Untitled

Red – instructions; Blue – replace with appropriate information
PAS 1.10 (e)

PAS 1.10 (ea)
PHILIPPINES COMPANY, INC. AND ITS SUBSIDIARIES
PAS 1.51 (a) [If there is a change in the corporate name]
PAS 1.51(b)
PAS 1.51 (c)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS AT AND FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019
1. CORPORATE INFORMATION
PAS 1.138 (a)

PAS 1.138 (d)
PHILIPPINES COMPANY, INC. AND ITS SUBSIDIARIES were incorporated and registered with the
PAS 1.51 (a) Philippine Securities and Exchange Commission (SEC) on January 1, 1955 [If there is a change in
the corporate name] and was subsequently amended on January 1, 2020 adopting the corporate
name of PHILIPPINES COMPANY, INC. (herein referred to as the [“Group”]). On January 1, 2005,
the SEC approved the Group’s application for extension of the corporate term for another 50 years
until January 1, 2055. [If it is a limited life entity, disclose information regarding the length of its
life.]
PAS 1.138 (b) The [Group] is engaged in the business of manufacturing and distributing electronic equipment
and leisure goods, installation of computer software for specialized business applications, and
construction of residential properties.
PAS 1.138 (c)

PAS 24.13
The [Group] is a subsidiary of International GAAP plc, an entity incorporated under the laws of the
United Kingdom with 80% ownership interest. The Company’s ultimate parent is International
GAAP LLC, an entity incorporated under the laws of the United States of America.
PAS 1.138 (a) The [Group]’s registered address and principal place of business is at 15th Floor, Building 1,
Bonifacio Global City, Taguig City.
[If the client’s registered address is different from its principal place of business address]
The [Group]’s registered address is [at 15th Floor, Building 1, Bonifacio Global City, Taguig City]
while the [Group]’s principal place of business is [at 19th Floor, Building 1, Bonifacio Global City,
Taguig City].
Guidance Note:
[If the client has a going-concern issue, disclose Status of Operations]
The following information must be disclosed:
(a) The fact that the company has incurred a capital deficiency that raises an issue on its going concern status;
(b) A brief discussion of a concrete plan of the company to address the capital deficiency.
SEC Financial
Reporting Bulletin
Status of Operations
(FRB) No. 2 The [Group] incurred losses in December 31, 2020 and 2019 amounting to [PXXX] and [PXXX],
PAS 1.25 respectively. Also, as at December 31, 2020 and 2019, the Group’s total liabilities exceeded its
total assets, resulting in a capital deficiency of [PXXX] and [PXXX], respectively. These conditions
indicate the existence of a material uncertainty that may cast significant doubt about the [Group]’s
ability to continue as a going concern.
SEC FRB No. 2

PAS 1.25
However, the Management has taken appropriate actions by implementing strategies that will
assist in improving the results of operations and maintaining financial stability. In addition, the
[Group, Shareholder, Ultimate Parent, or any appropriate alternative] has committed to provide a
continuous financial support to enable the [Company, Branch, Bank, Group, or any appropriate
alternative] to continue its operations. Accordingly, the consolidated financial statements have
been prepared on a going concern basis.
PAS 1.25 [If the client prepares the FS on the basis other than the going concern basis]
On [Date] the Board of Directors announced the cessation of the [Company, Branch, Bank, Group,
or any appropriate alternative]’s business. This resulted in the monetization of the [Company,
Branch, Bank, Group, or any appropriate alternative]’s assets and settlement of some of its
obligations. Furthermore, the Management has decided to maintain the [Company, Branch, Bank,
Group, or any appropriate alternative] on a dormant status. This information raises the existence
of a material uncertainty about the [Company, Branch, Bank, Group, or any appropriate
alternative]’s ability to continue as a going concern. Accordingly, the [Company, Branch, Bank,
Group, or any appropriate alternative] has changed its basis of accounting from a going concern
basis to an alternative authoritative basis for the year ended December 31, 2020, as described
1
fully in [Note X].
2
2. FINANCIAL REPORTING FRAMEWORK AND BASIS OF PREPARATION AND

PRESENTATION
PAS 1.16 Statement of Compliance

The [consolidated] financial statements of the [Group] have been prepared in accordance with
Philippine Financial Reporting Standards (PFRSs), which includes all applicable PFRS, Philippine
Accounting Standards (PAS), and interpretations issued by the International Financial Reporting
Interpretations Committee (IFRIC), Philippine Interpretations Committee (PIC) and Standing
Interpretations Committee (SIC) as approved by the Financial Reporting Standards Council (FRSC)
and Board of Accountancy (BOA) and adopted by the SEC. [If this is the first financial statement of
the Group prepared under full PFRS] This is the first financial statements of the [Group] that
complies with PFRS.
[If client adopts full PFRS for the first time]

The [consolidated] financial statements of the [Group] have been prepared in accordance with
Philippine Financial Reporting Standards (PFRSs) for the first time and in compliance with the
transitional provisions of PFRS 1. In prior years, the consolidated financial statements of the Group
were prepared under PFRS for SME’s but the Management decided to change to full PFRS as this is
the accounting policy of the Group. PFRS includes all applicable PFRS, Philippine Accounting
Standards (PAS), and interpretations issued by the International Financial Reporting
Interpretations Committee (IFRIC), Philippine Interpretations Committee (PIC) and Standing
Interpretations Committee (SIC) as approved by the Financial Reporting Standards Council (FRSC)
and Board of Accountancy and adopted by the SEC.
Securities
Regulation Code
[If the Company is qualified to adopt PFRS for SMEs or SEs but opted to adopt full PFRS. Choose
(SRC) Rule 68, Part the applicable ground for exemption.]
I (2)(ii & iii) Basis of Adoption
The [Group] is qualified to adopt the Philippine Financial Reporting Standard for Small and
Medium-Sized Entities (PFRS for SMEs) or Philippine Financial Reporting Standard for Small
Entities (PFRS for SEs) under the criteria set by the SEC. However, the Group chose to adopt the
full PFRS on the ground that:
• it is a subsidiary of a [Group] reporting under the full Philippine Financial Reporting Standards
(“full PFRS”);
• it is a subsidiary of a foreign Group that will be moving towards International Financial
Reporting Standards (“IFRS”) pursuant to the foreign country’s published convergence plan;
• it is a subsidiary of a foreign Group that has been applying the standards for a non-publicly
accountable entity for local reporting purposes, and is considering moving to full PFRS instead
of the PFRS for SMEs to align its policies with the expected move to full IFRS by its foreign
Group pursuant to its country’s published convergence plan;
• it has short-term projections that show that it will breach the quantitative thresholds set in
the criteria for an SME, and the breach is expected to be significant and continuing due to its
long-term effect on the [Group]’s asset or liability size;
• it is part of a Group, either as a significant joint venture or an associate, that is reporting
under the full PFRS;
• it is a branch office of a foreign company reporting under the full IFRS;
• it has concrete plans to conduct an initial public offering within the next two years;
• it has a subsidiary that is mandated to report under the full PFRS; and
• it has been preparing consolidated financial statements using full PFRS and has decided to
liquidate its assets.
• such other cases that the Commission may consider as valid exemptions from the mandatory
adoption.
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Guidance Note:
[If the client has opted to adopt the industry-specific framework allowed by SEC due to COVID-19 relief measures
in accordance with SEC MC 35 s. 2020, present the following instead:]
The accompanying financial statements have been prepared in accordance with (state the applicable financial
reporting framework), as modified by the application of the following financial reporting relief issued and approved
by the Securities and Exchange Commission in response to the COVID-19 pandemic: (state the relief availed of).
The relief covers only current-year transactions/ events and do not impact the comparative period/s.
NOTE: Also include a qualitative disclosure of the impact of the relief availed of as well present the following
information in tabular format: (a) impact on affect financial statement line item, amount of allowance recognized
for the period and balance of unrecognized or unamortized allowance.
Impact on assets and equity as at December 31, 2020

Loans and receivables
Allowance for credit losses
Deferred tax asset
Net impact on total assets
Retained earnings
Impact on profit/loss
Decrease in other expenses
Increase in deferred tax expense
Increase (Decrease) in profit for the year
Amount of allowance recognized/amortized for the period

Balance of unrecognized or unamortized allowance
[If the client has opted to adopt the industry-specific framework allowed by SEC due to COVID-19 relief measures
in accordance with SEC MC 32 s. 2020, present the following instead:]
The accompanying financial statements have been prepared in accordance with Philippine Financial
Reporting Standards, as modified by the application of the following financial reporting reliefs issued by the
Bangko Sentral ng Pilipinas and approved by the Securities and Exchange Commission in response to the COVID-19
pandemic: (enumerate reliefs availed of). The reliefs cover only current-year transactions/events and do not
impact the comparative period/s
NOTE: Also include a qualitative disclosure of the impact of the reliefs availed of as well present the following
information in tabular format: for staggered booking of allowance for credit losses, (a) impact on affect financial
statement line item, amount of allowance recognized for the period and balance of unrecognized or unamortized
allowance, for reclassification of debt securities, disclosure of the impact on the affected financial statement line
items had the reclassification not been made.
PAS 1.17 (b)

PAS 1.112 (a)
Basis of Preparation and Presentation
PAS 1.117 (a)
Basis of preparation
The [consolidated] financial statements have been prepared on the historical cost basis except for:
[Disclose only those that are applicable]
• certain financial instruments measured at fair value;
• certain financial instruments carried at amortized cost;
• certain property, plant and equipment and intangible assets carried at revalued amounts;
• investment property measured at fair value;
• liabilities for cash-settled share-based payment arrangements measured at fair value;
• the defined benefit asset recognized as the net total of the present value of plan assets less
the present value of the defined benefit obligation; and
• biological assets measured at fair value less costs to sell.
• inventories measured at lower of cost and net realizable value
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Historical cost is generally based on the fair value of the consideration given in exchange for goods
and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date, regardless of whether
that price is directly observable or estimated using another valuation technique. In estimating the
fair value of an asset or a liability, the [Group] takes into account the characteristics of the asset
or liability if market participants would take those characteristics into account when pricing the
asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes
in these consolidated financial statements is determined on such a basis, except for [Disclose only
those that are applicable: share-based payment transactions that are within the scope of PFRS 2
Share-based payment, leasing transactions that are within the scope of PFRS 16 Leases, and
measurements that have some similarities to fair value but are not fair value, such as net
realizable value in PAS 2 or value in use in PAS 36 Impairment of Assets].
In addition, for financial reporting purposes, fair value measurements are categorized into Level 1,
2 or 3 based on the degree to which the inputs to the fair value measurements are observable and
the significance of the inputs to the fair value measurement in its entirety, which are described as
follows:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities that the entity can access at the measurement date;
• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are
observable for the asset or liability, either directly or indirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.
PAS 1.36 (a)

PAS 1.36 (b)
Basis of presentation
[Disclose if the company presented a shorter or longer comparative period]
The [Group] changed its financial reporting period from the year ending [old reporting period] to
the year ending [new reporting period]. The change in financial reporting period was approved by
the SEC on [Date of SEC approval]. This was later filed with and approved by the BIR on [Date of
BIR approval] that indicates that this newly approved financial reporting period is effective on
[effective date of change in reporting period]. A [shorter or longer] period financial statement was
prepared in [20XX] using the new financial reporting period because [state the reason for using
period longer or shorter than one year]. Accordingly, the statements of comprehensive income,
statements of changes in equity and statements of cash flows for the [three-month or appropriate
alternative] period ended [Date] and [twelve-month or appropriate alternative] period ended
[Date] were presented as comparative figures of the current year financial statements. These
facts indicate that the amounts presented in the financial statements are not entirely comparable.
PIC Q&A 2009-01

(Amended by PIC
[Disclose if the Company is preparing its financial statements on the basis other than going
Q&A No. 2013-02 concern]
and PIC Q&A No.
2019-13)
Alternative Authoritative Basis of Accounting
As discussed in Note [X], the financial statement of the [Group] for the [Date of the end of the
reporting period] were prepared using the alternative authoritative basis of accounting. In
preparing the [Group]’s financial statements, Management has made its best estimate and
judgment with regard to the measurement of its assets at net realizable value and liabilities at
settlement amount, and the completeness of provision for all known liabilities based on best
available facts and circumstances.
PAS 1.51 (d)

PAS 1.51 (e)
Functional and Presentation Currency
[Disclose the paragraph below if Functional Currency is the same as Presentation Currency]
These [consolidated] financial statements are presented in Philippine Peso, the currency of the
primary economic environment in which the [Group] operates. All amounts are recorded in the
nearest [peso], except when otherwise indicated.
PAS 21.53
PAS 21.57
[Disclose if the Functional Currency is different from Presentation Currency]
Functional currency
The [Group]’s functional currency is [Functional currency], the currency of the primary economic
environment in which it operates.
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PAS 21.54 The [Group] changes its functional currency from [previous functional currency] to [present
functional currency] since [state the reason for the change of functional currency].
PAS 21.39
PAS 21.55
[Disclose if the Functional Currency is different from Presentation Currency]
Presentation currency
These financial statements are presented in [indicate the presentation currency]. [Group]
translated its financial position and results of operations from [Functional currency] to
[Presentation currency of [Company, Branch, Bank, or any appropriate alternative] using the
following procedures:
• assets and liabilities for each statement of financial position are presented at the closing rate
at the date of that statement of financial position;
• for each period presented, income and expenses recognized in the period are translated at
the exchange rates at the date of the transaction, using the average exchange rate at that
period; and
• [Disclose if there is a change in functional currency] all resulting exchange differences are
recognized in other comprehensive income as currency translation adjustment.
[Disclose the reason of using a different presentation currency]
[Disclose if client prepares separate financial statements]

PAS 27.17 (a) Separate Financial Statements
These are the [Company, Branch, Bank, or any appropriate alternative]’s separate financial
statements. Separate financial statements are those presented by a parent, an investor in an
associate or a venture in a jointly controlled entity, in which the investments are accounted for on
the basis of the direct equity interest rather than on the basis of the reported results and net
assets of the investees. In addition, the [Company, Branch, Bank, or any appropriate alternative]
also prepares consolidated financial statements as its primary financial statement.
PAS 27.16 (a)

PFRS 10.4 (a) (i-iv)
[If the Company is exempted from consolidation]
Exemption from consolidation
The [Company, Branch, Bank, or any appropriate alternative] did not present consolidated
financial statements having met all the criteria set out in PFRS 10, Consolidated Financial
Statements: [Emphasis that all criteria must be met before an entity can apply the exemption]
• the [Company, Branch, Bank, or any appropriate alternative] is itself a [wholly owned
subsidiary or a partially owned subsidiary] of another entity and its owners including those
not otherwise entitled to vote, have been informed about, and do not object to, the
[Company, Branch, Bank, or any appropriate alternative] not preparing consolidated financial
statements;
• the [Company, Branch, Bank, or any appropriate alternative]’s debt or equity instruments
are not traded in a public market (a domestic or foreign stock exchange or an over-the-
counter market, including local and regional markets);
• the [Company, Branch, Bank, or any appropriate alternative] did not file, nor it is in the
process of filing, its consolidated financial statements with a securities commission or other
regulatory organization for the purpose of issuing any class of instruments in a public
market; and
• the [ultimate parent or intermediate parent] of the [Company, Branch, Bank, or any
appropriate alternative] produces consolidated financial statements available for public use
that comply with Philippine Financial Reporting Standards.
PAS 27.16 (a) The consolidated financial statements of the [Company, Branch, Bank, or any appropriate
alternative], can be obtained from [Indicate where the consolidated financial statements can be
obtained].
PAS 1.17 (b)

PAS 1.112 (a)
3. COMPOSITION OF THE GROUP
Details of the [Group]’s subsidiaries as at December 31, 2020 and 2019 are as follows:
PFRS 12.10 (a)(i)

PFRS 12.4
Ownership and Voting Interest
PFRS 12.B4 (a) Name of Subsidiary 2020 2019
PFRS 12.B5-B6
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Subone Limited 90% 100%

Subtwo Limited 45% 45%
Subthree Limited 70% 70%
C Plus Limited 45% 45%
PFRS 12.10(a)(ii)
PFRS 12.12(a) - (g)
PFRS 12.B10 The significant financial information on the financial statements of non-wholly owned subsidiaries
PFRS 12.B11
interests of the [Group] that have material non-controlling as at and for the years ended
December 31 are shown below. The summarized financial information below represents amounts
before intragroup eliminations.
Guidance Note:
For illustrative purposes, the following non-wholly owned subsidiaries are assumed to have non-controlling
interests that are material to the Group. The amounts disclosed below do not reflect the elimination of intragroup
transactions.
[Disclose if the FS of the subsidiary is audited or unaudited]

Subtwo limited
Subtwo Limited was incorporated in the Philippines on January 1, 2000. This subsidiary is
primarily engaged in the manufacturing and selling of leisure. The subsidiary’s registered address
and principal place of business is at 123 Ayala Ave., Makati City.
The significant information on the audited financial statements of Subtwo Limited as at and for
the years ended December 31 is as follows:
PFRS 12.B10(b)
PFRS 12.12(d) 2020 2019
PFRS 12.12(e)
PFRS 12.B10(a)
Financial position:
Current assets P120 P100
Non-current assets 30 30
Total assets 150 130
Current liabilities 60 40
Non-current liabilities 10 10
Total liabilities 70 50
Equity P80 P80
Ownership and voting interest held by non-
55% 55%
controlling interests
Equity attributable to:
Equity holders of the Group 36 36
Non-controlling interests 44 44

Results of operations:
Revenue P50 P60
Costs and expenses 20 30
Profit for the year 30 30
Total comprehensive income for the year P30 P30
Profit attributable to:

Equity holders of the Group 13.5 13.5

Total comprehensive income for the year
attributable to:
Equity holders of the Group - -
Non-controlling interests - -

Dividends paid to non-controlling interests - -
Cash flows:
Net cash inflow from operating activities P30 P20
7
Net cash inflow (outflow) from investing activities - -
Net cash outflow from financing activities - -
Net cash inflow P30 P20
[If the Group owns less than half ownership interest in subsidiary]
PFRS 12.9(b) The [Group] owns 45% equity shares of Subtwo Limited. However, based on the contractual
arrangements between the [Group] and other investors, the [Group] has the power to appoint
and remove the majority of the board of directors of Subtwo Limited. The relevant activities of
Subtwo Limited are determined by the board of directors of Subtwo Limited based on simple
majority votes. Therefore, the directors of the [Group] concluded that the [Group] has control
over Subtwo Limited and Subtwo Limited is consolidated in these financial statements.
PFRS 12.10(a)(ii)
PFRS 12.12(a) - (g)
Subthree limited
PFRS 12.B10 Subthree Limited was incorporated in the Philippines on January 1, 2005. This subsidiary is
PFRS 12.B11 primarily engaged in the manufacturing and selling of leisure goods. The subsidiary’s registered
address and principal place of business is at 456 Ayala Ave., Makati City.
PFRS 12.B10(b)
PFRS 12.12(d)
2020 2019
PFRS 12.12(e) Financial position:
PFRS 12.B10(a)
Non-current assets 30 30
Equity 100 100
30% 30%

Revenue P50 P50
Profit for the year 20 10
Total comprehensive income for the year P20 P10
Profit attributable to:



attributable to:
Equity holders of the Group - -

Cash flows:
8
9
PFRS 12.10(a)(ii)
PFRS 12.12(a) - (g)
C Limited
PFRS 12.B10 C Limited was incorporated in the Philippines on January 1, 2006. This subsidiary is primarily
PFRS 12.B11 engaged in the manufacturing and selling of leisure goods. The subsidiary’s registered address
and principal place of business is at 789 Ayala Ave., Makati City.
2020 2019
Financial position:
PFRS 12.B10(b) Non-current assets 50 50
Equity P80 P100
55% 55%

PFRS 12.12(d) Revenue P50 P60
Profit for the year P40 P40
Total comprehensive income for the year - -
Profit (loss) attributable to:


attributable to:
PFRS 12.12(e) Equity holders of the Group - -
Total comprehensive income for the year - -

PFRS 12.B10(a)
Cash flows:
10
PFRS 12.9(b) C Limited is listed on the stock exchange of A Land. Although the [Group] has only 45%
ownership in C Limited, the directors concluded that the [Group] has a sufficiently dominant
voting interest to direct the relevant activities of C Limited on the basis of the [Group]’s absolute
size of shareholding and the relative size of and dispersion of the shareholdings owned by other
shareholders. The 55% ownership interests in C Limited are owned by thousands of shareholders
that are unrelated to the [Group], none individually holding more than 2%.
PFRS 12.18 [Disclose if the Parent loses control on one of its subsidiaries]
Change in the Group’s Ownership Interest in a Subsidiary
During the year, the [Group] disposed of [10%] of its interest in Subone Limited, reducing its
continuing interest to [90%]. The proceeds on disposal of [PXXX] were received in cash. An
amount of [PXXX] (being the proportionate share of the carrying amount of the net assets of
Subone Limited) has been transferred to non-controlling interests, as disclosed in Note [X]. The
difference of [PXXX] between the increase in the non-controlling interests and the consideration
received has been credited to retained earnings.
PFRS 12.13 Significant Restrictions

[When there are significant restrictions on the Company’s or its subsidiaries’ ability to access or
use the assets and settle the liabilities of the Group, the Group should disclose the nature and
extent of significant restrictions.]
PFRS 12.14-17 Financial Support to Subsidiaries

[When the Group gives financial support to a consolidated structured entity, the nature and risks
(including the type and amount of support provided) should be disclosed in the consolidated
financial statements.]
4. ADOPTION OF NEW AND REVISED ACOUNTING STANDARDS
[Part A]
Adoption of New and Revised Accounting Standards Effective in 2020

[Option 1: If all standards effective on January 1, 2020 have been adopted and all are not
applicable to the current year FS, include only this paragraph and delete all listed standards in
Part A and put only this paragraph] The [Group] adopted all accounting standards and
interpretations as at [Date of the end of the reporting period]. The new and revised accounting
standards and interpretations that have been published by the International Accounting Standards
Board (IASB) and approved by the FRSC in the Philippines were adopted by the [Group] and were
assessed as not applicable and have no impact on the [Group]’s [consolidated] financial
statements.
[Option 2: If certain (i.e. some or few of the) new standards are applicable for this year’s
presentation, then itemize those standards adopted as of December 31, 2020 which are
applicable to current year’s presentation] The [Group] adopted all accounting standards and
interpretations as at [Date of the end of the reporting period]. The new and revised accounting
standards and interpretations that have been published by the International Accounting Standards
Board (IASB) and approved by the FRSC in the Philippines, were assessed to be applicable to the
[Group]’s financial statements, are as follows:
[All applicable new standards are to be itemized, regardless of impact to the current
year FS]
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Guidance Note:
Include in [Part A] if it was adopted by the Group during the period ended. Otherwise, include in [Part B]
PAS 8.31(a) Amendments to PFRS 16, COVID-19-Related Rent Concessions
Amendment to PFRS 16 provides practical relief to lessees in accounting for rent concessions
occurring as a direct consequence of COVID-19, by introducing a practical expedient to PFRS 16.
The practical expedient permits a lessee to elect not to assess whether a COVID-19-related rent
concession is a lease modification. A lessee that makes this election shall account for any change
in lease payments resulting from the COVID-19-related rent concession the same way it would
account for the change applying PFRS 16 if the change were not a lease modification.
The practical expedient applies only to rent concessions occurring as a direct consequence of
COVID-19 and only if all of the following conditions are met:
a) The change in lease payments results in revised consideration for the lease that is
substantially the same as, or less than, the consideration for the lease immediately preceding
the change;
b) Any reduction in lease payments affects only payments originally due on or before 30 June
2021 (a rent concession meets this condition if it results in reduced lease payments on or
before 30 June 2021 and increased lease payments that extend beyond 30 June 2021); and
c) There is no substantive change to other terms and conditions of the lease.
[Disclose if applied earlier that the effective date]

In the current financial year, the [Group] has applied the amendment to PFRS 16 in advance of its
effective date.
[Disclose if the Group has a financial impact on financial statements]

Impact on accounting for changes in lease payments applying the exemption
The [Group] has applied the practical expedient retrospectively to all rent concessions that meet
the conditions in PFRS 16:46B, and has not restated prior period figures.
The [Group] has benefited from a [XX] month lease payment holiday on buildings in [B land]. The
payment holiday reduces payments in the period to [date] by [CU__], and increases in payments
in the period to [date] by [CU__]. The [Group] has remeasured the lease liability using the
revised lease payments and the discount rate originally applied to the lease, resulting in a
decrease in the lease liability of [CU__], which has been recognized as a negative variable lease
payment in profit or loss. The [Group] continued to recognize interest expense on the lease
liability.
The amendments are effective for annual periods beginning on or after June 1, 2020. Earlier
application is permitted, including in financial statements not authorized for issue at May 28, 2020.
PAS 8.31(a) Amendments to PFRS 3, Definition of a Business
PAS 8.31(b-d) The amendments are to:

 clarify that to be considered a business, an acquired set of activities and assets must include,
at a minimum, an input and a substantive process that together significantly contribute to the
ability to create outputs;
 narrow the definitions of a business and of outputs by focusing on goods and services
provided to customers and by removing the reference to an ability to reduce costs;
 add guidance and illustrative examples to help entities assess whether a substantive process
has been acquired;
 remove the assessment of whether market participants are capable of replacing any missing
inputs or processes and continuing to produce outputs; and
 add an optional concentration test that permits a simplified assessment of whether an
acquired set of activities and assets is not a business.
The amendments are effective for business combinations for which the acquisition date is on or
after the beginning of the first annual reporting period beginning on or after January 1, 2020 and
to asset acquisitions that occur on or after the beginning of that period.
PAS 8.31(e) [Please disclose potential impact]
OR The management of the Group is still evaluating the impact of the amendments.
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PAS 8.31(a) Amendments to PAS 1 and PAS 8, Definition of Material
PAS 8.31(b-d) The amendments relate to a revised definition of 'material':

“Information is material if omitting, misstating or obscuring it could reasonably be expected to
influence decisions that the primary users of general purpose financial statements make on the
basis of those financial statements, which provide financial information about a specific reporting
entity.”
Three new aspects of the new definition include (i) obscuring; (ii) could reasonably be expected to
influence; and (iii) primary users.
The amendments stress especially five ways material information can be obscured:
 if the language regarding a material item, transaction or other event is vague or unclear;
 if information regarding a material item, transaction or other event is scattered in different
places in the financial statements;
 if dissimilar items, transactions or other events are inappropriately aggregated;
 if similar items, transactions or other events are inappropriately disaggregated; and
 if material information is hidden by immaterial information to the extent that it becomes
unclear what information is material.
The amendments are effective for periods beginning on or after January 1, 2020. Earlier
application is permitted.
PAS 8.31(e)
[Please disclose potential impact]
PAS 8.31(a)
PIC Q&A No. 2019-02, Accounting for Cryptographic Assets
PAS 8.31(b-d)
The interpretation provides guidance regarding accounting treatment for Cryptographic assets. In
classifying Cryptographic assets, two relevant factors to consider are (i) its primary purpose, and
(ii) how these assets derive its inherent value. The interpretation provided two (2) Cryptographic
classifications based on the aforementioned factors, these are (a) Cryptocurrency, or (b)
Cryptographic assets other than Cryptocurrencies, which are (b.1) Asset-based token, (b.2) Utility
token, and (b.3) Security token, or collectively the “Security Tokens”.
From the holder of these assets’ point-of-view, in the absence of a definitive accounting and
reporting guidance from the IASB, the interpretation suggested to report Cryptographic assets in
the financial statements as either (i) Cryptocurrencies held by an entity, or (ii) Cryptographic
assets other than cryptocurrencies.
From the Issuer of these assets’ point of view, as a consensus, the following accounting
treatments are suggested:
 Cryptocurrencies held by an entity can be treated either as (i) Inventory under PAS 2, or (ii)
Intangible asset under PAS 38.
 Cryptographic assets other than Cryptocurrencies, the interpretation suggested the following
relevant accounting frameworks for consideration:
i. If the Token meets the definition of a financial liability, apply guidance in PFRS 9;
ii. If the Token meets the definition of an equity instrument, apply guidance in PAS 32;
iii. If the Token is a prepayment for goods and services from a contract with a customer,
apply guidance in PFRS 15; and
iv. If the Token does not meet any of the aforementioned, consider other relevant
guidance.
The interpretation is effective for periods beginning on or after February 13, 2019.
PAS 8.31(e)
OR The management of the Group is still evaluating the impact of the interpretation.]
[Part B]
[All new Standards are to be itemized]
PAS 8.30(a) New Accounting Standards Effective after the Reporting Period Ended December 31,
2020
13
PAS 8.31(a) PFRS 17 — Insurance Contracts
PAS 8.31(b-d) PFRS 17 establishes the principles for the recognition, measurement, presentation and disclosure
of insurance contracts and supersedes PFRS 4 Insurance Contracts.
PFRS 17 outlines a general model, which is modified for insurance contracts with direct
participation features, described as the variable fee approach. The general model is simplified if
certain criteria are met by measuring the liability for remaining coverage using the premium
allocation approach.
The general model uses current assumptions to estimate the amount, timing and uncertainty of
future cash flows and it explicitly measures the cost of that uncertainty. It takes into account
market interest rates and the impact of policyholders’ options and guarantees.
An amendment issued on June 2020 and adopted by FRSC on August 2020 addresses concerns
and implementation challenges that were identified after PFRS 17 was published.
PFRS 17 must be applied retrospectively unless impracticable, in which case the modified
retrospective approach or the fair value approach is applied.
For the purpose of the transition requirements, the date of initial application is the start if the
annual reporting period in which the entity first applies the Standard, and the transition date is
the beginning of the period immediately preceding the date of initial application.
The standard (incorporating the amendments) is effective for periods beginning on or after
January 1, 2023. Earlier application is permitted.
OR The management of the Group is still evaluating the impact of the new standard.
PAS 8.31(a) Amendments to PFRS 3, References to the Conceptual Framework
PAS 8.31(b-d) The amendments update PFRS 3 so that it refers to the 2018 Conceptual Framework instead of
the 1989 Framework. They also add to PFRS 3 a requirement that, for obligations within the scope
of PAS 37, an acquirer applies PAS 37 to determine whether at the acquisition date a present
obligation exists as a result of past events. For a levy that would be within the scope of IFRIC 21
Levies, the acquirer applies IFRIC 21 to determine whether the obligating event that gives rise to
a liability to pay the levy has occurred by the acquisition date.
The amendments also add an explicit statement that an acquirer does not recognize contingent
assets acquired in a business combination.
The amendments are effective for business combinations for which the date of acquisition is on or
after the beginning of the first annual period beginning on or after 1 January 2022. Early
application is permitted if an entity also applies all other updated references (published together
with the updated Conceptual Framework) at the same time or earlier.
OR The management of the Group is still evaluating the impact of the new amendments.
PAS 8.31(a) Amendments to PFRS 10 and PAS 28, Sale or Contribution of Assets between and Investor and Its
Associate or Joint Venture
PAS 8.31(b-d) The amendments to PFRS 10 and PAS 28 deal with situations where there is a sale or contribution
of assets between an investor and its associate or joint venture. Specifically, the amendments
state that gains or losses resulting from the loss of control of a subsidiary that does not contain a
business in a transaction with an associate or a joint venture that is accounted for using the equity
method, are recognized in the parent’s profit or loss only to the extent of the unrelated investors’
interests in that associate or joint venture. Similarly, gains and losses resulting from the
remeasurement of investments retained in any former subsidiary (that has become an associate
or a joint venture that is accounted for using the equity method) to fair value are recognized in
the former parent’s profit or loss only to the extent of the unrelated investors’ interests in the new
associate or joint venture.
14
The effective date of the amendments has yet to be set by the Board; however, earlier application
of the amendments is permitted.
OR The management of the Group is still evaluating the impact of the new amendments.
PAS 8.31(a) Amendments to PAS 1, Classification of Liabilities as Current or Non-current
PAS 8.31(b-d) The amendments to PAS 1 affect only the presentation of liabilities as current or non-current in
the statement of financial position and not the amount or timing of recognition of any asset,
liability, income or expenses, or the information disclosed about those items.
The amendments clarify that the classification of liabilities as current or non-current is based on
rights that are in existence at the end of the reporting period, specify that classification is
unaffected by expectations about whether an entity will exercise its right to defer settlement of a
liability, explain that rights are in existence if covenants are complied with at the end of the
reporting period, and introduce a definition of ‘settlement’ to make clear that settlement refers to
the transfer to the counterparty of cash, equity instruments, other assets or services.
The amendments are applied retrospectively for annual periods beginning on or after 1 January
2023, with early application permitted.
PAS 8.31(a) Amendments to PAS 16, Property, Plant and Equipment – Proceeds before Intended Use
PAS 8.31(b-d)
The amendments prohibit deducting from the cost of an item of property, plant and equipment
any proceeds from selling items produced before that asset is available for use, i.e. proceeds while
bringing the asset to the location and condition necessary for it to be capable of operating in the
manner intended by management. Consequently, an entity recognizes such sales proceeds and
related costs in profit or loss. The entity measures the cost of those items in accordance with PAS
2 Inventories.
The amendments also clarify the meaning of ‘testing whether an asset is functioning properly’.
PAS 16 now specifies this as assessing whether the technical and physical performance of the
asset is such that it is capable of being used in the production or supply of goods or services, for
rental to others, or for administrative purposes.
If not presented separately in the statement of comprehensive income, the financial statements
shall disclose the amounts of proceeds and cost included in profit or loss that relate to items
produced that are not an output of the entity’s ordinary activities, and which line item(s) in the
statement of comprehensive income include(s) such proceeds and cost.
The amendments are applied retrospectively, but only to items of property, plant and equipment
that are brought to the location and condition necessary for them to be capable of operating in the
manner intended by management on or after the beginning of the earliest period presented in the
financial statements in which the entity first applies the amendments.
The entity shall recognize the cumulative effect of initially applying the amendments as an
adjustment to the opening balance of retained earnings (or other component of equity, as
appropriate) at the beginning of that earliest period presented.
The amendments are effective for annual periods beginning on or after 1 January 2022, with early
application permitted.
PAS 8.31(e)
OR The management of the Group is still evaluating the impact of the amendment.]
PAS 8.31(a) Amendments to PAS 37, Onerous Contracts – Cost of Fulfilling a Contract
PAS 8.31(b-d) The amendments specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate
directly to the contract’. Costs that relate directly to a contract consist of both the incremental
costs of fulfilling that contract (examples would be direct labour or materials) and an allocation of
other costs that relate directly to fulfilling contracts (an example would be the allocation of the
depreciation charge for an item of property, plant and equipment used in fulfilling the contract).
15
The amendments apply to contracts for which the entity has not yet fulfilled all its obligations at
the beginning of the annual reporting period in which the entity first applies the amendments.
Comparatives are not restated. Instead, the entity shall recognize the cumulative effect of initially
applying the amendments as an adjustment to the opening balance of retained earnings or other
component of equity, as appropriate, at the date of initial application.
The amendments are effective for annual periods beginning on or after 1 January 2022, with early
PAS 8.31(e)
OR The management of the Group is still evaluating the impact of the amendment.]
PAS 8.31(a) Annual Improvements to PFRS Standards 2018-2020 Cycle

