ALDEN FS-update 2019

MARIBEL A.
ALDEN-(Proprietress)
Comparative Statement of Financial Position
As of December 31, 2019 & 2018
2019 2018
ASSETS
notes
Current Assets
Cash and cash equivalents (iii) PHP 1,475,964.00 PHP 1,429,217.00

Office Supplies (vi) 15,950.00 -
Merchandise Inventory (v) 261,260.00 215,776.00
Total Current Assets PHP 1,753,174.00 PHP 1,644,993.00
Non-current Assets
Property,Plant & Equipment, net (vii) PHP 1,251,200.00 PHP 1,329,400.00
Total Non-current Assets 1,251,200.00 1,329,400.00
TOTAL ASSETS PHP 3,004,374.00 PHP 2,974,393.00
LIABILITIES AND OWNER'S EQUITY
Current Liabilities
Accounts Payable Trade (viii) PHP 38,463.00 PHP 82,555.00
Income Tax Payable (ix) 4,355.00 2,057.00
Total Liabilties PHP 42,818.00 PHP 84,612.00
Owner's Equity
Maribel A.Alden, Capital PHP 2,889,781.00 PHP 2,629,520.00
Net Income 271,775.00 260,261.00
Total Capital 3,161,556.00 2,889,781.00
Less: Drawings (200,000.00) -
Total Owner's Equity PHP 2,961,556.00 PHP 2,889,781.00
TOTAL LIABILITIES AND OWNER'S EQUITY PHP 3,004,374.00 PHP 2,974,393.00

MARIBEL A. ALDEN-(Proprietress)
STATEMENT OF COMPREHENSIVE INCOME
For the year ended December 31, 2019
notes
Gross Sales/Receipts (x) Php 1,233,311.00
Less: Cost of Sales
Merchandise Inventory, Beg. Php 215,776.00

Add: Purchases 398,222.00
Total Goods Available for Sale Php 613,998.00
Less: Merchandise Inventory, End 261,260.00
Cost of Sales Php 352,738.00
Gross Profit Php 880,573.00
Less: Operating Expenses
Rent Expense 271,832.00

Communication, Light & Water 179,494.00
Supplies Expense 7,350.00
Depreciation 78,200.00
Taxes & Licenses 71,922.00
Total Operating Expenses Php 608,798.00
Net Income Php 271,775.00

CASH FLOW STATEMENT
For the Year Ended December 31, 2019
Cash Flow from Operating Activities

Net Income for the year Php -
Increase in Merchandise Inventory (45,484.00)
Increase in Supplies (15,950.00)
Increase in Accounts Receivable Err:509
Decrease in Accounts Payable (44,092.00)
Decrease in Taxes Payable 2,298.00
Net Cash provided from Operating Activities Err:509
Cash Flow from Investing Activities
Net Cash provided from Investing Activities -
Cash Flow from Financing Activities

Drawings (100,000.00)
Net Cash provided from Financing Activities (100,000.00)
Net Decrease in Cash Err:509

Cash, Beg. 1,429,217.00
Cash & Cash Equivalents, ending Err:509
Notes to Financial Statements
December 31,2019
I. BACKGROUND INFORMATION
MARIBEL A. ALDEN, operates a pawnshop and a boutique,a single proprietorship with registered address at San
Jose St., Goa, Camarines Sur with branch at Tigaon, Camarines Sur. The business was registered with the
Department of Trade and Industry (DTI) and the Bureau of Internal Revenue (BIR).
II. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in preparing the financial statements are as follows:
a) BASIS OF PREPARATION
The accompanying financial statements have been prepared in compliance with accounting principles generally
accepted in the Philippines as set forth in Philippine Financial Reporting Standards (PFRS).
b) USE OF ESTIMATES
The preparations of the financial statements in compliance with the accounting principles generally accepted in the
Philippines require management to make estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. The estimates and assumptions used in the accompanying notes are based upon
management’s evaluation of relevant facts and circumstances as of date of the financial statements. The following is
a summary of the significant estimates and judgments:
● Estimation of useful lives of Property, Plant & Equipment
Useful lives of property and equipment are estimated based on the period over which these assets are expected to be
available for use.
c) CURRENT LIABILITIES
Accounts Payable- Trade represents an obligation to creditors for merchandise purchase on credit. Taxes Payable represents the amount of tax
liability accrued during the taxable year
d) EXPENSES
The expenses are recognized when incurred regardless of when the cash is paid. An expense is recognized
immediately when expenditure produces no future economic benefits or when future economic benefits do not
qualify, or cease to qualify for recognition in the Balance Sheet as an Asset.
e) REPORTING CURRENCY
The financial statements are presented in Philippine Peso.
f) REVENUE RECOGNITION
Revenues are recognized to the extent that it is probable that the future economic benefits associated with the
transactions will flow to the business and the amount can be measured reliably.
g) CASH & CASH EQUIVALENTS
Cash & Cash Equivalents comprise of Cash on Hand & In Bank.
h) PROPERTY, PLANT & EQUIPMENT
Property, Plant & Equipment is stated at cost less accumulated depreciation
The initial cost comprises its purchase price and directly attributable costs of bringing the assets to its working
condition and the location for its intended use. Expenses incurred after it has been put into operation such as repairs
and maintenance are normally charged to operations in the period when the costs are incurred. Expenditures are
capitalized in situation where it can be clearly demonstrated that the expenditures have resulted in an increase in the
economic benefits expected to be obtained from the use of an item of property beyond its originally assessed
standard of performance.
Depreciation is computed using the straight-line method over the estimated useful life.
The useful life and depreciation method are reviewed periodically to ensure the period and methods of depreciation
are consistent with the expected pattern of economic benefits from the items of property and equipment.
III CASH & CASH EQUIVALENTS

Cash & Cash Equivalents comprise the cash on hand and in banks amounting to 1,429,217.00 in 2018 and
1,475,964.00 in 2019.
IV ACCOUNTS RECEIVABLE
This refers to unclaimed guaranteed items considered as sales made but not paid-for by the customers as December
31, 2018 & 2019.
V. MERCHANDISE INVENTORY
Merchandise inventory are goods that have been acquired by the entity from its suppliers, with the intent of selling
the goods to its customers. It is valued at cost or Net Realizable Value w/c ever is higher. As of December 31, 2019,
the amount of inventory is 261,260.00.
VI. SUPPLIES
Comprises of the materials that are consumed in the office during normal business operations. For example, ink toner
and paper clips, bond papers, pens, pencils, paints, markers, correction fluid, correction tape, and erasers and the like.
VII. PROPERTY, PLANT & EQUIPMENT

This Account is composed of the following items:
Description Acquisition Cost Useful Depreciation for Accumulated Depreciation Net Book Value Net Book Value
Life the year 12/31/2018 12/31/2018 12/31/2019
Building 1,955,000.00 25 78,200.00 625,600.00 1,329,400.00 1,251,200.00

Total 1,955,000.00 78,200.00 625,600.00 1,329,400.00 1,251,200.00
VIII. ACCOUNTS PAYABLE

Accounts payable is the aggregate amount of an entity's short-term obligations to pay suppliers for products and
services which the entity purchased on credit. As of December 31, 2018 & 2019, the balances of Accounts Payable
are 63,913.00 and 38,463.00 respectively.
IX. INCOME TAX PAYABLE
The income tax payable as of December 31, 2018 is computed below.
Net Income 271,775.00
Taxable Income 271,775.00

Tax Due 4,355.00
Tax Paid -
Tax Payable 4,355.00
X. GROSS SALES/RECEIPTS
The gross sales composed of the following amounts:
2019
Main Branch:
ALL STAR PAWNSHOP-GOA 399,908.00
Branches:
Bethany Gold Pawnshop 110,879.00
All Star Pawnshop-Tigaon 75,535.00
Ark Of Gold Pawnshop 237,922.00
Bethany Mae Boutique 409,067.00
Total Gross Sales/Receipts 1,233,311.00

JOSEPH P. ALDEN-(Proprietor)
COMPARATIVE BALANCE SHEET
As of December 31, 2019 & 2018
2019 2018 ###
ASSETS
notes
Current Assets
Cash and cash equivalents (iii) Php 2,120,214.00 Php 1,812,692.00
###
Merchandise Inventory (iv) 211,493.00 149,949.00
###
Accounts Receivables (v) 357,950.00 459,648.00
Supplies (vi) 96,190.00 -
Total Current Assets Php 2,785,847.00 Php 2,422,289.00
###
Non-current Assets
Building Php 2,550,000.00 Php 2,550,000.00
###
Less: Accumulated Depreciation (1,275,000.00) (1,105,000.00)
###
Building, net Php 1,275,000.00 Php 1,445,000.00
###
Transportation Vehicle Php 1,500,000.00 Php 1,500,000.00

###
Less: Accumulated Depreciation (825,000.00) (750,000.00)
###
Transportation Vehicle, net Php 675,000.00 Php 750,000.00
###
Total Non-current Assets Php 1,950,000.00 Php 2,195,000.00

###
TOTAL ASSETS Php 4,735,847.00 Php 4,617,289.00

###
LIABILITIES AND OWNER'S EQUITY
Current Liabilities
Trade and other payables Php 135,024.00 Php 85,711.00
###
Income tax payable 21,045.00 -
###
Total Liabilties Php 156,069.00 Php 85,711.00
###
Owner's Equity
Mr. Joseph P. Alden, Capital Php 4,531,578.00 Php 3,794,508.00
###
Net Income 448,200.00 737,070.00
###
Total Php 4,979,778.00 Php 4,531,578.00
###
Less:Drawings (400,000.00) -
Total Owner's Equity Php 4,579,778.00 Php 4,531,578.00
TOTAL LIABILITIES AND OWNER'S EQUITY Php 4,735,847.00 Php 4,617,289.00
###
CONSOLIDATED STATEMENT OF CHANGES IN CAPITAL
For the Year December 31, 2012
(In Philippine Pesos)

