prior periods are measured at
the amount expected to be recovered from or paid to the taxation authorities. The
tax rates and tax laws used to compute the amount are those that are enacted or
substantially enacted at the reporting date.

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Deferred Tax
Deferred income tax is provided on all temporary differences at the reporting date
between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.

Deferred income tax assets are recognized for all temporary differences, carry-
forward of unused tax credits from excess minimum corporate income tax (MCIT)
and unused net operating loss carryover (NOLCO), to the extent that it is probable
that taxable profits will be available against which the deductible temporary
differences, and the carry-forward of unused MCIT and NOLCO can be utilized.

The carrying amount of deferred income tax assets is reviewed at each reporting
date and reduced to the extent that it is no longer probable that sufficient taxable
profits will be available to allow all or part of the deferred income tax asset to be
utilized. Unrecognized deferred income tax assets are reassessed at each reporting
date and are recognized to the extent that it has become probable that future taxable
profits will allow the deferred tax asset to be recovered.

Deferred income tax assets are measured at the tax rates that are expected to apply
to the period when the asset is realized, based on tax rates (and tax laws) that have
been enacted or substantially enacted at the reporting date.

Property, vehicle and equipment

Property, vehicle and equipment, except land, are stated at cost less accumulated
depreciation and amortization and any accumulated impairment in value. Such cost
includes the cost of replacing part of property, vehicle and equipment at the time that
cost is incurred, if the recognition criteria are met, and excludes the costs of day-to-
day servicing. Land is stated at cost less any impairment in value. The initial cost of
property, vehicle and equipment consists of its purchase price, including import
duties and taxes and any other costs directly attributable in bringing the asset to its
working condition and location for its intended use. Expenditures incurred after the
property, vehicle and equipment have been put into operation, such as repairs and
maintenance, are normally charged to income in the year in which the costs are
incurred. In situations where it can be clearly demonstrated that the expenditures
have resulted in an increase in the future economic benefits expected to be obtained
from the use of an item of property, plant and equipment beyond its originally
assessed standard of performance, the expenditures are capitalized as additional
costs of property, vehicle and equipment.

As company policy, newly acquired properties during the year are provided with full
year depreciation during the year such depreciable properties are acquired.

Provisions
A provision is recognized when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources

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 embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.

Contingencies
Contingent liabilities are not recognized in the financial statements. They are
disclosed unless the possibility of an outflow of resources embodying economic
benefits is remote. Contingent assets are not recognized in the financial statements
but disclosed when an inflow of economic benefits is probable.

Equity
Capital is measured at carrying value of the capital since the start of operations net
of all net income or loss and additional investments or withdrawals.

Revenue
Revenue is recognized to the extent that it is probable that the economic benefits
associated with the transaction will flow to the Company and the amount of revenue
can be reliably measured. Revenue is measured at the fair value of the
consideration received, excluding discounts, rebates, sales taxes and duties.

Cost and Expenses

Cost and expenses are decreases in economic benefits during the accounting period
in the form of outflows or decrease of assets or incurrence of liabilities that result in
decreases in equity, other than those relating to distributions to equity participants.

Events after the Reporting Date

Post year-end events that provide additional information about the Company’s
position at the reporting date (adjusting events) are reflected in the financial
statements, if any. Post year-end events that are not adjusting events are disclosed
in the notes to the financial statements when material.

3. Significant Accounting Judgments and Estimates

The preparation of financial statements in compliance with PFRS necessitates the

use of judgments and estimates. These judgments and estimates affect the reported
amounts of assets and liabilities and disclosure of contingent liabilities at the
reporting date as well as the reported income and expenses for the period. Although
the estimates are based on the Company’s best knowledge and judgment of current
facts as of the reporting date, the actual outcome could differ from these estimates.
As of the end of the period, the Company recognizes no contingent liabilities.

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4. Buildings, Furniture and Fixtures

This account is composed of the building

As of the interim period Acquisition Accumulated Carrying

ended Cost Depreciation Value
Buildings 10,432,000 5,573,001 4,858,999
Furniture and fixtures 529,060 529,059 1
4,859,000

5. Donations

The Company is able to survive due to various benefactors that contribute to the
needed financing of the school.

6. Tax Exemption

Pursuant to Section 30 (E) of the National Internal Revenue Code, the Company is a
tax exempt entity engaged in the educational objective of teaching the local
community and specially the orphans that also lives within the premises of the
Company.

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