PAS 8.31(b-d)
Amendments to PFRS 1 – Subsidiary as a first-time adopter

The amendment provides additional relief to a subsidiary which becomes a first-time adopter later
than its parent in respect of accounting for cumulative translation differences. As a result of the
amendment, a subsidiary that uses the exemption in PFRS 1:D16(a) can now also elect to
measure cumulative translation differences for all foreign operations at the carrying amount that
would be included in the parent’s consolidated financial statements, based on the parent’s date of
transition to PFRS Standards, if no adjustments were made for consolidation procedures and for
the effects of the business combination in which the parent acquired the subsidiary. A similar
election is available to an associate or joint venture that uses the exemption in PFRS 1:D16(a).
The amendment is effective for annual periods beginning on or after 1 January 2022, with early
Amendments to PFRS 9 – Fees in the ’10 per cent’ test for derecognition of financial liabilities
The amendment clarifies that in applying the ‘10 per cent’ test to assess whether to derecognize a
financial liability, an entity includes only fees paid or received between the entity (the borrower)
and the lender, including fees paid or received by either the entity or the lender on the other’s
behalf.
The amendment is applied prospectively to modifications and exchanges that occur on or after the
date the entity first applies the amendment.
Amendments to PFRS 16 – Lease Incentives

The amendment removes the illustration of the reimbursement of leasehold improvements.
As the amendment to PFRS 16 only regards an illustrative example, no effective date is stated.
Amendments to PAS 41 – Taxation in fair value measurements

The amendment removes the requirement in PAS 41 for entities to exclude cash flows for taxation
when measuring fair value. This aligns the fair value measurement in PAS 41 with the
requirements of PFRS 13 Fair Value Measurement to use internally consistent cash flows and
discount rates and enables preparers to determine whether to use pretax or post-tax cash flows
and discount rates for the most appropriate fair value measurement.
The amendment is applied prospectively, i.e. for fair value measurements on or after the date an
entity initially applies the amendment.
PAS 8.31(e)
16
Guidance Note:
The succeeding set of Standards are pending publication by BOA as of October 31, 2020. This portion should be
updated once the Standards are published (i.e. to include under “New Accounting Standards Effective after the
Reporting Period Ended December 31, 2020” above) or when new standards are issued after the date indicated.
This portion must be updated as of the date of the auditors’ report.
[Part C]
[All new standards are to be itemized]
New Accounting Standards Effective in 2020 - Adopted by Financial Reporting Standards

Council (FRSC) but pending for approval by the Board of Accountancy.
PAS 8.31(a)
PIC Q&A No. 2019-04, Conforming Changes to PIC Q&As – Cycle 2019
PAS 8.31(b-d)
The interpretation sets out the changes (i.e., amendments or withdrawal) to certain
interpretations. These changes are made as a consequence of the issuance of new PFRS that
become effective starting January 1, 2019 and other relevant developments.
PIC Q&As Amended
The following table summarizes the changes made to the amended interpretations:
PIC Q&A Amended Amendment

PIC Q&A No. 2011-05: PFRS 1 – Fair Value or Updated because of applying PFRS 16, Leases,
Revaluation as Deemed Cost for the first time starting January 1, 2019
PIC Q&A No. 2011-06: Acquisition of Reference to PAS 40, Investment Property,
investment properties – asset acquisition or has been updated because of applying PFRS
business combination? 16 for the first time starting January 1, 2019.
Reference to PAS 40 has been updated
PIC Q&A No. 2012-02: Cost of a new building
because of applying PFRS 16 for the first time
constructed on the site of a previous building
starting January 1, 2019.
Updated to comply with the provisions of PFRS
PIC Q&A No. 2017-02: PAS 2 and PAS 16 - 16 and renamed as PIC Q&A No. 2017-02:
Capitalization of operating lease cost as part of PAS 2 and PAS 16 - Capitalization of
construction costs of a building depreciation of right-of-use asset as part of
construction costs of a building
PIC Q&A No. 2017-10: PAS 40 - Separation of Reference to PAS 40 has been updated
property and classification as investment because of applying PFRS 16 for the first time
property starting January 1, 2019.
PIC Q&A No. 2018-05: PAS 37 - Liability
Updated to comply with the provisions of PFRS
arising from maintenance requirement of an
16
asset held under a lease
Reference to PAS 40 (included as an
PIC Q&A No. 2018-15: PAS 1- Classification of
attachment to the Q&A) has been updated
Advances to Contractors in the Nature of
because of applying PFRS 16 for the first time
Prepayments: Current vs. Non-current
starting January 1, 2019.
PIC Q&A Withdrawn
PIC Q&A Withdrawn Basis for Withdrawal

This PIC Q&A is considered withdrawn starting
PIC Q&A No. 2017-09: PAS 17 and Philippine
January 1, 2019, which is the effective date of
Interpretation SIC-15 - Accounting for
PFRS 16. PFRS 16 superseded PAS 17, Leases,
payments between and among lessors and
and Philippine Interpretation SIC-15,
lessees
Operating Leases— Incentives
17
This PIC Q&A is considered withdrawn upon

PIC Q&A No. 2018-07: PAS 27 and PAS 28 - publication of IFRIC agenda decision -
Cost of an associate, joint venture, or Investment in a subsidiary accounted for at
subsidiary in separate financial statements cost: Step acquisition (IAS 27 Separate
Financial Statements) in January 2019.
The effective date of the amendments is included in the affected interpretations.
PAS 8.31(e)
PAS 8.31(a)
PIC Q&A No. 2019-06, Accounting for step acquisition of a subsidiary in a parent
PAS 8.31(b-d)
The interpretation clarifies how a parent should account for the step acquisition of a subsidiary in
its separate financial statements.
Salient points of the interpretation are the following:
IFRIC concluded either of the two approaches may be applied:
 Fair value as deemed cost approach
Under this approach, the entity is exchanging its initial interest (plus consideration paid for the
additional interest) for a controlling interest in the investee (exchange view). Hence, the
entity’s investment in subsidiary is measured at the fair value at the time the control is
acquired.
 Accumulated cost approach
Under this approach, the entity is purchasing additional interest while retaining the initial
interest (non-exchange view). Hence, the entity’s investment in subsidiary is measured at the
accumulated cost (original consideration).
Any difference between the fair value of the initial interest at the date of obtaining control of the
subsidiary and its original consideration is taken to profit or loss, regardless of whether, before the
step acquisition transaction, the entity had presented subsequent changes in fair value of its initial
interest in profit or loss or other comprehensive income (OCI).
The interpretation is effective for periods beginning on or after October 19, 2019.
PAS 8.31(e)
PAS 8.31(a)
PIC Q&A No. 2019-07, Classification of Members’ Capital Contributions of Non-Stock Savings and
Loan Associations (NSSLA)
PAS 8.31(b-d)
Background:
The Bangko Sentral ng Pilipinas (BSP) issued Circular No. 1045 on August 29, 2019 to amend the
Manual of Regulations for Non-Bank Financial Institutions Applicable to Non-Stock Savings and
Loan Associations (MORNBFI-S) – Regulatory Capital of Non-Stock Savings and Loan Associations
(NSSLAs) and Capital Contributions of Members.
Under the Circular, each qualified member of an NSSLA shall maintain only one capital contribution
account representing his/her capital contribution. While only one capital account is maintained, the
Circular breaks down a member’s capital contributions as follows:
a. Fixed capital which cannot be reduced for the duration of membership except upon termination
of membership. The minimum amount of fixed capital is Php1,000, but a higher minimum can
be prescribed under the NSSLA’s by-laws.
b. Capital contribution buffer, which pertains to capital contributions in excess of fixed capital.
The capital contribution buffer can be withdrawn or reduced by the member without affecting
his membership. However, the NSSLA shall establish and prescribe the conditions and/or
circumstances when the NSSLA may limit the reduction of the members’ capital contribution
buffer, such as, when the NSSLA is under liquidity stress or is unable to meet the capital-to-
risk assets ratio requirement under Sec. 4116S of the MORNBFI-S Regulations. Such
conditions and/or circumstances have to be disclosed to the members upon their placement of
capital contribution buffer and in manners as may be determined by the Board.
For purposes of identifying and monitoring the fixed capital and capital contribution buffer of a
member’s capital contribution, NSSLAs shall maintain subsidiary ledgers showing separately the
18
fixed and capital contribution buffer of each member. Further, upon receipt of capital contributions
from their members, NSSLAs shall simultaneously record the amount contributed as fixed and
capital contribution buffer in the aforementioned subsidiary ledgers. However, NSSLAs may use
other systems in lieu of subsidiary ledgers provided that that the system will separately show the
fixed and capital contribution buffer of each member.
The interpretation assessed and concluded that both Fixed Capital and the Capital contribution
buffer qualify as “equity” in the NSSLA’s financial statements as they both meet all the
requirements of paragraphs 16A and 16B of PAS32, Financial Instruments: Presentation.
The interpretation is effective for periods beginning on December 11, 2019, and should be applied
retrospectively.
PAS 8.31(e)
PAS 8.31(e)
PIC Q&A No. 2019-08, PFRS 16, Leases - Accounting for Asset Retirement or Restoration
Obligation (“ARO”)
PAS 8.31(b-d)
The interpretation clarifies the recognition of ARO under the following scenarios:
1) Accounting for ARO at lease commencement date
The cost of dismantling and restoration (i.e., the ARO) should be calculated and
recognized as a provision in accordance with PAS 37, with a corresponding adjustment to
the related ROU asset as required by PFRS 16.24(d). As such, the lessee will add the
amount of ARO to the cost of the ROU asset on lease commencement date, which will then
form part of the amount that will be amortized over the lease term.
2) Change in ARO after initial recognition
2.1) Because ARO is not included as a component of lease liability, the measurement of
such ARO is outside the scope of PFRS 16. Hence, its measurement is generally not
affected by the transition to PFRS 16. Except in cases where the reassessment of lease-
related assumptions (e.g., lease term) would affect the measurement of ARO-related
provision, the amount of ARO existing at transition date would not be remeasured; rather,
the balance of the ARO provision and any related asset will remain as previously
measured. The asset will simply be reclassified from property and equipment to the
related ROU asset as required under PFRS 16.24(d).
2.2) Assuming there is a change in lease-related assumptions that would impact the ARO
measurement (e.g., change in lease term due to the new PFRS 16 requirements), the
following will be the accounting treatment depending on the method used by the lessee in
adopting PFRS 16:
a. Modified retrospective approach - Under this approach, the lessee uses the remaining
lease term to discount back the amount of provision to transition date. Any adjustment is
recognized as an adjustment to the ROU asset and ARO provision. This adjustment applies
irrespective of which of the two methods in measuring the ROU asset will be chosen under
the modified retrospective approach.
b. Full retrospective approach - The ARO provision and related asset, which gets adjusted
to the ROU asset, should be remeasured from commencement of the lease, and then
amortized over the revised or reassessed lease term. Because full retrospective approach is
chosen, it is possible that the amount of cumulativeadjustment to the ARO provision and
the ROU asset at the beginning of the earliest period presented will not be the same;
hence, it is possible that it might impact retained earnings.
PAS 8.31(e)
PAS 8.31(a)
PIC Q&A No. 2019-09, Accounting for Prepaid Rent or Rent Liability Arising from Straight-lining
under PAS 17 on Transition to PFRS 16 and the Related Deferred Tax Effects
PAS 8.31(b-d)
The interpretation aims to provide guidance on the following:
1. How a lessee should account for its transition from PAS 17 to PFRS 16 using the modified
retrospective approach. Specifically, this aims to address how a lessee should, on transition,
19
account for any existing prepaid rent or rent liability arising from straight-lining of an operating
lease under PAS 17, and
2. How to account for the related deferred tax effects on transition from PAS 17 to PFRS 16.
PAS 8.31(e)
PAS 8.31(a)
PIC Q&A No. 2019-10, Accounting for variable payments with rent review
PAS 8.31(b-d)
Some lease contracts provide for market rent review in the middle of the lease term to adjust the
lease payments to reflect a fair market rent for the remainder of the lease term. This Q&A
provides guidance on how to measure the lease liability when the contract provides for a market
rent review.
PAS 8.31(e)
PAS 8.31(a)
PIC Q&A No. 2019-11, Determining the current portion of an amortizing loan/lease liability
PAS 8.31(b-d)
The interpretation aims to provide guidance on how to determine the current portion of an
amortizing loan/lease liability for proper classification/presentation between current and non-
current in the statement of financial position.
PAS 8.31(e)
PAS 8.31(a)
PIC Q&A No. 2019-12, PFRS 16, Leases – Determining the lease term
PAS 8.31(b-d)
The interpretation provides guidance how an entity determine the lease term under PFRS 16.
A contract would be considered to exist only when it creates rights and obligations that are
enforceable. Therefore, any non-cancellable period or notice period in a lease would meet the
definition of a contract and, thus, would be included as part of the lease term. To be part of a
contract, any option to extend or terminate the lease that are included in the lease term must also
be enforceable.
If optional periods are not enforceable (e.g., if the lessee cannot enforce the extension of the lease
without the agreement of the lessor), the lessee does not have the right to use the asset beyond
the non-cancellable period. Consequently, by definition, there is no contract beyond the non-
cancellable period (plus any notice period) if there are no enforceable rights and obligations
existing between the lessee and lessor beyond that term.
In assessing the enforceability of a contract, an entity should consider whether the lessor can
refuse to agree to a request from the lessee to extend the lease. Accordingly, if the lessee has the
right to extend or terminate the lease, there are enforceable rights and obligations beyond the
initial noncancellable period and thus, the parties to the lease would be required to consider those
optiona periods in their assessment of the lease term. In contrast, a lessor’s right to terminate a
lease is ignored when determining the lease term because, in that case, the lessee has an
unconditional obligation to pay for the right to use the asset for the period of the lease, unless and
until the lessor decides to terminate the lease.
In assessing whether a lessee is reasonably certain to exercise an option to extend a lease, or not
to exercise an option to terminate a lease, an entity shall consider all relevant facts and
circumstances (i.e., including those that are not indicated in the lease contract) that create an
economic incentive for the lessee to exercise the option to extend the lease, or not to exercise the
option to terminate the lease.
PAS 8.31(e)
PAS 8.31(a)
PIC Q&A No. 2019-13, PFRS 16, Leases – Determining the lease term of leases that are renewable
subject to mutual agreement of the lessor and the lessee
PAS 8.31(b-d)
The interpretation provides guidance how an entity determine the lease term under PFRS 16. This
interpretation focuses on lease contracts that are renewable subject to mutual agreement of the
parties.
A renewal option is only considered in determining the lease term if it is enforceable. A renewal
that is still subject to mutual agreement of the parties is legally unenforceable under Philippine
laws until both parties come to an agreement on the terms.
In instances where the lessee have known to be, historically, renewing the lease contract after
securing mutual agreement with the lessor to renew the lease contract, the lessee’s right to use
the underlying asset does not go beyond the one-year period covered by the current contract, as
any renewal still has to be agreed on by both parties. A renewal is treated as a new contract.
20
PAS 8.31(e)
PAS 8.31(a)
PIC Q&A No. 2020-01, Conforming Changes to PIC Q&As – Cycle 2020
PAS 8.31(b-d) The interpretation sets out the changes (i.e., amendments or withdrawal) to certain
interpretations. These changes are made as a consequence of the issuance of new PFRS that
become effective starting January 1, 2019 and other relevant developments.
PIC Q&As Amended
The following table summarizes the changes made to the amended interpretations:
PIC Q&A Amended Amendment
Framework 4.1 and PAS 1.25 – Financial References to The Conceptual Framework for
statements prepared on a basis other than Financial Reporting have been updated due ot
going concern the revised framework effective January 1,
2020
References to The Conceptual Framework for
PIC Q&A No. 2016-03: Accounting for common
Financial Reporting have been updated due ot
areas and the related subsequent costs by
the revised framework effective January 1,
condominium corporations
2020
PIC Q&A No. 2011-03: Accounting for Financial Reporting have been updated due ot
intercompany loans the revised framework effective January 1,
2020
PIC Q&A No. 2017-08: PFRS 10 – Requirement
to prepare consolidated financial statements
Financial Reporting have been updated due ot
where an entity disposes of its single
the revised framework effective January 1,
investment in a subsidiary, associate or joint
2020
venture
PIC Q&A No. 2018-14: PFRS 15 – Accounting Financial Reporting have been updated due ot
for cancellation of real estate sales the revised framework effective January 1,
2020
PIC Q&A Withdrawn
PIC Q&A Withdrawn Basis for Withdrawal

With the amendment to PFRS 3 on the
definition of a business effective January 1,
2020, there is additional guidance in
PIC Q&A No. 2011-06: Acquisition of paragraphs B7A-B12D of PFRS 3 in assessing
investment properties – asset acquisition or whether acquisition of investment properties is
business combination? an asset acquisition or business combination
(i.e. optional concentration test and
assessment of whether an acquired process is
substantive)
The effective date of the amendments is included in the affected interpretations.

PAS 8.31(a) PIC Q&A No. 2020-02, Conclusion on PIC QA 2018-12E: On certain materials delivered on site but
not yet installed
PAS 8.31(b-d)
The interpretation provides guidance on the treatment of the customized materials in recognizing
revenue using a cost-based input method.
For each performance obligation satisfied over time, entity shall recognize the revenue by
21
measuring towards complete satisfaction. In such case, materials that are customized, even if
uninstalled, are to be included in the measurement of progress in completing its performance
obligations.
However, in the case of uninstalled materials that are not customized, revenue should only be
recognized upon installation or use in construction. Revenue cannot be recognized even up to the
extent of cost unless it met all the criteria listed in the standards.
PAS 8.31(e)
PAS 8.31(a)
PIC Q&A No. 2020-03, On the accounting of the difference when the percentage of completion is
ahead of the buyer’s payment
PAS 8.31(b-d) The interpretation clarifies that recognition of either contract asset or receivable is acceptable in
case the revenue recognized based on percentage of completion (POC) is ahead of the buyer’s
payment as long as this is consistently applied in transactions of the same nature and disclosure
requirements of PFRS 15 for contract assets or receivables, as applicable, are complied.
PAS 8.31(a) PIC Q&A No. 2020-04(Addendum to PIC Q&A 2018-12-D), PFRS 15 - Step 3 - Requires and Entity
to Determine the Transaction Price for the Contract
PAS 8.31(b-d)
The interpretation clarifies that, in case of mismatch between the POC and schedule of payments,
there is no significant financing component if the difference between the promised consideration
and the cash selling price of the goods or service arises for the reasons other than the provision of
finance to either the customer or the entity, and the difference between those amounts is
proportional to the reason for the difference.
PAS 8.31(a) PIC Q&A No. 2020-05, PFRS 15 - Accounting for Cancellation of Real Estate Sales
PAS 8.31(b-d)
The interpretation provided guidance on the accounting for cancellation of real estate sales and
the repossession of the property. They provided three(3) approaches as follows:
1. The repossessed property is recognized at its fair value less cost to repossess
2. The repossessed property is recognized at its fair value plus repossession cost
3. Accounted as modification of contract
Either of the above mentioned approaches are acceptable as long as its applied consistently. All
approaches above should consider payments to buyers required under the Maceda Law and the
write-off of any unamortized portion of cost of obtaining a contract in its determination of
gain/loss from repossession.
PAS 8.31(a) PIC Q&A No. 2020-06, PFRS 16 - Accounting for payments between and among lessors and
lessees
PAS 8.31(b-d)
The interpretation provides for the treatment of payments between and among lessors and lessees
as follows:
Treatments in the financial statements of

Transaction Lessor Old lessor New Lessee Basis
1 Lessor pays i. Recalculate i. Recognize in • PFRS 16; par.
old lessee - the revised profit and loss at 87
lessor leased the date of • PAS 16; pars.
intends to payments (net modification the 6, 16-17
renovate of the one-off difference between • PAS 40; par.
the building amount to be the proportionate 21
paid) and decrease in the • PFRS 16; par.
amortize over right-of-use asset 45
the revised based on the • Illustrative
lease term. remaining right-of- example 18
ii. If net use asset for the issued by IASB
22
payable, remaining period • PAS 16; pars.

recognize as and remaining 56-57
expense unless lease liability
the amount to calculated as the
be paid present value of
qualifies as the remaining
capitalizable lease payments
cost under PAS discounted using
16 or PAS 40; the original
in which case it discount rate of
is capitalized the lease.
as part of the ii. Recognize the
carrying effect of
amount of the remeasurement of
associated the remaining
property if it lease liability as an
meets the adjustment to the
definition of right-of use-asset
construction by referring to the
costs under revised lease
PAS 16 or PAS payments (net of
40. any amount to be
received from the
lessor)and using a
revised discount
rate.
iii. Revisit the
amortization
period of right-of-
use asset and any
related leasehold
improvement
following the
shortening of the
term.
2 Lessor pays
old lessee - Same as Item Same as Item 1 Same as Item 1
new lease 1 PFRS 16 par. 83
with higher
quality
lessee
3 Lessor pays i. Finance i. Record as a • PAS 16; par.
new lessee lease: deduction to 68
- an • If made after the cost of the • PAS 16; par.
incentive to commencemen right-of-use 71
occupy t date, asset. • PFRS 16; par.
incentive ii. Lease 83
payable is incentive • PFRS 16; par.
credited with receivable is 24
offsetting debit also included
entry to the as reduction in
net investment measurement
lease. of lease
• If paid at or liability.
prior to iii. When
commencemen lessee receives
t date, the payment of
included in the lease
calculation of incentive, the
gain or loss on amount
disposal on received is
finance lease. debited with a
ii. Operating credit entry to
lease add the gross up the
initial direct lease liability.
23
costs to the
carrying
amount of
underlying
asset and
recognize as
expense over
the lease term
either on a
straight-line
basis of
another
systematic
basis.
4 Lessor pays Same as Item i. Same as in • Same as in
new lessee 3 fact pattern fact pattern 1C.
- building 1C. • PAS 40; par.
alterations ii. Capitalize 21
specific to costs incurred • PAS 16; pars.
the lessee by the lessee 16-17
with no for alterations
further to the building
value to as leasehold
lessor improvement
in accordance
with PAS 16 or
PAS 40.
5 Old lessee Recognize as Recognize as • PAS 16
pays lessor income expense • PAS 38
to vacate immediately, immediately unless • PFRS 16; par.
the leased unless it was it was within the 18
premises within the original contract
early original and the probability
contract and criterion was
the probability previously met, in
criterion was which case, the
previously financial impact
met, in which would have been
case, the recognized already
amount would as part of the lease
have already liability.
been
recognized as
income using
either a
straight-line
basis or
another
systematic
basis.
6 Old lessee Recognize as an Recognize as • PAS 16
pays new expense income • PAS 38
lessee to immediately. immediately. • PFRS 16;
take over Appendix A
the lease
7 New lessee i. If finance Recognize as PFRS 16; par.
pays lessor lease, part of the cost 24
to secure recognize gain of the right-of- • PAS 16; par.
the right to or loss in the use asset. 71
obtain a profit or loss • PFRS 16; par
lease arising from 81
agreement the
derecognition
of underlying
assets
24
ii. If operating
lease,
recognize as
deferred
revenue and
amortize over
the lease term
on a straight-
line basis or
another
systematic
basis.
8 New lessee Recognize as again Account for as • PFRS 16;
pays old immediately. Any initial direct Appendix A
lessee to remaining lease cost included • PFRS 16;
buy liability and right- in the Example 13 in
out the of-use asset will be measurement par. IE5
lease derecognized with of the right-of- • PFRS 16; par.
agreement net amount use asset. 24
through P&L.
PAS 8.31(a) PIC Q&A No. 2020-07, PAS 12 – Accounting for the Proposed Changes in Income Tax Rates under
the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) Bill
PAS 8.31(b-d)
The interpretation explained the details of the CREATE bill and its impact on the financial
statements once passed.
Interpretation discussed that impact on the financial statements ending December 31, 2020 are as
follows:
 Current and deferred taxes will still be measured using the applicable income tax rate as of
December 31, 2020
 If the CREATE bill is enacted before financial statements’ issue date, this will be a non-
adjusting event but the significant effects of changes in tax rates on current and deferred tax
assets and liabilities should be disclosed
 If the CREATE bill is enacted after financial statements’ issue date but before filing of the
income tax return, this is no longer a subsequent event but companies may consider disclosing
the general key feature of the bill and the expected impact on the FS
For the financial statements ending December 31, 2021, the impact are as follows:
 Standard provides that component of tax expense(income) may include “any adjustments
recognized in the period for current tax of prior periods” and “the amount of deferred tax
expense(income) relating to changes in tax rates or the imposition of new taxes”
 An explanation of changes in the applicable income tax rates to the previous accounting period
is also required to be disclosed
 The provision for current income tax for the year 2021 will include the difference between
income tax per 2020 financial statements and 2020 income tax return
 Deferred tax assets and liabilities as of December 31, 2021, will be remeasured using the new
tax rates
 Any movement in deferred taxes arising from the change in tax rates that will form part of the
provision for/benefit from deferred taxes will be included as well in the effective tax rate
reconciliation
PFRS 7.21 5. SIGNIFICANT ACCOUNTING POLICIES

PFRS 10.4
PFRS 10.7
[Disclose if the financial statements are consolidated]
Basis of Consolidation
The consolidated financial statements incorporate the financial statements of the Group and all
subsidiaries it controls.
25
Control is achieved when the Group:

 has power over the investee;
 is exposed, or has rights, to variable returns from its involvement with the investee; and
 has the ability to use its power to affect its returns.
PFRS 10.7-8 The Group reassesses whether or not it controls an investee if facts and circumstances indicate
that there are changes to one or more of these three elements of control.
When the Group has less than a majority of the voting rights of an investee, it has power over the
investee when the voting rights are sufficient to give it the practical ability to direct the relevant
activities of the investee unilaterally.
PFRS 10.10-14 The Group considers all relevant facts and circumstances in assessing whether or not the Group’s
voting rights in an investee are sufficient to give it power, including:
• the size of the Group’s holding of voting rights relative to the size and dispersion of holdings of
the other vote holders;
• potential voting rights held by the Group, other vote holders or other parties;
• rights arising from other contractual arrangements; and
• any additional facts and circumstances that indicate that the Group has, or does not have, the
current ability to direct the relevant activities at the time that decisions need to be made,
including voting patterns at previous shareholders’ meetings.
PFRS 10.20 Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and
ceases when the Group loses control of the subsidiary. Specifically, income and expenses of a
subsidiary acquired or disposed of during the year are included in the consolidated statement of
profit or loss and other comprehensive income from the date the Group gains control until the date
when the Group ceases to control the subsidiary.
PFRS 10.B94 Profit or loss and each component of other comprehensive income of subsidiaries are attributed to
the owners of the Group and to the non-controlling interests. Total comprehensive income of
subsidiaries is attributed to the owners of the Group and to the non-controlling interest even if this
results in the non-controlling interest having deficit balance.
PFRS 10.19
PFRS 10.B86
The financial statements of the subsidiaries are prepared for the same reporting year as the
PFRS 10.B87 Group, using uniform accounting policies for like transactions and other events in similar
circumstances. When necessary, adjustments are made to the financial statements of subsidiaries
to bring their accounting policies into line with the Group’s accounting policies. All intragroup
assets and liabilities, equity, income, expenses and cash flows relating to transactions between
members of the Group are eliminated in full on consolidation. Unrealized gains and losses are
eliminated.
PFRS 10.23
PFRS 10.B96
Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing
control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the
Group’s interests and the non-controlling interests are adjusted to reflect the changes in their
relative interests in the subsidiaries. Any difference between the amount by which the non-
controlling interests are adjusted and the fair value of the consideration paid or received is
recognized directly in equity and attributed to owners of the Group.
PFRS 10.B98
PFRS 10.B99
When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is
PFRS 10.B99A calculated as the difference between (i) the aggregate of the fair value of the consideration
received and the fair value of any retained interest and (ii) the previous carrying amount of the
assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. All
amounts previously recognized in other comprehensive income in relation to that subsidiary are
accounted for as if the Group had directly disposed of the related assets or liabilities of the
subsidiary (i.e. reclassified to profit or loss or transferred to another category of equity as
specified/permitted by applicable PFRSs). The fair value of any investment retained in the former
subsidiary at the date when control is lost is regarded as the fair value on initial recognition for
subsequent accounting under PFRS 9, when applicable, the cost on initial recognition of an
investment in an associate or a joint venture.
PFRS 3.18 Business Combination