Profit
Capital
(Loss)
Total
( notes ( notes
2,4,12) 2,13,14)
Balance at January 1, 2012 0 0
Additional Investment 0 0
Net Income (Loss) 0 0
Drawings 0 0
Capital Balance December 0
See Notes to Financial Statements.
CONSOLIDATED STATEMENT OF CASH FLOWS

Notes 2012
Cash Flows from Operating Activities
Profit (Loss) for the year 2,13,14 0

Adjustments for:
Depreciation 2,9,17 (254,250)
Operating cash flows before working
(254,250)
capital changes:
Decrease (Increase) in:
Trade and other receivables 2,4,6 0
Inventories 2,4,7,14 0
Other current assets 2,4,8 0
Increase (Decrease) in:
Trade and other payables 2,4,10 0
Income tax payable 2,11 0
Net cash provided by operating activities (254,250)
Cash Flows from Investing Activities

Additions to property investment 2,9 254,250
Net cash used in investing activities 254,250
Cash Flows from Financing Activities

Increase (Decrease) in Capital 2,4,12 0
Net cash acquired in financing activities 0
Net Increase in Cash 0
Cash, Beginning 0
Cash, End 2,4,5 0
See Notes to Financial Statements.
MARIA MAY ORIÑO LEE (Lessor/KTH Caltex Station) _x000D_NOTES TO FINANCIAL
STATEMENTS_x000D_As of and for the year ended December 31, 2012
1. BUSINESS INFORMATION
MARIA MAY ORIÑO LEE (Lessor/KTH Caltex Station) the

“Business” was organized and registered with the Bureau of
Internal Revenue (BIR) on October 20, 2009. The accompanying
financial statements comprise the consolidated financial
statements of the Business as lessor and gasoline station
operator.
SVRM Real Estate Lessor was registered with the Bureau of

Internal Revenue (BIR) on October 20, 2009 and it is primarily
engaged in buying selling, renting and operation of dwellings.
KTH Caltex Station is under retailership agreement with
Southern Cross Distribution was registered with the Department
of Trade and Industry (DTI) on April 19, 2012 under DTI
Certificate No. 01715841 and it is primarily it is primarily
engaged in retail of liquefied petroleum gas and other fuel
products.
The business is 100% owned by Maria May Oriño Lee with

residence and postal address at May-Anao, Tigaon, Camarines
Sur.
The consolidated financial statements of the business have been
approved and authorized for issuance by the owner on February
25, 2013. Maria May Oriño Lee is empowered to make revisions
even after the date of issue.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of

the business’ consolidated financial statements that will be
presented are set out below. These policies have been
consistently applied to all the years presented unless otherwise
stated.
Basis of Preparation
The consolidated financial statements of the business have been

prepared on a fair value measurement. They are presented in
Philippine Pesos, which is the business’ functional currency. All
amounts are rounded to the nearest Philippine Peso, except when
otherwise indicated.
11 of 57
The business’ consolidated financial statements for the year

ended December 31, 2012 and December 31, 2011 had been
prepared under the accounting policies that comply with the
PFRS for SME. Section 35 (Transition to the PFRS for SMEs)
does not apply to the business because it was able to apply the
standards on PFRS for SME in its first year of financial
statement preparation starting January 1, 2012 and had
consistently applied the same. Subsequent consolidated financial
statements including the consolidated financial statements that is
currently being reported is prepared in accordance with the
Philippine
The Financialconsolidated
accompanying Reporting Standard
financial Framework PFRSbeen
statements have for
SMEs. on a going concern basis, which contemplate the
prepared
realization of assets
in the normal courseand settlement
of its business.of liabilities if there are any
Statement of Compliance
The accompanying consolidated financial statements have been

prepared in accordance with Philippine Financial Reporting
Standards (PFRS) for Small and Medium-sized Entities (SMEs).
Accounting Policies Adopted
The following sections that have been published by the

International Accounting Standards Board (IASB) and adopted
by the FRSC which became effective for accounting periods
beginning on or after July 1, 2009 were adopted by the business
on the start of its business operations:
Section 3 - Financial Statement Pres
Section 4 - Statement of Financial Pos

Statement of Comprehensive Income and
Section 5 -
Income Statement
Section 6 - Statement of Changes in
Section 7 - Statement of Cash Flows
Section 8 - Notes to the financial st
Section 10 - Accounting Policies, Est
Section 11 - Basic Financial Instrume
12 of 57
Section 13 - Inventories
Section 16 - Investment Property
Section 17 - Property and Equipment
Section 20 - Leases
Section 21 - Provisions and Contingen
Section 22 - Liabilities and Capital
Section 23 - Revenue
Section 25 - Borrowing Costs
Section 27 - Impairment of Assets

Section 28 - Employee Benefits
Section 32 - Events after the End of the Reporting Period
Section 33 - Related Party Disclosure
The adoption of the above sections, upon which the business has
opted to adopt early, did not have any significant effect on the
business’ financial statements. These, however, require
additional disclosures on the business’ financial statements.
Section 3, “Financial Statement Presentation”, explains fair
presentation of financial statements, what compliance with the
PFRS for SMEs requires, and what a complete set of financial
statements is. This section prescribes the basis for presentation
of general-purpose financial statements for SMEs to ensure
comparability both with the entity’s financial statements of
previous periods and with the financial statements of other
entities. It sets out overall requirements for the presentation of
financial statements, guidelines for their structure and minimum
Section 4, “Statement
requirements of Financial Position”, sets out the
for their content.
information that is to be presented in a statement of financial
position and how to present it. The statement of financial
position (sometimes called the balance sheet) presents an
entity’s assets, liabilities and equity as of a specific date—the
end of the reporting period and provides the minimum line items
that should be included in the statement of financial position,
however, additional line items, heading and subtotals shall be
presented if they will be relevant to an understanding of the
entity's financial position.
13 of 57
Section 5, “Statement of Comprehensive Income and Income

Statement” requires an entity to present its total comprehensive
income for a period—ie its financial performance for the period
—in one or two financial statements. It sets out the information
that is to be presented in those statements and how to present it.
Section 6, “Statement of Changes in Capital”, sets out

requirements for presenting the changes in an entity’s equity or a
period, either in a statement of changes in capital or, if specified
conditions are met.
Section 7, “Statement of Cash Flows”, sets out the information
that is to be presented in a statement of cash flows and how to
present it. The statement of cash flows provides information
about the changes in cash and cash equivalents of an entity for a
reporting period, showing separately changes from operating
activities, investing activities and financing activities.
Section 8, “Notes to the financial statements”, sets out the
principles underlying information that is to be presented in the
notes to the financial statements and how to present it. Notes
provide narrative descriptions or dis-aggregations of items
presented in those statements andinformation about items that do
not qualify for recognition in those statements. In addition to the
requirements of this section, nearly every other section of this
Section 10, “Accounting
PFRS requires Policies,
disclosures that Estimates
are normally and Errors”,
presented in the
provides
notes. guidance for selecting and applying the accounting
policies used in preparing financial statements. It also covers
changes in accounting estimates and corrections of errors in
prior period financial statements.
Section 11, “Basic Financial Instruments”, deals with
recognizing, measuring and disclosing basic financial
instruments and is relevant to all entities. An entity shall
recognize a financial asset or a financial liability only when the
entity becomes a party to the contractual provisions of the
instrument. When a financial asset or financial liability is
recognized initially, an entity shall measure it at the transaction
price unless the arrangement constitutes, in effect, a financing
Section 13, “Inventories”, prescribes policies for recognizing
transaction.
and measuring inventories and provides guidance in
determination cost and subsequent recognition as expense. An
entity shall measure inventories at the lower of cost and
estimated selling price less costs to complete and sell.
14 of 57
Section 16, “Investment Property”, prescribes the accounting

treatment for property investments in land or building that meet
the definition of investment property and some property interests
held by a lessee under an operating lease that are treated like
investment property. Only investment property whose fair value
can be measured reliably without undue cost or effort on an
ongoing basis is accounted for in accordance with this section at
fair value through profit or loss. All other investment is
accounted for as property, plant and equipment using the cost-
Section 17, “Property andmodel.
depreciation-impairment Equipment”, prescribes the accounting
treatment for property equipment so that users of the financial
statements can discern information about an entity’s investment
in its property and equipment and the changes in such
investment. The principal issues in accounting for property and
equipment are the recognition of the assets, the determination of
their carrying amounts and the depreciation charges and
impairment losses to be recognized in relation to them. An entity
shall measure an item of property and equipment at initial
recognition at its cost. The cost of an item of property and
equipment is the cash price equivalent at the recognition date. If
Section
payment 20, “Leases”,
is deferred applies
beyond to agreements
normal credit terms,thatthetransfer
cost is the
right to value
present use assets
of alleven though
future substantial services by the lessor
payments.
may be called for in connection with the operation or
maintenance of such assets. This section does not apply to
agreements that are contracts for services that do not transfer the
right to use assets from one contracting party to the other. Its
objective is to prescribe, for lessees and lessors the appropriate
accounting policies and disclosure to apply in relation to leases.
Section 21, “Provisions and Contingencies”, outlines the
recognition of provision only when: (a) the entity has an
obligation at the reporting date as a result of a past event; (b) it
is probable (ie more likely than not) that the entity will be
required to transfer economic benefits in settlement; and (c) the
amount of the obligation can be estimated reliably. Its objective
is to ensure that appropriate recognition criteria and
measurement bases are applied to provisions,contingent
Section
liabilities22,
and“Liabilities
contingent and Capital”,
assets and thatestablishes principles for
sufficient information is
classifying
disclosed infinancial
the notesinstruments as either
to enable users liabilities or
to understand capital
their nature,
timing and amount.
Section 23, “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. This section 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. An entity shall
measure revenue at the fair value of the consideration received
or receivable. 15 of 57
Section 25, “Borrowing Costs”, specifies the accounting for

