CBZ FS preparation changes as of February 22, 2022 by CBZJCT

PFRS for Small Entities /ITR-ATTACHMENTS/d.2021 Summary of Changes

SIMPLIFIED DOCUMENTS CHANGES AS OF FEBRUARY 22, 2022

Note: All Changes from 2019 and 2020 still in continuation of this 2021 changes

1. STATEMENT OF FINANCIAL POSITION

AS AT DECEMBER 31, 2021 (instead of AS OF) on Balance sheet headings
only. Notes to FS disclosure will retains as of December 31, 2021.

2. INCOME STATEMENT – We will no longer use Statement of Comprehensive

Income if no Other comprehensive income to recognized (unrealized gain on forex,
etc.).

3. INCOME STATEMENT FORMAT (FROM Natural to Functional presentation)

For those new clients and for our new implementation preparation for NEXT YEAR

4. REMOVE REVISED CORPORATION CODE PARAGRAPH ON 1ST PAGE.

5. SIMPLIFIED IMPACT PAGE 1 (SINGLE PARAGRAPH)

IMPACT OF COVID-19 PANDEMIC

Coronavirus Disease 2019 (COVID-19) was declared as pandemic by the World

Health Organization. With the increasing number of cases in various places, this became an
issue of global concern. This affects the worldwide economy as businesses, except those
categorized as providers of essential services, were forced to cease operations temporarily in
compliance to social distancing and safety protocols of respective government bodies. The
company was affected by this event but management believes that the current financial status
will be able to withstand the impact of this pandemic.

6. GOING CONCERN OR for those MAJOR AFFECTED WITH COVID

>>>> USE THIS ONLY IF HAS MAJOR COVID EFFECTS <<<

STATUS OF OPERATION

COVID-19 and related measures to slow the spread of the virus have had a significant impact
on the Philippines and global economy, supply chains and financial markets, and resulted in
increased levels of volatility and uncertainties. The effects of this health crisis are continuing
to unfold and the ultimate extent of the economic impacts worldwide are unknown.

For the year ended December 31, 2021, COVID-19 has impacted the Company, specifically
as follows:
<<<<<<<<<<<<choose applicable only>>>>>>>>>>>>>
 Net income for the period 2021 as compared with the prior period in 2020 been increased
by 30.70% due to a reduced administrative expense incurred for the year 2021 by 23.65%
as compared in with the prior period in 2020
 Purchase goods/services (i.e.. face masks, face shields and disinfectants) when
continuing/resuming operation during implementation of community quarantine. These
costs are not normally incurred by the Company but it was incurred in compliance with
minimum public health standards.
 Continues fixed costs (e.i. Utilities, communication and loan amortization) even no
operation where communication quarantine is being implemented. These costs are
continuously incurred by the Company butbfbf with some modification/extension of
CBZ FS preparation changes as of February 22, 2022 by CBZJCT
PFRS for Small Entities /ITR-ATTACHMENTS/d.2021 Summary of Changes

payment in compliance with RA No. 11469 otherwise known as the “Bayanihan to Heal
as One Act”.
 Work stoppage and or with limited work force where of community quarantine is being
implemented which resulted to no operations or limited operations for certain months.
 Operations in general has been normal except for interferences due to the invocation of
strict measures such as travel restrictions and social distancing by the government
authorities that the management believes inconsiderably caused disruptions however, was
mitigated by setting up work from home arrangements.

In addition, although we are monitoring the effects of the (COVID-19), we cannot predict
whether, for how long, or the extent to which the outbreak may disrupt our supply chain,
operations, sales, and/or product shipments. A prolonged outbreak could negatively impact
our vendors and customers, cause interruptions to our operations, including the reduction of
store operating hours, temporary store closures and reduced store traffic, and adversely affect
our results of operations. More generally, a widespread health crisis could result to an
economic downturn that could decrease consumer confidence and affect demand for our
products and therefore impact our results, including our business and financial outlook for the
year ended December 31, 2021.