Acquisitions of businesses are accounted for using the acquisition method. The consideration
transferred in a business combination is measured at fair value, which is calculated as the sum of
26
the acquisition-date fair values of the assets transferred by the [Group], liabilities incurred by the
[Group] to the former owners of the acquiree and the equity interest issued by the [Group] in
exchange for control of the acquiree. Acquisition related costs are generally recognized in profit or
loss as incurred.
PFRS 3.18
PFRS 3.24-26
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized
PFRS 3.30-31 at their fair value except that:
 deferred tax assets or liabilities, and assets or liabilities related to employee benefit
arrangements are recognized and measured in accordance with PAS 12, Income Taxes and
PAS 19, Employee Benefits respectively;
 liabilities and equity instruments related to share-based payment arrangements of the
acquiree or share-based payment arrangement of the [Group] entered into to replace share-
based payment arrangements of the acquiree are measured in accordance with PFRS 2,
Share-based Payment at the acquisition date; and
 assets (or disposal groups) that are classified as held for sale in accordance with PFRS 5, Non-
current assets Held for Sale and Discontinued Operations are measured in accordance with
that Standard.
PFRS 3.32 Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any
non-controlling interest in the acquiree, and the fair value of the acquirer’s previously held equity
interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable
assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date
amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the
consideration transferred, the amount of any non-controlling interests in the acquiree and the fair
value of the acquirer’s previously held interest in the acquiree (if any) is recognized immediately in
profit or loss as bargain purchase gain.
PFRS 3.B44 Non-controlling interests that are present ownership interests and entitle their holders to a
proportionate share of the entity’s net assets in the event of liquidation may be initially measured
either at fair value or at the non-controlling interests’ proportionate share of the recognized
amounts of the acquiree’s identifiable net assets. The choice of measurement basis is made on a
transaction-by-transaction basis. Other types of non-controlling interest are measured at fair value
or, when applicable, on the basis specified in another PFRS.
PFRS 3.39-40 When the consideration transferred by the [Group] in a business combination includes assets or
liabilities resulting from a contingent consideration arrangement, the contingent consideration is
measured at its acquisition-date fair value and included as part of the consideration transferred in
a business combination. Changes in the fair value of the contingent consideration that qualify as
measurement period adjustments are adjusted retrospectively, with corresponding adjustments
against goodwill. Measurement period adjustments are adjustments that arise from additional
information obtained during the measurement period (which cannot exceed one year from
acquisition date) about facts and circumstances that existed at the acquisition date.
PFRS 3.58 The subsequent accounting for the changes in fair value of the contingent consideration that do
not qualify as measurement period adjustments depends on how the contingent consideration is
classified. Contingent consideration that is classified as equity is not measured at subsequent
reporting dates and its subsequent settlement is accounted for within equity. Contingent
consideration that is classified as an asset or a liability is remeasured at subsequent reporting
dates in accordance with PFRS 9, Financial Instruments, or PAS 37, Provisions, Contingent
Liabilities and Contingent Assets, as appropriate, with the corresponding gain or loss being
recognized in profit or loss.
PFRS 3.42 [Disclose the paragraph below only if the Company has business combination achieved in stages]
When a business combination is achieved in stages, the [Group]’s previously held equity interest
in the acquiree is remeasured to its acquisition-date fair value and the resulting gain or loss, if
any, is recognized in profit or loss. Amount arising from interests in the acquiree prior to the
acquisition date that have previously been recognized in other comprehensive income are
reclassified to profit or loss where such treatment would be appropriate if that interest were
disposed of.
PFRS 3.45 If the initial accounting for a business combination is incomplete by the end of the reporting period
in which the combination occurs, the [Group] reports provisional amounts for the items for which
the accouting is incomplete. Those provisional amounts are adjusted during the measurement
period, or additional assets or liabilities are recognized, to reflect new information obtained about
27
the facts and circumstances that existed at the acquisition date that, if known, would have
affected the amounts recognized at that date.
Goodwill
PFRS 3.32 Goodwill acquired in a business combination is initially measured at cost being the excess of the
cost of business combination over the interest in the net fair value of the acquirer’s identifiable
assets, liabilities and contingent liabilities. Subsequently, goodwill arising on an acquisition of a
business is measured at cost less any accumulated impairment losses.
PAS 36.80 Goodwill is not amortized but is reviewed for impairment at least annually. For purposes of
impairment testing, goodwill is allocated to each of the [Group]’s cash-generating units that are
expected to benefit from the synergies of the combination.
PAS 36.90 A cash-generating unit to which goodwill been allocated is tested for impairment annually, or more
frequently when there is indication that the unit may be impaired. If the recoverable amount of
the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to
reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of
the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for
goodwill is recognized directly in profit or loss in the consolidated statement of comprehensive
income. An impairment loss recognized for goodwill is not reversed in a subsequent period.
PAS 36.86 On disposal of the relevant cash-generating unit, the amount attributable to goodwill is included
in the determination of the profit or loss on disposal.
Guidance Note:
Purchase method may also be used by the entity. Refer to PIC Q&A No. 2012-01 as amended by PIC Q&A No.
2016-01 and No. 2019-13 for further guidance on the proper use of pooling of interest method.
28
PIC Q&A No. 2012-

01 (As amended by
Business Combination under Common Control
PIC Q&A No. 2016-
01 and No. 2019- Common control business combinations are accounted for using the “pooling of interests method”.
13) The pooling of interests method is generally considered to involve the following:
 The assets and liabilities of the combining entities are reflected in the consolidated financial
statements at their carrying amounts. No adjustments are made to reflect fair values, or
recognize any new assets or liabilities, at the date of the combination that otherwise would
have been done under the acquisition method. The only adjustments that are made are those
adjustments to harmonize accounting policies.
 No 'new' goodwill is recognized as a result of the combination. The only goodwill that is
recognized is any existing goodwill relating to either of the combining entities. Any difference
between the consideration paid or transferred and the equity 'acquired' is reflected within
equity.
 The consolidated income statement reflects the results of the combining entities for the full
year, irrespective of when the combination took place.
 Comparatives are presented as if the entities had always been combined.
Guidance Note:
The model financial statements are prepared under the full retrospective approach. If the entity has opted to use
the modified approach, please disclose the old and the new accounting policies used by the entity prior to the
effectivity of the new Standards. The modified approach disclosures are illustrated in the succeeding pages as
“Accounting policies applied before January 1, 2019 for leases” and “Accounting policies applied after January 1,
2019 for leases” for the old and the new accounting policies, respectively.
PFRS 7.21
PFRS 9.3.1.1
Financial Instruments
PFRS 9.5.1.1
PFRS 7.8 Financial assets and financial liabilities are recognized in the [Group]’s [consolidated] financial
statements when the [Group] becomes a party to the contractual provisions of the instrument.
Initial recognition
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that
are directly attributable to the acquisition or issue of financial assets and financial liabilities (other
than financial assets and financial liabilities at fair value through profit or loss) are added to or
deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial
liabilities at fair value through profit or loss are recognized immediately in profit or loss.
PFRS 9.3.1.2
PFRS 7.B5 (c)
Financial Assets
Classification and subsequent measurement
All regular way purchases or sales of financial assets are recognized and derecognized on a trade
date basis. Regular way purchases or sales are purchases or sales of financial assets that require
delivery of assets within the period established by regulation or convention in the marketplace.
PFRS 9.5.2.1 All recognized financial assets are subsequently measured in their entirety at either amortized
cost or fair value, depending on the classification of the financial assets.
Fair value is determined in the manner described in [Note X].
PFRS 9.4.1.1
PFRS 9.4.1.2
Financial assets are subsequently measured at amortized cost or fair value on the basis of the
PFRS 9.4.1.2A entity’s business model for managing the financial assets and the contractual cash flow
PFRS 9.4.1.4 characteristics of the financial assets, as follows:
 financial assets that are held within a business model whose objective is to collect the
contractual cash flows, and that have contractual cash flows that are solely payments of
principal and interest on the principal amount outstanding (SPPI), are subsequently measured
at amortized cost;
 financial assets that are held within a business model whose objective is both to collect the
contractual cash flows and to sell the debt instruments, and that have contractual cash flows
that are SPPI, are subsequently measured at fair value through other comprehensive income
(FVOCI);
 all other financial assets managed on their fair value basis and equity instruments are
subsequently measured at fair value through profit or loss (FVTPL).
29
30
PFRS 9.4.1.5
PFRS 9.5.7.5
However, the [Group] may make the following irrevocable election/designation at initial
PFRS 9.4.1.5 recognition of a financial asset:
PFRS 9.B4.1.29  the [Group] may irrevocably elect to present subsequent changes in fair value of an equity
investment in other comprehensive income if it is neither held for trading nor a contingent
consideration recognized by an acquirer in a business combination to which PFRS 3 applies;
and
 the [Group] may irrevocably designate a debt investment that meets the amortized cost or
FVOCI criteria as measured at FVTPL if doing so eliminates or significantly reduces an
accounting mismatch.
PFRS 9 Appendix A Amortized cost and effective interest method

The effective interest method is a method of calculating the amortized cost of a financial asset and
of allocating interest income over the relevant period.
PFRS 9.5.4.1 (b) For financial instruments other than purchased or originated credit-impaired financial assets (i.e.
assets that are credit-impaired on initial recognition), the effective interest rate is the rate that
exactly discounts estimated future cash receipts (including all fees and points paid or received that
form an integral part of the effective interest rate, transaction costs and other premiums or
discounts) excluding expected credit losses, through the expected life of the debt instrument, or,
where appropriate, a shorter period, to the gross carrying amount of the debt instrument on initial
recognition.
PFRS 9.5.4.1 (a) For purchased or originated credit-impaired (POCI) financial assets, a credit-adjusted effective
interest rate is calculated by discounting the estimated future cash flows, including expected credit
losses, to the amortized cost of the debt instrument on initial recognition.
PFRS 9 Appendix A The amortized cost of a financial asset is the amount at which the financial asset is measured at
initial recognition minus the principal repayments, plus the cumulative amortization using the
effective interest method of any difference between that initial amount and the maturity amount,
adjusted for any loss allowance. On the other hand, the gross carrying amount of a financial asset
is the amortized cost of a financial asset before adjusting for any loss allowance.
PFRS 9.5.4.1
PFRS 7.B5 (e)
Interest income is recognized using the effective interest method for debt instruments measured
subsequently at amortized cost and at FVOCI.
For financial instruments other than purchased or originated credit-impaired financial assets,
interest income is calculated by applying the effective interest rate to the gross carrying amount of
a financial asset, except for financial assets that have subsequently become credit-impaired.
For financial assets that have subsequently become credit-impaired, interest income is recognized
by applying the effective interest rate to the amortized cost of the financial asset. If, in
subsequent reporting periods, the credit risk on the credit-impaired financial instrument improves
so that the financial asset is no longer credit-impaired, interest income is recognized by applying
the effective interest rate to the gross carrying amount of the financial asset.
PFRS 9.5.4.1 For (POCI), the [Group] recognizes interest income by applying the credit-adjusted effective
interest rate to the amortized cost of the financial asset from initial recognition. The calculation
does not revert to the gross basis even if the credit risk of the financial asset subsequently
improves so that the financial asset is no longer credit-impaired.
PFRS 9.4.1.2A Debt instruments classified as at FVOCI

Corporate bonds held by the [Group] are classified as at FVOCI. The corporate bonds are initially
measured at fair value plus transaction costs.
Subsequently, changes in the carrying amount of these corporate bonds as a result of foreign
exchange gains and losses, impairment gains or losses, and interest income calculated using the
effective interest method are recognized in profit or loss.
The amounts that are recognized in profit or loss are the same as the amounts that would have
been recognized in profit or loss if these corporate bonds had been measured at amortized cost.
All other changes in the carrying amount of these corporate bonds are recognized in other
comprehensive income and accumulated under the heading of investments revaluation reserve.
31
When these listed redeemable notes are derecognized, the cumulative gains or losses previously
recognized in other comprehensive income are reclassified to profit or loss.
PFRS 9.4.1.2A
PFRS 9.5.7.5
Equity instruments designated as at FVOCI
On initial recognition, the [Group] may make an irrevocable election (on an instrument-by-
instrument basis) to designate investments in equity instruments as at FVOCI. Designation at
FVOCI is not permitted if the equity investment is held for trading or if it is contingent
consideration recognized by an acquirer in a business combination to which PFRS 3 applies.
PFRS 9 Appendix A A financial asset is held for trading if:

 it has been acquired principally for the purpose of selling it in the near term; or
 on initial recognition it is part of a portfolio of identified financial instruments that the Group
manages together and has evidence of a recent actual pattern of short-term profit-taking; or
 it is a derivative (except for a derivative that is a financial guarantee contract or a designated
and effective hedging instrument).
PFRS 9.5.7.5 Investments in equity instruments at FVOCI are initially measured at fair value plus transaction
costs. Subsequently, they are measured at fair value with gains and losses arising from changes in
fair value recognized in other comprehensive income and accumulated in the [investments
revaluation reserve]. The cumulative gain or loss will not be reclassified to profit or loss on
disposal of the equity investments, instead, they will be transferred to retained earnings.
Dividends on these investments in equity instruments are recognized in profit or loss in

accordance with PFRS 9, unless the dividends clearly represent a recovery of part of the cost of
the investment.
PFRS 9.4.1.4
PFRS 9.5.7.1
Financial assets at FVTPL
PFRS 7.B5 (e) Financial assets at FVTPL are:
 assets with contractual cash flows that are not SPPI; or/and
 assets that are held in a business model other than held to collect contractual cash flows or
held to collect and sell; or
 assets designated at FVTPL using the fair value option.
Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any
fair value gains or losses recognized in profit or loss to the extent they are not part of a
designated hedging relationship. The net gain or loss recognized in profit or loss includes any
dividend or interest earned on the financial asset.
PFRS 9.B5.7.2 & 2A [Disclose if there are financial assets denominated in foreign currency]
Foreign exchange gains and losses
The carrying amount of financial assets that are denominated in a foreign currency is determined
in that foreign currency and translated at the spot rate at the end of each reporting period.
Specifically:
 for financial assets measured at amortized cost that are not part of a designated hedging
relationship, exchange differences are recognized in profit or loss;
 for debt instruments measured at FVOCI that are not part of a designated hedging
relationship, exchange differences on the amortized cost of the debt instrument are
recognized in profit or loss. Other exchange differences are recognized in OCI in the
investments revaluation reserve;
 for financial assets measured at FVTPL that are not part of a designated hedge accounting
relationship, exchange differences are recognized in profit or loss; and
 for equity instruments measured at FVOCI, exchange differences are recognized in OCI in the
investments revaluation reserve.
PFRS 9.4.4.1
PFRS 9.5.6.1
[Disclose if there is a reclassification]
PFRS 9.B5.6.1 Reclassifications
If the business model under which the [Group] holds financial assets changes, the financial assets
affected are reclassified.
The classification and measurement requirements related to the new category apply prospectively
from the first day of the first reporting period following the change in business model that results
in reclassifying the [Group]’s financial assets.
During the current financial year and previous accounting period there was no change in the
32
business model under which the [Group] holds financial assets and therefore no reclassifications
were made.
Changes in contractual cash flows are considered under the accounting policy on modification and
derecognition of financial assets.
PFRS 9.5.6.2 [If an entity reclassifies a financial asset out of the amortized cost measurement category and into
the fair value through profit or loss measurement category]
Financial asset at amortized cost to FVTPL
The fair value of the financial asset previously measured at amortized cost is measured at the
reclassification date. Any gain or loss arising from a difference between the previous amortized
cost of the financial asset and fair value is recognized in profit or loss.
PFRS 9.5.6.3
PFRS 9.B5.6.2
[If an entity reclassifies a financial asset out of the FVTPL measurement category and into the
amortized cost measurement category]
Financial asset at FVTPL to amortized cost
The fair value of the financial asset previously measured at FVTPL at the reclassification date
becomes its new gross carrying amount. The date of the reclassification is treated as the date of
initial recognition. The effective interest rate is determined on the basis of the fair value of the
asset at the reclassification date.
PFRS 9.5.6.4 [If an entity reclassifies a financial asset out of the amortized cost measurement category and into
the FVOCI measurement category]
Financial asset at amortized cost to FVOCI
The fair value of the financial asset previously measured at amortized cost is measured at the
reclassification date. Any gain or loss arising from a difference between the previous amortized
cost of the financial asset and fair value is recognized in other comprehensive income. The
effective interest rate and the measurement of expected credit losses are not adjusted as a result
of the reclassification.
PFRS 9.5.6.5
PFRS 9.B5.6.1
[If an entity reclassifies a financial asset out of the FVOCI measurement category and into the
amortized cost measurement category]
Financial asset at FVOCI to amortized cost
The financial asset previously measured at FVOCI is reclassified at its fair value at the
reclassification date. However, the cumulative gain or loss previously recognized in other
comprehensive income is removed from equity and adjusted against the fair value of the financial
asset at the reclassification date. As a result, the financial asset is measured at the reclassification
date as if it had always been measured at amortized cost. This adjustment affects other
comprehensive income but does not affect profit or loss and therefore is not a reclassification
adjustment. The effective interest rate and the measurement of expected credit losses are not
adjusted as a result of the reclassification.
PFRS 9.5.6.6
PFRS 9.B5.6.2
[If an entity reclassifies a financial asset out of the out of the FVTPL measurement category and
into the FVOCI measurement category]
Financial asset at FVTPL to FVOCI
The financial asset continues to be measured at fair value. The date of the reclassification is
treated as the date of initial recognition. The effective interest rate is determined on the basis of
the fair value of the asset at the reclassification date.
PFRS 9.5.6.7 [If an entity reclassifies a financial asset out of the FVOCI measurement category and into the
FVTPL measurement category]
Financial asset at FVOCI to FVTPL
The financial asset continues to be measured at fair value. The cumulative gain or loss previously
recognized in other comprehensive income is reclassified from equity to profit or loss as a
reclassification adjustment at the reclassification date.
PFRS 9.5.5.1 Impairment of financial assets

The [Group] recognizes a loss allowance for expected credit losses (ECL) on [disclose the
applicable instruments] investments in debt instruments that are measured at amortized cost or
at FVOCI, lease receivables, contract assets, as well as on loan commitments and financial
guarantee contracts. No impairment loss is recognized for investments in equity instruments.
The amount of expected credit losses is updated at each reporting date to reflect changes in credit
33
risk since initial recognition of the respective financial instrument.
The [Group] always recognizes lifetime ECL for trade receivables, contract assets and lease
receivables. The expected credit losses on these financial assets are estimated using a provision
matrix based on the [Group]’s historical credit loss experience, adjusted for factors that are
specific to the debtors, general economic conditions and an assessment of both the current as well
as the forecast direction of conditions at the reporting date, including time value of money where
appropriate.
For all other financial instruments, the [Group] recognizes lifetime ECL when there has been a
significant increase in credit risk since initial recognition. However, if the credit risk on the
financial instrument has not increased significantly since initial recognition, the [Group] measures
the loss allowance for that financial instrument at an amount equal to 12 month ECL.
Lifetime ECL represents the expected credit losses that will result from all possible default events
over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion
of lifetime ECL that is expected to result from default events on a financial instrument that are
possible within 12 months after the reporting date.
PFRS 9.5.5.17 ECLs are a probability-weighted estimate of the present value of credit losses. These are
measured as the present value of the difference between the cash flows due to the Group under
the contract and the cash flows that the [Group] expects to receive arising from the weighting of
multiple future economic scenarios, discounted at the asset’s effective interest rate.
PFRS 9.B5.5.1 The [Group] measures ECL on an individual basis, or on a collective basis for portfolios of loans
that share similar economic risk characteristics. The measurement of the loss allowance is based
on the present value of the asset’s expected cash flows using the asset’s original effective interest
rate (EIR) method, regardless of whether it is measured on an individual basis or a collective
basis.
PFRS 7.35F (a)

PFRS 7:35G (b)
Significant increase in credit risk
PFRS 9.5.5.9 The [Group] monitors all financial assets, issued loan commitments and financial guarantee
contracts that are subject to the impairment requirements to assess whether there has been a
significant increase in credit risk since initial recognition. If there has been a significant increase in
credit risk the [Group] will measure the loss allowance based on lifetime rather than 12-month
ECL.
[Disclose whether the entity used any practical expedient or none]
PFRS 9.5.5.9 In assessing whether the credit risk on a financial instrument has increased significantly since
initial recognition, the [Group] compares the risk of a default occurring on the financial instrument
at the reporting date based on the remaining maturity of the instrument with the risk of a default
occurring that was anticipated for the remaining maturity at the current reporting date when the
financial instrument was first recognized. In making this assessment, the [Group] considers both
quantitative and qualitative information that is reasonable and supportable, including historical
experience and forward-looking information that is available without undue cost or effort.
Forward-looking information considered includes [Disclose the forward looking information used by
the entity] the future prospects of the industries in which the [Group]’s debtors operate, obtained
from economic expert reports, financial analysts, governmental bodies, relevant think-tanks and
other similar organizations, as well as consideration of various external sources of actual and
forecast economic information that relate to the [Group]’s core operations.
PFRS 7.35F (a)

PFRS 7.35G (a)(ii)
In particular, the following information is taken into account when assessing whether credit risk
has increased significantly since initial recognition:
 an actual or expected significant deterioration in the financial instrument’s external (if
available) or internal credit rating;
 significant deterioration in external market indicators of credit risk for a particular financial
instrument (e.g. a significant increase in the credit spread, the credit default swap prices for
the debtor, or the length of time or the extent to which the fair value of a financial asset has
been less than its amortized cost);
 existing or forecast adverse changes in business, financial or economic conditions that are
expected to cause a significant decrease in the debtor’s ability to meet its debt obligations;
 an actual or expected significant deterioration in the operating results of the debtor;
 significant increases in credit risk on other financial instruments of the same debtor;
 an actual or expected significant adverse change in the regulatory, economic, or technological
34
environment of the debtor that results in a significant decrease in the debtor’s ability to meet
its debt obligations.
Irrespective of the outcome of the above assessment, the [Group] presumes that the credit risk
on a financial asset has increased significantly since initial recognition when contractual payments
are more than 30 days past due, unless the [Group] has reasonable and supportable information
that demonstrates otherwise.
Despite the foregoing, the [Group] assumes that the credit risk on a financial instrument has not
increased significantly since initial recognition if the financial instrument is determined to have low
credit risk at the reporting date.
A financial instrument is determined to have low credit risk if:

 The financial instrument has a low risk of default;
 The debtor has a strong capacity to meet its contractual cash flow obligations in the near
term; and
 Adverse changes in economic and business conditions in the longer term may, but will not
necessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations.
PFRS 7.35F (a)(i) The [Group] considers a financial asset to have low credit risk when the asset has external credit
rating of ‘investment grade’ in accordance with the globally understood definition or if an external
rating is not available, the asset has an internal rating of ‘performing’. Performing means that the
counterparty has a strong financial position and there is no past due amounts.
For financial guarantee contracts, the date that the [Group] becomes a party to the irrevocable
commitment is considered to be the date of initial recognition for the purposes of assessing the
financial instrument for impairment. In assessing whether there has been a significant increase in
the credit risk since initial recognition of a financial guarantee contracts, the [Group] considers the
changes in the risk that the specified debtor will default on the contract.
The [Group] regularly monitors the effectiveness of the criteria used to identify whether there has
been a significant increase in credit risk and revises them as appropriate to ensure that the
criteria are capable of identifying significant increase in credit risk before the amount becomes
past due.
PFRS 7.35F(b)
PFRS 9.B5.37
Default
The [Group] considers the following as constituting an event of default for internal credit risk
management purposes as historical experience indicates that financial assets that meet either of
the following criteria are generally not recoverable:
 when there is a breach of financial covenants by the debtor; or
 information developed internally or obtained from external sources indicates that the debtor is
unlikely to pay its creditors, including the [Group], in full (without taking into account any
collateral held by the [Group]).
Irrespective of the above analysis, the [Group] considers that default has occurred when a
financial asset is more than 90 days past due unless the Group has reasonable and supportable
information to demonstrate that a more lagging default criterion is more appropriate.
Critical to the determination of ECL is the definition of default. The definition of default is used in
measuring the amount of ECL and in the determination of whether the loss allowance is based on
12-month or lifetime ECL, as default is a component of the probability of default (PD) which
affects both the measurement of ECLs and the identification of a significant increase in credit risk.
[Disclose if the entity has an overdraft] – this is only applicable for banks
Overdrafts are considered as being past due once the customer has breached an advised limit or
has been advised of a limit smaller than the current amount outstanding. The definition of default
is appropriately tailored to reflect different characteristics of different types of assets. Overdrafts
are considered as being past due once the customer has breached an advised limit or has been
advised of a limit smaller than the current amount outstanding.
PFRS 9 Appendix A
PFRS 7.35F (d)
Credit-impaired financial assets
PFRS 7.35G (a)(iii)
A financial asset is credit-impaired when one or more events that have a detrimental impact on
35
the estimated future cash flows of the financial asset have occurred. Evidence of credit-
impairment includes observable data about the following events:
 significant financial difficulty of the borrower or issuer;
 a breach of contract such as a default or past due event;
 the lender of the borrower, for economic or contractual reasons relating to the borrower’s
financial difficulty, having granted to the borrower a concession that the lender would not
otherwise consider;
 it is becoming probable that the borrower will enter bankruptcy or other financial
reorganization;
 the disappearance of an active market for a security because of financial difficulties; or
 the purchase of a financial asset at a deep discount that reflects the incurred credit losses.
PFRS 9 Appendix A It may not be possible to identify a single discrete event—instead, the combined effect of several
events may have caused financial assets to become credit-impaired. The [Group] assesses
whether debt instruments that are financial assets measured at amortized cost or FVOCI are
credit-impaired at each reporting date. To assess if debt instruments are credit impaired, the
[Group] considers factors such as bond yields, credit ratings and the ability of the borrower to
raise funding.
PFRS 7.35F (e)

PFRS 9.5.4.4
Write-off
The [Group] writes off a financial asset when there is information indicating that the debtor is in
severe financial difficulty and there is no realistic prospect of recovery, [Disclose the scenario
when the entity writes off its financial assets] when the debtor has been placed under liquidation
or has entered into bankruptcy proceedings, or in the case of trade receivables, when the amounts
are over two years past due, whichever occurs sooner.
Financial assets written off may still be subject to enforcement activities under the [Group]’s
recovery procedures, taking into account legal advice where appropriate. Any recoveries made are
PFRS 7.35G (a) Measurement and recognition of expected credit losses

The measurement of ECL is a function of the probability of default, loss given default (i.e. the
magnitude of the loss if there is a default) and the exposure at default. The assessment of the
probability of default and loss given default is based on historical data adjusted by forward -looking
information.
As for the exposure at default, for financial assets, this is represented by the assets’ gross
carrying amount at the reporting date; for financial guarantee contracts, the exposure includes
the amount drawn down as at the reporting date, together with any additional amounts expected
to be drawn down in the future by default date determined based on historical trend, the
[Group]’s understanding of the specific future financing needs of the debtors, and other relevant
forward-looking information.
For financial assets, the ECL is estimated as the difference between all contractual cash flows that
are due to the [Group] in accordance with the contract and all the cash flows that the [Group]
expects to receive, discounted at the original effective interest rate. For a lease receivable, the
cash flows used for determining the ECL is consistent with the cash flows used in measuring the
lease receivable in accordance with PFRS 16, Leases.
For a financial guarantee contract, as the [Group] is required to make payments only in the event
of a default by the debtor in accordance with the terms of the instrument that is guaranteed, the
expected loss allowance is the expected payments to reimburse the holder for a credit loss that it
incurs less any amounts that the [Group] expects to receive from the holder, the debtor or any
other party.
If the [Group] has measured the loss allowance for a financial instrument at an amount equal to
lifetime ECL in the previous reporting period, but determines at the current reporting date that the
conditions for lifetime ECL are no longer met, the [Group] measures the loss allowance at an
amount equal to 12-month ECL at the current reporting date, except for assets for which simplified
approach was used.
36
The [Group] recognizes an impairment gain or loss in profit or loss for all financial instruments
with a corresponding adjustment to their carrying amount through a loss allowance account,
except for investments in debt instruments that are measured at FVOCI, for which the loss
allowance is recognized in other comprehensive income and accumulated in the investment
revaluation reserve, and does not reduce the carrying amount of the financial asset in the
statement of financial position.
PAS 1.54
PAS 1.58
Presentation of allowance for ECL in the statement of financial position
PAS 1.82
PFRS9.5.5.2 Loss allowances for ECL are presented in the statement of financial position as follows:
PFRS 7.16A  for financial assets measured at amortized cost: as a deduction from the gross carrying
amount of the assets;
 for debt instruments measured at FVOCI: no loss allowance is recognized in the statement of
financial position as the carrying amount is at fair value. However, the loss allowance is
included as part of the revaluation amount in the investments revaluation reserve; and
 for loan commitments and financial guarantee contracts: as a provision.
PFRS 9.5.5.13-14 Purchased or originated credit-impaired (POCI) financial assets