borrowing costs. Borrowing costs are interest and other costs
that an entity incurs in connection with the borrowing of funds.
An entity shall recognize all borrowing costs as an expense in
profit or loss in the period in which they are incurred.
Section 27, “Impairment of Assets”, prescribes the procedures
that an entity applies to ensure that its assets are carried at no
more than their recoverable amount if its carrying amount
exceeds the amount to be recovered through use of or sale of the
asset. If this is the case, the asset is described to be impaired
and the standard requires the entity to recognize an impairment
loss.
Section 28, “Employee Benefits”, deals with accounting and
reporting by the plan to all participants as a group. It does not
deal with reports to individual participants about their retirement
benefit rights. An entity shall recognize the cost of all employee
benefits to which its employees have become entitled as a result
of service rendered to the entity during the reporting period: (a)
as a liability (b) as an expense. This section shall be applied in
the financial statements of retirement benefit plans where such
financial32,
Section statements
“Eventsareafter
prepared.
the End of the Reporting Period”,
defines events after the end of the reporting period and sets out
principles for recognizing, measuring and disclosing those
events. Events after the end of the reporting period are those
events, favorable and unfavorable, that occur between the end of
the reporting period and the date when the financial statements
are authorized for issue. Its objective is to prescribe: (a) when an
entity should adjust its financial statements for events after the
reporting period; and (b) the disclosures that an entity should
give about the date when the financial statements were
authorized for issue and about events after the reporting period.
It also requires that an entity should not prepare its financial
statements
Section 33,on“Related
a going Party
concern basis if events
Disclosures”, after the
requires an reporting
entity to
period indicate
include that the
in its financial going concern
statements assumption
the disclosures is not
necessary to
appropriate.
draw attention to the possibility that its financial position and
profit or loss have been affected by the existence of related
parties and by transactions and outstanding balances with such
parties. An entity shall disclose key management personnel
The adoption of the above sections, upon which the business has
compensation
opted to adopt, did not have any significant effect on the
business’s financial statements. These, however, require
additional disclosures on the business’s financial statements.
In 2012, it is the opinion of management that assets and
liabilities were recognized at fair value; hence, these were
considered deemed cost.
16 of 57
The significant sections and practices of the business are set

forth to facilitate the understanding of the consolidated financial
statements:
Financial Assets
Financial assets include cash, trade and other receivables.
Cash
Cash includes cash on hand; cash in banks and revolving fund.

Cash on hand as of the end of the period were deposited the next
banking day. Cash in banks are deposits held at call with banks.
The business reconciles the books and bank balances regularly
as part of its cash monitoring and internal control measures.
Revolving Fund is used for small payments not covered by
checks.
Trade and Other Receivables
Trade receivables represent accounts receivable and are non-

interest bearing measured initially at invoice transaction price
and subsequently measured at their fair value as reduced by
appropriate allowances for doubtful accounts and impairment, if
any. The allowance for doubtful accounts is the estimated
amount of probable losses arising from non-collection based on
past collection experience and management’s review of the
current status of the long-outstanding receivables. The doubtful
accounts expense is recognized in the statements of income.
Other receivables are recorded initially at transaction cost and
subsequently measured at cost less impairment, if any. Other
receivables include advances to officers and employees, accrued
income receivable, and others.
Loan receivables if any are non-derivative financial assets with
fixed or determinable payments that are not qouted in an active
market. They arise when the business provides money or
services directly to a debtor with no intention of trading the
receivables. Loans and receivables are carried at amortized cost
in the balance sheets. Amortization is determined
using the effective interest rate method. They are included in
current assets, except for maturities greater than 12 months after
the balance sheet date, which are classified as non-current assets.
Inventories
17 of 57
Inventories are valued at the lower of cost and estimated selling

price less costs to sell. Cost of inventories includes all costs of
purchase and other costs incurred in bringing the inventories to
their present location and condition.
Periodic system is the accounting used for the business’

inventories. The cost of inventories is determined using the
First-In-First-Out (FIFO) method.
Other Current Assets
Other current assets include prepaid supplies, which are valued

at the lower of cost or net realizable value. It also includes
prepayments such as prepaid taxes and prepaid expenses that are
initially recorded at transaction cost and subsequently measured
at cost less impairment loss, if any.
Investment Property
Investment property is property (land or a building, or part of a

building, or both) held by the owner under a finance lease to
earn rentals or for capital appreciation or both.
An business measure investment property at its cost at initial
recognition.
The cost of a purchased investment property comprises its
purchase price and any directly attributable expenditure such as
legal and brokerage fees, property transfer taxes and other
transaction costs. If payment is deferred beyond normal credit
terms, the cost is the present value of all future payments. The
business determines the cost of a self-constructed investment
property in accordance with Section 17 Property, Plant and
Investment
Equipment. property whose fair value can be measured reliably
without undue cost or effort must be measured at fair value at
each reporting date with changes in fair value recognised in
profitor loss. If a property interest held under a lease is classified
as investment property, the item accounted for at fair value is
that interest and not the underlying property. An entity accounts
for all other investment property as property, plant and
equipment using the cost depreciation impairment model in
The business
Section 17. transfers a property to, or from, investment
property only when the property first meets, or ceases to meet,
the definition of investment property.
Property and Equipment
18 of 57
Property and equipment are measured initially at its cost.

Property and equipment, after initial recognition are stated at
cost less any accumulated depreciation and any accumulated
impairment losses.
The initial cost of property and equipment, comprises its
purchase price and any cost directly attributable to bringing the
asset to the location and condition necessary for it to be capable
of operating
delivery and in the manner
handling, intendedand
installation by assembly,
management.
and These
testingcan
of
include the costs
functionality. of initial
The following costs are not costs of an item of property and

equipment, and the entity recognized them as an expense when
they are incurred: costs of opening a new facility, costs of
introducing a new product or service (including costs of
advertising and promotional activities), costs of conducting
business in a new location or with a new class of customer
(including costs of staff training), administration and other
general overhead costs and borrowing costs.
For financial reporting purposes, duties and taxes related to the
acquisition of property and equipment are capitalized. For
income tax reporting purposes, such duties and taxes are treated
as deductible expenses in the year theses charges are incurred.
For financial reporting purposes, depreciation is computed using
the straight-line method over the estimated useful lives of the
assets.
If there is an indication that there has been a significant change
since the last annual reporting date in the pattern by which an
entity expects to consume an asset’s future economic benefits,
the entity shall review its present depreciation method and, if
current expectations differ, change the depreciation method to
reflect the new pattern. The entity shall account for the change
as a change in an accounting estimate.
Factors such as a change in how an asset is used, significant
unexpected wear and tear, technological advancement, and
changes in market prices may indicate that the residual value or
useful life of an asset has changed since the most recent annual
reporting date. If such indicators are present, an entity shall
review its previous estimates and, if current expectations differ,
amend the residual value, depreciation method or useful life.
The entity shall account for the change in residual value,
depreciation method or useful life as a change in an accounting
estimate.
19 of 57
An item of property and equipment is derecognized upon

disposal or when no future economic benefits are expected from
its use or disposal. Any gain or loss on de-recognition of an item
of property and equipment is recognized in profit or loss when
the item is derecognized (unless Section 20 Leases requires
otherwise on a sale and leaseback) such gain is not recognized as
revenue.
For income tax reporting purposes, depreciation is computed
using the straight-line method.
Other Noncurrent Assets
Other current assets include prepaid supplies, which are valued

at the lower of cost or net realizable value. It also includes
prepayments such as prepaid taxes and prepaid expenses that are
initially recorded at transaction cost and subsequently measured
at cost less impairment loss, if any.
Financial Liabilities
Financial liabilities are recognized initially at fair value.
Financial liabilities are recognized when the business becomes a

party to the contractual provisions of the instrument.
Financial liabilities include trade and other payables and loans

payable.
Trade and Other Payables
Trade payables are liabilities to pay for goods or services that

have been received or supplied and have been invoiced or
formally agreed with the supplier.
Other payables include payables to affiliates, professional fees,
accrued expenses, and rent expense payable.
Trade and other payables are initially recorded at transaction

price and subsequently measured at their cost less settlement
payments.
Other Current liabilities
Other current liabilities include statutory obligation as of the end

of the period such as withholding tax payable, VAT Payable and
SSS, PHIC and HDMF Payable.
20 of 57
Loans Payable
Loans payable are long-term borrowings measured at their fair

values and subsequently recognized at amortized costs less
settlement payments.
Non-Current Liabilities
Non-current liabilities represent account payable-others and

miscellaneous deposit, which initially recorded at transaction
price and subsequently, measured at their cost less settlement
payments.
Financial Instruments
Date of Recognition
The business recognizes a financial asset or a financial liability

in the statement of financial position when it becomes a party to
the contractual provisions of the instrument.
Initial Recognition of Financial Instruments
All financial assets are initially recognized at fair value.
Determination of Fair Value

For all other financial instruments not listed in an active market,
the fair value is determined by using appropriate valuation
techniques. Valuation techniques include net present value
techniques, comparison to similar instruments for which market
observable prices exist, options pricing models, and other
relevant valuation models.
Impairment of Financial Assets
The business assesses at each balance sheet date whether there is

objective evidence that a financial asset or group of financial
assets is impaired. A financial asset or a group of financial assets
is deemed to be impaired if, and only if, there is objective
evidence of impairment as a result of one or more events that has
occurred after the initial recognition of the asset (an incurred
‘loss event’) and that loss event (or events) has an impact on the
estimated future cash flows of the financial asset or the group of
financial assets that can be reliably estimated. Evidence of
impairment may include indications that they borrower or a
group of borrowers is
21 of 57
experiencing significant financial difficulty, default or