The Board of Directors remain focused on the Company’s liquidity, and expect to manage
business operations in the forecast period whilst maintaining adequate liquidity through the
execution of:
 Anticipated refinancing of debt arrangements or sourcing new financing options, which
require authorization and approval by the Board
 Expectations associated with capital raisings, which require authorization and approval by
the Board
 Plans to divest significant assets or businesses, which require authorization and approval
by the Board
 Deferral or suspension of non-critical or discretionary operating and capital expenditure.
 Deferral of dividends as authorized and approved by the Board

Based on these forecasts, the Board of Directors believe that it remains appropriate to prepare
the financial statements on a going concern basis.

<<<<< USE THIS IF MGT DECIDED TO CLOSE THE BUSINESS >>>>>>>>>

STATUS OF OPERATION

The Company has suffered losses in the amount of P 992,965 and P 845,001 in December 31,
2020 and 2019, respectively that resulted to a Capital Deficiency of P 4,854,853 and P
3861,888 as of December 31, 2020 and 2019, respectively. Moreover, the Company for the
period 2020 as well as on prior period is not engaged in any business operations. The
management has no definite plan about the continuity of the operation, and considering to
date that the operations be ceased

BASIS OF PREPARATION

The accompanying financial statements have been prepared on a no longer going concern
basis, which contemplate the realization of assets and settlement of liabilities in the normal
course of business.
CBZ FS preparation changes as of February 22, 2022 by CBZJCT
PFRS for Small Entities /ITR-ATTACHMENTS/d.2021 Summary of Changes

Moreover, the Company for the period 2020 as well as on prior period is not engaged in any
business operations. The management has no definite plan about the continuity of the
operation, and considering to date that the operations be ceased

Moreover, the Company for the period 2020 as well as on prior period is not engaged in any
business operations. The management has no definite plan about the continuity of the
operation, and considering to date that the operations be ceased

Moreover, the Company for the period 2020 as well as on prior period is not engaged in any
business operations. The management has no definite plan about the continuity of the
operation, and considering to date that the operations be ceased

Moreover, the Company for the period 2020 as well as on prior period is not engaged in any
business operations. The management has no definite plan about the continuity of the
operation, and considering to date that the operations be ceased

BASIS OF PREPARATION

The accompanying financial statements have been prepared on a no longer going concern
basis, which contemplate the realization of assets and settlement of liabilities in the normal
course of business. Moreover, the Company for the period 2020 as well as on prior period is
not engaged in any business operations. The management has no definite plan about the
continuity of the operation, and considering to date that the operations be ceased

BASIS OF PREPARATION

The accompanying financial statements have been prepared on a no longer going concern
basis, which contemplate the realization of assets and settlement of liabilities in the normal
course of business. Moreover, the Company for the period 2020 as well as on prior period is
not engaged in any business operations. The management has no definite plan about the
continuity of the operation, and considering to date that the operations be ceased

The accompanying financial statements have been prepared on a no longer going concern
basis, which contemplate the realization of assets and settlement of liabilities in the normal
course of business. Moreover, the Company for the period 2020 as well as on prior period is
not engaged in any business operations. The management has no definite plan about the
continuity of the operation, and considering to date that the operations be ceased

The accompanying financial statements have been prepared on a no longer going concern
basis, which contemplate the realization of assets and settlement of liabilities in the normal
course of business. Moreover, the Company for the period 2020 as well as on prior period is
not engaged in any business operations. The management has no definite plan about the
continuity of the operation, and considering to date that the operations be ceased

The accompanying financial statements have been prepared on a no longer going concern
basis, which contemplate the realization of assets and settlement of liabilities in the normal
course of business. Moreover, the Company for the period 2020 as well as on prior period is
not engaged in any business operations. The management has no definite plan about the
continuity of the operation, and considering to date that the operations be ceased