POCI financial assets are treated differently because the asset is credit-impaired at initial
recognition. For these assets, the [Group] recognizes all changes in lifetime ECL since initial
recognition as a loss allowance with any changes recognized in profit or loss. A favorable change
for such assets creates an impairment gain.
PFRS 9.3.2.3
PFRS 9.5.4.3
[Disclose if the entity has modified a financial asset]
PFRS 7.35F Modification
A modification of a financial asset occurs when the contractual terms governing the cash flows of a
financial asset are renegotiated or otherwise modified between initial recognition and maturity of
the financial asset. Modification affects the amount and/or timing of the contractual cash flows
either immediately or at a future date.
In addition, the introduction or adjustment of existing covenants of an existing loan would

constitute a modification even if these new or adjusted covenants do not yet affect the cash flows
immediately but may affect the cash flows depending on whether the covenant is or is not met.
PFRS 9.5.5.12 When a financial asset is modified the [Group] assesses whether this modification results in
derecognition. In accordance with the [Group]’s policy a modification results in derecognition
when it gives rise to substantially different terms.
To determine if the modified terms are substantially different from the original contractual terms
the [Group] considers the following:
 Qualitative factors, such as contractual cash flows after modification are no longer solely
payments of principal and interest, change in currency or change of counterparty, the extent
of change in interest rates, maturity, covenants. If these do not clearly indicate a substantial
modification, then;
 A quantitative assessment is performed to compare the present value of the remaining
contractual cash flows under the original terms with the contractual cash flows under the
revised terms, both amounts discounted at the original effective interest.
 If the difference in present value is greater than [X]% the [Group] deems the arrangement is
substantially different leading to derecognition.
PFRS 7.B8B
PFRS 9.5.5.3
In the case where the financial asset is derecognized the loss allowance for ECL is remeasured at
the date of derecognition to determine the net carrying amount of the asset at that date. The
difference between this revised carrying amount and the fair value of the new financial asset with
the new terms will lead to a gain or loss on derecognition.
The new financial asset will have a loss allowance measured based on 12-month ECL except in the
rare occasions where the new loan is considered to be originated credit impaired. This applies only
in the case where the fair value of the new loan is recognized at a significant discount to its
revised par amount because there remains a high risk of default which has not been reduced by
the modification.
The [Group] monitors credit risk of modified financial assets by evaluating qualitative and
quantitative information, such as if the borrower is in past due status under the new terms.
37
PFRS 7.B8B
PFRS 9.5.5.3
When the contractual terms of a financial asset are modified and the modification does not result
in derecognition, the [Group] determines if the financial asset’s credit risk has increased
significantly since initial recognition by comparing:
 the remaining lifetime probability of default estimated based on data at initial recognition and
the original contractual terms; with
 the remaining lifetime probability of default at the reporting date based on the modified terms.
PFRS 9.5.4.3 Where a modification does not lead to derecognition the [Group] calculates the modification
gain/loss comparing the gross carrying amount before and after the modification (excluding the
ECL allowance). Then the [Group] measures ECL for the modified asset, where the expected cash
flows arising from the modified financial asset are included in calculating the expected cash
shortfalls from the original asset.
PFRS 9.3.2.3 Derecognition

The [Group] derecognizes a financial asset only when the contractual rights to the asset’s cash
flows expire or when the financial asset and substantially all the risks and rewards of ownership of
the asset are transferred to another entity. If the [Group] neither transfers nor retains
substantially all the risks and rewards of ownership and continues to control the transferred asset,
the [Group] recognizes its retained interest in the asset and an associated liability for amounts it
may have to pay. If the [Group] retains substantially all the risks and rewards of ownership of a
transferred financial asset, the [Group] continues to recognize the financial asset and also
recognizes a collateralized borrowing for the proceeds received.
PFRS 9.3.2.12 [Disclose if financial assets are derecognized in its entirety]

On derecognition of a financial asset in its entirety, the difference between the asset’s carrying
amount and the sum of the consideration received and receivable and the cumulative gain/loss
that had been recognized in OCI and accumulated in equity is recognized in profit or loss, with the
exception of equity investment designated as measured at FVOCI, where the cumulative gain/loss
previously recognized in OCI is not subsequently reclassified to profit or loss, but is transferred to
retained earnings.
PFRS 9.3.2.13 [Disclose if financial assets are derecognized in other than its entirety]
On derecognition of a financial asset other than in its entirety, the [Group] allocates the previous
carrying amount of the financial asset between the part it continues to recognize under continuing
involvement, and the part it no longer recognizes on the basis of the relative fair values of those
parts on the date of the transfer. The difference between the carrying amount allocated to the
part that is no longer recognized and the sum of the consideration received for the part no longer
recognized and any cumulative gain/loss allocated to it that had been recognized in OCI is
recognized in profit or loss. A cumulative gain/loss that had been recognized in OCI is allocated
between the part that continues to be recognized and the part that is no longer recognized on the
basis of the relative fair values of those parts. This does not apply for equity investments
designated as measured at FVOCI, as the cumulative gain/loss previously recognized in OCI is not
subsequently reclassified to profit or loss.
PFRS 7.21 Financial Liabilities and Equity Instruments
Classification as debt or equity

Debt and equity instruments are classified as either financial liabilities or as equity in accordance
with the substance of the contractual arrangements and the definitions of a financial liability and
an equity instrument.
Financial liabilities
All financial liabilities are measured subsequently at amortized cost using the effective interest
method or at FVTPL. Financial liabilities are classified as either financial liabilities ‘at FVTPL’ or
‘other financial liabilities’.
PFRS 9.4.2.1
PFRS 9.3.1.1
Financial liabilities at FVTPL
PFRS 9.Appendix A
Financial liabilities are classified as at FVTPL when the financial liability is (i) held for trading, or
(ii) it is designated as at FVTPL.
38
A financial liability is classified as held for trading if:

 it has been incurred principally for the purpose of repurchasing it in the near term; or
 on initial recognition it is part of a portfolio of identified financial instruments that the Group
manages together and has a recent actual pattern of short-term profit-taking; or
 it is a derivative that is not designated and effective as a hedging instrument.
PFRS 9.4.2.2
PFRS 9.4.3.5
A financial liability other than a financial liability held for trading or contingent consideration that
may be paid by an acquirer as part of a business combination may be designated as at FVTPL
upon initial recognition if:
 such designation eliminates or significantly reduces a measurement or recognition
inconsistency that would otherwise arise; or
 the financial liability forms part of a group of financial assets or financial liabilities or both,
which is managed and its performance is evaluated on a fair value basis, in accordance with
the [Group]’s documented risk management or investment strategy, and information about
the grouping is provided internally on that basis; or
 it forms part of a contract containing one or more embedded derivatives, and PFRS 9 permits
the entire hybrid contract to be designated as at FVTPL.
PFRS 9.5.7.7-8
PFRS 9.5.7.9
Financial liabilities at FVTPL are measured at fair value, with any gains/losses arising on
PFRS 9.B5.7.6 remeasurement recognized in profit or loss to the extent that they are not part of a designated
hedging relationship. The net gain/loss recognized in profit or loss incorporates any interest paid
on the financial liability and is included in profit or loss.
PFRS 9.5.7.7 However, for financial liabilities that are designated as at FVTPL, the amount of change in the fair
value of the financial liability that is attributable to changes in the credit risk of that liability is
recognized in OCI, unless the recognition of the effects of changes in the liability’s credit risk in
OCI would create or enlarge an accounting mismatch in profit or loss. The remaining amount of
change in the fair value of liability is recognized in profit or loss. Changes in fair value attributable
to a financial liability’s credit risk that are recognized in OCI are not subsequently reclassified to
profit or loss; instead, they are transferred to retained earnings upon derecognition of the financial
liability.
PFRS 9.5.7.1 Gains or losses on financial guarantee contracts issued by the [Group] that are designated by the
[Group] as at FVTPL are recognized in profit or loss.
PFRS 9.5.7.7 In making the determination of whether recognizing changes in the liability’s credit risk in OCI will
create or enlarge an accounting mismatch in profit or loss, the [Group] assesses whether it
expects that the effects of changes in the liability’s credit risk will be offset in profit or loss by a
change in the fair value of another financial instrument measured at FVTPL. This determination is
made at initial recognition.
[Disclose if the company only has financial liabilities measured at amortized cost.]
Since the company does not have financial liabilities classified at FVTPL, all financial liabilities are
subsequently measured at amortized cost.
PFRS 9.4.2.1 Financial liabilities measured subsequently at amortized cost

Financial liabilities that are not (i) contingent consideration of an acquirer in a business
combination, (ii) held-for-trading, or (iii) designated as at FVTPL, are measured subsequently at
amortized cost using the effective interest method.
PFRS 9.Appenix A The effective interest method is a method of calculating the amortized cost of a financial liability
and of allocating interest expense over the relevant period. The effective interest rate is the rate
that exactly discounts estimated future cash payments (including all fees and points paid or
received that form an integral part of the effective interest rate, transaction costs and other
premiums or discounts) through the expected life of the financial liability, or (where appropriate) a
shorter period, to the amortized cost of a financial liability.
[Disclose if the entity has financial guarantee contract liabilities]

Financial guarantee contract liabilities
A financial guarantee contract is a contract that requires the issuer to make specified payments to
reimburse the holder for a loss it incurs because a specified debtor fails to make payments when
due in accordance with the terms of a debt instrument.
39
Financial guarantee contract liabilities are measured initially at their fair values and, if not
designated as at FVTPL and do not arise from a transfer of an asset, are measured subsequently
at the higher of:
 the amount of the loss allowance determined in accordance with PFRS 9; and
 the amount recognized initially less, where appropriate, cumulative amortization recognized.
[Disclose if there are financial liabilities denominated in foreign currency]

Foreign exchange gains and losses
For financial liabilities that are denominated in a foreign currency and are measured at amortized
cost at the end of each reporting period, the foreign exchange gains and losses are determined
based on the amortized cost of the instruments.
These foreign exchange gains and losses are recognized in the ‘other gains and losses’ line item in
profit or loss for financial liabilities that are not part of a designated hedging relationship. For
those which are designated as a hedging instrument for a hedge of foreign currency risk foreign
exchange gains and losses are recognized in other comprehensive income and accumulated in a
separate component of equity.
The fair value of financial liabilities denominated in a foreign currency is determined in that foreign
currency and translated at the spot rate at the end of the reporting period. For financial liabilities
that are measured as at FVTPL, the foreign exchange component forms part of the fair value gains
or losses and is recognized in profit or loss for financial liabilities that are not part of a designated
hedging relationship.
PAS 32.42 Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the statements of financial
position when there is a legally enforceable right to offset the recognized amounts and there is an
intention to settle on a net basis or realize the asset and settle the liability simultaneously.
A right to offset must be available today rather than being contingent on a future event and must
be exercisable by any of the counterparties, both in the normal course of business and in the
event of default, insolvency or bankruptcy.
PAS 32.42 [Disclose if applicable]

The [Group] does not offset the transferred asset and the associated liability if the transfer of a
financial asset does not qualify for derecognition.
PFRS 9.3.3.1-2
PFRS 9.B3.3.6
Derecognition of financial liabilities
The Group derecognizes financial liabilities when, and only when, the [Group]’s obligations are
discharged, cancelled or have expired. The difference between the carrying amount of the financial
liability derecognized and the consideration paid and payable is recognized in profit or loss.
PFRS 9.3.3.2 When the [Group] exchanges with the existing lender one debt instrument into another one with
substantially different terms, such exchange is accounted for as an extinguishment of the original
financial liability and the recognition of a new financial liability. Similarly, the [Group] accounts for
substantial modification of terms of an existing liability or part of it as an extinguishment of the
original financial liability and the recognition of a new liability. It is assumed that the terms are
substantially different if the discounted present value of the cash flows under the new terms,
including any fees paid net of any fees received and discounted using the original effective rate is
at least 10 percent different from the discounted present value of the remaining cash flows of the
original financial liability.
If the modification is not substantial, the difference between: (1) the carrying amount of the
liability before the modification; and (2) the present value of the cash flows after modification
should be recognized in profit or loss as a modification gain or loss within other gains and losses.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the [Group]
after deducting all of its liabilities. Equity instruments issued by [Group] are recognized at the
proceeds received, net of direct issue costs.
40
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
shares or options are considered as a deduction from the proceeds, net of tax.
[Disclose if the entity has preference shares]

Preference shares
Preference share capital is classified as equity if it is non-redeemable, or redeemable only at the
[Group]’s option, and any dividends are discretionary dividends thereon are recognized as
distribution within equity upon approval by the [Group]’s shareholders.
Preference shares are classified as a financial liability if it is redeemable on a specific date or at the
option of the shareholders, or if dividend payments are not discretionary. Non-discretionary
dividends thereon are recognized as interest expense in profit or loss as accrued.
Retained earnings
Retained earnings represent accumulated profit attributable to equity holders of the [Group] after
deducting dividends declared. Retained earnings may also include effect of changes in accounting
policy as may be required by the standard’s transitional provisions.
[Disclose if the entity is in a deficit position]

Deficit
Deficit represents accumulated losses incurred by the [Group]. Deficit may also include effect of
changes in accounting policy as may be required by the standard’s transitional provisions.
[Disclose if the entity has treasury shares]

Repurchase, disposal and reissue of shares capital (treasury shares)
When share capital recognized as equity is repurchased, the amount of the consideration paid,
which include directly attributable cost, net of any tax effects, is recognized as a reduction from
equity. Repurchased shares are classified as treasury shares and are presented in the reserve for
own share account. When treasury shares are sold or reissued subsequently, the amount received
is recognized as increase in equity, and the resulting surplus or deficit on the transaction is
presented in non-distributable capital reserve.
[Disclose if entity distributes non-cash assets to owners]

Distribution of non-cash assets to owners of the [Group]
The [Group] measures a liability to distribute non-cash asset as a dividend to the owners of the
[Group] at fair value of the assets to be distributed. The carrying amount of the dividend is
remeasured at the end of each reporting period and at the settlement date, with any changes
recognized directly in equity as adjustments to the amount of the distribution. On settlement of
the transaction, the group recognized the difference, if any, between the carrying amounts of the
assets distributed and the carrying amount of the liability in profit or loss.
[Disclose if the entity is a Branch]

Head office account
The [Branch or Representative Office] classifies home office account as equity since it represents a
residual interest in the assets of the [Branch or Representative Office] after deduction of all of its
liabilities. This includes remittances from head office, and the results of operations of the [Branch
or Representative Office].
[Disclose if the entity has compound instruments]

Compound instruments
The component parts of convertible loan notes issued by the [Group] are classified separately as
financial liabilities and equity in accordance with the substance of the contractual arrangements
and the definitions of a financial liability and an equity instrument. A conversion option that will be
settled by the exchange of a fixed amount of cash or another financial asset for a fixed number of
the [Group]’s own equity instruments is an equity instrument.
At the date of issue, the fair value of the liability component is estimated using the prevailing
41
market interest rate for a similar non-convertible instrument. This amount is recorded as a liability
on an amortized cost basis using the effective interest method until extinguished upon conversion
or at the instrument’s maturity date.
The conversion option classified as equity is determined by deducting the amount of the liability
component from the fair value of the compound instrument as a whole. This is recognized and
included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the
conversion option classified as equity will remain in equity until the conversion option is exercised,
in which case, the balance recognized in equity will be transferred to [share premium/other equity
[describe]]. Where the conversion option remains unexercised at the maturity date of the
convertible loan note, the balance recognized in equity will be transferred to [retained
profits/other equity [describe]]. No gain or loss is recognized in profit or loss upon conversion or
expiration of the conversion option.
Transaction costs that relate to the issue of the convertible loan notes are allocated to the liability
and equity components in proportion to the allocation of the gross proceeds. Transaction costs
relating to the equity component are recognized directly in equity. Transaction costs relating to the
liability component are included in the carrying amount of the liability component and are
amortized over the lives of the convertible loan notes using the effective interest method.
SEC FRB No. 6
[Disclose if there are Deposit for future stock subscription]

Deposit for Future Stock Subscription
The [Group] classifies deposits received from stockholders for future stock subsection under Equity
if all criteria are met as provided in SEC Financial Reporting Bulletin No. 6:
• The unissued authorized capital is insufficient to cover the subscription;
• The Board of Directors and Stockholders approved the increase in authorized share capital (for
which a deposit was received by the corporation); and
• The application for the approval of the proposed increase has been presented for filing or has
been filed with the SEC.
Otherwise, it is presented as liability as non-current liability.
PFRS 7.21 [Disclose if the entity has derivative financial instruments/hedge accounting]
Derivative Financial Instruments
The [Group] enters into a variety of derivative financial instruments to manage its exposure to
interest rate and foreign exchange rate risks, including foreign exchange forward contracts,
interest rate swaps and cross currency swaps. The use of financial derivatives is governed by the
[Group]’s policies approved by the BOD, which provide written principles on the use of financial
derivatives.
Derivatives are initially recognized at fair value at the date a derivative contract is entered into
and are subsequently remeasured to their fair value at each reporting date. The resulting
gain/loss is recognized in profit or loss immediately unless the derivative is designated and
effective as a hedging instrument, in which event the timing of the recognition in profit or loss
depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognized as a financial asset whereas a derivative with a
negative fair value is recognized as a financial liability. Derivatives are not offset in the financial
statements unless the Group has both legal right and intention to offset. A derivative is presented
as a non-current asset or a non-current liability if the remaining maturity of the instrument is
more than 12 months and it is not expected to be realized or settled within 12 months. Other
derivatives are presented as current assets or current liabilities.
PFRS 9.4.3.3 [If entity has embedded derivatives]

An embedded derivative is a component of a hybrid contract that also includes a non-derivative
host – with the effect that some of the cash flows of the combined instrument vary in a way
similar to a stand-alone derivative.
Derivatives embedded in hybrid contracts with a financial asset host within the scope of PFRS 9
are not separated. The entire hybrid contract is classified and subsequently measured as either
amortized cost or fair value as appropriate.
42
Derivatives embedded in hybrid contracts with hosts that are not financial assets within the scope
of PFRS 9 (e.g. financial liabilities) are treated as separate derivatives when they meet the
definition of a derivative, their risks and characteristics are not closely related to those of the host
contracts and the host contracts are not measured at FVTPL.
If the hybrid contract is a quoted financial liability, instead of separating the embedded derivative,
the Group generally designates the whole hybrid contract at FVTPL.
An embedded derivative is presented as a non-current asset or non-current liability if the

remaining maturity of the hybrid instrument to which the embedded derivative relates is more
than 12 months and is not expected to be realized or settled within 12 months.
PFRS 7.21 [Disclose if Hedge accounting is applicable]

Hedge Accounting
The [Group] designates certain derivatives as hedging instruments in respect of foreign currency
risk and interest rate risk in fair value hedges, cash flow hedges, or hedges of net investments in
foreign operations as appropriate. Hedges of foreign exchange risk on firm commitments are
accounted for as cash flow hedges. The [Group] does not apply fair value hedge accounting of
portfolio hedges of interest rate risk.
PFRS 9.6.4.1 At the inception of the hedge relationship, the [Group] documents the relationship between the
hedging instrument and the hedged item, along with its risk management objectives and its
strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge
and on an ongoing basis, the [Group] documents whether the hedging instrument is effective in
offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk,
which is when the hedging relationships meet all of the following hedge effectiveness
requirements:
PFRS 9.6.4.1(c)
• there is an economic relationship between the hedged item and the hedging instrument;
• the effect of credit risk does not dominate the value changes that result from that economic
relationship; and
• the hedge ratio of the hedging relationship is the same as that resulting from the quantity of
the hedged item that the [Group] actually hedges and the quantity of the hedging instrument
that the [Group] actually uses to hedge that quantity of hedged item.
PFRS 9.6.5.16 The [Group] rebalances a hedging relationship in order to comply with the hedge ratio
requirements when necessary. In such cases discontinuation may apply to only part of the
hedging relationship.
PFRS 9.6.5.5 If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the
hedge ratio but the risk management objective for that designated hedging relationship remains
the same, the [Group] adjusts the hedge ratio of the hedging relationship (i.e. rebalances the
hedge) so that it meets the qualifying criteria again.
The [Group] designates the full change in the fair value of a forward contract (i.e. including the
forward elements) as the hedging instrument for all of its hedging relationships involving forward
contracts.
PFRS 9.6.2.4
The [Group] designates only the intrinsic value of option contracts as a hedged item, i.e.
excluding the time value of the option. The changes in the fair value of the aligned time value of
the option are recognized in other comprehensive income and accumulated in the cost of hedging
reserve.
If the hedged item is transaction-related, the time value is reclassified to profit or loss when the
hedged item affects profit or loss. If the hedged item is time -period related, then the amount
accumulated in the cost of hedging reserve is reclassified to profit or loss on a rational basis – the
[Group] applies straight-line amortization.
Those reclassified amounts are recognized in profit or loss in the same line as the hedged item. If
the hedged item is a non-financial item, then the amount accumulated in the cost of hedging
reserve is removed directly from equity and included in the initial carrying amount of the
recognized non-financial item. Furthermore, if the [Group] expects that some or all of the loss
43
accumulated in cost of hedging reserve will not be recovered in the future, that amount is
immediately reclassified to profit or loss.
PFRS 9.6.5.16 In some hedge relationships the [Group] excludes from the designation the forward element of
forward contracts or the currency basis spread of cross currency hedging instruments. In this case
a similar treatment is applied to the one applied for the time value of options. The treatment for
the forward element of a forward and the currency basis element is optional and the option is
applied on a hedge by hedge basis, unlike the treatment for the time value of the options which is
mandatory. For hedge relationships with forwards or foreign currency derivatives such as cross
currency interest rate swaps, where the forward element or the currency basis spread is excluded
from the designation the [Group] generally recognizes the excluded element in OCI.
PFRS 7.21
PFRS 9.6.5.2 (a)
[If entity has fair value hedge transactions]
Fair value hedge
The fair value change on qualifying hedging instruments is recognized in profit or loss except
when the hedging instrument hedges an equity instrument designated at FVOCI in which case it is
recognized in OCI.
The [Group] has not designated fair value hedge relationships where the hedging instrument
hedges an equity instrument designated at FVOCI.
PFRS 9.6.5.8 The carrying amount of a hedged item not already measured at fair value is adjusted for the fair
value change attributable to the hedged risk with a corresponding entry in profit or loss. For debt
instruments measured at FVOCI, the carrying amount is not adjusted as it is already at fair value,
but the part of the fair value gain or loss on the hedged item associated with the hedged risk is
recognized in profit or loss instead of OCI. When the hedged item is an equity instrument
designated at FVOCI, the hedging gain/loss remains in OCI to match that of the hedging
instrument.
PFRS 9.6.5.7
PFRS 9.6.5.10
Where hedging gains/losses are recognized in profit or loss, they are recognized in the same line
as the hedged item.
The [Group] discontinues hedge accounting only when the hedging relationship (or a part thereof)
ceases to meet the qualifying criteria (after rebalancing, if applicable). This includes instances
when the hedging instrument expires or is sold, terminated or exercised. The discontinuation is
accounted for prospectively. The fair value adjustment to the carrying amount of hedged item for
which the effective interest rate method is used (i.e. debt instruments measured at amortized
cost or at FVOCI) arising from the hedged risk is amortized to profit or loss commencing no later
than the date when hedge accounting is discontinued.
PFRS 7.21
PFRS 9.6.5.11
[If entity has cash flow hedge transactions]
Cash flow hedge
The effective portion of changes in the fair value of derivatives and other qualifying hedging
instruments that are designated and qualify as cash flow hedges is recognized in the cash flow
hedging reserve, a separate component of OCI, limited to the cumulative change in fair value of
the hedged item from inception of the hedge less any amounts recycled to profit or loss.
PFRS 9.6.5.11 Amounts previously recognized in OCI and accumulated in equity are reclassified to profit or loss
in the periods when the hedged item affects profit or loss, in the same line as the recognized
hedged item. If the [Group] no longer expects the transaction to occur that amount is
immediately reclassified to profit or loss.
PFRS 9.6.5.7
PFRS 9.6.5.12
The [Group] discontinues hedge accounting only when the hedging relationship (or a part thereof)
ceases to meet the qualifying criteria (after rebalancing, if applicable). This includes instances
when the hedging instrument expires or is sold, terminated or exercised, or where the occurrence
of the designated hedged forecast transaction is no longer considered to be highly probable. The
discontinuation is accounted for prospectively. Any gain/loss recognized in OCI and accumulated
in equity at that time remains in equity and is recognized when the forecast transaction is
ultimately recognized in profit or loss. When a forecast transaction is no longer expected to occur,
the gain/loss accumulated in equity is reclassified and recognized immediately in profit or loss.
PFRS 7.21
PFRS 9.6.5.13 & 14
[If entity has hedging of net investment in foreign operations]
Hedge of net investment in foreign operations
44
Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges.
Any gain/loss on the hedging instrument relating to the effective portion of the hedge is
recognized in OCI and accumulated in the foreign currency translation reserve. The gain or loss
relating to the
ineffective portion is recognized immediately in profit or loss, and is included in the ‘other gains
and losses’ line item. Gains and losses on the hedging instrument accumulated in the foreign
currency translation reserve are reclassified to profit or loss on the disposal or partial disposal of
the foreign operation.
Guidance Note:
[For manufacturing] Costs comprise direct materials and when applicable, direct labor costs and those overheads
that have been incurred in bringing the inventories to their present location and condition. Also state the method
used in calculating inventory cost.
PAS 2.36(a)
PAS 2.9
Inventories
Inventories are initially measured at cost. Subsequently, inventories are stated at the lower of
cost and net realizable value. The costs of inventories are calculated using the [first-in, first-out
method.] Net realizable value represents the estimated selling price less all estimated costs of
completion and costs necessary to make the sale.
When the net realizable value of the inventories is lower than the cost, the [Group] provides for
an allowance for the decline in the value of the inventory and recognizes the write-down as an
expense in profit or loss. The amount of any reversal of any write-down of inventories, arising
from an increase in net realizable value, is recognized as a reduction in the amount of inventories
recognized as an expense in the period in which the reversal occurs.
PAS 2.34 When inventories are sold, the carrying amount of those inventories is recognized as an expense
in the period in which the related revenue is recognized.
Prepayments
Prepayments represent expenses not yet incurred but already paid in cash. Prepayments are
initially recorded as assets and measured at the amount of cash paid. Subsequently, these are
charged to profit or loss as they are consumed in operations or expire with the passage of time.
Prepayments are classified in the statements of financial position as current assets when the cost
of goods or services related to the prepayments are expected to be incurred within one year or
the [Group]’s normal operating cycle, whichever is longer. Otherwise, prepayments are classified
as non-current assets.
PAS 28.3 Investments in Associates and Joint Ventures

An associate is an entity over which [Group] has significant influence and that is neither a
subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the
financial and operating policy decisions of the investee but not control or joint control over those
policies.
PAS 28.3 A joint venture is a joint arrangement whereby the parties that have joint control of the
arrangement have rights to the net assets of the joint arrangement. Joint control is the
contractually agreed sharing of control of an arrangement, which exists only when decisions about
the relevant activities require unanimous consent of the parties sharing control.
PAS 28.10
PAS 28.15
The results and assets and liabilities of associates or joint ventures are incorporated in these
financial statements using the equity method of accounting, except when the investment is
classified as held for sale, in which case it is accounted for in accordance with PFRS 5, Non-current
Assets Held for Sale and Discontinued Operations.
Under the equity method, an investment in an associate or a joint venture is recognized initially in
the consolidated statement of financial position at cost and adjusted thereafter to recognize the
[Group]’s share of the profit or loss and other comprehensive income of the associate or joint
venture. When the [Group]’s share of losses of an associate or a joint venture exceeds the
[Group]’s interest in that associate or joint venture (which includes any long -term interests that,
in substance, form part of the [Group]’s net investment in the associate or joint venture), the
[Group] discontinues recognizing its share of further losses. Additional losses are recognized only
45
to the extent that the [Group] has incurred legal or constructive obligations or made payments on
behalf of the associate or joint venture.
PAS 28.32 An investment in an associate or a joint venture is accounted for using the equity method from
the date on which the investee becomes an associate or a joint venture. Any excess of the cost of
acquisition over the [Group]’s share of the fair values of the identifiable net assets of the associate
or joint venture at the date of acquisition is recognized as goodwill, which is included within the
carrying amount of the investments and is assessed for impairment as part of that investment.
Any deficiency of the cost of acquisition below the [Group]’s share of the fair values of the
identifiable net assets of the associate at the date of acquisition, i.e. discount on acquisition is
immediately recognized in profit or loss in the period of acquisition.
PAS 28.16
PAS 28.10
The results of operations and assets and liabilities of associates or joint venture are incorporated
PAS 28.38 in these consolidated financial statements using the equity method of accounting, except when the
investment is classified as held-for-sale in which measured at lower of carrying amount and fair
value less cost to sell. Under the equity method, investments in associates or joint venture are
carried in the statements of financial position at cost and adjusted thereafter to recognize the
[Group]’s share of the profit or loss and other comprehensive income of the associate or joint
venture. When the [Group]’s share of losses of an associate or joint venture exceeds the
[Group]'s interest in that associate or joint venture (which includes any long-term interests that,
in substance, form part of the [Group]'s net investment in the associate or joint venture), the
[Group] discontinues recognizing its share of further losses. Additional losses are recognized only
to the extent that the [Group] has incurred legal or constructive obligations or made payments on
behalf of the associate or joint venture.
PAS 28.40-43 The [Group]’s accounting policy for impairment of financial assets is applied to determine whether
it is necessary to recognize any impairment loss with respect to its investment in an associate or
joint venture. When necessary, the entire carrying amount of the investment (including goodwill)
is tested for impairment in accordance with the [Group]’s accounting policy on impairment of
tangible and intangible assets as a single asset by comparing its recoverable amount (higher of
value in use and fair value less costs to sell) with its carrying amount, any impairment loss
recognized forms part of the carrying amount of the investment. Any reversal of that impairment
loss is recognized to the extent that the recoverable amount of the investment subsequently
increases.
PAS 28.22 The [Group] discontinues to use the equity method from the date the investment ceases to be an
associate or joint venture, or when the investment is classified as held for sale. When the [Group]
retains interest in the former associate or joint venture and the retained interest is a financial
asset, the [Group] measures the retained interest at fair value at that date and the fair value is
regarded as its fair value on initial recognition in accordance with PFRS 9. The difference between
the carrying amount of the associate or joint venture at the date the equity method was
discontinued, and the fair value of any retained interest and any proceeds from disposing of a part
interest in the associate or joint venture is included in the determination of gain or loss on
disposal of the associate or joint venture. In addition, the [Group] accounts for all amounts
previously recognized in other comprehensive income in relation to that associate or joint venture
on the same basis as would be required if that associate or joint venture had directly disposed of
the related assets or liabilities. Therefore, if a gain or loss previously recognized in other
comprehensive income by that associate or joint venture would be reclassified to profit or loss on
the disposal of the related assets or liabilities, the [Group] reclassifies the gain or loss from equity
to profit or loss (as reclassification adjustment) when the equity method is discontinued.
PAS 28.25 When the [Group] reduces in its ownership interest in an associate or a joint venture but the
[Group] continues to use the equity method, the [Group] reclassifies to profit or loss the
proportion of the gain or loss that had previously been recognized in other comprehensive income
relating to that reduction in ownership interest if that gain or loss would be reclassified to profit or
loss on the disposal of the related assets or liabilities.
PAS 28.28 When a group entity transacts with an associate or a joint venture of the [Group], profits and
losses resulting from transactions with the associate or joint venture are recognized in the
[Group]’s consolidated financial statements only to the extent of interests in an associate or joint
venture that are not related to the [Group].
PAS 28.24 [Disclose if the entity has an investment in an associate that becomes a joint venture or vice
versa]
The [Group] continues to use the equity method when an investment in associate becomes an
46
investment in joint venture or an investment in joint venture becomes an investment in associate.