delinquency in interest or principal payments, the probability
that they will enter bankruptcy or other financial reorganization
and where observable data indicate that there is measurable
decrease in the estimated future cash flows, such as changes in
arrears or economic conditions that correlate with defaults.
If there is objective evidence that an impairment loss has been
incurred, the amount of the loss is measured as the difference
between the asset’s carrying amount and the present value of the
estimated future cash flows (excluding future credit losses that
have not been incurred). The carrying amount of the asset is
reduced through use of an allowance account and the amount of
loss is charged to the statement of income. Interest income
allowance
continues to accounts, are written
be recognized off when
based on thethere is no effective
original realistic
prospect of future
interest rate recovery
of the asset. andtogether
Loans, all collateral hasassociated
with the been realized.
If, in a subsequent year, the amount of the estimated impairment
loss decreases because of an event occurring after the
impairment was recognized, the previously recognized
impairment loss is reversed. Any subsequent reversal of an
impairment loss is recognized in profit or loss, to the extent that
the carrying value of the asset does not exceed its amortized cost
For
at thethe purpose
reversal date.of a collective evaluation of impairment,
financial assets are grouped on the basis of such credit risk
characteristics as industry, past-due status and term.
Future cash flows in a group of financial assets that are
collectively evaluated for impairmentare estimated on the basis
of historical loss experience for assets with credit risk
characteristics similar to those in the group. Historical loss
experience is adjusted on the basis of current observable data to
reflect the effects of current conditions that did not affect the
period on which the historical loss experience is based and to
remove the effects of conditions in the historical period that do
not exist currently. The methodology and assumptions used for
estimating future cash flows are reviewed regularly by the
The business
business first any
to reduce assesses whether
differences objective
between evidence and
loss estimates of
impairment exists
actual loss experience. individually for financial assets that are
individually significant. If it is determined that no objective
evidence of impairment exists for an individual asset with
group of financial assets is collectively assessed for impairment.
similar credit risk characteristics and that
Assets that are individually assessed for impairment and for
which an impairment loss is continued to be recognized are not
included in a collective assessment or impairment.
If, in a subsequent period, the amount of the impairment loss
decreases and the decrease can be related objectively to an event
occurring after the impairment was recognized, the previously
recognized impairment loss is reversed. Any subsequent
reversal of an impairment loss is recognized in the statements of
income, to the extent that the carrying value of the asset does not
exceed its amortized cost at the reversal date.
22 of 57
Derecognition of Financial Assets and Financial

Liabilities
Financial assets
A financial asset (or, where applicable a part of financial asset or

part of a group of similar financial assets) is derecognized when:
• The rights to receive cash flows from the asset have

expired;
• The business retains the right to receive cash flows from
the asset, but has assumed an obligation to pay them in full
without material delay to a third party under a pass-through
arrangement; or
• The business has transferred its rights to receive cash
flows from the asset and either (a) has transferred
substantially all the risks and rewards of the asset, or (b)
has neither transferred nor retained substantially all the
risksLiabilities
Financial and rewards of the asset, but has transferred control
of the asset.
A financial liability is de-recognized when the obligation under
the liability is discharged, cancelled or expired. Where an
existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or
modification is treated as a de-recognition of the original
liability and the recognition of a new liability, and the difference
in the respective carrying amounts is recognized in the statement
Offsetting
of income.Financial Instruments
Financial assets and financial liabilities are offset and the net
amount reported in the balance sheet if, and only if, there is a
currently enforceable legal right to offset the recognized
amounts and there is an intention to settle on a net basis, or to
realize the asset and settle the liability simultaneously.
Impairment of Non-Financial Assets
The business assesses, as at reporting date whether there is an

indication that an asset may be impaired. If any such indication
exists, or when annual impairment testing for an asset is
23 of 57
required, the business makes an estimate of the asset’s

recoverable amount. An asset’s recoverable amount is calculated
as the higher of the asset’s or cash-generating unit’s fair value
less costs to sell and its value in use or its net selling price and is
determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those
assets or groups of assets. Where the carrying amount of an asset
exceeds it recoverable amount, the asset is considered impaired
present value down
and is written using to
a pre-tax discountamount.
its recoverable rate that
In reflects
assessingcurrent
value
market assessment of the time value of money
in use, the estimated future cash flows are discounted andto the
theirrisks
specific to the asset. Impairment losses are recognized in the
statements of income in those expense categories consistent with
the function of the impaired asset.
An assessment is made at each reporting date as to whether there
is an indication that previously recognized impairment losses
may no longer exist or may have decreased. If such indication
exists, the recoverable amount is estimated. A previously
recognized impairment loss is reversed only if there has been a
change in the estimates used to determine the asset’s recoverable
amount since the last impairment loss was recognized. If that is
the case, the carrying amount of the asset is increased to its
amortization, had no That
recoverable amount. impairment lossamount
increased been recognized
cannot exceedfor the
the
asset in prior years. Such reversal is recognized in the
carrying amount that would have been determined, net of statements
of income unless
depreciation and the asset is carried at revalued amount, in
which case the reversal is treated as revaluation increase. After
such a reversal, the depreciation charge is adjusted in future
periods to allocate the asset’s revised carrying amount, less any
residual value, on a systematic basis over its remaining useful
Total Equity
life.
Total equity comprises of contributed capital, cumulative

income and income.
Contributed Capital
Contributed capital is determined by the actual capital given by

the owner to the business.
Cumulative Income (Loss) Balances
Cumulative Income (Loss) balances include all current and prior

period results as disclosed in the statement of revenue and
expenses.
Comprehensive Income
24 of 57
Comprehensive income includes revaluation surplus, that are

closed to the business’ cumulative earnings.
Revenue and cost recognition
Revenue is recognized to the extent that is probable that the

economic benefits
the business and will
theflow to
amount of revenue can be reliably
measured. However, when an uncertainty arises about the
collectability of an amount already included in the revenue, the
uncollectible amount, or the amount in respect of which
recovery has ceased to be probable, is recognized as an expense,
rather than as an adjustment of the amount of revenue originally
recognized.
The following specific criteria must also be met before revenue
is recognized:
• Sale of Goods. Revenue is recognized when there is
persuasive evidence that an arrangement exists, delivery
has occurred, title has transferred, selling price is fixed or
determinable and collectibility of the selling price is
reasonably assured.
• Interest income. Interest income is recognized as the
•interest
Rentalaccrues.
Income. Revenue from investment properties is
recognized on a straight-line basis over the term of the
lease. Rental income is included as part of other income.
• Interest income. Revenue is recognized as the interest
accrues, taking into account the effective yield on the asset.
Cost and Expense Recognition
Cost and expenses are recognized in the statements of income

when decrease in future economic benefit related to a decrease
in an asset or an increase in a liability has arisen that can be
measured reliably. Expenses are recognized in the statement of
income or statement of income on the basis of a direct
association between the costs incurred and the earning of
specific items of income on the basis of systematic and rational
allocation procedures when economic beniefits are expected to
arise over several accounting periods and the association with
income can only be broadly or indirectly determined; or
immediately when an expenditures produces no future economic
benefits or when, and to the extent that, future economic benefits
do not qualify, for recognition in the statement of financial
position as an asset.
25 of 57
Cost and expenses in the statement of income are presented

using the function expense method. Administrative expenses are
costs attributable to the administrative activities of the business;
distribution expenses are costs attributable for the promotions
and selling of business' goods.
Short-term Benefits
The business recognizes a liability net of amounts already paid

and an expense for services rendered by employees during the
accounting period. Short-term benefits given by the business to
its employees include salaries and wages, social security
contributions, short-term compensated absences, bonuses and
other non-monetary benefits, if any.
Long Term Benefits
The business will provide for the retirement benefits of entitled

employees as mandated by law.
Borrowing Costs
Borrowing costs are generally expensed as incurred.
Income Taxes
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
substantively enacted by the balance sheet date.
Deferred income tax is not applicable to the business' operations
for being registered as a single proprietorship business.
Leases
The business determines whether an arrangement is, or contains

a lease based on the substance of the arrangement. It makes as
assessment of whether the fulfillment of the arrangement is
dependent on the use of a specific asset or assets and the
arrangement conveys a right to use the asset.
The business accounts for its leases as follows:
26 of 57
Business as Lessee
Leases, which do not transfer to the business substantially all the

risks and benefits of ownership of the asset, are classified as
operating leases. Operating lease payments are recognized as
expense in the statement of income on a straight-line basis over
the lease the term. Associated costs, such as maintenance and
insurance, are expensed as incurred. For income tax purposes,
deductible operating lease payments are computed based on the
terms of the lease agreement.
Business as Lessor
Leases, which do not transfer to the business substantially all the

risks and benefits of ownership of the asset, are classified as
operating
recognizedleases. Operating
as expense lease
in the payments
statement are
of income on a straight-
line basis over the lease the term. Associated costs, such as real
property tax, maintenance and insurance, are expensed as
incurred. For income tax purposes, deductible operating lease
payments are computed based on the terms of the lease
agreement.
Provisions and Contingencies
Provisions are recognized when the business has a present

obligation, either legal or constructive, as a result of a past
event, it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation, and
the amount of the obligation can be estimated reliably. When
the business expects reimbursement of some or all of the
expenditure required to settle a provision, the entity recognizes a
separate asset for the reimbursement only when it is virtually
certain that reimbursement will be received when the obligation
is settled.
The amount of the provision recognized is the best estimated of
the consideration required to settle the present obligation at the
balance sheet date, taking into account the risks and
uncertainties surrounding the obligation. When a provision is
measured using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of those cash
flows.
Provisions are reviewed at each reporting date and adjusted to
reflect the current best estimate.
27 of 57
Contingent liabilities and assets are not recognized because their

existence will be confirmed only by the occurrence or non-
occurrence of one or more uncertain future events not wholly
within the control of the entity. Contingent liabilities, if any, are
disclosed, unless the possibility of an outflow of resources
embodying economic benefits is remote. Contingent assets are
disclosed only when an inflow of economic benefits is probable.
Related Party Disclosures
Related party relationships exist when one party has the ability
to control, directly or indirectly through one or more
intermediaries, the other party or exercise significant influence
over the other party in making financial and operating decisions.
This includes: (1) individual owning, directly or indirectly
through one or more intermediaries, control, or are controlled
by, or under common control with, the business; (2) associates;
and (3) individuals owning, directly or indirectly, an interest in
the voting power of the business that gives them significant
influence over the business and close members of the family of
The key individual.
any such management personnel of the business and post-
employment benefit plans for the benefit of business’
employees, if any, are also considered to be related parties.
The business’ related parties include the business’ Key
Management. The compensation of the key management
personnel of the business pertains to the usual monthly salaries
and government mandated bonuses; there are no other special
benefits paid to management personnel.
Events After the End of the Reporting Period
Post-year-end events up to the date of the auditor’s report that

