ACCCOB2 PORTFOLIO

Reflection paper presented

to the Accountancy

Department

In partial fulfillment

of the course requirement

in ACCCOB2

Lim, Angelo
Trade and other payables

The trade and other payables located in the financial

position presented by Universal Robina has an increase in the
amount of 64,494,473. It is due because the trade and other
payables from 2020 is 15,226,257,283 and in 2021 it became
15,290,751,756. The amount presented in its financial position,
through its trade and other payables specifically, is located and
disclosed in the notes 35, related party transactions. The possible
increase in the trade and other payables is due because of either
purchase of inventories, which includes raw materials, indirect
materials, supplies, which are used for manufacturing and other
operations, on account, incurred expenses which was not paid by
the company aside from those identified in the accrued expenses,
etc. The increase in trade and other payables is not dramatic.
Maybe the reason why the increase in not huge is because of
there are some certain trade and other payables which was paid
during the current year (2021) which was recorded in the prior
year (2020) and doing the math, if the current year’s purchase of
inventories, which are used for manufacturing and other
operations, on account, incurred expenses which was not paid by
the company aside from those identified in the accrued expenses,
etc. are larger than the amount of trade and other payables paid
during the current year, the increase will result into smaller
amount than expected.
Long-term liabilities
The long-term liabilities presented in the Universal
Robina’s statement of financial position has a decrease in the
amount of 20,881,952,585. It is due because the amount of long-
term liabilities during 2020 was 24,742,938,443 and it falls to
3,860,985,858 during 2021. Analyzing the amount presented, the
possible reasons of the decrease in the long-term liabilities are
the following: the long-term liabilities during 2020 was then
decreased to 0 on 2021. This just mean that the long-term
liabilities of 2020 were paid during 2021. Next is that, there is also
a decrease in deferred tax liabilities which contributes another
decrease, in effect, in the total amount of long-term liabilities
presented on 2021. Furthermore, there is a huge decrease in the
lease liability which also contributes a lot in making the current
year’s long-term liabilities to decrease. Lastly, there is also a
decrease in the amount of the other noncurrent liabilities
presented in Universal Robina’s financial position. Because of the
aforementioned factors, the total amount of the long-term
liabilities which was currently presented was smaller than the
previous amount reflected in the prior financial position of the
company. The decrease in other noncurrent liabilities is presented
in the notes 21. There, it reflects that there is a great decrease in
the net pension liability from 1 billion to almost 400 million. Not
limited to that, the miscellaneous was also totally removed in
2021. The decrease in the deferred tax liabilities on the other
hand is presented in the notes 32. Long-term debts are presented
in notes 20, 22, and 23. Finally, lease liability was presented and
extensively disclosed in the notes 37.
Share Capital
Shareholders’ equity of the financial position represents the
residual interest of the owners in the net assets of a corporation
measured by the excess of assets over liabilities. The
shareholders’ equity was composed of share capital, retained
earnings, treasury share, revaluation surplus and other
comprehensive income located at the shareholders’ equity
section. Under the report of Universal Robina, there is no such
movement on its share capital. Under the notes 22, during the
years 2020 and 2021, the authorized shares are still the same as
2,998,000,000. There is no such difference between the two
years. The par value per share also does not move from 1 peso
during 2020 to still 1 peso during 2021. There is no such issuance
of new shares to outside parties who are prospect investors,
existing investors and other shareholders of the corporation.
Thus, this scenario results into no movement in the amount of
paid-in capital which was 2,230, 160,190 from 2020 until 2021.
Paid-in capital represents the amount of shares issued only
considering the par value per share. There is also no movement in
the additional paid-in capital in the amount of 21,191,974,542
from 2020 until 2021. Additional paid-in capital includes the
consideration received for issuing share other than its par value.
Since there is no issuance, there is no such movement on these
two components of share capital. These facts are supported under
notes 22.