There are no remeasurement to fair value upon such changes in ownership interests.
[Disclose in case of separate FS and the entity uses cost method]

Investments in associate or joint venture are measured initially at cost. Subsequent to initial
recognition, the investment in associate or joint venture is carried in the [Company, Branch,
Bank, or any appropriate alternative]’s separate financial statements at cost less any accumulated
impairment losses.
PAS 28.40-43 The [Group]’s accounting policy for impairment of non-financial assets is applied to determine
whether it is necessary to recognize any impairment loss with respect to its investment in an
associate or joint venture. When necessary, the entire carrying amount of the investment
(including goodwill) is tested for impairment in accordance with the [Group]’s accounting policy on
impairment of tangible and intangible assets as a single asset by comparing its recoverable
amount (higher of value in use and fair value less costs to sell) with its carrying amount, any
impairment loss recognized forms part of the carrying amount of the investment. Any reversal of
that impairment loss is recognized to the extent that the recoverable amount of the investment
subsequently increases.
PFRS 10.B98 The investment in associate or joint venture is derecognized upon disposal or when no future
economic benefits are expected to arise from the investment. Gain or loss arising on the disposal
is determined as the difference between the sales proceeds and the carrying amount of the
investment in associate or joint venture and is recognized in profit or loss.
PFRS 11.15 Interests in Joint Operations

A joint operation is a joint arrangement whereby the parties that have joint control of the
arrangement have rights to the assets, and obligations for the liabilities, relating to the
arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which
exists only when decisions about the relevant activities require unanimous consent of the parties
sharing control.
PFRS 11.20 When a group undertakes its activities under joint operations, the [Group] as a joint operator
recognizes in relation to its interest in a joint operation:
 Its assets, including its share of any assets held jointly;
 Its liabilities, including its share of any liabilities incurred jointly;
 Its revenue from the sale of its share of the output arising from the joint operation;
 Its share of the revenue from the sale of the output by the joint operation; and
 Its expenses, including its share of any expenses incurred jointly.
The [Group] accounts for the assets, liabilities, revenues and expenses relating to its interest in a
joint operation in accordance with the PFRSs applicable to the particular assets, liabilities,
revenues and expenses.
PFRS 11.B34 When a group entity transacts with a joint operation in which a group entity is a joint operator
(such as a sale or contribution of assets), the [Group] is considered to be conducting the
transaction with the other parties to the joint operation, and gains and losses resulting from the
transactions are recognized in the [Group]’s consolidated financial statements only to the extent
of other parties’ interests in the joint operation.
PFRS 11.B36 When a group entity transacts with a joint operation in which a group entity is a joint operator
(such as a purchase of assets), the [Group] does not recognize its share of the gains and losses
until it resells those assets to a third party.
PFRS 10.Appendix
A
[For separate FS only]
Investments in Subsidiaries
A subsidiary is an entity, including an unincorporated entity such as a partnership, that is
controlled by the [Company].
Investments in subsidiaries are measured initially at cost. Subsequent to initial recognition,

investment in subsidiaries are carried in the [Company]’s separate financial statements at cost
less any accumulated impairment losses.
47
The [Company]’s accounting policy for impairment of financial assets are applied to determine
whether it is necessary to recognize any impairment loss with respect to its investment in
subsidiary. When necessary, the entire carrying amount of the investment (including goodwill) is
tested for impairment in accordance with the [Company]’s accounting policy on impairment of
tangible and intangible assets as a single asset by comparing its recoverable amount (higher of
value in use and fair value less costs to sell) with its carrying amount, any impairment loss
recognized forms part of the carrying amount of the investment. Any reversal of that impairment
loss is recognized to the extent that the recoverable amount of the investment subsequently
increases.
PFRS 10.B98 The investments in subsidiaries are derecognized upon disposal or when no future economic
benefits are expected to arise from the investment. Gain or loss arising on the disposal is
determined as the difference between the sales proceeds and the carrying amount of the
investment in subsidiary and is recognized in profit or loss.
PAS 40.10 Biological Assets

[If entity uses the fair value less cost to sell method]
Biological assets or agricultural produce are recognized only when the [Group] controls the assets
as a result of past events, it is probable that future economic benefits associated with the assets
will flow to the [Group] and the fair value or cost of the assets can be measured reliably.
PAS 41.12-13 [If entity is unable to measure fair value of biological assets reliably]
The [Group] measures its biological assets on initial recognition and at the end of each reporting
period at fair value less estimated costs to sell. Estimated costs to sell include commissions to
brokers and dealers, levies by regulatory agencies and commodity exchanges, and transfer taxes
and duties.
The [Group] measures certain biological assets at the end of each reporting period at its cost less
any accumulated depreciation and any accumulated impairment losses.
PAS 41.54 (d) & (e) [If entity uses the cost method for biological assets]
Depreciation is computed using the [method of depreciation, e.g. straight-line method, sum of the
years’ digits, etc.] based on the estimated useful lives of the assets as follows:
[Biological Asset 1] [No. of years]

PAS 40.13 [If entity has agricultural produce at point of harvest]

Harvested agricultural produce are also carried at fair value less estimated costs to sell at point of
harvest.
PAS 40.43-44 The [Group] classifies its biological assets between consumable and bearer biological assets.
Consumable biological assets are those that are to be harvested as agricultural produce or sold as
biological assets. The [Group] further classifies its bearer biological assets between mature or
immature biological assets.
PAS 40.26 [If entity uses the fair value less cost to sell method]
Gains or losses arising on the initial recognition and subsequent changes on the biological asset
fair value less estimated costs to sell asset are included in profit or loss for the period in which
they arise.
PAS 40.28 [If entity has agricultural produce at point of harvest]

Gains or losses arising on initial recognition of agricultural produce at fair value less estimated
costs to sell shall be included in profit or loss for the period in which it arises.
PAS 16.73(a) & (b)

PAS 16.11
Property, Plant and Equipment
PAS 16.15-17
Property, plant and equipment are initially measured at cost. The cost of an item of property,
plant and equipment comprises:
 its purchase price, including import duties and non-refundable purchase taxes, after deducting
trade discounts and rebates;
48
 any costs directly attributable to bringing the asset to the location and condition necessary for
it to be capable of operating in the manner intended by management; and
[If entity has asset retirement obligation]
 the initial estimate of the future costs of dismantling and removing the item and restoring the
site on which it is located, the obligation for which an entity incurs either when the item is
acquired or as a consequence of having used the item during a particular period for purposes
other than to produce inventories during that period.
[If entity has self-constructed assets/CIP]

PAS 16.22 The cost of self-constructed assets includes the cost of materials and direct labor, any other costs
directly attributable to bringing the assets to a working condition for their intended use, the costs
of dismantling and removing the items and restoring the site on which they are located, and
borrowing costs on qualifying assets.
[If entity has entered into cash flow hedge of foreign currency purchases of PPE]
Cost also may include transfers from other comprehensive income of any gain or loss on
qualifying cash flow hedges of foreign currency purchases of property, plant and equipment.
PAS 16.8 [If entity has major spare parts and stand-by equipment]
Major spare parts and stand-by equipment qualify as property, plant and equipment when the
[Group] expects to use them during more than one period. Similarly, if the spare parts and
servicing equipment can be used only in connection with an item of property, plant and
equipment, they are accounted for as property, plant and equipment.
PAS 38.4 [If entity has purchased software that is integral to PPE]
Purchased software that is integral to the functionality of the related equipment is capitalized as
part of that equipment.
[If entity has exchange transactions to acquire PPE]

PAS 16.24 When an item of property, plant and equipment is acquired in an exchange for non-monetary
asset/s, or a combination of monetary and non-monetary assets, the cost of that item is
measured at fair value unless:
 the exchange transaction lacks commercial substance; or
 the fair value of neither the asset received nor the asset given up is reliably measurable.
PAS 16.29 [If entity uses the cost method]

At the end of each reporting period, item of property, plant and equipment measured using the
cost model are carried at cost less any subsequent accumulated depreciation and impairment
losses.
PAS 16.31 [If entity has PPE carried using the revaluation method]
Property, plant and equipment are stated in the statements of financial position at their revalued
amounts, being the fair value at the date of revaluation, determined from market-based evidence
by appraisal undertaken by professional appraisers, less any subsequent accumulated
depreciation and subsequent accumulated impairment losses. Revaluations are performed with
sufficient regularity such that the carrying amounts do not differ materially from that which would
be determined using fair values at the end of each reporting period.
Any revaluation increase arising on the revaluation of such property, plant and equipment is
charged to other comprehensive income and accumulated in equity, except to the extent that it
reverses a revaluation decrease for the same asset previously recognized as an expense, in which
case the increase is charged to profit or loss to the extent of the decrease previously charged. A
decrease in carrying amount arising on the revaluation of such property, plant and equipment is
charged as an expense to the extent that it exceeds the balance, if any, held in the properties
revaluation surplus relating to a previous revaluation of that asset.
PAS 16.73(a) Properties in the course of construction for production, rental or administrative purposes, or for
purposes not yet determined, are carried at cost, less any recognized impairment loss. Cost
includes professional fees and for qualifying assets, borrowing costs capitalized in accordance with
the Group’s accounting policy. Depreciation of these assets, on the same basis as other property
assets, commences at the time the assets are ready for their intended use.
49
[If there are items reclassified to investment property ]

When the use of a property changes from owner-occupied to investment property, the property is
remeasured to fair value and reclassified as investment property. Any gain arising on re-
measurement is recognized in profit or loss to the extent the gain reverses a previous impairment
loss on the specific property, with any remaining gain recognized in other comprehensive income
and presented in the revaluation reserve in equity. Any loss is recognized in other comprehensive
income and presented in the revaluation reserve in equity to the extent that an amount had
previously been included in the revaluation reserve relating to the specific property, with any
remaining loss recognized immediately in profit or loss.
PAS 16.73(b) Depreciation is computed on the straight-line method (State the method of depreciation) based on
the estimated useful lives of the assets as follows:
PAS 16.73(c) Buildings 20 to 30 years
Plant and equipment 5 to 15 years
Equipment under finance lease 5 years
PAS 16.73(c) [If entity has leasehold improvement]

Leasehold improvements are depreciated over the improvements’ useful life of [number of years]
or when shorter, the term of the relevant lease.
PAS 16.73(c) [If entity has assets held under finance lease]
Assets held under finance leases are depreciated over their expected useful lives on the same
basis as owned assets. However, when there is no reasonable certainty that ownership will be
obtained by the end of the lease term, assets are depreciated over the shorter of the lease term
and their useful lives.
PAS 16.41 [If entity has stand-by equipment]

Stand-by equipment is depreciated from the date it is made available for use over the shorter of
the life of the stand-by equipment or the life of the asset the stand-by equipment is part of, while
major spare parts are depreciated over the period starting it is brought into service, continuing
over the lesser of its useful life and the remaining expected useful life of the asset to which it
relates.
An item of property, plant and equipment is derecognized upon disposal or when no future
PAS 16.67-68 economic benefits are expected to arise from the continued use of the asset. Gain or loss arising
on the disposal or retirement of an asset is determined as the difference between the sales
proceeds and the carrying amount of the asset and is recognized in profit or loss.
On the subsequent sale or retirement of a revalued property, plant and equipment, the
revaluation surplus attributable to the remaining in the properties revaluation reserve is
transferred directly to retained earnings.
PAS 40.75 (a)

PAS 40.20
Investment Property
State the method of measuring investment property

Investment properties are properties that are held to earn rentals or for capital appreciation or
both but not for sale in the ordinary course of business, use in the production or supply of goods
or services or for administrative purposes. Investment properties are measured initially at cost,
including transaction costs.
50
PAS 40.30 & 35 If carried at fair value

Subsequent to initial recognition, investment property is measured at fair value. Gains or losses
arising from changes in the fair value of investment property are included in profit or loss on the
period in which they arise.
If carried at cost
Subsequent to initial recognition, investment property is measured at cost less accumulated
depreciation and accumulated impairment losses at the end of each reporting period.
PAS 40.79 (a) Depreciation is computed on [method of depreciation, e.g. straight-line method, sum of the years’
digits, etc.] based on the estimated useful lives of the assets as follows:
PAS 40.79(b) [IP 1] [No. of years]
[IP 2] [No. of years]
PAS 40.56 Properties that are in the course of construction that are classified as investment properties are
carried at cost, less any recognized impairment loss. Cost includes professional fees and for
qualifying assets, borrowing cost capitalized. Depreciation of these assets, on the same basis as
other investment properties, commences at the time the assets are ready for their intended use.
PAS 40.57 Transfers to, or from, investment property shall be made only when there is a change in use.
PAS 40.66 Investment property is derecognized by the [Group] upon its disposal or when the investment
property is permanently withdrawn from use and no future economic benefits are expected from
its disposal. Any gain or loss arising on derecognition of the property (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in profit or
loss in the period in which the property is derecognized.
PAS 38.97
PAS 38.118 (b)
Intangible Assets
Intangible asset acquired separately
[If carried at costs]
Intangible assets are initially measured at cost. Subsequent to initial recognition, intangible assets
with finite useful lives that are acquired separately are carried at cost less accumulated
amortization and accumulated impairment losses. Amortization is recognized on a straight-line
basis over the estimated useful lives. The estimated useful life and the amortization method are
reviewed at the end of each reporting period, with the effect of any changes in estimate being
accounted for on a prospective basis.
PAS 38.107-108 Intangible assets with indefinite useful lives that are acquired separately are carried at cost less
accumulated impairment losses.
If carried at fair value

Intangible assets are initially measured at cost. Subsequent to initial recognition, intangible assets
are stated in the statements of financial position at their revalued amounts, being the fair value at
the date of revaluation, less any subsequent accumulated depreciation and subsequent
accumulated impairment losses. Revaluations are performed with sufficient regularity such that
the carrying amounts do not differ materially from that which would be determined using fair
values at the end of each reporting period.
PAS 38.54 Internally-generated intangible assets-research and development expenditure

Expenditure on research activities is recognized as an expense in the period in which it is incurred.
PAS 38.57 An internally-generated intangible asset arising from development is recognized if, and only if, all
of the following have been demonstrated:
 The technical feasibility of completing the intangible asset so that it will be available for use or
sale;
 The intention to complete the intangible asset and use or sell it;
 The ability to use or sell the intangible asset;
 How the intangible asset will generate probable economic benefits;
 The availability of adequate technical, financial and other resources to complete the
development and to use or sell the intangible asset; and
 The ability to measure reliably the expenditure attributable to the intangible asset during its
development.
51
52
The amount initially recognized for internally-generated intangible assets is the sum of the
PA 38.65 expenditure incurred from the date when the intangible asset first meets the recognition criteria
listed above. Where no internally-generated intangible asset can be recognized, development
expenditure is recognized in profit or loss in the period in which it is incurred.
PAS 38.118 (b) [If carried at cost]

Subsequent to initial recognition, internally-generated intangible are reported at cost less
accumulated amortization and accumulated impairment losses, on the same basis as intangible
assets that are acquired separately.
[If carried at fair value]

Subsequent to initial recognition, internally-generated intangible are reported at revalued
amounts less accumulated amortization and accumulated impairment losses, on the same basis as
intangible assets that are acquired separately.
PAS 38.118(b) [If acquired through business combination]

Intangible assets acquired in a business combination and recognized separately from goodwill are
initially recognized at their fair value at the acquisition date.
Subsequent to initial recognition, intangible assets acquired in a business combination are
reported at cost less accumulated amortization and accumulated impairment losses, on the same
basis as intangible assets that are acquired separately.
PAS 38.112 An intangible asset is derecognized on disposal, or when no future economic benefits are expected
from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured
as the difference between the net disposal proceeds and the carrying amount of the asset, are
recognized in profit or loss when the asset is derecognized.
[If IFRIC 12 applies]

Service Concession Arrangement
If the [Group] is paid for the construction services partly by a financial asset and partly by an
intangible asset, then each component of the consideration received or receivable is accounted for
separately and is recognized initially at the fair value of the consideration received or receivable.
The [Group] recognizes a financial asset arising from a service concession arrangement when it
has an unconditional contractual right to receive cash or another financial asset from or at the
direction of the grantor for the construction or upgrade services provided. Such financial assets
are measured at fair value upon initial recognition. Subsequent to initial recognition the financial
assets are measured at amortized cost.
The [Group] recognizes an intangible asset arising from a service concession arrangement when it
has a right to charge for usage of the concession infrastructure. An intangible asset received as
consideration for providing construction or upgrade services in a service concession arrangement
is measured at fair value upon initial recognition. Subsequent to initial recognition the intangible
asset is measured at cost, which includes capitalized borrowing costs, less accumulated
amortization and accumulated impairment losses.
PAS 36.9&90 Impairment of Tangible and Intangible Assets

At the end of each reporting period, the [Group] assesses whether there is any indication that any
of its tangible and intangible assets may have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to determine the extent of the
impairment loss, if any. When it is not possible to estimate the recoverable amount of an
individual asset, the [Group] estimates the recoverable amount of the cash-generating unit to
which the asset belongs. When a reasonable and consistent basis of allocation can be identified,
assets are also allocated to individual cash-generating units, or otherwise they are allocated to the
smallest group of cash-generating units for which a reasonable and consistent allocation basis can
be identified.
PAS 36.10 Intangible assets with indefinite useful lives and intangible assets not yet available for use are
tested for impairment annually and whenever there is an indication that the asset may be
impaired.
PAS 36.18 & 55 Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing
53
value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset or cash-generating unit is estimated to be less than its
PAS 36.59 carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its
recoverable amount. An impairment loss is recognized as an expense, unless the relevant asset is
carried at a revalued amount, in which case the impairment loss is treated as a revaluation
decrease. Impairment losses recognized in respect of CGUs are allocated first to reduce the
carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts
of the other assets in the unit (group of units) on a pro rata basis.
PAS 36.104
Impairment losses recognized in prior periods are assessed at the end of each reporting period for
PAS 36.110&114 any indications that the loss has decreased or no longer exists. An impairment loss is reversed if
there has been a change in the estimates used to determine the recoverable amount. An
impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or amortization, if no
impairment loss had been recognized. A reversal of an impairment loss is recognized as income,
unless the relevant asset is carried at a revalued amount, in which case the reversal of the
impairment loss is treated as a revaluation increase. [Disclose last sentence if assets are carried
at revalued amounts]
[If entity has goodwill]

Goodwill that forms part of the carrying amount of an [investment in associates, joint ventures,
and subsidiaries (select what is applicable)] are not recognized separately, and therefore is not
tested for impairment separately. Instead, the entire amount of the investment in an [investment
in associates, joint ventures, and subsidiaries (select what is applicable)] is tested for impairment
as a single asset when there is objective evidence that the [investment in associates, joint
ventures, and subsidiaries (select what is applicable)] may be impaired.
PFRS 5.6-8 [If entity has committed plan to sell a subsidiary/all of the assets of subsidiary]
Non-Current Assets Held-for-Sale
Non-current assets and disposal groups are classified as held-for-sale if their carrying amount will
be recovered through a sale transaction rather than through continuing use. This condition is
regarded as met only when the sale is highly probable and the asset or disposal group is
available for immediate sale in its present condition. Management must be committed to the sale
which should be expected to qualify for recognition as a completed sale within one year from the
date of classification.
PFRS 5.8A When the [Group] is committed to a sale plan involving loss of a subsidiary, all of the assets and
liabilities of that subsidiary are classified as held for sale when the criteria described above are
met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary
after the sale.
[If entity has committed plan to sell investment in associate/joint venture]

When the [Group] is committed to a sale plan involving disposal of an investment, or a portion of
an investment, in an associate or joint venture, the investment or the portion of the investment
that will be disposed of is classified as held for sale when the criteria described above are met,
and the [Group] discontinues the use of the equity method in relation to the portion that is
classified as held for sale. Any retained portion of an investment in an associate or a joint venture
that has not been classified as held for sale continues to be accounted for using the equity
method. The [Group] discontinues the use of the equity method at the time of disposal when the
disposal results in the [Group] losing significant influence over the associate or joint venture.
After the disposal takes place, the [Group] accounts for any retained interest in the associate or
joint venture in accordance with PFRS 9 unless the retained interest continues to be an associate
or a joint venture, in which case the [Group] uses the equity method.
PFRS 5.15-15A Immediately before classification as held-for-sale, the assets, or components of a disposal group,
are remeasured in accordance with the [Group]’s accounting policies. Thereafter, generally the
assets or disposal group, are measured at the lower of their carrying amount and fair value less
cost to sell. Any impairment loss on a disposal group first is allocated to goodwill, and then to
remaining assets and liabilities on pro-rata basis, except that no loss is allocated to inventories,
54
financial assets, deferred tax assets, employee benefit assets, investment property and biological
assets, which continue to be measured in accordance with the Group’s accounting policies.
Impairment losses on initial classification as held-for-sale and subsequent gains or losses on re-
measurement are recognized in profit or loss. Gains are not recognized in excess of any
cumulative impairment loss.
PFRS 5.26-27 If the non-current asset or disposal group no longer meet the criteria to be classified as held for
sale, the [Group] shall cease to classify the non-current asset or disposal group as held for sale.
The [Group] measures a non-current asset that ceases to be classified as held for sale at the
lower of:
 its carrying amount before the asset (or disposal group) was classified as held for sale,
adjusted for any depreciation, amortization or revaluations that would have been recognized
had the asset (or disposal group) not been classified as held for sale, and
 its recoverable amount at the date of the subsequent decision not to sell.
PFRS 5.32 Discontinued Operations

A discontinued operation is a component of the [Group]’s business that represents a separate
major line of business or geographical area of operations that has been disposed of or is held-for-
sale, or is a subsidiary acquired exclusively with a view to resale. Classification as a discontinued
operation occurs upon disposal or when the operation meets the criteria to be classified as held-
for-sale, if earlier. When an operation is classified as a discontinued operation, the comparative
statements of comprehensive income and cash flows are re-presented as if the operation had
been discontinued from the start of the comparative period.
PAS 37.14 Provisions, Contingent Liabilities and Contingent Assets

[Disclose only those that applies]
Provisions
Provisions are recognized when the [Group] has a present obligation, either legal or constructive,
as a result of a past event, it is probable that the [Group] will be required to settle the obligation,
and a reliable estimate can be made of the amount of the obligation.
PAS 37.36 The amount recognized is the best estimate of the consideration required to settle the present
obligation at the end of each reporting period, 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.
When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, the receivable is recognized as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable can be measured reliably.
PAS 37.59 Provisions are reviewed at the end of each reporting period and adjusted to reflect the current
best estimate.
PAS 37.59 If it is no longer probable that a transfer of economic benefits will be required to settle the
obligation, the provision should be reversed.
PAS 37.66 Onerous contracts

Present obligations arising under onerous contracts are recognized and measured as provisions.
An onerous contract is considered to exist when the [Group] has a contract under which the
unavoidable costs of meeting the obligations under the contract exceed the economic benefits
expected to be received from the contract.
PAS 37.70 Restructuring

A restructuring provision is recognized when the [Group] has developed a detailed formal plan for
the restructuring and has raised a valid expectation in those affected that it will carry out the
restructuring by starting to implement the plan or announcing its main features to those affected
by it. The measurement of a restructuring provision includes only the direct expenditures arising
from the restructuring, which are those amounts that are both necessarily entailed by the
restructuring and not associated with the ongoing activities of the entity.
55
Warranties
Provisions for warranty costs are recognized at the date of sale of the relevant products, at the
management’s best estimate of the expenditure required to settle the Group’s obligation.
56
Asset retirement obligation

The net present value of legal obligations associated with the retirement of an item of property,
plant and equipment that resulted from the acquisition, construction or development and the
normal operation of property, plant and equipment is recognized in the period in which it is
incurred. The retirement obligation is initially measured at the present value of the estimated
future dismantlement or restoration cost using current market borrowing rates. Subsequently, the
discount is amortized as interest expense.
PAS 37.27&31 Contingent liabilities and assets

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.
PAS 37.28 Contingent liabilities are disclosed, unless the possibility of an outflow of resources embodying
economic benefits is remote.
Contingent liabilities assumed in a business combination are only recognized when these are
present obligation and can be measured reliably.
PAS 37.33 Contingent assets are not recognized, but are disclosed only when an inflow of economic benefits
is probable. When the realization of income is virtually certain, asset should be recognized.
Contingent liabilities acquired in a business combination

Contingent liabilities acquired in a business combination are initially measured at fair value at the
acquisition date. At the end of subsequent reporting periods, such contingent liabilities are
measured at the higher of the amount that would be recognized in accordance with PAS 37 and
the amount recognized initially less cumulative amount of income recognized in accordance with
the principles of PFRS 15.
PFRS 2.44
PFRS 2.10
Share-based Payments
[Disclose if entity has equity settled share-based transactions]
Equity-settled share-based payments
Equity-settled share-based payments to employees and others providing similar services are
measured at the fair value of the equity instruments at the grant date.
[If entity has share-based payments to employees]

The fair value determined at the grant date of the equity-settled share-based payments to
employees is recognized as expense on a straight-line basis over the vesting period, based on the
[Group]’s estimate of equity instruments that will eventually vest, with a corresponding increase
in equity. At end of each reporting period, the [Group] revises its estimate of the number of
equity instruments expected to vest. The impact of the revision of the original estimates, if any, is
recognized in profit or loss such that the cumulative expense reflects the revised estimate, with a
corresponding adjustment to the equity-settled employee benefits reserve.
[If entity has share-based payments to other parties]

Equity-settled share-based payment transactions with other parties are measured at the fair value
of the goods or services received, except when the fair value cannot be estimated reliably, in
which case they are measured at the fair value of the equity instruments granted, measured at
the date the entity obtains the goods or the counterparty renders the service.
PFRS 2.44 [If entity has cash-settled share-based transactions]

Cash-settled share-based payments
For cash-settled share-based payments, a liability is recognized for the goods or services
acquired, measured initially at the fair value of the liability. At the end of each reporting period
until the liability is settled, and at the date of settlement, the fair value of the liability is
remeasured, with any changes in fair value recognized in profit or loss for the year.
57
[If entity has shared-based payment transactions in a business combination]

Share-based payment transactions in a business combination
When the share-based payment awards held by the employees of an acquiree (acquiree awards)
are replaced by the [Group]’s share-based payment awards (replacement awards), both the
acquiree awards and the replacement awards are measured in accordance with PFRS 2 (“market-
based measure”) at the acquisition date. The portion of the replacement awards that is included in
measuring the consideration transferred in a business combination equals the market-based
measure of the acquiree awards multiplied by the ratio of the portion of the vesting period
completed to the greater of the total vesting period or the original vesting period of the acquiree
award. The excess of the market-based measure of the replacement awards over the market-
based measure of the acquiree awards included in measuring the consideration transferred is
recognized as remuneration cost for post-combination service. However, when the acquiree
awards expire as a consequence of a business combination and the [Group]Group replaces those
awards when it does not have an obligation to do so, the replacement awards are measured at
their market-based measure in accordance with PFRS 2. All of the market-based measure of the
replacement awards is recognized as remuneration cost for post-combination service.
However, when the acquiree awards expires as a consequence of a business combination and the
[Group] replaces those awards when it does not have an obligation to do so, the replacement
awards are measured at their market-based measure in accordance with PFRS 2. All of the
market-based measure of the replacement awards is recognized as remuneration cost for post-
combination service.
At the acquisition date, when the outstanding equity-settled share-based payment transactions
held by the employees of an acquiree are not exchanged by the [Group] for its share-based
payment transactions, the acquiree share-based payment transactions are measured at their
market-based measure at the acquisition date. If the share-based payment transactions have
vested by the acquisition date, they are included as part of the non-controlling interest in the
acquiree. However, if the share-based payment transactions have not vested by the acquisition
date, the market-based measure of the unvested share-based payment transactions is allocated
to the non-controlling interest in the acquiree based on the ratio of the portion of the vesting
period completed to the greater of the total vesting period or the original vesting period of the
share-based payment transaction. The balance is recognized as remuneration cost for post-
combination service.
PAS 19.9 Employee Benefits

Short-term benefits
The [Group] recognizes a liability net of amounts already paid and an expense for services
rendered by employees during the accounting period that are expected to be settled wholly before
twelve months after the end of the reporting period. A liability is also recognized for the amount
expected to be paid under short-term cash bonus or profit sharing plans if the [Group] has a
present legal or constructive obligation to pay this amount as a result of past service provided by
the employee, and the obligation can be estimated reliably.
PAS 19.11 Short-term employee benefit obligations are measured on an undiscounted basis and are
expensed as the related service is provided.
58
Post-employment benefits
Defined benefit plan
The [Group] classifies its retirement benefit as defined benefit plans. Under the defined benefit
plans, the cost of providing benefits is determined using the projected unit credit method, with
actuarial valuations being carried out at the end of each annual reporting period. Remeasurement,
comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable)
and the return on plan assets (excluding interest), is reflected immediately in the statement of
financial position with a charge or credit recognized in other comprehensive income in the period
in which they occur. Remeasurement recognized in other comprehensive income is reflected
immediately in [if charged to retained earnings] Retained Earnings [or if charged to reserves]
Reserves and will not be reclassified to profit or loss. Past service cost is recognized in profit or
loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at
the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are
categorized as follows:
 Service cost (including current service cost, past service cost, as well as gains and losses on
curtailments and settlements)
 Net interest expense or income
 Remeasurement
The [Group] presents the first two components of defined benefit costs in profit or loss in the line
item [‘employee benefits expense’/others (please specify)]. Curtailment gains and losses are
accounted for as past service costs.
The retirement benefit obligation recognized in the consolidated statement of financial position
represents the actual deficit or surplus in the [Group]’s defined benefit plans. Any surplus
resulting from this calculation is limited to the present value of any economic benefits available in
the form of refunds from the plans or reductions in future contributions to the plans.
[If entity has an established contribution plan]

The [Group] maintains a Defined Contribution (DC) plan that covers all regular full-time
employees. Under its DC plan, the Company pays fixed contributions based on the employees
‘monthly salaries. The Company, however, is covered under Republic Act (RA) No. 7641, The
Philippine Retirement Law, which provides for its qualified employees a Defined Benefit (DB)
minimum guarantee. The DB minimum guarantee is equivalent to a certain percentage of the
monthly salary payable to an employee at normal retirement age with the required credited years
of service based on the provisions of RA 7641.
Accordingly, the [Group] accounts for its retirement obligation under the higher of the DB
obligation relating to the minimum guarantee and the obligation arising from the DC plan.
For the DB minimum guarantee plan, the liability is determined based on the present value of the
excess of the projected DB obligation over the projected DC obligation at the end of the reporting
period. The DB obligation is calculated annually by a qualified independent actuary using the
projected unit credit method. The Company determines the net interest expense (income) on the
net DB liability (asset) for the period by applying the discount rate used to measure the DB
obligation at the beginning of the annual period to the then net DB liability (asset), taking into
account any changes in the net DB liability (asset) during the period as a result of contributions
and benefit payments. Net interest expense and other expenses related to the DB plan are
59
The DC liability, on the other hand, is measured at the fair value of the DC assets upon which the DC
benefits depend, with an adjustment for any margin on asset returns where this is reflected in the
DC benefits.
Remeasurements of the net DB liability, which comprise actuarial gains and losses, the return on
plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are
recognized immediately in other comprehensive income.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit
that relates to past service or the gain or loss on curtailment is recognized immediately in profit or
loss. The [Group] recognizes gains or losses on the settlement of a DB plan when the settlement
occurs.
Other long-term benefits [Disclose if applicable]

The [Group]’s net obligation in respect of long-term employee benefits other than pension plans is
the amount of future benefit that employees have earned in return for their service in the current
and prior periods; that benefit is discounted to determine its present value, and the fair value of any
related assets is deducted. The discount rate is the yield at the end of the reporting period on high
quality bonds that have maturity dates approximating the terms of the [Group]’s obligations. The
calculation is performed using the projected unit credit method. The [Group] recognized the net total
of service cost, net interest on the net defined benefit liability (asset), and remeasurements of the
net defined benefit liability (asset) in profit or loss.
Termination benefits [Disclose if applicable]