provide additional information about the business’ position at
the balance sheet date (adjusting events) are reflected in the
consolidated financial
disclosed in the statements.
notes to Post-year-end
consolidated events that
financial statements are
when
not adjusting
material. events are
MANAGEMENT’S SIGNIFICANT ACCOUNTING
3.
JUDGMENTS AND ESTIMATES
28 of 57
The preparation of the business’ consolidated financial

statements in conformity with Financial Reporting Framework in
reference to the Philippine Financial Reporting Standards
requires management to make estimates and assumptions that
affect the amounts reported in the business’ consolidated
financial statements and accompanying notes. The estimates
and assumptions used in the business’ consolidated financial
statements are based upon management’s evaluation of relevant
facts and circumstances as of the date of the business’
consolidated financial statements. Actual results could differ
from such estimates; judgments and estimates are continually
evaluated and are based on historical experience and other
factors, including
Determining expectations
Functional of future events that are believed
Currency
to be reasonable under the circumstances.
Based in economic substance of underlying circumstances
relevant to the business, the functional currency has been
determined to be the Philippine Peso, which is the currency of
the primary economic environment in which the business
operates and is the currency that mainly influences the prices of
the products and services and the cost of providing such
products and services.
Repairs and maintenance
Repairs and maintenance incurred by the business have not

resulted in an increase in the future economic benefit of its
property and equipment, therefore charged to operations.
Estimates
In the application of the business’ accounting policies,

management is required to make judgments, estimates and
assumptions about the carrying amounts of assets and liabilities
that are not readily apparent from other sources. The estimates
and associated assumptions are based on historical experience
and other factors that are considered to be relevant. Actual
results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognized
in the period in which the estimate is revised if the revision
affects only that period or in the period of the revision and future
periods if the revision affects both current and future periods.
The following represents a summary of the significant estimates
and judgments and related impact and associated risks in the
business’ consolidated financial statements.
Estimated allowance for doubtful accounts
29 of 57
The business maintains allowances for doubtful accounts, if any,

at a level considered adequate to provide for potential
uncollectible receivables. Management on the basis of factors
that affect the collectability of the accounts evaluates the level of
this allowance. These factors include, but are not limited to, the
length of the business’ relationship with the customer, the
customer’s payment behavior and known market factors. The
business reviews the age and status of receivables, and identifies
accounts that are to be provided with allowances on a continuous
basis.
The amount and timing of recorded expenses for any period
would differ if the business made different judgments or utilized
different estimates. An increase in allowance for doubtful
accounts would increase the recorded operating expenses and
decrease current assets.
Estimating useful lives of property and equipment
If there is an indication that there has been a significant change

since the last annual reporting date in the pattern by which an
entity expects to consume an asset’s future economic benefits,
the entity shall review its present depreciation method and, if
current expectations differ, change the depreciation method to
reflect the new pattern. The entity shall account for the change
as a change in an accounting estimate.
Factors such as a change in how an asset is used, significant
unexpected wear and tear, technological advancement, and
changes in market prices may indicate that the residual value or
useful life of an asset has changed since the most recent annual
reporting date. If such indicators are present, an entity shall
review its previous estimates and, if current expectations differ,
amend the residual value, depreciation method or useful life.
The entity shall account for the change in residual value,
depreciation method or useful life as a change in an accounting
estimate.
Depreciation is computed on a straight-line method over the
estimated useful lives of the assets as follows:
20
Building
Transportation years
15
Equipment years
10
Office Equipment years
Fair Value of Property and Equipment
30 of 57
The property and equipment are measured at cost less

accumulated depreciation and accumulated impairment should
there be any the business does not revalue property plant and
equipment and does not base its valuation on the fair value of the
property. The valuation wasmade on the basis of the acquisition
cost determined by referring to the source documents for the
acquisition of the property. Management believes that the cost
basis less accumulated depreciation is reasonable.
Evaluation of asset impairment
The business assesses the impairment of assets whenever events

or changes in circumstances indicate that the carrying amount of
an asset may not be recoverable. The factors that the business
considers important which could trigger an impairment review
include significant changes in asset usage, significant decline in
assets’ market value and obsolescence or physical damage of an
asset. If such indications are present and where the carrying
amount of the asset exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable
The recoverable amount is the higher of an asset’s net selling
amount.
price and value in use. The net selling price is the amount
obtainable from the sale of an asset in an arm’s length
transaction while value in use is the present value of estimated
future cash flows expected to arise from the continuing use of an
asset and from its disposal at the end of its useful life.
Recoverable amounts are estimated for individual assets or, if it
is not possible, for the cash-generating unit to which the asset
In determining the present value of estimated future cash flows
belongs.
expected to be generated from the continued use of the assets,
the business is required to make estimates and assumptions that
may affect property and equipment.
Impairment of inventories
The business recognizes impairment on inventories whenever

the net realizable value of inventories become lower than cost
due to damage, physical deterioration, obsolescence, changes in
price levels or other causes. The impairment is reviewed on a
monthly basis to reflect the accurate valuation in the financial
records.
Financial assets and liabilities
31 of 57
The business requires certain financial assets and liabilities to be

at fair value, which requires use of extensive accounting
estimates and judgments. While significant components of fair
value measurement were determined using verifiable objective
evidence (i.e. interest and volatility rates), the amount of
changes in fair value would differ if the business utilized
different valuation methodologies. Any changes in fair value of
these financial assets and liabilities would affect directly the
statements
Impairmentofofincome and equity,
Non-financial as appropriate.
Assets
The business assesses the value of property and equipment

which require the determination of future cash flows expected to
be generated from the continued use and ultimate disposition of
such assets, and require the business to make estimates and
assumptions that can materially affect the consolidated financial
statements. Future events could cause the business to conclude
that property and equipment and other long-lived assets are
impaired. Any resulting impairment loss could have a material
adverse impact on the business' financial condition and results of
The preparation of the estimated future cash flows involves
operations.
significant judgment and estimations. While the business
believes that its assumptions are appropriate and reasonable,
significant changes in these assumptions may materially affect
the business' assessment of recoverable values and may lead to
future additional impairment charges.
Revenue recognition
The business’ revenue recognition policies require the use of

estimates and assumptions that may affect the reported amounts
of revenues and receivables. Differences between the amounts
initially recognized and actual settlements are taken up in the
accounts upon reconciliation. However, there is no assurance
that such use of estimates may not result to material adjustments
in future periods.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND
4.
POLICIES
Financial Risk Management Objectives and Policies
The main purpose of the business’ principal financial

instruments is to fund its operational and capital expenditures.
The business’ risk management is being closely supervised by
the owner, and focuses on actively securing the business’ short
to medium term cash flows by minimizing the exposure to
financial markets.
32 of 57
The business’ activities expose it to a variety of financial risks:

credit risk and liquidity risk. The business’ overall risk
management program seeks to minimize potential adverse
effects on the financial performance of the business. The policies
for managing specific risks are summarized below.
Management of Financial Risk
Governance Framework
The business has established a risk management function with

clear terms of reference and with the responsibility for
developing policies on market, credit, liquidity and operational
risk. It also supports the effective implementation of policies.
The policies define the business’ identification of risk and its
interpretation, limit structure to ensure the appropriate quality
and diversification of assets to the business’ goals and specify
reporting requirements.
Capital Management Framework
The business’ capital management objectives are to ensure the

business’ ability to continue as a going concern. The business
monitors the basis of the carrying amount of equity as presented
on the face of the balance sheet.
The business’ risk management function has developed and
implemented certain minimum stress and scenario tests for
identifying the risks to which the business are exposed,
quantifying their impact on the volatility of economic capital.
particularly, the anticipated impact on the realistic balance sheet
The results of these tests,
and revenue account, are reported to the business’ risk
management function. The risk management function then
considers the aggregate impact of the overall capital requirement
revealed by the stress testing to assess how much capital is
needed to mitigate the risk of insolvency to a selected remote
level.
The business considers its fund balance contributed by the owner
as capital.
(In Philippine Pesos) Amount
Contributed Capital -
Financial Risk
33 of 57
The business is also exposed to financial risk through its

financial assets and financial liabilities. The most important
components of the financial risks are credit risk, liquidity risk
and market risk.
Financial Instruments
The business’ financial assets and liabilities are recognized

initially at cost which is the fair value of the consideration given
(in the case of assets) or received (in the case of liability).
Fair values are determined by reference to market-based
evidence, which is the amount for which the financial assets
could be exchanged between a knowledgeable willing buyer and
a knowledgeable willing seller in an arm’s length transaction as
at the valuation date.
The following tables set forth the carrying values and estimated
fair values of the business’ financial assets and liabilities
recognized as of December 31, 2011.
(In Philippine Pesos) 2012
Carrying Fair
Value Value
Financial Assets
Cash 0 0
Trade and other Receivable 0 0
Total Financial Assets 0 0
Financial Liabilities
Trade and other Payables 0 0
Income Tax Payable 0 0
Total Financial Liabilities 0 0
The following methods and assumptions were used to estimate

the fair value of each class of financial instrument for which it is
practicable to estimate such value.
Financial instruments whose carrying amounts approximate fair
value. The business has determined that the carrying amounts of
cash, trade and other receivables, trade and other payables
reasonably approximate their fair values because of their short
maturities.
34 of 57
The business’ credit risk primarily attributable to its trade and

other receivables from the services to its customers and clients.
Credit risk is managed primarily through credit reviews and an
analysis of receivables on a continuous basis. The business also
undertakes supplemental credit review procedures for certain
installment payment structures. There is no objective evidence
yet to set a provision for impairment. Historical rates cannot be
established since the business maintains a very good turn-over
The credit risk for cash is considered negligible, since the
on collection.
counterparties areexternal
with high quality reputable banks
credit ratings.
The business maintains cash to meet its liquidity requirements

for up to 30-day periods Funding for long-term liquidity needs is
additionally secured by an adequate amount of committed
personal credit facilities.
In respect of trade and other receivables, the business is not
exposed to any significant credit risk exposure. Trade
receivables consists of a regular customer, and based on
historical information about said customer default rates,
management consider the credit quality of trade receivables that
are not past due or impaired to be good. All of the business’
trade and other receivables have been reviewed for indicators of
The fair values of trade and other payables have not been
impairment.
individually disclosed as, due to their short duration,
management considers the carrying amounts recognized in the
balance sheet to be reasonable approximation of their fair values.
The business monitors its liquidity needs by carefully
monitoring scheduled debt payments for financial liabilities as
well as cash outflows due in a day-to-day business. Liquidity
needs are being closely monitored, on a day-to-day and week-to-
week basis, as well as on the basis of a rolling 30-day projection.
Long-term liquidity needs for a 6-month and one-year period
are identified monthly. The business sets the amount of capital
in proportion to its overall financing structure, i.e. equity and
financial liabilities. The business manages the capital structure
and makes adjustments to it in the light of changes in economic
Credit risk and the risk characteristics of the underlying assets.
conditions
The business’ credit risk is primarily attributable to its trade and
other receivables from its clients. Credit risk is managed
primarily through credit reviews and an analysis of
receivableson continuous basis. The business also undertakes
supplemental credit review procedures for certain installment
payment structures.
35 of 57
The business’ credit risk is primarily attributable to its accounts

receivables and other receivables, if any. The business has
adopted stringent procedure in extending credit terms to
customers and in monitoring its credit risk.
Credit risk is the risk that one party to a financial instrument will
fail to discharge and obligation and cause the other party to incur
a financial loss.
The business manages the level of credit risk it accepts through
comprehensive credit risk policy setting out assessment and
determination of what constitutes credit risk for the business;
setting up exposure limits by each counterparty or group of
counterparties, geographical and industry segments; guidelines
on obtaining collateral and guarantees; reporting of credit risk
exposures and breaches to the monitoring authority; monitoring
compliance with credit risk policy and review of credit risk
policy for pertinence and changing environment.
Receivable balances are being monitored on a regular basis to
ensure timely execution of necessary intervention efforts.
The table below shows the maximum exposure to credit risk for
the components of the 2012 statements of financial position.
The maximum exposure is shown gross, without taking into
account collateral and other credit enhancement.
Cash * 0
Trade and Other Receivable 0
Gross Maximum Exposure 0
* Excludes cash on hand and petty cash fund amounting to
P18,464 and P3,500 as of December 31, 2012 respectively.
The aging analyses of financial assets as of December 31, 2012

that were past due but not impaired are as follows:

Neither Past Due But Not Impaired
Past Due
nor 31 to 60 61 to 90 Over 90
Impaired Days Days Days
Cash 0 0 0 0
Trade & Other Receivables
Accounts Receivable 0 0 0 0
Advances To Employees 0 0 0 0
Total 0 0 0 0
Impaired Total
36 of 57
Cash 0 0
Trade & Other Receivables 0
Accounts Receivable 0 0
Advances To Employees 0 0
Total 0 0
The business’ financial assets, which are neither past due or

impaired, include cash to counterparty with good credit rating or
bank standing,
Allowance for and receivables
doubtful fromifclients
accounts any is computed for age
receivables over the estimated percentage of uncollectibility of
the accounts receivables as follows:
Neither past due nor im 0%
31-60 days 1%
61-90 days 2%
More than 90 days 3%
Liquidity Risk
Liquidity or funding risk is the risk that an entity will encounter

difficulty in raising funds to meet commitments associated with
financial instruments. Liquidity risk may result from either the
inability to sell financial assets quickly at their fair values; or
counterparty failing on repayment of contractual obligation; or
inability to generate cash inflows as anticipated.
The business maintains cash to meet its liquidity requirements
for up to 90-day periods and the business maintains adequate
highly liquid assets in the form of cash, trade and other
receivables to assure necessary liquidity. Funding for long-term
liquidity needs is additionally secured by an adequate amount of
committed personal credit facilities.
The business monitors its cash flow position and overall
liquidity position in assessing its exposure to liquidity risk. The
business maintains a level of cash deemed sufficient to finance
operations and to mitigate the effects of fluctuation in cash flows
and a balance between continuity of funding and flexibility
through the use of bank loans and advances from related parties,
if there’s any.
The table below summarizes the maturity profile of the business’
financial liabilities at December 31, 2012 based on contractual
undiscounted payments.
Due
Due later Due later
later
Due not than 3 than 3
than 1
later mos. but mos. but
mo. but
than 1 not later not later
not later
month than 6 than 6
than 3
months months
months
37 of 57
Trade and Other Payables 0 0 0 0

Income Tax Payable 0 0 0 0
Total 0 0 0 0
Due later
than 1 Total
year
Trade and Other Payables 0 0
Income Tax Payable 0 0
Total 0 0
The fair values of trade and other payables have not been
individually disclosed as, due to their short duration,
management considers the carrying amounts recognized in the
statements
Market Riskof financial position to be reasonable approximation
of their fair values.
Market risk is the risk of change in fair value of financial
instruments from fluctuation in foreign exchange rates (currency
risks), market interest rates (interest rate risk) and market prices
(price risk). There is no market risk on the business as it does
not deal with foreigh currency.
Fair Value Interest Rate Risk
The fair value interest rate risk is the risk that the value of a
financial instrument will fluctuate because of changes in market
interest rates. The business’ fixed rate payable in particular are
not exposed to such risk as the Trade Payables are non interest
bearing while Loans payable are under a stable interest rates
through bank financing.
5. CASH
This account consists of:

Cash in bank 0
Cash on hand 0
Petty cash fund 0
Total Cash 0
Cash in bank represents savings and current account in reputable

local banks. Savings account deposits earn interest at the
respective bank deposit rates and current account deposits do not
earn interest. The business reconciles the book and bank
balances regularly as part of its cash monitoring and internal
control measures. Cash in banks are unrestricted and
immediately available for use in current operations.
38 of 57
Cash on hand are the undeposited cash received by the business

representing sales and payments of trade receivables on a
particular day which are to be deposited immediately the
following banking day.
A reasonable amount of Petty Cash Fund is maintained to cover
small payments not covered by checks, such as transportation,
small amount of office supplies, and other payments as defined
by management and not exceeding P150 per single payment.
Petty cash fund is used to cover small business expenses.
6. TRADE AND OTHER RECEIVABLES

This account consists of the
following:
Trade 0
Allowance for impairment losses 0
Trade 0
Other receivables
Advances to suppliers 0
Advances to employees 0
Total Trade & Other Receivables 0
Trade receivables if any are non-interest bearing and generally

on a 30 to 45 days term. A verbal & written reminder notice is
given to customers usually 7 days before the account's maturity
date. After a week or two from the due date, a letter of notice or
demand letter will be mailed to the concerned customers. If the
customer did not pay 15 days after the receipt of the demand
letter, it is then
Allowance for forwarded to the legal
doubtful accounts counsel.
if any is computed for aged
receivables over the estimated percentage of uncollectibility of
the accounts receivable as follows: neither past due nor impaired
0%, 31-60 days past due, 1%; 61-90 days past due, 2%; and
more than 90 days past due, 3%.
Advances to employees include personal loans obtained from the
business, which are non-interest bearing and payable through
salary deduction. Other advances to employees are subject for
liquadations.
After careful evaluation by the business’ management, no
indication of impairment on the accounts was noted.
39 of 57
The business' credit risk is primarily attributable to its trade

receivable. The amounts presented in the balance sheet are net
of allowance for impairment loss, estimated by the business'
management based on prior experience and their assessment of
the current economic environment. There is no impairment on
the Trade Receivables.
7. INVENTORIES
This account consists of the

following:
(In Philippine Pesos) Notes 2012

Inventory 2,14 0
Total Inventory 0
Inventory as of December 31, 2012 includes 6,670 liters of

diesel, 2,207 liters of regular gasoline and 9,493 liters of silver
gasoline. Total inventory is already exclusive of vat. The
business measures its inventory at the lower of the acquisition
cost and estimated selling price less cost to sell and complete.
Impairment tests conducted show that there were no inventories
found impaired. Thus, no allowance for obsolescence was
provided. The carrying amount of the inventories approximates
their estimated selling price less costs to complete and sell.
8. OTHER CURRENT ASSETS
This account consists of the following:

Creditable Input Tax 0
Creditable Withholding Tax 0
Office Supplies 0
Total Other Current Assets 0
Total vat purchases exceeded the total vat sales which results to
creditable input tax which is a current asset of the business. This
asset will be carried over and is expected to be used in the next
period. Business is planning to control its purchase so that
excess input tax will be used up and will pay output payable if
any, in the next period.
40 of 57
Prepaid office supplies represents unused office supplies unused

at the end of the calendar year. Prepaid office supplies are
carried at the lower of cost or net realizable value. The net
realizable value is the estimated selling price in the ordinary
course of business, less the estimated costs to sell.
Prepaid expenses comprise mainly of the income taxes paid
during the first to third quarters of the year and these shall be
deducted from the computed income tax payable for the year
2012.
9. PROPERTY, PLANT AND EQUIPMENT

Tools
Furniture
Buildin &
Land s& Total
g Equipm
Fixtures
ent
Property Gross Carrying Amount
Balance-January 2 0 0 0 0 0
Additions 0 0 0 0 0
Reclassifications 0 0 0 0 0
Balance at Decemb 0 0 0 0 0
Accumulated Depreciation & Impairm
Balance-January 2 0 ### 0 0 254,250
Depreciation 0 27,000 0 0 27,000
Reclassifications 0 0 0 0 0
Balance at Decemb 0 ### 0 0 281,250
Net Carrying
Amount as of
0 ### 0 0 ###
December 31,
2012
Land and building were acquired on August of 2002 having a
gross acquisition cost amounting to P1,800,000. Allocated value
to the building and land is P540,000 and
P1,260,000 respectively. Land is a non-depreciable assets while
building is being depreciated to its total useful life of 20 years.
This land and building is being leased to Bicol JL Agri
Corporation. Depreciation of this real property is included in the
computation of cost of service in the comprehensive income.
The carrying value of the property and equipment is equivalent
to its fair value. Property and equipment are carried at cost less
accumulated depreciation and amortization including any
impairment in value if there is any.
41 of 57
Impairment tests performed and it indicates that there are no

property, plant and equipment found impaired.
Straight line method is used in determining depreciation in each

year for both financial reporting and taxation purposes.
10.TRADE AND OTHER PAYABLES


Trade Payable 0
Accrued Expenses 0
Total 0
Trade payables are unpaid liabilities mainly from trade

purchases and other outsourced professional services if there are
any under contracts which are noninterest-bearing and are
normally due within 45 to 60 days.
Accrued expenses include accruals of administrative and
distribution expenses such as salaries, light & water,
communications expenses which are unpaid at the end of the
reporting period and are due immediately on the succeeding
11 month.
INCOME TAX PAYABLE
.