A liability for a termination benefit is recognized at the earlier of when the entity can no longer
withdraw the offer of the termination benefit and when the entity recognizes any related
restructuring costs.
Profit-sharing and bonus plans [Disclose if applicable]

The [Group] recognizes a liability and an expense for bonuses and profit-sharing, based on a formula
that takes into consideration the profit attributable to the [Group]’s shareholders after certain
adjustments. The [Group] recognizes a provision where contractually obliged or where there is a
past practice that has created a constructive obligation.
Revenue Recognition
The [Group] recognizes revenue from the following major sources: [Disclose the major sources of
revenue]
• Sale of goods [Specify]
• Sale of services [Specify. example: Installation of computer software for specialized business
applications]; and
• Construction contracts
• Others [specify]
PFRS 15.31
PFRS 15.46
Revenue is measured based on the consideration to which the [Group] expects to be entitled in a
PFRS 15.47 contract with a customer and excludes amounts collected on behalf of third parties. The [Group]
PFRS 15.119 recognizes revenue when it transfers control of a product or service to a customer.
Sale of goods
The [Group] sells goods both to the wholesale market and directly to customers through its own
retail outlets and through internet sales.
PFRS 15.B29 [Disclose warranties, if any]

[Disclose if the customer has the option to purchase a warranty separately]
Sales-related warranties associated with the goods that be purchased separately are accounted for
as a performance obligation.
PFRS 15.B30 [Disclose if the customer does not have the option to purchase a warranty separately]
Sales-related warranties associated with the goods cannot be purchased separately and they serve
as an assurance that the products sold comply with agreed-upon specifications. Accordingly, the
[Group] accounts for warranties in accordance with PAS 37, Provisions, Contingent Liabilities and
60
Contingent Assets consistent with its previous accounting treatment.
[Disclose if the company has consideration payable to customer]

The transaction price is reduced for any consideration payable to the customer. Consideration
payable to a customer includes cash amounts that the [Group] pays, or expects to pay, to the
customer (or to other parties that purchase the [Group’s good or services] from the customer).
Consideration payable to a customer includes [credit, coupon, vouchers or other item] that can be
applied against amounts owed to the [Group].
PFRS 15.70
PFRS 15.125
PFRS 15.108
For sales of goods to the wholesale market, revenue is recognized when control of the goods has
transferred, being when the goods have been delivered to the wholesaler’s specific location.
Following delivery, the wholesaler has full discretion over the manner of distribution and price to sell
the goods, has the primary responsibility when on selling the goods and bears the risks of
obsolescence and loss in relation to the goods. A receivable is recognized by the [Group] when the
goods are delivered to the wholesaler as this represents the point in time at which the right to
consideration becomes unconditional, as only the passage of time is required before payment is due.
PFRS 15.125 For sales of goods to retail customers, revenue is recognized when control of the goods has
transferred, being at the point the customer purchases the goods at the retail outlet. Payment of the
transaction price is due immediately at the point the customer purchases the goods.
PFRS 15.55,
PFRS 15 B21
[Disclose if the entity has sale with right of return]
PFRS 15.119 (d) Under the [Group]’s standard contract terms, customers have a right of return within 30 days. At the
PFRS 15.126 (b) &
(d)
point of sale, a refund liability and a corresponding adjustment to revenue is recognized for those
products expected to be returned. At the same time, the [Group] has a right to recover the product
when customers exercise their right of return so consequently recognizes a right to returned goods
asset and a corresponding adjustment to cost of sales. The Group uses its accumulated historical
experience to estimate the number of returns on a portfolio level using the expected value method.
It is considered highly probable that a significant reversal in the cumulative revenue recognized will
not occur given the consistent level of returns over previous years.
PFRS 15.125
PFRS 15.106
For internet sales, revenue is recognized when control of the goods has transferred to the customer,
PFRS 15.117 being at the point the goods are delivered to the customer. Delivery occurs when the goods have
been delivered to the customer’s specific location. When the customer initially purchases the goods
online the transaction price received by the Group is recognized as a contract liability until the goods
have been delivered to the customer.
PFRS 15.B39
PFRS 15.B40
[Disclose if the entity has customer loyalty program]
Customer loyalty programme
The [Group] operates a loyalty program through which retail customers accumulate points on
purchases of goods that entitle them to discounts on future purchases. These points provide a
discount to customers that they would not receive without purchasing the goods. The promise to
provide the discount to the customer is therefore a separate performance obligation.
PFRS 15.74
PFRS 15.B42
[if there are maintenance services]
PFRS 15.106 The transaction price is allocated between the product, the maintenance services and the points on
PFRS 15.117 a relative stand-alone selling price basis. The stand-alone selling price per point is estimated based
on the discount to be given when the points are redeemed by the customer and the likelihood of
redemption, as evidenced by the [Group]’s historical experience. A contract liability is recognized for
revenue relating to the loyalty points at the time of the initial sales transaction. Revenue from the
loyalty points is recognized when the points are redeemed by the customer. Revenue for points that
are not expected to be redeemed is recognized in proportion to the pattern of rights exercised by
customers.
PFRS 15.B41 Maintenance relating to goods [specify: e.g. electronic equipment]

Included in the transaction price for the sale of electronic equipment is an after-sales service. This
service relates to maintenance work that may be required to be carried out on the equipment for a
three-year period after sale. This period can then be extended if the customer requires additional
years of maintenance services. The renewal of services after the three-year period will be for the
price at which these are sold by the [Group] to all of its customers as at the date of renewal
regardless of the existence of a renewal option. Consequently, the option to extend the renewal
period does not provide customers with any advantage when they enter into the initial contract and
61
therefore no revenue has been deferred relating to this renewal option.
62
PFRS 15.27
PFRS 15,74
The maintenance service is considered to be a distinct service as it is both regularly supplied by the
PFRS 15.81 [Group] to other customers on a stand-alone basis and is available for customers from other
PFRS 15.126 (c)
PFRS 15.B29
providers in the market. A portion of the transaction price is therefore allocated to the maintenance
services based on the stand-alone selling price of those services. Discounts are not considered as
they are only given in rare circumstances and are never material.
PFRS 15.35(a)
PFRS 15.123(a)
Revenue relating to the maintenance services is recognized over time. The transaction price
PFRS 15.124 allocated to these services is recognized as a contract liability at the time of the initial sales
PFRS 15.106
PFRS 15.117
transaction and is released on a straight-line basis over the period of service (i.e. three years when
the services are purchased together with the underlying equipment).
Sale of services
The [Group] provides services [specify what type of services] in the ordinary course of business.
Such services are recognized as a performance obligation satisfied over time. Revenue is recognized
for these services based on the stage of completion of the contract.
PFRS 15.35(b)
PFRS 15.124
Revenue is recognized for these services based on the stage of completion of the contract. The
PFRS 15.107 Management has assessed that the [Disclose measurement of progress] stage of completion
PFRS 15.117 determined as the proportion of the total time expected to perform the services has elapsed at the
end of the reporting period is an appropriate measure of progress towards complete satisfaction of
these performance obligations under PFRS 15. Payment for the services is not due from the
customer until the services are complete and therefore a contract asset is recognized over the period
in which the services are performed representing the entity’s right to consideration for the services
performed to date. This balance was previously recognized as part of trade receivables.
PFRS 15.35 (c) Construction contracts

The [Group] constructs and sells properties under long-term contracts with customers. Such
contracts are entered into before construction of the properties begins. Under the terms of the
contracts, the [Group] is contractually restricted from redirecting the properties to another customer
and has an enforceable right to payment for work done. Revenue from construction of properties is
therefore recognized over time on a cost–to–cost method. Under the cost-to-cost method, revenue is
recognized based on the proportion of contract costs incurred for work performed to date relative to
the estimated total contract costs. The Management considers that this input method is an
appropriate measure of the progress towards complete satisfaction of these performance obligations
under PFRS 15.
PFRS 15.117
PFRS 15.106
The [Group] becomes entitled to invoice customers for construction of properties based on achieving
a series of performance-related milestones. When a particular milestone is reached the customer is
sent a relevant statement of work signed by a third party assessor and an invoice for the related
milestone payment. The [Group] will previously have recognized a contract asset for any work
performed. Any amount previously recognized as a contract asset is reclassified to trade receivables
at the point at which it is invoiced to the customer. If the milestone payment exceeds the revenue
recognized to date under the cost–to–cost method then the [Group] recognizes a contract liability for
the difference. There is no significant financing component considered in construction contracts with
customers as the period between the recognition of revenue under the cost–to–cost method and the
milestone payment is always less than one year.
PFRS 15.91
PFRS 15.92
Contract costs
The [Group] recognizes the incremental costs of obtaining a contract with a customer as an asset if
the [Group] expects to recover those costs. The incremental costs of obtaining a contract are those
costs that the [Group] incurs to obtain a contract with a customer that it would not have incurred if
the contract had not been obtained.
PFRS 15.95 The [Group] recognizes an asset from the costs incurred to fulfil a contract if those costs relate
directly to a contract or to an anticipated contract that the [Group] can specifically identify, the costs
generate or enhance resources of the [Group] that will be used in satisfying (or in continuing to
satisfy) performance obligations in the future, and the costs are expected to be recovered.
Guidance Note:
For costs incurred in fulfilling a contract with a customer that are within the scope of another Standard, an entity shall
account for those costs in accordance with those other Standards. (for example, PAS 2 Inventories, PAS 16 Property,
Plant and Equipment or PAS 38 Intangible Assets)
63
Disclose that fact if applicable.
PFRS 15.93
PFRS 15.96
Costs to obtain a contract that would have been incurred regardless of whether the contract was
obtained are recognized as an expense when incurred, unless those costs are explicitly chargeable to
the customer regardless of whether the contract is obtained.
PFRS 15.94 [Disclose if there is a practical expedient]

As a practical expedient, the [Group] recognized the incremental costs of obtaining a contract as an
expense when incurred since the amortization period of the asset that the [Group] recognized is one
year or less.
PFRS 15.97 Costs that relate directly to a contract (or a specific anticipated contract) include any of the
following:
 direct labor
 direct materials
 allocations of costs that relate directly to the contract or to contract activities
 costs that are explicitly chargeable to the customer under the contract; and
 other costs that are incurred only because an entity entered into the contract
PFRS 15.98 The [Group] recognizes the following costs as expenses when incurred:
 general and administrative costs
 costs of wasted materials, labor or other resources to fulfil the contract that were not reflected in
the price of the contract;
 costs that relate to satisfied performance obligations (or partially satisfied performance
obligations) in the contract; and
 costs for which an entity cannot distinguish whether the costs relate to unsatisfied performance
obligations or to satisfied performance obligations (or partially satisfied performance
obligations).
PFRS 15.99 Amortization and impairment of Contract Costs

An asset recognized from contracts costs is amortized on a (disclose the amortization method) basis
that is consistent with the transfer to the customer of the goods or services to which the asset
relates.
PFRS 15.100 The [Group] updates the amortization to reflect a significant change in the [Group]’s expected timing
of transfer to the customer of the goods or services to which the asset relates. Such a change shall
be accounted for as a change in accounting estimate in accordance with PAS 8, Accounting Policies,
Changes in Accounting Estimates and Errors.
PFRS 15.101 The [Group] recognizes an impairment loss in profit or loss to the extent that the carrying amount of
an asset recognized exceeds the remaining amount of consideration that the [Group] expects to
receive in exchange for the goods or services to which the asset relates less the costs that relate
directly to providing those goods or services and that have not been recognized as expenses.
PFRS 15.104 The [Group] recognizes in profit or loss a reversal of some or all of an impairment loss previously
recognized when the impairment conditions no longer exist or have improved. The increased
carrying amount of the asset shall not exceed the amount that would have been determined (net of
amortization) if no impairment loss had been recognized previously.
PFRS 15.18
PFRS 15.19
[Disclose if the entity has contract modifications. Specify and provide a brief description of the
source of revenue that was affected by the contract modification and its impact (e.g. sale of goods)]
Contract modifications
A contract modification is a change in the scope or price (or both) of a contract that is approved by
the parties to the contract. A contract modification exists when the parties to a contract approve a
modification that either creates new or changes existing enforceable rights and obligations of the
parties to the contract.
A contract modification may exist even though the parties to the contract have a dispute about the
scope or price (or both) of the modification or the parties have approved a change in the scope of the
contract but have not yet determined the corresponding change in price.
In determining whether the rights and obligations that are created or changed by a modification are
enforceable, the [Group] considers all relevant facts and circumstances including the terms of the
64
contract and other evidence. If the parties to a contract have approved a change in the scope of the
contract but have not yet determined the corresponding change in price, the [Group] estimates the
change to the transaction price arising from the modification.
65
PFRS 15.20 [Disclose if the entity has contract modifications accounted for as a separate contract]
Contract modifications as a separate contract
The [Group] accounts for a contract modification as a separate contract if the scope of the contract
increases because of the addition of promised goods or services that are distinct and the price of the
contract increases by an amount of consideration that reflects the [Group]’s stand-alone selling
prices of the additional promised goods or services and any appropriate adjustments to that price to
reflect the circumstances of the particular contract.
PFRS 15.21 (a) [Disclose if the entity has contract modifications not accounted for as a separate contract]
Disclose which “Option” is applicable.
Contract modifications not as a separate contract
[Option A]
Contract modification as termination and creation of a contract
The [Group] accounts for the contract modification as if it were a termination of the existing contract
and the creation of a new contract, if the remaining goods or services are distinct from the goods or
services transferred on or before the date of the contract modification. The amount of consideration
allocated to the remaining performance obligations is the sum of the consideration promised by the
customer (including amounts already received from the customer) that was included in the estimate
of the transaction price and that had not been recognized as revenue and the consideration promised
as part of the contract modification.
PFRS 15.21 (b) [Option B]

Contract modification as part of existing contract
The [Group] accounts for the contract modification as if it were a part of the existing contract if the
remaining goods or services are not distinct and, therefore, form part of a single performance
obligation that is partially satisfied at the date of the contract modification. The effect that the
contract modification has on the transaction price, and on the [Group]’s measure of progress towards
complete satisfaction of the performance obligation, is recognized as an adjustment to revenue at
the date of the contract modification.
PFRS 15.21 (c) [Option C]

If a combination of both Option A and Option B scenarios, disclose that the [Group] accounted for
the effects of the modification on the unsatisfied performance obligation in a manner consistent with
Option A and Option B.
PFRS 15.47 Transaction Price
The [Group] considers the terms of the contract and its customary business practices to determine
the transaction price. The transaction price is the amount of consideration to which the [Group]
expects to be entitled in exchange for transferring promised goods or services to a customer,
excluding amounts collected on behalf of third parties. The consideration promised in a contract with
a customer may include fixed amounts, variable amounts, or both. [Check applicability of this
sentence, disclose only those that are applicable]
PFRS 15.51 [Disclose if there is a variable consideration]

Variable consideration
The amount of consideration can vary because of [discounts, rebates, refunds, credits, price
concessions, incentives, performance bonuses, penalties or other similar items.] The [Group]
estimated the amount of consideration to which it will be entitled to in exchange for transferring the
promised goods or services to a customer.
PFRS 15.53 (a) [Disclose if the entity used the expected value method to estimate variable consideration]
The [Group] estimated the value of the variable consideration by obtaining the sum of probability –
weighted amounts in a range of possible consideration amounts.
PFRS 15.53 (b) [Disclose if the entity used the most likely amount method to estimate variable consideration]
The [Group] estimated the value of the variable consideration by obtaining the most likely amount in
a range of possible consideration amounts.
PFRS 15.56 The [Group] includes in the transaction price some or all of an amount of variable consideration
66
estimated only to the extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognized will not occur when the uncertainty associated with the variable
consideration is subsequently resolved.
PFRS 15.57 In assessing whether it is highly probable that a significant reversal in the amount of cumulative
revenue recognized will not occur once the uncertainty related to the variable consideration is
subsequently resolved, the [Group] considers both the likelihood and the magnitude of the revenue
reversal. Factors that could increase the likelihood or the magnitude of a revenue reversal include,
but are not limited to, any of the following:
 the amount of consideration is highly susceptible to factors outside the [Group]’s influence.
Those factors may include volatility in a market, the judgment or actions of third parties,
weather conditions and a high risk of obsolescence of the promised goods or services.
 the uncertainty about the amount of consideration is not expected to be resolved for a long
period of time.
 the [Group]’s experience (or other evidence) with similar types of contracts is limited, or that
experience (or other evidence) has limited predictive value.
 the [Group] has a practice of either offering a broad range of price concessions or changing the
payment terms and conditions of similar contracts in similar circumstances.
 the contract has a large number and broad range of possible consideration amounts.
PFRS 15.59 Reassessment of variable consideration

At the end of each reporting period, the [Group] updates the estimated transaction price (including
updating its assessment of whether an estimate of variable consideration is constrained) to
represent faithfully the circumstances present at the end of the reporting period and the changes in
circumstances during the reporting period. The Group accounts for changes in the transaction price
in accordance with the [Group]’s policy on changes in transaction price.
[Disclose if there is a significant financing component]

Significant financing component
PFRS 15.60
In determining the transaction price, the [Group] adjusts the promised amount of consideration for
the effects of the time value of money if the timing of payments agreed to by the parties to the
contract (either explicitly or implicitly) provides the customer or the [Group] with a significant
benefit of financing the transfer of goods or services to the customer. In those circumstances, the
contract contains a significant financing component. A significant financing component may exist
regardless of whether the promise of financing is explicitly stated in the contract or implied by the
payment terms agreed to by the parties to the contract.
[Disclose if there is a practical expedient]

As a practical expedient, the [Group] need not adjust the promised amount of consideration for the
PFRS 15.63 effects of a significant financing component if the Group expects, at contract inception, that the
period between when the [Group] transfers a promised goods or services to a customer and when
the customer pays for that goods or services will be one year or less.
PFRS 15.64 When adjusting the promised amount of consideration for a significant financing component, the
[Group] uses the discount rate that would be reflected in a separate financing transaction between
the [Group] and its customer at contract inception.
The [Group] may be able to determine that rate by identifying the rate that discounts the nominal
amount of the promised consideration to the price that the customer would pay in cash for the goods
or services when (or as) they transfer to the customer.
PFRS 15.65 The [Group] present the effects of financing (as interest revenue or interest expense) separately
from revenue from contracts with customers in the statement of comprehensive income. Interest
revenue or interest expense is recognized only to the extent that a contract asset (or receivable) or
a contract liability is recognized in accounting for a contract with a customer.
PFRS 15.66 [Disclose if there non-cash consideration]

Non-cash consideration
The Group measures the non-cash consideration (or promise of non-cash consideration) at fair
value.
PFRS 15.67 [Disclose if the entity cannot reasonably estimate the fair value of the non-cash consideration]
67
The [Group] measures the consideration indirectly by reference to the stand-alone selling price of
the goods or services promised to the customer (or class of customer) in exchange for the
consideration.
PFRS 15.69 [Disclose if customer contributed goods or services]

The [Group] accounts for the contributed goods or services received from the customer as non-cash
consideration when the [Group] obtains control of those contributed goods or services.
PFRS 15.87 Changes in the transaction price

[Disclose whichever is applicable]
After contract inception, the transaction price can change for various reasons, including the
resolution of uncertain events or other changes in circumstances that change the amount of
consideration to which an entity expects to be entitled in exchange for the promised goods or
services.
The [Group] allocates to the performance obligations any subsequent changes in the transaction
price on the same basis as at contract inception. The [Group] does not reallocate the transaction
PFRS 15.88 price to reflect changes in stand-alone selling prices after contract inception. Amounts allocated to a
satisfied performance obligation is [recognized as revenue or as a reduction of revenue] in the period
in which the transaction price changes.
The [Group] allocates a change in the transaction price entirely to one or more, but not all,
performance obligations promised in a series that forms part of a single performance obligation only
PFRS 15.89 if the terms of a variable payment relate specifically to the [Group]’s efforts to satisfy the
performance obligation and allocating the variable amount of consideration entirely to the
performance obligation is consistent with the objective to allocate the transaction price to each
performance obligation when considering all of the performance obligations and payment terms in
the contract.
PFRS 15.90 The [Group] accounts for a change in the transaction price that arises as a result of a contract
modification in accordance with the [Group]’s policy on contract modifications.
However, for a change in the transaction price that occurs after a contract modification, the [Group]
[Disclose which is applicable: allocates the change in the transaction price to the performance
obligations identified in the contract before the modification if, and to the extent that, the change in
the transaction price is attributable to an amount of variable consideration promised before the
modification. OR allocates the change in the transaction price to the performance obligations in the
modified contract.]
PFRS 15.73 Allocating transaction price

The [Group] allocates the transaction price to each performance obligation in an amount that depicts
the amount of consideration to which the [Group] expects to be entitled in exchange for transferring
the promised goods or services to the customer.
PFRS 15.76 [Disclose if applicable]

Allocating based on stand-alone selling prices
The [Group] allocates the transaction price based on stand-alone selling prices. The [Group]
determines the stand-alone selling price at contract inception and allocates the transaction price in
proportion to those stand-alone selling prices.
PFRS 15.77 The stand-alone selling price is the price at which the [Group] would sell a promised goods or
services separately to a customer. The best evidence of a stand-alone selling price is the observable
price of a good or service when the [Group] sells that goods or services separately in similar
circumstances and to similar customers.
[Disclose if a stand-alone selling price is not directly observable]

The [Group] estimates the stand-alone selling price at an amount that would result in the allocation
PFRS 15.78 of the transaction price amount that depicts the amount of consideration to which the [Group]
expects to be entitled in exchange for transferring the promised goods or services to the customer.
When estimating a stand-alone selling price, The [Group] considers all information (including market
conditions, [Group]-specific factors and information about the customer or class of customer) that is
reasonably available to the [Group]. In doing so, the [Group] maximizes the use of observable
68
inputs and apply estimation methods consistently in similar circumstances.
[Disclose the method used by the entity to estimate the stand-alone selling price]
Adjusted market assessment approach
PFRS 15.79 (a)
The [Group] evaluates the market in which it sells goods or services and estimates the price that a
customer in that market would be willing to pay for those goods or services. This approach might
also include referring to prices from the [Group]’s competitors for similar goods or services and
adjusting those prices as necessary to reflect the [Group]’s costs and margins.
69
PFRS 15.79 (b) Expected cost plus a margin approach

The [Group] forecasts its expected costs of satisfying a performance obligation and then add an
appropriate margin for that good or service.
Guidance Note:
The entity use a residual approach to estimate the stand-alone selling price of a good or service only if one of the
following criteria is met:
-the entity sells the same good or service to different customers (at or near the same time) for a broad range of
amounts (i.e. the selling price is highly variable because a representative stand-alone selling price is not discernible
from past transactions or other observable evidence); or
-the entity has not yet established a price for that good or service and the good or service has not previously been
sold on a stand-alone basis (i.e. the selling price is uncertain).
PFRS 15.79 (c) Residual approach

The [Group] estimates the stand-alone selling price by reference to the total transaction price less
the sum of the observable stand-alone selling prices of other goods or services promised in the
contract.

Allocation of a discount
A customer receives a discount for purchasing a bundle of goods or services if the sum of the stand-
alone selling prices of those promised goods or services in the contract exceeds the promised
consideration in a contract.
The [Group] allocates a discount proportionately to all performance obligations in the contract. The
proportionate allocation of the discount in those circumstances is a consequence of the [Group]
allocating the transaction price to each performance obligation on the basis of the relative stand-
alone selling prices of the underlying distinct goods or services.
PFRS 15.82 The [Group] allocates a discount entirely to one or more, but not all, performance obligations in the
contract if all of the following criteria are met:
 the [Group] regularly sells each distinct goods or services (or each bundle of distinct goods or
services) in the contract on a stand-alone basis;
 the [Group] also regularly sells on a stand-alone basis a bundle (or bundles) of some of those
distinct goods or services at a discount to the stand-alone selling prices of the goods or services
in each bundle; and
 the discount attributable to each bundle of goods or services described above is substantially the
same as the discount in the contract and an analysis of the goods or services in each bundle
provides observable evidence of the performance obligation (or performance obligations) to
which the entire discount in the contract belongs.
PFRS 15.83 If a discount is allocated entirely to one or more performance obligations in the contract, the [Group]
allocates the discount before using the residual approach to estimate the stand-alone selling price of
goods or services.

Allocation of variable consideration
Variable consideration that is promised in a contract may be attributable to the entire contract or to
a specific part of the contract.
PFRS 15.85 The [Group] allocates a variable amount (and subsequent changes to that amount) entirely to a
performance obligation or to a distinct good or service that forms part of a single performance
obligation when the terms of a variable payment relate specifically to the [Group]’s efforts to satisfy
the performance obligation or transfer the distinct good or service (or to a specific outcome from
satisfying the performance obligation or transferring the distinct good or service) and allocating the
variable amount of consideration entirely to the performance obligation or the distinct good or
service is consistent with the allocation objective when considering all of the performance obligations
and payment terms in the contract.
Guidance Note:
The allocation requirements in PFRS 15 paragraphs 73–83 shall be applied to allocate the remaining amount of the
70
transaction price that does not meet the criteria in PFRS 15 paragraph 85.
PFRS 15.B34-38 [Disclose if there is a Principal-Agent Consideration]

Principal-Agent Consideration
[Group] as a Principal
The [Group] recognizes revenue in the gross amount of consideration to which it expects to be
entitled in exchange for the specified good or service transferred.
[Group] as an Agent
The [Group] recognizes revenue in the amount of any fee or commission to which it expects to be
entitled in exchange for arranging for the specified goods or services to be provided by the other
party.
PFRS 15.55 [Disclose if the entity has refund liability]
Refund Liability
The [Group] recognizes a refund liability if it receives a consideration from a customer and expects
to refund some or all of that consideration to that customer. A refund liability is measured at the
amount of consideration received (or receivable) for which the [Group] does not expect to be
entitled. The refund liability will updated at the end of each reporting period for changes in
circumstances.
PFRS 15 Appendix
A
Contract Asset
The [Group] recognizes a Contract Asset when there is a right to consideration in exchange for
goods or services that the [Group] has transferred to a customer when that right is conditioned on
something other than the passage of time.
PFRS 15 Appendix
A
Contract Liability
The [Group] recognizes a Contract Liability when there is an obligation to transfer goods or services
to a customer for which the [Group] has received consideration (or the amount is due) from the
customer.
Royalties
Royalty income is recognized on an accrual basis in accordance with the substance of the relevant
agreement. Royalties determined on a time basis are recognized on a straight-line basis over the
period of the agreement. Royalty arrangements that are based on production, sales and other
measures are recognized by reference to the underlying arrangement.
Interest income
Interest income from a financial asset is recognized when it is probable that the economic benefits
will flow to the [Group] and the amount of income can be measured reliably. Interest income is
accrued on a time proportion basis, by reference to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that asset’s net carrying amount.
Dividend income
Dividend income from investments is recognized when the shareholders’ rights to receive payment
have been established, provided that it is probable that the economic benefits will flow to the Group
and the amount of income can be measured reliably.
Rental income
Revenue recognition for rental income is disclosed in the [Group] policy for leases.
Service concession arrangements

Revenue relating to construction or upgrade services under a service concession arrangement is
recognized based on the stage of completion of the work performed, consistent with the [Group]’s
accounting policy on recognizing revenue on construction contacts. Operation or service revenue is
recognized in the period in which the services are provided by the [Group]. When the [Group]
provides more than one service in a service concession arrangement, the consideration received is
allocated by reference to the relative fair values of the services delivered.
71
Other income
Other income is income generated outside the normal course of business and is recognized when it is
probable that the economic benefits will flow to the [Group] and it can be measured reliably.
Expense Recognition
Expenses are recognized in profit or loss 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 profit or loss: 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 benefits are expected to arise over several accounting periods and the association
with income can only be broadly or indirectly determined; or immediately when an expenditure
produces no future economic benefits or when, and to the extent that, future economic benefits do
not qualify, or cease to qualify, for recognition in the statements of financial position as an asset.
Expenses in the statement of comprehensive income are presented using the [nature or function] of
expense method. Costs of sales are expenses incurred that are associated with the goods sold and
includes [components of cost of sales]. Operating expenses are costs attributable to administrative,
marketing, selling and other business activities of the [Group].
Leases
The [Group] as lessee
PFRS 16:51
The [Group] assesses whether a contract is or contains a lease, at inception of the contract. The
PFRS 16:5 [Group] recognizes a right-of-use asset and a corresponding lease liability with respect to all lease
PFRS 16:6
PFRS 16:9
arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease
PFRS 16:60 term of 12 months or less) and leases of low value assets. For these leases, the Group recognizes
the lease payments as an operating expense on a straight-line basis over the term of the lease
unless another systematic basis is more representative of the time pattern in which economic
benefits from the leased assets are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid
at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be
readily determined, the [Group] uses its incremental borrowing rate.
PFRS 16:26
Guidance Note:
If the Group uses its incremental borrowing rate it shall explain how the rate is determined. The rate is defined as the
rate of interest that the lessee would have to pay to borrow over a similar term and with a similar security the funds
necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.
Lease payments included in the measurement of the lease liability comprise:

PFRS 16:27  fixed lease payments (including in-substance fixed payments), less any lease incentives:
 variable lease payments that depend on an index or rate, initially measured using the index
or rate at the commencement date;
 the amount expected to be payable by the lessee under residual value guarantees
 the exercise price of purchase options, if the lessee is reasonably certain to exercise the
options; and
 payments of penalties for terminating the lease, if the lease term reflects the exercise Of an
option to terminate the lease.
The lease liability is presented as a separate line in the consolidated statement of financial position.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on
the lease liability (using the effective interest method) and by reducing the carrying amount to reflect
the lease payments made.
The [Group] remeasures the lease liability (and makes a corresponding adjustment to the related
right-of-use asset) whenever:
72
PFRS 16:47  the lease term has changed or there is a significant event or change in circumstances
resulting in a change in the assessment of exercise of a purchase option, in which case the
lease liability is remeasured by discounting the revised lease payments using a revised
PFRS 16:36 discount rate.
 the lease payments change due to changes in an index or rate or a change in expected
payment under a guaranteed residual value, in which cases the lease liability is remeasured
by discounting the revised lease payments using an unchanged discount rate (unless the
lease payments change is due to a change in a floating interest rate, in which case a revised
discount rate is used).
 a lease contract is modified and the lease modification is not accounted for as a separate
PFRS16:39
lease, in which case the lease liability is remeasured by discounting the revised lease
payments using a revised discount rate at the effective date of the modification.
PFRS 16:51
PFRS 16:60
The [Group] did not make any such adjustments during the periods presented.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease
PFRS 16:24 payments made at or before the commencement day, less any lease incentives received, and any
PFRS 16:29 initial direct costs. They are subsequently measured at cost less accumulated depreciation and
impairment losses.
Whenever the [Group] incurs an obligation for costs to dismantle and remove a leased asset, restore
the site on which it is located or restore the underlying asset to the condition required by the terms
and conditions of the lease, a provision is recognized and measured under PAS 37. The costs are
included in the related right-of-use asset, unless those costs are incurred to produce inventories.
PFRS 16:24
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the
underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use
asset reflects that the [Group] expects to exercise a purchase option, the related right-of-use asset
is depreciated over the useful life of the underlying asset. The depreciation starts at the
commencement date of the lease.
PFRS 16:32 The right-of-use assets are presented as a separate line in the consolidated statement of financial
position.
The [Group] applies PAS 36 to determine whether a right-of-use asset is impaired and accounts for
any identified impairment loss as described in the 'Property, Plant and Equipment' policy.
Variable rents that do not depend on an index or rate are not included in the measurement of the
lease liability and the right-of-use asset. The related payments are recognized as an expense in the
period in which the event or condition that triggers those payments occurs and are included in the
line ['Other expenses'] in the [Statement of profit or loss].
PFRS 16:47 As a practical expedient, PFRS 16 permits a lessee not to separate non-lease components, and
instead account for any lease and associated non-lease components as a single arrangement. The
[Group] has not used this practical expedient. For contracts that contain a lease component and one
or more additional lease or nonlease components, the [Group] allocates the consideration in the
contract to each lease component on the basis of the relative stand-alone price of the lease
component and the aggregate stand-alone price of the non-lease components.
PFRS 16:38
PFRS 16:12
PFRS 16:15
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The [Group] as lessor