Profit (loss) before income tax expense 0
Reduction in income tax resulting from:
Interest income 0
Non-deductible portion of interest expense 0
Gross Business Taxable Income 0
Gross Taxable Compensation Income 0
Total Taxable Income 0
Personal Exemption 0
Net Taxable Income 0
Statutory Tax Rate
For the First 0 0
0% In Excess 0 0
Total Income Tax Expense/Payable 0
42 of 57
Owner has no prepayments of income tax in the first three

quarters of the year buts she has creditable withholding tax
amounting to P3,000 for the year 2012. These creditable taxes
are still recorded under current assets of the business, hence
income tax expense directly attributable to the business will be
the income tax payable of the business as of December 31,2012.
12.CAPITAL

Ms. Maria May Lee
Beginning Capital 0
Income (Loss) from operations 2,13,14 0
Less: Capital Drawings 0
Ending Capital 0
Ms. Maria May Lee contributed P1,000,000 as an initial

investment to her business on 2012. This amount was used to
cover all necessary expenses and cost to run the business
effectively.
Except for profitable result and initial investment of the owner
there were no other changes in capital of the owner.
13.REVENUE

Net Receipts from Gasoline Station 0
Rental Income 0
Net Revenue 0
The business derives its revenue from sales of petroleum and

other related products which include gasoline, diesel and
kerosene offered to motorists and public transport operators.
Business also have real property which is being leased JL Agri
Corporation with monthly rental of P5,000.
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the business and the amount of
the revenue can be reliably measured.
Revenue from the sale of merchandise is measured at the fair
value of the consideration received or receivable, net of returns,
trade discounts and volume rebates. Revenue is recognized when
the significant risks and rewards of ownership of the goods have
passed to
43 of 57
the buyer, which is normally upon delivery and the amount of

revenue can be measured reliably.
14.COST OF SALES/SERVICE

Goods Inventory Beginning 0
Add Purchases 0
Total 0
Less:Ending Inventory 2,4,7 0
Cost of Sales 0
Cost of Service 0
Total Cost of Sales and Service 0
Cost of service represents the depreciation of the building being

leased to her lessee. It was acquired on August of 2002 together
with a land having a gross acquisition cost amounting to
P1,800,000. Allocated value to the building and land is P540,000
and P1,260,000 respectively.
The cost of sales are recognized by the business in the statement
of comprehensive income upon sale of the goods.
The purchases represents the liquified petroleum gas and other

fuel products purchased by the business from its suppliers.
The ending inventory consists of the unsold products that are

remaining in the business station's underground storage tank and
warehouse at the end of the year.
15.ADMINISTRATIVE EXPENSE

Salaries & Other Benefits 0
Communication, Light & Water 0
Taxes & Licenses 0
Depreciation Expense 0
Miscellaneous Expense 0
Total Administrative Expense 0
44 of 57
Salaries and wages are expenses incurred by the business during

the year. It includes salaries of accounting staff, security guard,
office personnel and other work related in administering the
business.
Communication, light and water consists mainly of telephone
and cellphone charges, mail postal, electric bill incurred during
the year. Light and water consumed by the business amounted to
P11,837.88 during
For taxes and the year.
licenses, see separate note.
Depreciation expense of furnitures and fixtures is included in

operating expenses of the business under administrative expense.
Miscellaneous expense represents all small expenses not related

in other accounts, such as meal allowance, transporation,
donation and other small business related expenses.
16.DISTRIBUTION EXPENSES

Salaries & Allowance 0
Rent Expense 0
Depreciation Expense 0
Total Distribution Expense 0
Distribution expense are recognized in the statement of income

upon utilization of the goods or services on the date they are
incurred.
Salaries and allowance represents amount paid to cashier and
gasoline boy rendered service to the business during the year.
See the next note for depreciation expense.
17.DEPRECIATION EXPENSE
This account allocated as follows:

Cost of Sales 27,000
Administrative Expenses 0
Distribution Expenses 0
45 of 57
Total Depreciation Expense 27,000
Depreciation charged to administrative expenses are those

depreciation of furnitures and fixtures of the business.
Depreciation of tools and equipment is charged to selling

expenses since it primarily traced in selling activity of the
business.
No depreciation is charged to cost of sales.
18.COMPENSATION AND OTHER BENEFITS
This account consists short-term benefits as follows:

Cost of Sales 0
Administrative Expenses 0
Distribution Expenses 0
Total Compensation & Other Benefits 0
Other benefits includes the 13th month pay bonus of the

employee and other mandatory government compliance for the
employees.
Salaries of accounting staff, office personnel and other work

related in administering the business are charged to
administrative expenses.
Salaries and allowance charged to distribution expenses
represent salaries of cashier and gasoline boy since it is traceable
in selling activity of the business.
There are no compensation expense charged to cost of sales
19.TAXES AND LICENSES

A. VAT
1. VAT output taxes 0
2. VAT input taxes
A. Beginning of the year ###
B. Current year's domestic purchase
46 of 57
Goods for resale/manufacture 0

Goods other than for resale or
manufacture
Capital goods not subject to
amortization
Services lodged under cost of
0
goods Services
sold lodged under other
goods
C. Claims for tax credit refund &
other adjustment
D. Balance at the end of the year ###
3. Landed cost of imports and the
amount of custom duties and tariff
fees paid or accrued
B. Excise Taxes
4. The amount of excise taxes,
classified per major product category,
i.e. tobacco products, alcohol products,
Documentary
automobiles, Stamp Tax
minerals, oil and
C.
(DST)
petroleum, etc. paid on
5. Contract of Lease
D. Witholding Taxes
6. Witholding Taxes on Compensation
& other benefits
Creditable Witholding Taxes on rent
Final Witholding Taxes
All Other Taxes (Local &
E.
National
Community Tax Certificate 0
Professional Tax
Barangay Clearance 0
Mayor’s Permit
Certificate of 0
Registration/Documentary
BIR Annual Registration
Stamps 0
FeeDocumentary Stamps on
Lease Contract
Percentage Tax
LTO registration
Real Property Taxes 0
Tax Clearance 0
Other Permits, Fees &
Licenses
F. Tax Assessment
G. Tax Cases
Total Taxes and Licenses 0
The business is a VAT registered taxpayer.
Taxes and licenses include local taxes and other fees.
20.INCOME TAX
47 of 57
The reconciliation of the provision for income tax computed at

statutory income tax rate to the provision for income tax shown
in the statements of income as follows:
Profit (loss) before income tax expense 0
Reduction in income tax resulting from:
Interest income 0
Non-deductible portion of interest expense 0
Gross Business Taxable Income 0
Gross Taxable Compensation Income 0
Total Taxable Income 0
Personal Exemption 0
Net Taxable Income 0
Statutory Tax Rate
For the First 0 0
0% In Excess 0 0
Total Income Tax Expense 0
Relevant Tax Regulations
Revenue Regulation 2-211 The BIR has prescribed the use

NEW ITR forms, which were revised to reflect additional
information required by the BIR and to allow for the forms to be
read by the Optical Character Reader.
1. BIR Form 1700 version November 2011 (Annual ITR for
Individuals Earning Purely Compensation Income)

Self-Employed Individuals, Estates and Trusts)

Corporation, Partnership and Other Non-Individual
Taxpayer)
The revised BIR Income Tax Return (ITR) forms should be filed
by taxpayers who are required to file ITRs under section 51(A)
(1) of the National Internal Revenue Code, and those not
required to file under section 51(A)(2) but opt to file tax returns,
covering and starting with calendar year 2011, which are due for
filing on or before April 15, 2013.
48 of 57
INCOME STATEMENT
Net Sales-Gasoline
Rental Income
Net Revenue
Cost of Sales:
Beginning Inventory
Add: Purchases
Less: Ending Inventory
Cost of Sales:
Add Cost of Service
Cost Of Sales:
Gross Profit
Operating Expenses:
Taxes & Licenses
Mayor's Permit
BIR Annual Registration Fee
Barangay Clearance
Tax Clearance
DTI Permit
Community Tax Certificate
Real Property Tax
Total Taxes & Licenses 0.00
Administrative Expense
Salaries & Other Benefits
Communication, Light & Water
Taxes & Licenses
Depreciation Expense
Miscellaneous Expense
Total Administrative Expense 0.00
Selling Expenses
Salaries & Allowance
Rent Expense
Depreciation Expense
Total Selling Expense
Total Operating Expense
Income (Loss) Before Taxes
Income Tax Expense
Net Income After Tax
NET INCOME BEFORE TAXES
Less: Personal Exemption
Taxable Income
Income Tax Expense
Income Tax Withheld (2307)
Income Tax Due and Payable
Statement Of Comprehensive Income
notes
Gross Sales/Receipts (x) Php 2,139,368.00
Less:
Cost of Sales
Merchandise Inventory, Beg. (xi) Php 149,949.00
Add: Purchases (xii) 998,780.00
Total Goods Available for Sale Php 1,148,729.00
Less: Merchandise Inventory, End (xi) 211,493.00
Cost of Services(Dep on Bldg) (xiii) 245,000.00
Total Cost of Sales/Services Php 1,182,236.00
Salaries Expense 250,000.00

Fuel & Oil 32,924.00
Repair & Maintenance 77,470.00
Transportation & Travel 13,344.00
SSS, PHIC, HDMF 13,170.00
Miscellaneous Expense 5,754.00

CASH FLOW STATEMENT
For the Year Ended December 31, 2017
Cash Flow from Operating Activities

Net Income for the year Php -
Increase in Accounts Receivable 101,698.00
Decrease in Merchandise Inventory (61,544.00)
Increase in Supplies (96,190.00)
Decrease in Accounts Payable 49,313.00
Increase in Taxes Payable 21,045.00
Net Cash provided from Operating Activities Php 259,322.00
Cash Flow from Investing Activities
Net Cash provided from Investing Activities -
Cash Flow from Financing Activities

Drawings Php (250,000.00)
Net Cash provided from Financing Activities Php (250,000.00)
Net Decrease in Cash Php 9,322.00

Cash, Beg. 1,812,692.00
Cash & Cash Equivalents, ending Php 1,822,014.00
Notes to Financial Statements
December 31,2019
I. BACKGROUND INFORMATION
JOSEPH P. ALDEN, operates retail trade for motorcylce/bicycle parts,a single proprietorship with registered
address at Rotary Road, San Roque, Iriga City. The business was registered with the Department of Trade and
Industry (DTI) and the Bureau of Internal Revenue (BIR).
II. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in preparing the financial statements are as follows:
a) BASIS OF PREPARATION
The accompanying financial statements have been prepared in compliance with accounting principles generally
accepted in the Philippines as set forth in Philippine Financial Reporting Standards (PFRS).
b) USE OF ESTIMATES
The preparations of the financial statements in compliance with the accounting principles generally accepted in
the Philippines require management to make estimates and assumptions that affect the amounts reported in the
financial statements and accompanying notes. The estimates and assumptions used in the accompanying notes
are based upon management’s evaluation of relevant facts and circumstances as of date of the financial
statements. The following is a summary of the significant estimates and judgments:
● Estimation of useful lives of Property, Plant & Equipment
Useful lives of property and equipment are estimated based on the period over which these assets are expected
to be available for use.
c) CURRENT LIABILITIES
Accounts Payable- Trade represents an obligation to creditors for merchandise purchase on credit. Taxes Payable represents the amount
of tax liability accrued during the taxable year
d) EXPENSES
The expenses are recognized when incurred regardless of when the cash is paid. An expense is recognized
immediately when expenditure produces no future economic benefits or when future economic benefits do not
qualify, or cease to qualify for recognition in the Balance Sheet as an Asset.

e) REPORTING CURRENCY
The financial statements are presented in Philippine Peso.
f) REVENUE RECOGNITION
Revenues are recognized to the extent that it is probable that the future economic benefits associated with the
transactions will flow to the business and the amount can be measured reliably.
g) CASH & CASH EQUIVALENTS
Cash & Cash Equivalents comprise of Cash on Hand & In Bank.
h) PROPERTY, PLANT & EQUIPMENT
Property, Plant & Equipment is stated at cost less accumulated depreciation
The initial cost comprises its purchase price and directly attributable costs of bringing the assets to its working
condition and the location for its intended use. Expenses incurred after it has been put into operation such as
repairs and maintenance are normally charged to operations in the period when the costs are incurred.
Expenditures are capitalized in situation where it can be clearly demonstrated that the expenditures have
resulted in an increase in the economic benefits expected to be obtained from the use of an item of property
beyond its originally assessed standard of performance.
Depreciation is computed using the straight-line method over the estimated useful life.
The useful life and depreciation method are reviewed periodically to ensure the period and methods of
depreciation are consistent with the expected pattern of economic benefits from the items of property and
equipment.
III CASH & CASH EQUIVALENTS

Cash & Cash Equivalents comprise the cash on hand and in banks amounting to 2,120,214.00 in 2019 and
1,812,692.00 in 2018.
IV ACCOUNTS RECEIVABLE
This refers to unclaimed guaranteed items considered as sales made but not paid-for by the customers as
December 31, 2019 & 2018.
V. MERCHANDISE INVENTORY
Merchandise inventory are goods that have been acquired by the entity from its suppliers, with the intent of
selling the goods to its customers. It is valued at cost or Net Realizable Value w/c ever is higher. As of
December 31, 2019, the amount of inventory is 211,493.00 as itemized in the inventory listing provided to the
Bureau of Internal Revenue.
VI. SUPPLIES
Comprises of the materials that are consumed in the office during normal business operations. For example, ink
toner and paper clips, bond papers, pens, pencils, paints, markers, correction fluid, correction tape, and erasers
and the like.
VII. PROPERTY, PLANT & EQUIPMENT

This Account is composed of the following items:
Description Acquisition Cost Useful Depreciation for Accumulated Net Book Value Net Book Value
Life the year Depreciation 12/31/2019 12/31/2018
12/31/2018
Building 2,550,000.00 15 170,000.00 935,000.00 1,275,000.00 1,445,000.00

Transportation Vehicle 1,500,000.00 20 75,000.00 675,000.00 675,000.00 750,000.00
Total 4,050,000.00 245,000.00 1,610,000.00 1,950,000.00 2,195,000.00
VIII. ACCOUNTS PAYABLE

Accounts payable is the aggregate amount of an entity's short-term obligations to pay suppliers for products
and services which the entity purchased on credit. As of December 31, 2018 & 2019, the balances of Accounts
Payable are 85,711.00 and 135,024.00 respectively.
IX. INCOME TAX PAYABLE

The income tax payable as of December 31, 2019 is computed below.
Net Income 448,200.00
Taxable Income 448,200.00

Tax Due 42,050.00
Tax Paid 31,200.00
Tax Payable 10,850.00
X. GROSS SALES/RECEIPTS
2019
Main Branch:
Rider's Trading 1 500,688.00
Branches:
Rider's Trading 2 54,680.00
JPA Riders Building 624,000.00
Filcab Operator 960,000.00
Total Gross Sales/Receipts 2,139,368.00
JOKOMI MIKEL A. ALDEN-(Proprietor)
Statement Of Comprehensive Income
Gross Sales Php 780,385.00
Less: Cost of Sales
Merchandise Inventory, Beg. Php 125,345.00

Add: Purchases 314,259.00
Total Goods Available for Sale Php 439,604.00
Less: Merchandise Inventory, End 196,575.00
Rent Expense 225,600.00


TAX DUE COMPUTATION
FOR THE YEAR 2019
JOSEPH MARIBEL JOKOMI TOTAL
Net Income PHP 448,200 271,775.00 260,525.00 980,500.00
Net Taxable Income PHP 448,200 PHP 271,775 PHP 260,525 980,500.00
Tax Due PHP 42,050 PHP 4,355 PHP 2,105 PHP 48,510
Less: 1701Q 1ST TO 3RD QTR PHP - 0 - 0 - -

2307 31,200 31,200.00
Total Tax Credit PHP 31,200 PHP - PHP - PHP 31,200
TOTAL TAX DUE PAYABLE PHP 10,850 PHP 4,355 PHP 2,105 PHP 17,310

ALDEN FS-update 2019

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ALDEN FS-update 2019

Uploaded by

Copyright:

Available Formats

MARIBEL A.

Cash and cash equivalents (iii) PHP 1,475,964.00 PHP 1,429,217.00

Property,Plant & Equipment, net (vii) PHP 1,251,200.00 PHP 1,329,400.00

Total Non-current Assets 1,251,200.00 1,329,400.00

TOTAL ASSETS PHP 3,004,374.00 PHP 2,974,393.00

LIABILITIES AND OWNER'S EQUITY

Total Liabilties PHP 42,818.00 PHP 84,612.00

Total Owner's Equity PHP 2,961,556.00 PHP 2,889,781.00

TOTAL LIABILITIES AND OWNER'S EQUITY PHP 3,004,374.00 PHP 2,974,393.00

Gross Sales/Receipts (x) Php 1,233,311.00

Less: Cost of Sales

Merchandise Inventory, Beg. Php 215,776.00

Gross Profit Php 880,573.00

Less: Operating Expenses

Rent Expense 271,832.00

Net Income Php 271,775.00

Cash Flow from Operating Activities

Cash Flow from Investing Activities

Net Cash provided from Investing Activities -

Cash Flow from Financing Activities

Net Cash provided from Financing Activities (100,000.00)

Net Decrease in Cash Err:509

II. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a summary of the significant estimates and judgments:

● Estimation of useful lives of Property, Plant & Equipment

qualify, or cease to qualify for recognition in the Balance Sheet as an Asset.

g) CASH & CASH EQUIVALENTS

Cash & Cash Equivalents comprise of Cash on Hand & In Bank.

h) PROPERTY, PLANT & EQUIPMENT

Property, Plant & Equipment is stated at cost less accumulated depreciation

III CASH & CASH EQUIVALENTS

the amount of inventory is 261,260.00.

VII. PROPERTY, PLANT & EQUIPMENT

Building 1,955,000.00 25 78,200.00 625,600.00 1,329,400.00 1,251,200.00

VIII. ACCOUNTS PAYABLE

are 63,913.00 and 38,463.00 respectively.

IX. INCOME TAX PAYABLE

The income tax payable as of December 31, 2018 is computed below.

Net Income 271,775.00

Taxable Income 271,775.00

Total Gross Sales/Receipts 1,233,311.00

2019 2018 ###

Transportation Vehicle Php 1,500,000.00 Php 1,500,000.00

Total Non-current Assets Php 1,950,000.00 Php 2,195,000.00

TOTAL ASSETS Php 4,735,847.00 Php 4,617,289.00

LIABILITIES AND OWNER'S EQUITY

(In Philippine Pesos)

(In Philippine Pesos)

Cash Flows from Operating Activities

Profit (Loss) for the year 2,13,14 0

Cash Flows from Investing Activities

Cash Flows from Financing Activities

MARIA MAY ORIÑO LEE (Lessor/KTH Caltex Station) the

SVRM Real Estate Lessor was registered with the Bureau of

The business is 100% owned by Maria May Oriño Lee with

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of

The consolidated financial statements of the business have been

The business’ consolidated financial statements for the year

The accompanying consolidated financial statements have been

Accounting Policies Adopted

The following sections that have been published by the

Section 4 - Statement of Financial Pos

Section 7 - Statement of Cash Flows