PFRS 16:89
The [Group] enters into lease agreements as a lessor with respect to some of its investment
properties. The [Group] also rents equipment to retailers necessary for the presentation and
customer fitting and testing of footwear and equipment manufactured by the [Group].
Leases for which the [Group] is a lessor are classified as finance or operating leases. Whenever the
terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the
contract is classified as a finance lease. All other leases are classified as operating leases.
When the [Group] is an intermediate lessor, it accounts for the head lease and the sublease as two
separate contracts. The sublease is classified as a finance or operating lease by reference to the
right-of-use asset arising from the head lease.
Rental income from operating leases is recognized on a straight-line basis over the term of the
relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added
to the carrying amount of the leased asset and recognized on a straight-line basis over the lease
term.
Amounts due from lessees under finance leases are recognized as receivables at the amount of the
[Group]'s net investment in the leases. Finance lease income is allocated to accounting periods so as
to reflect a constant periodic rate of return on the [Group]'s net investment outstanding in respect of
the leases.
Subsequent to initial recognition, the [Group] regularly reviews the estimated unguaranteed residual
value and applies the impairment requirements of PFRS 9, recognising an allowance for expected
credit losses on the lease receivables.
Finance lease income is calculated with reference to the gross carrying amount of the lease
receivables, except for credit-impaired financial assets for which interest income is calculated with
reference to their amortised cost (i.e. after a deduction of the loss allowance).
When a contract includes lease and non-lease components, the [Group] applies PFRS 15 to allocate
the consideration under the contract to each component.
Foreign Currency
Foreign currency transactions
Transactions in currencies other than functional currency of the [Group] are recorded at the rates of
exchange prevailing on the dates of the transactions. At the end of each reporting period, monetary
assets and liabilities that are denominated in foreign currencies are retranslated at the rates
prevailing at the end of the reporting period.
If entity has non-monetary assets or liabilities that are denominated in foreign currency and are
carried at revalued amount or fair value
Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies
are translated at the rates prevailing at the date the fair value was determined. Gains and losses
arising on retranslation are included in profit or loss for the year, except for exchange differences
arising on non-monetary assets and liabilities when the gains and losses of such non-monetary items
are recognized directly in equity. Non-monetary assets and liabilities that are measured in terms of
historical cost in a foreign currency are not retranslated.
Exchange differences on monetary items are recognized in profit or loss in the period in which they
arise except for:
• Exchange differences on foreign currency borrowings relating to assets under construction for
future productive use, which are included in the cost of those assets when they are regarded as
adjustments to interest costs on those foreign currency borrowings.
• Exchange differences on transactions entered into in order to hedge certain foreign currency
risks.
• Exchange differences on monetary items receivable from or payable to a foreign operation for
which settlement is neither planned nor likely to occur, which are recognized initially in other
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comprehensive income and reclassified from equity to profit or loss on repayment of the
monetary items.
Foreign operations [Disclose if entity has foreign operations]

For the purposes of presenting these consolidated financial statements, the assets and liabilities of
the [Group]’s foreign operations are translated into Philippine Peso using exchange rates prevailing
at the end of each reporting period. Income and expense items are translated at the average
exchange rates for the period, unless exchange rates fluctuate significantly during that period, in
which case the exchange rates at the dates of the transactions are used. Exchange differences
arising, if any, are recognized in other comprehensive income and accumulated in equity (and
attributed to non-controlling interests as appropriate).
On the disposal of a foreign operation (i.e. a disposal of the [Group]s entire interest in a foreign
operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation,
or a partial disposal of an interest in a joint arrangement or an associate that includes a foreign
operation of which the retained interest becomes a financial asset), all of the exchange differences
accumulated in equity in respect of that operation attributable to the owners of the Company are
reclassified to profit or loss.
In addition, in relation to a partial disposal of a subsidiary that includes a foreign operation that does
not result in the [Group] losing control over the subsidiary, the proportionate share of accumulated
exchange differences are re-attributed to non-controlling interests and are not recognized in profit or
loss. For all other partial disposals (i.e. partial disposals of associates or joint arrangements that do
not result in the Group losing significant influence or joint control), the proportionate share of the
accumulated exchange differences is reclassified to profit or loss.
75
Goodwill and fair value adjustments to identifiable assets acquired and liabilities assumed through
acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and
translated at the rate of exchange prevailing at the end of each reporting period. Exchange
differences arising from that transaction are recognized in other comprehensive income.
Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their
intended use or sale, are added to the cost of those assets, until such time as the assets are
substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.
All other borrowing costs are recognized in profit or loss in the period in which they are incurred.
Related Party Transactions

A related party transaction is a transfer of resources, services or obligations between the [Group]
and a related party, regardless of whether a price is charged.
Parties are considered related if one party has control, joint control, or significant influence over the
other party in making financial and operating decisions. An entity that has a post-employment
benefit plan for the employees and key management personnel of the Group are also considered to
be related parties.
PAS 20.39(a) Government Grants

Government grants are not recognized until there is reasonable assurance that the Group will comply
with the conditions attaching to them and that the grants will be received.
Government grants are recognized in profit or loss on a systematic basis over the periods in which
the [Group] recognizes as expenses the related costs for which the grants are intended to
compensate. Specifically, government grants whose primary condition is that the [Group] should
purchase, construct or otherwise acquire non-current assets are recognized as deferred revenue in
the consolidated statement of financial position and transferred to profit or loss on a systematic and
rational basis over the useful lives of the related assets.
Government grants that are receivable as compensation for expenses or losses already incurred or
for the purpose of giving immediate financial support to the [Group] with no future related costs are
recognized in profit or loss in the period in which they become receivable.
The benefit of a government loan at a below-market rate of interest is treated as a government

grant, measured as the difference between proceeds received and the fair value of the loan based on
prevailing market interest rates.
Taxation
Income tax expense represents the sum of the current tax and deferred tax expense.
Current tax
The current tax expense is based on taxable profit for the year. Taxable profit differs from net profit
as reported in the statements of comprehensive income because it excludes items of income or
expense that are taxable or deductible in other years and it further excludes items that are never
taxable or deductible. The [Group]’s current tax expense is calculated using 30% regular corporate
income tax (RCIT) rate or 2% minimum corporate income tax rate, whichever is higher. [Tax rates
for the current and comparative periods e.g. PEZA 5%; ROHQ 10%]
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Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and
liabilities in the consolidated financial statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable
temporary differences. Deferred tax assets are generally recognized for all deductible temporary
differences to the extent that it is probable that taxable profits will be available against which those
deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not
recognized if the temporary difference arises from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the
accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference
arises from the initial recognition of goodwill.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments
in subsidiaries and associates, and interests in joint ventures, except where the [Group] is able to
control the reversal of the temporary difference and it is probable that the temporary difference will
not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary
differences associated with such investments and interests are only recognized to the extent that it
is probable that there will be sufficient taxable profits against which to utilize the benefits of the
temporary differences and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profits will be available to
allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that
have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would
follow from the manner in which the [Group] expects, at the end of the reporting period, to recover
or settle the carrying amount of its assets and liabilities.
For the purposes of measuring deferred tax liabilities and deferred tax assets for investment
properties that are measured using the fair value model, the carrying amounts of such properties are
presumed to be recovered entirely through sale, unless the presumption is rebutted. The
presumption is rebutted when the investment property is depreciable and is held within a business
model whose objective is to consume substantially all of the economic benefits embodied in the
investment property over time, rather than through sale. The directors of the Company reviewed the
[Group]’s investment property portfolios and concluded that none of the [Group]’s investment
properties are held under a business model whose objective is to consume substantially all of the
economic benefits embodied in the investment properties over time, rather than through sale.
Therefore, the directors have determined that the ‘sale’ presumption set out in the amendments to
PAS 12, Income Taxes is not rebutted. As a result, the [Group] has not recognized any deferred
taxes on changes in fair value of the investment properties as the [Group] is not subject to any
income taxes on the fair value changes of the investment properties on disposal.
Current and deferred tax for the year
Current and deferred tax are recognized in profit or loss, except when they relate to items that are
recognized in other comprehensive income or directly in equity, in which case, the current and
deferred tax are also recognized in other comprehensive income or directly in equity respectively.
Where current tax or deferred tax arises from the initial accounting for a business combination, the
tax effect is included in the accounting for the business combination.
PAS 33 [This is required only if the entity’s securities are publicly listed. However, if a regular entity opted
to disclose this information, it should comply with all the disclosure requirements of the related
standard]
Earnings Per Share
The [Group] computes its basic earnings per share by dividing profit or loss for the year attributable
to ordinary equity holders of the [Group] by the weighted average number of ordinary shares
outstanding during the period.
For the purpose of calculating diluted earnings per share, profit or loss for the year attributable to
ordinary equity holders of the [Group] and the weighted average number of shares outstanding are
adjusted for the effects of all dilutive potential ordinary shares. [Description of the [Group]’s dilutive
potential ordinary shares]
77
78
Events after the Reporting Period

The [Group] identifies events after the end of each reporting period as those events, both favorable
and unfavorable, that occur between the end of the reporting period and the date when the
consolidated financial statements are authorized for issue. The consolidated financial statements of
the [Group] are adjusted to reflect those events that provide evidence of conditions that existed at
the end of the reporting period. Non-adjusting events after the end of the reporting period are
disclosed in the notes to the consolidated financial statements when material.
PFRS 8 [This is required only if the entity’s securities are publicly listed. However, if a regular entity opted
to disclose this information, it should comply with all the disclosure requirements of the related
standard]
Segment Reporting
An operating segment is a component of the [Group] that engages in business activities from which
it may earn revenues and incur expenses, including revenues and expenses that relate to
transactions with any of the [Group]’s other components. All operating segments’ operating results
are reviewed regularly by the [Group]’s Chief Operating Decision Maker (CODM) to make decisions
about resources to be allocated to the segment and assess its performance, and for which discrete
financial information is available.
The [Group] reports separately, information about an operating segment that meets any of the
following quantitative thresholds:
• the absolute amount of its reported profit or loss is 10% or more of the greater, in absolute
amount, of the combined reported profit of all operating segments that did not report a loss and
the combined reported loss of all operating segments that reported a loss; and
• its assets are 10% or more of the combined assets of all operating segments.
Operating segments that do not meet any of the quantitative thresholds may be considered
reportable, and separately disclosed, if Management believes that information about the segment
would be useful to users of the consolidated financial statements.
For Management purposes, the [Group] is currently organized into [Number of business segments]
business segments: [Enumerate business segments]. These divisions are the basis on which the
[Group] reports its primary segment information.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant
and equipment, and intangible assets other than goodwill.
Financial information on segment reporting is presented in Note [X].
PAS 1.122 6. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION

UNCERTAINTY
Guidance Note:
The following are examples of the types of disclosures that might be required in this area. The matters disclosed will
be dictated by the circumstances of the individual entity, and by the significance of judgments and estimates made to
the performance and financial position of the entity. Instead of disclosing this information in a separate note, it may
be more appropriate to include such disclosures in the relevant asset and liability notes, or as part of the relevant
accounting policy disclosures.
PFRS 12.7 requires entities to disclose information about significant judgments and assumptions they have made in
determining (i) whether they have control of another entity, (ii) whether they have joint control of an arrangement or
significant influence over another entity, and (iii) the type of joint arrangement when the arrangement has been
structured through a separate vehicle.
In the application of the [Group]’s 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 the 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
79
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.
Critical Judgments in Applying Accounting Policies

The following are the critical judgments, apart from those involving estimations, that Management
has made in the process of applying the entity’s accounting policies and that have the most
significant effect on the amounts recognized in financial statements.
[Disclose those that are applicable]
PFRS 15.123(a) Determining the timing of satisfaction of performance obligations

[Disclose a brief description on the judgment made by the entity]
Note [X] describes the expenditure required in the year for rectification work carried out on goods
supplied to one of the [Group]'s major customers. These goods were delivered to the customer in
the months of January to July 2020, and shortly thereafter defects were identified by the customer.
Following negotiations, a schedule of works was agreed, which will involve expenditure by the
[Group] until 2021. In the light of the problems identified, the Management were required to
consider whether it was appropriate to recognize the revenue from these transactions of [PXXX] in
the current year, in line with the [Group]'s policy of recognizing revenue for the sale of goods when
those goods are delivered to the customer, or whether it would be more appropriate to defer
recognition until the rectification work was complete.
PFRS 15.125 In making their judgment, the Management considered the detailed criteria for the recognition of
revenue set out in PFRS 15 and, in particular, whether the [Group] had transferred control of the
goods to the customer. Following the detailed quantification of the [Group]'s liability in respect of
rectification work, and the agreed limitation on the customer's ability to require further work or to
require replacement of the goods, the Management are satisfied that control has been transferred
and that recognition of the revenue in the current year is appropriate, in conjunction with the
recognition of an appropriate warranty provision for the rectification costs.
PAS 1.125 Business model assessment

Classification and measurement of financial assets depends on the results of the SPPI and the
business model test. The [Group] determines the business model at a level that reflects how groups
of financial assets are managed together to achieve a particular business objective. This assessment
includes judgment reflecting all relevant evidence including how the performance of the assets is
evaluated and their performance measured, the risks that affect the performance of the assets and
how these are managed and how the managers of the assets are compensated. The [Group]
monitors financial assets measured at amortized cost or fair value through other comprehensive
income that are derecognized prior to their maturity to understand the reason for their disposal and
whether the reasons are consistent with the objective of the business for which the asset was held.
Monitoring is part of the [Group]’s continuous assessment of whether the business model for which
the remaining financial assets are held continues to be appropriate and if it is not appropriate
whether there has been a change in business model and so a prospective change to the classification
of those assets.
Sample statement: Based on Management’s evaluation, the company’s financial assets are only held
with the objective to collect contractual cash flows that are SPPI. Hence, the Company’s financial
assets are classified and subsequently measured at amortized cost.
Significant increase of credit risk

ECL are measured as an allowance equal to 12-month ECL for stage 1 assets, or lifetime ECL assets
for stage 2 or stage 3 assets. An asset moves to stage 2 when its credit risk has increased
significantly since initial recognition. PFRS 9 does not define what constitutes a significant increase in
credit risk. In assessing whether the credit risk of an asset has significantly increased, the [Group]
takes into account qualitative and quantitative reasonable and supportable forward-looking
information.
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Establishing groups of assets with similar credit risk characteristics

When ECLs are measured on a collective basis, the financial instruments are grouped based on
shared risk characteristics. The [Group] monitors the appropriateness of the credit risk
characteristics on an ongoing basis to assess whether they continue to be similar. This is required in
order to ensure that should credit risk characteristics change there is appropriate re-segmentation of
the assets. This may result in new portfolios being created or assets moving to an existing portfolio
that better reflects the similar credit risk characteristics of that group of assets. Re-segmentation of
portfolios and movement between portfolios is more common when there is a significant increase in
credit risk (or when that significant increase reverses) and so assets move from 12-month to lifetime
ECLs, or vice versa, but it can also occur within portfolios that continue to be measured on the same
basis of 12-month or lifetime ECLs but the amount of ECL changes because the credit risk of the
portfolios differ.
Models and assumptions used

The [Group] uses various models and assumptions in measuring fair value of financial assets as well
as in estimating ECL. Judgment is applied in identifying the most appropriate model for each type of
asset, as well as for determining the assumptions used in these models, including assumptions that
relate to key drivers of credit risk.
[Disclose a brief description on the models and assumptions used by the entity]
[Disclose if the entity has an accounting judgment made on classification of property as investment
property or owner-occupied property]
PAS 40.7 The Management considered the detailed criteria for classifying property as investment property set
out in PAS 40 par. 7 to 13 and, in particular, whether a property of the [Group] is held either for
rentals, capital appreciation, or both; Otherwise, an owner-occupied property. Judgment is applied
whether such property qualifies as an investment property under PAS 40, or owner-occupied
property under PAS 16.
The Management understands that an investment property generates cash flows largely
independently of the other assets held by an entity, whereas owner-occupied property is the
production or supply of goods or services (or the use of property for administrative purposes)
generates cash flows that are attributable not only to property, but also to other assets used in the
production or supply process.
PAS 40.8 In instances a property comprises a portion that is held to earn rentals of for capital appreciation,
and another portion that is held for use in the production or supply of goods or services or for
administrative purposes, the Management accounts for both portion if such could be sold separately;
Otherwise, the Management classifies the property based on which portion manifests significance.
PAS 40.11
PAS 40.12
The Management also considers the significance of the ancillary services associated with the property
PAS 40.13 it holds to identify the property’s appropriate classification. If such is insignificant to the arrangement
as a whole, the [Group] classifies the property as investment property, otherwise, an owner-occupied
property.
PAS 40.14
PAS 40.75C [Disclose a brief description on the judgment made by the entity, and the criteria for classification]
[Disclose if the entity has an accounting judgment made on deferred taxes on investment properties]
Deferred taxes on investment properties

For the purposes of measuring deferred tax liabilities or deferred tax assets arising from investment
properties that are measured using the fair value model, the Management have reviewed the
[Group]’s investment property portfolios and concluded that the [Group]’s investment properties are
not held under a business model whose objective is to consume substantially all of the economic
benefits embodied in the investment properties over time, rather than through sale. Therefore, in
determining the [Group]’s deferred taxation on investment properties, the directors have determined
that the presumption that the carrying amounts of investment properties measured using the fair
value model are recovered entirely through sale is not rebutted. As a result, the [Group] has not
recognized any deferred taxes on changes in fair value of investment properties as the [Group] is
not subject to any income taxes on the fair value changes of the investment properties on disposal.
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Disclose if the entity has an accounting judgment made functional currency

Functional currency
Based on the economic substance of the underlying circumstances relevant to the [Group], the
functional currency of the [Group] has determined to be the US Dollar. The US Dollar is the currency
of the primary economic environment in which the [Group] operates. It is the currency that mainly
influences the [Group] in determining the costs and selling price of its inventories.
Guidance Note:
As the application of PFRS 16 requires significant judgements and certain key estimations, the matters disclosed here
will be dictated by the circumstances of the individual entity, and by the significance of judgements and estimates
made to the performance and financial position of the entity. Instead of disclosing this information in a separate note,
it may be appropriate to include such disclosures in the relevant asset and liability notes, or as part of the relevant
accounting policy disclosures.
Critical judgements required in the application of PFRS 16 may include, among others, the following:
 Identifying whether a contract (or part of a contract) includes a lease;
 Determining whether it is reasonably certain that an extension or termination option will be exercised;
 Classification of lease agreements (when the entity is a lessor);
 Determination of whether variable payments are in-substance fixed;
 Establishing whether there are multiple leases in an arrangement;
 Determining the stand-alone selling prices of lease and non-lease components.
Key sources of estimation uncertainty in the application of PFRS 16 may include, among others, the following:
 Estimation of the lease term;
 Determination of the appropriate rate to discount the lease payments;
 Assessment of whether a right-of-use asset is impaired.
Leases
The evaluation of whether an arrangement contains a lease is based on its substance. An
arrangement is, or contains, a lease when the fulfillment of the arrangement depends on a specific
asset or assets and the arrangement conveys the right to use the asset.
Classification of lease as finance lease
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the
risk and rewards of the ownership to the lessee otherwise; leases are classified as operating leases.
Judgment is used in determining whether the significant risk and rewards of ownership are
transferred to the lessee. In making such judgment, the [Group] evaluates the terms and conditions
of the lease arrangement. The lease is classified as finance lease if the lessee has the option to
purchase the asset at a price that is expected to be sufficiently lower than the fair value at the date
the option becomes exercisable for it to be reasonably certain, at the inception of the lease, that the
option will be exercised; or the lease term is for the major part of the economic life of the asset; or
at the inception of the lease the present value of the minimum lease payments amounts to at least
substantially all of the fair value of the leased asset; or the leased assets are of such a specialized
nature that only the lessee can use them without major modifications) in which the management
believes that the lessor has transferred substantially all the risk and rewards over the leased asset to
the lessee.
Based on Management evaluation, the lease arrangements entered into by [Group] as a lessor are
accounted for as finance leases because the [Group] has determined that [choose which item
applies: (a) the lessor will transfer the ownership of the leased assets to the [Group] upon
termination of the lease; and, (b) the [Group] has given the lessee an option to purchase the asset
at a price that is sufficiently lower than the fair value at the date of the option].
If entity has an accounting judgment made on operating lease

Classification of lease as operating lease
Based on Management evaluation, the lease arrangements entered into by [Group] as a lessor are
accounted for as operating leases because the [Group] has determined that [choose which item
applies: (a) the [Group] will not transfer the ownership of the leased assets to the lessee upon
termination of the lease; and, (b) the [Group] has not given the lessee an option to purchase the
asset at a price that is sufficiently lower than the fair value at the date of the option].
82
If entity has an accounting Judgment to present third statement of financial position

Presentation of third statement of financial position
It will often be necessary for the management to exercise judgment in determining whether an
additional statement of financial position at the beginning of the earliest comparative period is
required to be presented. When applying judgment, it is necessary to consider whether the
information set out an additional statement of financial position would be material to users of the
financial statements.
Based on the Management evaluation, the preparation and presentation of the statement of financial
position as at (date of the beginning of the earliest comparative period presented as a result of
retrospective application of accounting policy or reclassification of items in the financial statements)
would not have material impact on the [Group]‘s financial statements. Accordingly, the third
statement of financial position is not prepared and presented.
Guidance Note:
Disclose if:
1. entity does not control another entity even though it holds more than half of the voting rights of the other entity.
2. entity controls another entity even though it holds less than half of the voting rights of the other entity.
3. entity is an agent or a principal (see paragraphs B58–B72 of PFRS 10).
PFRS 12.7(a)
PFRS 12.9(b)
Determination of control
Management exercises its judgment in determining whether the [Group] has control over another
entity by evaluating the substance of relationship that indicates the control of [Group] over its
subsidiaries. The recognition and measurement of the [Group]’s investment over these entities will
depend on the result of the judgment made.
As disclosed in Note 3, C Plus Limited is a subsidiary of the [Group] even though the [Group] has
only a 45% ownership interest and has only 45% of the voting rights in C Plus Limited. C Plus
Limited is listed on the stock exchange of A Land. The [Group] has held its 45% ownership since
June 2010 and the remaining 55% of the ownership interests are held by thousands of shareholders
that are unrelated to the [Group].
The BOD of the [Group] assessed whether or not the [Group] has control over C Plus Limited based
on whether the [Group] has the practical ability to direct the relevant activities of C Plus Limited
unilaterally. In making their judgment, the directors considered the [Group]’s absolute size of
holding in C Plus Limited and the relative size of and dispersion of the shareholdings owned by the
other shareholders. After assessment, the directors concluded that the Group has a sufficiently
dominant voting interest to direct the relevant activities of C Plus Limited and therefore the [Group]
has control over C Plus Limited.
Note [X] describes that Subtwo Limited is a subsidiary of the [Group] although the [Group] only
owns a 45% ownership interest in Subtwo Limited. Based on the contractual arrangements between
the [Group] and other investors, the [Group] has the power to appoint and remove the majority of
the board of directors of Subtwo Limited that has the power to direct the relevant activities of
Subtwo Limited. Therefore, the directors of the Company concluded that the [Group] has the
practical ability to direct the relevant activities of Subtwo Limited unilaterally and hence the [Group]
has control over Subtwo Limited.
Based on the assessment made by the Management, the [Group] has control over its subsidiaries
(state the name of subsidiaries consolidated) as at (date of current and prior period). Accordingly,
the financial statements of these entities are included in the consolidated financial statements of the
[Group].
Guidance Note:
Disclose if:
1. entity does not have significant influence even though it holds 20 percent or more of the voting rights of another
entity.
2. entity has significant influence even though it holds less than 20 percent of the voting rights of another entity.
PFRS 12.7(b)
PFRS 12.9(e)
Determination of significant influence
Management exercises its judgment in determining whether the [Group] has significant influence
83
over another entity by evaluating the substance of relationship that indicates the significant influence
[Group] over its associates. The recognition and measurement of the [Group] investment over these
entities will depend on the result of the judgment made.
As disclosed in Note [X], B Plus Limited is an associate of the [Group] although the [Group] only
owns a 17% ownership interest in B Plus Limited. The [Group] has significant influence over B Plus
Limited by virtue of its contractual right to appoint two out of seven directors to the board of
directors of that company.
Based on the assessment made by the Management, the [Group] has significant influence over B
Plus Limited.
The [Group] has a [Ownership interest greater than 29%] interest in [Name of investee]. The
[Group], however, does not account for this investment under the equity method since it does not
have significant influence in the financial and operating policies of the investee. [Disclose the reason
why the [Group] does not have significant influence over the investee]. Investment in [Name of
investee] are included in the [Group]’s [financial assets] as discussed in Note [X].
PFRS 12.7(b) & (c) Determination of classification of joint arrangements

Disclose if an entity has joint arrangements/joint ventures/joint operations
Management exercises its judgment in determining whether the [Group] has joint control over
another entity by evaluating the substance of relationship that indicates the joint control of the
[Group] over its joint ventures. The recognition and measurement of the [Group] investment over
these entities will depend on the result of the judgment made.
JV Electronics Limited is a limited liability company whose legal form confers separation between the
parties to the joint arrangement and the company itself. Furthermore, there is no contractual
arrangement or any other facts and circumstances that indicate that the parties to the joint
arrangement have rights to the assets and obligations for the liabilities of the joint arrangement.
Accordingly, the [Group] has classified its joint arrangement as joint venture because of its rights
over the net assets of (state the name of joint venture).
The [Group] has a material joint operation arrangement on Project ABC. There is no contractual
arrangement or any other facts and circumstances that indicate that the parties to the joint
arrangement have rights to the net assets of the joint arrangement. Accordingly, based on the
assessment made by the Management, [Group] has classified its joint arrangement as joint
operation because of its rights over the assets and obligations for the liabilities of Project ABC.
Discount rate used to determine the carrying amount of the Group’s defined benefit obligation
The [Group]’s defined benefit obligation is discounted at a rate set by reference to market yields at
the end of the report period on high quality corporate bonds. Significant judgment is required when
setting the criteria for bonds to be included in the population from which the yield curve is derived.
The most significant criteria considered for the selection of bonds include the issue size of the
corporate bonds, quality of the bonds and the identification of outliers which are excluded.
Disclose if an entity has biological assets

Biological assets
Biological assets are required to be measured on initial recognition and at the end of each reporting
period at fair value less costs to sell, unless fair value cannot be measured reliably. Accordingly, the
Management shall exercise its judgment in determining the best estimate of fair value.
After exerting its best effort in determining the fair value of the [Group]’s biological assets, the
Management believes that the fair value of its biological assets cannot be measured reliably since
the market determined prices or values are not available and other methods of reasonably
estimating fair value are determined to be clearly unreliable. Accordingly, the [Group]’s biological
assets are measured at cost less accumulated depreciation and any accumulated impairment loss.
Capitalization of borrowing costs

As described in note [X], the [Group] capitalizes borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets. Capitalization of the borrowing costs
relating to construction of the [Group]’s premises in [A Land] was suspended in 2019, while the
development was delayed as management reconsidered its detailed plans. Capitalization of
84
borrowing costs recommenced in 2020 – following the finalization of revised plans, and the
resumption of the activities necessary to prepare the asset for its intended use. Although
construction of the premises was not restarted until May 2020, borrowing costs have been
capitalized from February 2020, at which time the technical and administrative work associated with
the project recommenced.
Determination of classification of intangible assets having indefinite useful life

Disclose if an entity has intangible assets classified as having indefinite useful life
Significant judgment is needed by Management when determining the classification of intangible
assets as finite or indefinite useful life assets. The following factors are taken into account when this
classification is made:
 Historical product sales, volume and profitability trends as well as expected uses for the
asset further from budgets, further growth ad plans to invest in each of the assets over the
long term are taken into account when this is being assessed;
 Estimates of useful lives of similar assets – historical trends, market sentiment and / or the
impact of any competitive activity;
 The strategy for obtaining maximum economic benefit from the asset;
 Rates of technical, technological or commercial obsolescence in the industry are slow and
evident in the fact that most of the reinvestment in technology is mainly expansion rather
than replacement in technology due to obsolescence;
 The stability of the industry and economy in which the asset will be deployed;
 The willingness and ability of the entity to commit resources to maintain the performance of
the asset;
 Redundancy of a similar medication due to changes in market preferences; and
 Development of new drugs treating the same disease.
Indefinite useful life intangible assets constitutes __% of total intangible assets (201X : __% of total
intangible assets).
PAS 1.125
PAS 1.129
Key Sources of Estimation Uncertainty
The following are the key assumptions concerning the future and other key sources of estimation
uncertainty at the end of each reporting period that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year.
PAS 1.131 Probability of default (PD)

PD constitutes a key input in measuring ECL. PD is an estimate of the likelihood of default over a
given time horizon, the calculation of which includes historical data, assumptions and expectations of
future conditions.
[Briefly disclose the estimate made by the entity]
PAS 1.131 Loss Given Default (LGD)

LGD is an estimate of the loss arising on default. It is based on the difference between the
contractual cash flows due and those that the lender would expect to receive, taking into account
cash flows from collateral and integral credit enhancements.
[Briefly disclose the estimate made by the entity]
PAS 1.125(a) Estimating loss allowance for expected credit losses

The [Group] measures expected credit losses of a financial instrument in a way that reflects an
unbiased and probability-weighted amount that is determined by evaluating a range of possible
outcomes, the time value of money and information about past events, current conditions and
forecasts of future economic conditions. When measuring ECL the [Group] uses reasonable and
supportable forward-looking information, which is based on assumptions for the future movement of
different economic drivers and how these drivers will affect each other.
[Briefly disclose the considerations made by the entity on estimating loss allowance]
[Disclose the carrying amount and loss allowance recognized by the Group for each applicable
financial instrument]
85
86
PAS 1.125(a) Estimating useful lives of assets

The useful lives of the [Group]’s assets with definite life are estimated based on the period over
which the assets are expected to be available for use. The estimated useful lives of [Group]’s
property, plant and equipment are reviewed periodically and are updated if expectations differ from
previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or
other limits on the use of the [Group]’s assets. In addition, the estimation of the useful lives is based
on the [Group]’s collective assessment of industry practice, internal technical evaluation and
experience with similar assets. It is possible, however, that future results of operations could be
materially affected by changes in estimates brought about by changes in factors mentioned above.
The amounts and timing of recorded expenses for any period would be affected by changes in these
factors and circumstances. A reduction in the estimated useful lives of property, plant and
equipment would increase the recognized operating expenses and decrease non-current assets.
PAS 1.125(b) As at December 31, 2020 and 2019, the carrying amounts of the [Group]’s property, plant and
equipment amounted to [PXXX] and [PXXX], respectively. Total accumulated depreciation as at
December 31, 2020 and 2019 amounted to [PXXX] and [PXXX], respectively.
If there is a change in useful life

Change in useful life of assets
The [Group] reviews the estimated useful lives of property, plant and equipment at the end of each
reporting period. During the current year, the directors determined that the useful lives of certain
items of equipment should be shortened, due to developments in technology.
The financial effect of this reassessment, assuming the assets are held until the end of their
estimated useful lives, is to increase the consolidated depreciation expense in the current financial
year and for the next three years, by the following amounts:
P’000
2020 -
2021 -
2022 -
2023 -
Internally generated intangible asset

During the year, the directors considered the recoverability of the [Group]’s internally generated
intangible asset arising from its e-business development, which is included in the consolidated
statement of financial position with a carrying amount of [PXXX] as at December 31, 2020 and 2019.
The project continues to progress in a satisfactory manner, and customer reaction has reconfirmed
the directors’ previous estimates of anticipated revenues from the project. However, increased
competitor activity has caused the directors to reconsider their assumptions and anticipated margins
on these products. Detailed sensitivity analysis has been carried out and the directors are confident
that the carrying amount of the asset will be recovered in full, even if returns are reduced. This
situation will be closely monitored, and adjustments made in future periods if future market activity
indicates that such adjustments are appropriate.
PAS 1.125(a) Impairment of goodwill

Determining whether goodwill is impaired requires estimation of the value of cash-generating units
to which goodwill has been allocated. The value in use calculation requires the directors to estimate
the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in
order to calculate present value. Where the actual future cash flows are less than expected, a
material impairment loss may arise.
PAS 1.125(b) The carrying amount of goodwill as at December 31, 2020 and 2019 amounted to [PXXX] and
[PXXX], respectively, net of impairment loss amounting to [PXXX] and [PXXX] in 2020 and 2019,
respectively.
PAS 1.125(a) If an entity has key estimates made on asset impairment other than goodwill
Asset impairment other than goodwill
The [Group] performs an impairment review when certain impairment indicators are present.
87
Purchase accounting requires extensive use of accounting estimates and judgment to allocate the
purchase price to the fair market values of the assets and liabilities purchased.
Determining the recoverable amount of property, plant and equipment, intangible assets, and
investment in associates, joint ventures and subsidiaries, which require the determination of future
cash flows expected to be generated from the continued use and ultimate disposition of such assets,
requires the [Group] to make estimates and assumptions that can materially affect the consolidated
financial statements. Future events could cause the [Group] to conclude that property, plant and
equipment, intangible assets, and investment in associates, joint ventures and subsidiaries, are
impaired. Any resulting impairment loss could have a material adverse impact on the financial
condition and results of operations.
The preparation of the estimated future cash flows involves significant judgment and estimations.
While the [Group] believes that its assumptions are appropriate and reasonable, significant changes
in the assumptions may materially affect the assessment of recoverable values and may lead to
future additional impairment charges.
PAS 1.125(b) If entity has NOT recognized impairment loss

As at [End of reporting date for the current and comparative period], Management believes that the
recoverable amounts of the [Group]’s property, plant and equipment, intangible assets, and
investment in associates, joint ventures and subsidiaries, exceed their carrying amounts,
accordingly, no impairment loss was recognized in both years.
PAS 1.125(b) Impairment losses charged to profit or loss in 2020 and 2019 amounted to [PXXX] and [PXXX],
respectively, as disclosed in Note [X].
PAS 1.125(a) Investment properties

The [Group] has adopted the fair value approach in determining the carrying value of its investment
properties. While the [Group] has opted to rely on independent appraisers to determine the fair
value of its investment properties, such fair value was determined based on recent prices of similar
properties, with adjustments to reflect any changes in economic conditions since the date of the
transactions that occurred at those prices. The amounts and timing of recorded changes in fair value
for any period would differ if the [Group] made different judgments and estimates or utilized
different basis for determining fair value.
PAS 1.125(b) The carrying amounts of investment properties carried at fair value as at December 31, 2020 and
2019, amounted to [PXXX] and [PXXX], respectively. Fair value gain recognized in profit or loss
amounted to [PXXX] and [PXXX] in 2020 and 2019, respectively.
PAS 1.125(a) If an entity has unrecognized/ deferred tax assets

Deferred tax assets
The [Group] reviews the carrying amounts at the end of each reporting period and reduces deferred
tax assets to the extent that it is no longer probable that sufficient taxable profit will be available to
allow all or part of the deferred tax assets to be utilized. However, there is no assurance that the
[Group] will generate sufficient taxable profit to allow all or part of its deferred tax assets to be
utilized.
[Group] opted not to recognize deferred tax assets since management believes that it is unlikely that
future taxable income will be available from which these deferred income tax assets will be utilized,
as disclosed in Note [X].
PAS 1.125(b) Total Deferred tax assets recognized in the statements of financial position as at [End of reporting
date for the current and comparative period], amounted to [PXXX] and [PXXX], respectively. Based
on management assessment, these amounts can be utilized in the subsequent periods.
PAS 1.125(a) If an entity has key estimates in determining the FV of financial instruments
Determining the fair value of financial instruments
The [Group] carries some of its financial assets and liabilities at fair value, which requires extensive
use of accounting estimates and judgment. In addition, certain liabilities acquired through debt
exchange and restructuring are required to be carried at fair value at the time of the debt exchange
and restructuring. While significant components of fair value measurement were determined using
88
verifiable objective evidence, i.e., foreign exchange rates, interest rates, volatility rates, the amount
of changes in fair value would differ if the [Group] utilized different valuation methodology. Any
change in fair value of these financial assets and liabilities would affect profit or loss and equity.
As at December 31, 2020 and 2019, carrying amounts of financial assets carried at fair value
PAS 1.125(b) subsequent to initial recognition amounted to [PXXX] and [PXXX], respectively.
Total liabilities carried at fair value subsequent to initial recognition amounted to [PXXX] and [PXXX],
PAS 1.125(b) as at December 31, 2020 and 2019, respectively.
PAS 1.125(a) If entity has biological assets carried at fair value less cost to sell
Determining fair value of biological asset
Estimates in determining the fair value of [name of biological asset] relates to [enumerate the
factors considered in determining fair value of biological asset e.g. market prices]. Market price of
[name of biological asset] is obtained from the local market. The market price of the [name of
biological asset] sold at the local market approximates the fair value of [Group] ‘s [name of
biological asset].
PAS 1.125(b) As at [End of reporting date for the current and comparative period], the carrying amounts of the
Company’s biological assets amounted to [PXXX] and [PXXX], respectively.
PAS 1.125(a) Estimating net realizable value of inventories
The net realizable value of inventories represents the estimated selling price for inventories less all
estimated costs of completion and costs necessary to make the sale. The [Group] determines the
estimated selling price based on the recent sale transactions of similar goods with adjustments to
reflect any changes in economic conditions since the date the transactions occurred. The [Group]
records provision for excess of cost over net realizable value of inventories. While the [Group]
believes that the estimates are reasonable and appropriate, significant differences in the actual
experience or significant changes in estimates may materially affect the profit or loss and equity.
PAS 1.125(b) If no allowance for the decline in value was recognized

As at [End of reporting date for the current and comparative period], Management believes that the
net realizable values of the [Group]’s inventories exceed their carrying values, accordingly, no loss
on the decline in value was recognized in both years.
PAS 1.125(b) Total inventories recognized in the [Group]’s statements of financial position amounted to [PXXX]
and [PXXX] as at December 31, 2020 and 2019, respectively.
PAS 1.125(a) If entity has key estimates made on revenue recognition

Revenue recognition
The [Group]’s revenue recognition policies require the use of estimates and assumptions in
determining the percentage of completion which may affect the reported amounts of revenues and
receivables.
Revenues under a multiple element arrangement were split into separately identifiable components
and recognized the related components were delivered in order to reflect the substance of the
transaction. The fair value of components was determined using verifiable objective evidence. While
the [Group] believes that the estimates are reasonable and appropriate, significant differences in the
actual experience or significant changes in estimates may materially affect the profit or loss and
equity.
[Disclose amount of revenue recognized for the current and prior period]
PAS 1.125(a)
PAS 1.125(b)
Retirement benefit and other post-employment benefits
The determination of the retirement benefit obligation cost and other post-employment benefits is
dependent on the selection of certain assumptions used by actuaries in calculating such amounts.
Those assumptions include among others, discount rates, mortality and rates of compensation
increase. While the [Group] believes that the assumptions are reasonable and appropriate,
significant differences in the actual experience or significant changes in the assumptions may
89
materially affect the amount of retirement benefit obligation and other post-employment benefits
recognized.
PAS 1.125(b) The total retirement expense recognized in 2020 and 2019 amounted to [PXXX] and [PXXX],
respectively, and retirement benefit obligation as at December 31, 2020 and 2019 amounted to
[PXXX] and [PXXX], respectively.
90
PAS 1.125(a)
PAS 1.125(b)
If entity has asset retirement obligation
Asset retirement obligation
Determining asset retirement obligation requires estimation of the costs of dismantling installations
and restoring leased properties to their original condition. The [Group] determined the amount of
asset retirement obligation which is discounted at the current market borrowing rates from 5% to
10% depending on the life of the capitalized costs. While it is believed that the assumptions used in
the estimation of such costs are reasonable, significant changes in these assumptions may materially
affect the recorded expense or obligation in the future periods.
[Disclose carrying amount of asset retirement obligation recognized in the current and prior year.]
PAS 1.125(a)
PAS 1.125(b)
If entity has provision for onerous contracts
Provision for onerous contract
Determining the amount of provision for onerous contracts require estimation of the expected cost of
terminating a contract and the expected net cost of continuing with the contract. The [Group]
determined the amount of provision for onerous contract as the present value of the lower of the
expected cost of terminating a contract and the expected net cost of continuing with the contract.
While it is believed that the assumptions used in the estimation of such costs are reasonable,
significant changes in these assumptions may materially affect the recorded expense or obligation in
the future periods.
[Disclose carrying amount of provision for onerous contract recognized in the current and prior
year.]
PAS 1.125(a)
PAS 1.125(b)
If entity has contingencies
Contingencies
The [Group] is currently involved in various legal proceedings and tax assessments as disclosed in
Note [X]. Estimates of probable costs for the resolution of these claims has been developed in
consultation with outside counsel handling the defense in these matters and is based upon an
analysis of potential results. The [Group] currently does not believe these proceedings will have a
material adverse effect on the financial position. Accordingly, no provision is recognized, however, it
is possible that future results of operations could be materially affected by changes in the estimates
or in the effectiveness of the [Group]’s strategies relating to these proceedings.
PAS 1.125(a) If entity is in liquidation

Assets and liabilities
The [Group] carries its assets at their estimated realizable values and liabilities at the estimated
settlement amounts. While Management reviewed and used the best available facts in determining
the measurement of its assets and liabilities, such as confirmation of receivables from its customers,
these estimated values may be different from the proceeds that will ultimately be received or
payments that will be made.
7. SEGMENT INFORMATION
Guidance Note:
This is required only if the entity‘s securities are publicly listed. However, if a regular entity opted to disclose this
information, it should comply with all the disclosure requirements of the related standard.
PFRS 8.22(a)
PFRS 15.114-115
Business segment
For Management purposes, the [Group] is organized into four major operating divisions: electronic
equipment; leisure goods; computer software; and construction. These divisions are the basis on
which the [Group] reports its primary segment information to the CODM for the purposes of resource
allocation and assessment of segment performance focuses on the types of goods or services
delivered or provided [Specify basis of organization of segment]. The principal products and services
of each of these divisions are as follows:
PFRS 8.22(b) Electronic equipment Direct sales

Wholesalers
Internet sales
Leisure goods Wholesalers
Retail outlets
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Computer software Installation of computer software for

specialized business applications
Construction Construction of residential properties
The leisure goods segments supply sports shoes and equipment, as well as outdoor play equipment.
If entity has discontinued segment during the year with reference to the note on discontinued
operation
Two operations (the manufacture and sale of toys and bicycles) were discontinued in the current
year. The segment information reported on the next pages does not include any amounts for these
discontinued operations, which are described in more detail in Note [X].
PFRS 8.23 Other operations include [Other minor segments].

PFRS 8.23 (a)
PFRS 8.23 (b)
The segments’ results of operations of the reportable segments for the years ended
December 31, 2020 and 2019 are as follows:
Segment Revenue Segment Profit

From External From Other
Customers Segments Total
2020 2019 2020 2019 2020 2019 2020 2019
Continuing
Operations
Electronic Direct sales
P 20,000 P 12,000 P1,000 P3,000 P 21,000 P15,000 P10,000 P11,000
equipment
Wholesalers 20,000 15,000 2,000 2,000 22,000 17,000 8,000 9,000
Internet sales 20,000 22,000 500 560 20,500 22,560 4,000 5,060
Leisure goods Wholesalers 20,000 23,000 500 500 20,500 23,500 8,000 3,000
Retail outlets 10,000 32,000 500 500 10,500 32,500 9,090 4,000
Computer
20,000 15,000 500 500 20,500 15,500 8,000 10,000
software
Construction 14,000 16,000 500 500 14,500 16,500 8,000 10,000
Others
10,390 9,000 500 500 10,890 9,500 8,000 20,000
(Describe)
(Balance carried forward) P134,390 P144,000 P6,000 P8,060 P140,390 P152,060 P63,090 P72,060
PFRS 8.23(a) & (b)
Segment Revenue Segment Profit
From External From Other
Total
Customers Segments
2020 2019 2020 2019 2020 2019 2020 2019
(Balance brought forward) P - P - P - P - P - P - P - P -
Unallocated: - - - - - - - -

Recon item 1 for - - - - - - - -
revenue(Pls. specify) - - - - - - - -
Recon item 2 for - - - - - - - -
revenue(Pls. specify) - - - - - - - -
Consolidated revenue - - - - - - - -
Share of profit of associates - - - - - - - -
Share of profit of a joint
- - - - - - - -
venture
Gain on disposal of interest in
- - - - - - - -
former associate
Investment income - - - - - - - -
Other gains and losses - - - - - - - -
Central administration costs
- - - - - - - -
and directors' salaries
Finance cost - - - - - - - -
Profit before tax from
- - - - - - - -
continuing operations
Income tax expense - - - - - - - -
Profit for the year from
134,390 144,000 6,000 8,060 140,390 152,060 63,090 72,060
continuing operations
Profit for the year from
discontinued operations-net of - - - - - - - -
tax
Consolidated profit for the year P134,390 P144,000 P6,000 P8,060 P140,390 P152,060 P63,090 P72,060
PFRS 8.23(b)
Segment revenue reported above represents revenue generated from external customers. There
were no inter-segment sales in 2020 and 2019.
92
PFRS 8.27 The accounting policies of the reportable segments are the same as the [Group]’s accounting policies
described in Note [X]. Segment profit represents the profit before tax earned by each segment
without allocation of central administration costs and directors’ salaries, share of profit of associates,
share of profit of a joint venture, gain recognized on disposal of interest in former associate,
investment income, other gains and losses, as well as finance costs. This is the measure reported to
the CODM for the purposes of resource allocation and assessment of segment performance.
The segment assets and liabilities as at December 31, 2020 and 2019 are as follows:
This is not applicable if not regularly reported to the chief operating officer
PFRS 8.27 Assets Liabilities
PFRS 8.23
PFRS 8.28(c) & (d) 2020 2019 2020 2019
Electronic equipment Direct sales P 45,000 P 40,000 P 15,000 P 12,000
Wholesalers 13,000 12,000 13,000 12,000
Internet sales 31,000 18,940 12,000 15,000
Leisure goods Wholesalers 15,000 15,000 17,000 15,000
Retail outlets 10,000 11,000 10,000 23,000
Computer software 11,930 12,000 12,420 9,000
Construction 120,000 120,000 5,000 20,000
62
Others (Describe) 19,000 20,000 29,000 0
Segment total 264,930 248,940 113,420 106,620
Segment asset/liabilities of discontinued
operations - - - -
Eliminations - - - -
Unallocated (please specify) - - - -
Consolidated balance P264,930 P248,940 P113,420 P106,620
For the purposes of monitoring segment performance and allocating resources between segments:
 All assets are allocated to reportable segments other than interests in associates, interests in a
joint venture, ‘other financial assets’, and current and deferred tax assets. Goodwill is allocated
to reportable segments as disclosed in Note [X]. Assets used jointly by reportable segments are
allocated on the basis of the revenues earned by individual reportable segments.
 All liabilities are allocated to reportable segments other than borrowings, other financial
liabilities, current and deferred tax liabilities. Liabilities for which reportable segments are jointly
liable are allocated in proportion to segment assets.
Guidance Note:
PFRS 8:23 Other required segment information required by PFRS 8 not disclosed in this example:
(a) interest income, (b) interest expense, (c) the entity’s interest in the profit or loss of associates and joint ventures
accounted for by the equity method; (d) income tax expense or income; and (e) material non-cash items other than
depreciation and amortization.
PFRS 8.27(f) Other segment information as at and for the year ended December 31 are as follows:
PFRS 8.23(e) Depreciation and Additions to Non-Current

PFRS 8.24(b) Impairment losses
Amortization Assets
PFRS 8.23(i)
2020 2019 2020 2019 2020 2019
Electronic
equipment Direct sales P 1,000 P1,000 P3,000 P1,000 P - P -
Whole-salers 2,000 1,000 2,000 1,000 - -
Internet
sales 1,000 4,070 5,470 2,000 - -
Leisure goods Whole-salers 3,000 2,000 2,000 3,000 - -
Retail
outlets 1,000 1,000 3,000 2,890 - -
Computer
software 4,000 2,000 4,000 1,000 - -
Construction 2,410 3,000 2,000 1,000 - -
P14,410 P14,070 P21,470 P11,890 P - P -
Disclose if there are impairment losses

The impairment losses on electronic equipment and construction segments pertain to property,
plant and equipment for the year ended December 31, 2020.
93
Electronic equipment - direct sales -

- wholesalers -
- internet sales -
-
Impairment loss recognized for the year in respect of goodwill:
Construction
Rectification costs of [PXXX] million, as disclosed in Note [X], relate to the ‘electronic equipment -
direct sales’ reportable segment for the year ended December 31, 2020
PAS 36.129 The following is an analysis of the [Group]’s revenue from continuing operations from its major
products and services for the year ended December 31:
2020 2019
Electronic equipment P 60,000 P 49,000
Sports shoes 30,000 55,000
Sports equipment - -
Outdoor play equipment - -
Installation of computer software - -
Construction 14,000 16,000
P104,000 P120,000
Geographical information
PFRS 8.23(f)
PFRS 8.32
The [Group] operates in three principal geographical areas: A Land (country of domicile), B Land
and C Land.
The [Group]’s revenue from continuing operations from external customers by location of
operations and information about its non-current assets by location of assets are detailed below.
Revenue from external customers Non-current assets

For the year ended December 31 December 31
2020 2019 2020 2019
A Land P 70,000 P 80,000 P100,000 P120,000
B Land 30,000 40,000 20,000 30,000
C Land 20,000 20,000 10,000 20,000
Other 20,930 12,060 24,020 10,030
P140,930 P152,060 P154,020 P180,030
Non-current assets exclude those relating to toy and bicycle operations and non-current assets
classified as held for sale, and exclude financial instruments, deferred tax assets, post-
employment benefit assets, and assets arising from insurance contracts.
PFRS 8.34 Included in revenues arising from direct sales of electronic equipment of [Group] in 2020 and
[PXXX] in 2019, as disclosed in Note [X], are revenues of approximately [PXXX] in 2020 and
[PXXX] in 2019 which arose from sales to the [Group]’s largest customer. No other single
customers contributed 10% or more to the [Group]’s revenue for both 2020 and 2019.
[Disclose if applicable]
PFRS 15.120 The following table shows the aggregate amount of the transaction price allocated to performance
obligations that are unsatisfied (or partially unsatisfied) as at the end of the reporting period.
2020 2019
Maintenance obligations relating to electronic equipment P - P -
Installation of software services - -
Construction contracts - -
P - P -
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PFRS
15.120(b)
Management expects that [X%] and [X%] of the transaction price allocated to the unsatisfied
contracts as of December 31, 2020 and 2019, respectively, will be recognized as revenue during
the next reporting period [PXXX]. Of the remaining [X%], [PXXX] will be recognized in 2021 and
[PXXX] in 2022.
Guidance Note:
Note: (Q&A PAS 1): 54-1 The separate line item in the statement of financial position does not necessarily tie
up with the note correspond with cash and cash equivalents as defined in PAS 7.
8. CASH AND CASH EQUIVALENTS
PAS 7.45 Cash and cash equivalents at the end of the reporting period as shown in the statements of cash
flows can be reconciled to the related items in the statements of financial position as follows:
Note 2020 2019

Cash on hand and in banks P13,000 P10,200
Cash equivalents 10,000 10,000
Cash and bank balances included in
disposal group held for sale 170 -
P23,170 P20,200
Cash equivalents are short-term, highly liquid investments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value. The [Group]
classifies an investment as cash equivalent if that investment has a maturity of three months or
less from the date of acquisition.
Cash in banks earned average interest of [Interest Rate for the current and comparative periods]
during [Current and Comparative year], respectively. Cash equivalents represent money market
placements, with annual interest of [Interest rate] % and [Interest rate] % in [Current and
Comparative year], respectively.
Interest income recognized on the statement of comprehensive income amounted to [PXXX] and
[PXXX] in 2020 and 2019, respectively as disclosed in Note [X].
PAS 7.48 The [Group] holds cash and cash equivalents amounting to [Amounts of restricted cash for the
current and comparative periods] in 2020 and 2019, respectively, which are not available for use.
[Disclose reason for the restriction]. The restricted cash and cash equivalents are presented under
[Account title for restricted cash] as disclosed in [Note number for restricted cash].
9. TRADE AND OTHER RECEIVABLES – net

The [Group]’s trade and other receivables consist of:
Revised SRC Rule

68, Annex 68-K, (1)
Note 2020 2019
(A)(i) & (ii)
Trade receivables from:
Third party customers P10,000 P10,000
Allowance for doubtful accounts (790) (830)
9,210 9,170
Trade receivables from:
Related parties 38 620 740
Advances to officers and employees - -
Loans to officers and employees - -
Others [describe] - -
16,610 13,730
Deferred sales proceeds
Toy manufacturing operations 960 -
Partial disposal of E Plus Limited 1,240 -
Operating lease receivable - -
Others [describe] 50 20
P18,860 P13,750
95
Guidance Note:
The amount of the allowance must be deducted directly from the amount(s) of receivable to which it specifically
pertains (for this case, the allowance pertains to trade receivables, advances from officers and employees and
others).
The disclosures below illustrates disclosures for the terms of the items of receivables. Management should still
assess the specific terms of these items of receivables.
Further, Entities covered under Part 2 of Revised SRC Rule 68, Annex 68-K, (1)(A)(iii), if significant in amount,
Entities’ other receivables shall be segregated by type, otherwise, they may be grouped in one figure captioned as
Accounts Receivables-Others, or other equivalent title.
PFRS 7.33(b) The average credit period on sales of goods is 60 days. No interest is charged on trade receivables
for the first 60 days from the date of the invoice. Thereafter, interest is charged at 2% per annum
on the outstanding balance.
For terms and conditions relating to receivables from related parties, refer to Note [X].
Advances to officers and employees are noninterest-bearing and are normally liquidated within
one month.
Other receivables, which consist mainly of receivables from various parties for transactions other
than sale of goods, are noninterest-bearing and generally have terms of 30 to 45 days.
[Disclose the terms of other items of receivables disclosed in this notes]
Guidance Note:
To explain the changes in the loss allowance and the reasons for those changes, an entity shall provide, by class of
financial instrument, a reconciliation from the opening balance to the closing balance of the loss allowance, in a
table, showing separately the changes during the period. The table must be disclosed for each financial instrument
applicable.
The following table shows the movement in lifetime ECL that has been recognized for trade and
other receivables in accordance with the simplified approach set out in PFRS 9.
Collectively Individually Assessed Total

Assessed
Balance, beginning - - -
Transfer to credit - - -
impaired
Transfer from credit - - -
impaired
Net remeasurement of - - -
allowance
Amounts written-off - - -
Amounts recovered - - -
Change in loss - - -
allowance due to new
trade and other
receivables originated
net of those
derecognized due to
settlement
Foreign exchange gains - - -
and
losses
Changes in credit risk - - -
parameters
Balance, ending - - -
Guidance Note:
The table below may also be used to disclose the movement
96
PFRS 7.35H Movements in the loss allowance as at December 31 are as follows:
Note 2020 2019

Balance, January 1 P830 P620
Doubtful accounts expense 60 430
Amounts written off as uncollectible - (220)
Amounts recovered during the year - -
Reversal of allowance (100) -
Foreign exchange translation gains and losses - -
Unwinding of discount - -
Balance, December 31 P790 P830
In determining the recoverability of trade receivables, the [Group] considers any change in the
PFRS 7.33(a),(b) credit quality of the trade receivable from the date credit was initially granted up to the end of the
reporting period. The concentration of credit risk is limited due to the customer base being large
and unrelated. Accordingly, the BOD believes that there is no further allowance for doubtful
accounts required in excess of those that were already provided.
[Disclose if the manner of providing allowance is by COLLECTIVE assessment]

The [Group] has provided an allowance in full for all receivables over 120 days because historical
experience and forward looking information shows that such receivables are not recoverable. Loss
allowance are recognized against trade receivables between 60 days and 120 days based on
estimated irrecoverable amounts determined by reference to past default experience of the
counterparty and an analysis of the counterparty’s current financial position.
[Disclose if manner of providing allowance is by INDIVIDUAL assessment]

PFRS 7.37(b) Included in the allowance for doubtful accounts are individually impaired trade receivables
amounting to [XXX] and [PXXX] as at December 31, 2020 and 2019, respectively, which have
been placed under liquidation. The impairment recognized represents the difference between the
carrying amount of these trade receivables and the present value of the expected liquidation
proceeds. The Group does not hold any collateral over these balances.
PFRS 7.37(a) Aging of past due accounts but not impaired and credit quality of trade and other receivable are
disclosed in Note [X].
[For transfers that do not meet the derecognition requirements]

PFRS 7.42D (a)
PFRS 7.42D (b)
During [Current and Comparative year], the [Group] transferred [Balances of trade receivables
PFRS 7.42D (c) individually identified to be impaired as at reporting date for the current and previous year] of
PFRS 7.42D (f) trade receivables to an [unrelated/related] entity. As part of the transfer, [State the reason why
the financial asset should not be derecognized]. Accordingly, the [Group] continues to recognize
the full carrying amount of the receivables and has recognized the cash received on the transfer
as a secured borrowing.
PFRS 7.142 (a)

PFRS 7.42D (a)
During the year, the [Group] discounted trade receivables with an aggregate carrying amount of
PFRS 7.42D (b) [PXXX] million to a bank for cash proceeds of [PXXX] million. If the trade receivables are not paid
PFRS 7.42D (c)
PFRS 7.42D (f)
at maturity, the bank has the right to request the [Group] to pay the unsettled balance. As the
[Group] has not transferred the significant risks and rewards relating to these trade receivables, it
continues to recognize the full carrying amount of the receivables and has recognized the cash
received on the transfer as a secured borrowing as disclosed in Note [X].
PFRS 7.42D (e) As at December 31, 2020, the carrying amount of the trade receivables that have been
transferred but have not been derecognized amounted to [PXXX] million and the carrying amount
of the associated liability is [PXXX] million.
PFRS 7.8 (a) 10. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
This account is composed of investments in the following securities:
Note 2020 2019

Non-derivative financial assets designated as FVTPL P - P -
- -
97
Held for trading derivatives that are not

designated in hedge accounting relationships
- -
Held for trading non-derivative financial assets 1,530 1,630
P1,530 P1,630
Changes in fair values of financial assets at fair value through profit or loss are recognized as
other income as disclosed in Note [X].
11. FINANCE LEASE RECEIVABLES

The details of finance lease receivables are disclosed as follows:
2020 2019
Current finance lease receivable P 190 P180
Non-current finance lease receivable 830 710
P1,020 P890
PFRS 16:93
PFRS 16:89;
The [Group] enters into finance leasing arrangements as a lessor for certain store equipment to its
PFRS 16:92(a); retailers. The equipment in necessary for the presentation and testing of footwear and equipment
PFRS 7:7 manufactured by the [Group]. The average term of finance leases entered into is years. Generally,
these lease contracts do not include extension or early termination options.
The [Group] is not exposed to foreign currency risk as a result of the lease arrangements, as all
leases are denominated in CU. Residual value risk on equipment under lease is not significant,
PFRS 16:92(b) because of the existence of a secondary market with respect to the equipment.
The analysis of the [Group]’s finance lease receivables are disclosed as follows:
PFRS 16:94
PAS 16.94
Maturity analysis of finance lease payments
Present Value of Minimum
Minimum Lease Receivable Lease Receivables
2019 2019
2020 (restated) 2020 (restated)
Year 1 XX XX XX XX
Year 2 XX XX XX XX
Year 3 XX XX XX XX
Year 4 XX XX XX XX
Year 5 XX XX XX XX
Year 6 and onwards XX XX XX XX
Lease payments XX XX XX XX
Unguaranteed residual values XX XX XX XX
Gross investment in the lease XX XX XX XX
Less: Unearned finance income XX XX XX XX
Present value of minimum lease
payments receivable XX XX XX XX
Impairment losses XX XX XX XX
Net investment in the lease XX XX XX XX
PFRS 16:90 The following table presents the finance income on the net investment in the lease and income
relating to variable lease payments not included in the net investment in the lease.
2020 2019
Selling profit/loss for finance leases P 280 P 270
Finance income on the net investment in
finance leases 1,070 890
Income relating variable lease payments not - -
included in the net investment in finance leases
Lease income on operating leases 1,350 1,160
98
Therein lease income relating to variable lease (330) (270)

payments that do not depend on an index or
rate
The Group's finance lease arrangements do not include variable payments.

PFRS 16.94 Unguaranteed residual values of assets leased under finance leases at the end of the reporting
period are estimated at [PXXX] and [PXXX] as at December 31, 2020 and 2019, respectively.
PFRS 7.7 The interest rate inherent in the leases is fixed at the contract date for all of the lease term. The
average effective interest rate contracted approximates 10.5% and 11% per annum during 2020
and 2019, respectively.
The finance lease receivable at the end of the reporting period are neither past due nor impaired.
[If entity has contingent rent]

PFRS 16.90 The [Group] recognized as income contingent rents arising from the finance lease agreements
amounting to [Amount of contingent rents earned during the current and comparative periods]
during [Reporting Date for Current and Comparatives], respectively.
12. INVENTORIES – net

Details of the [Group]’s inventories are as follows.
PAS 2.36(b)
Note 2020 2019
Finished Work-in- Raw Finished Work-in- Raw
goods progress materials goods progress materials
At Cost 16,210 4,490 9,970 13,450 4,350 10,320

Less
allowance for (800) - - - - -
inventory
obsolescence
At Net 4,490 9,970
realizable 15,410 13,450 4,350 10,320
value
Guidance Note:
The amount of the allowance must be deducted directly from the amount(s) of inventories to which it specifically
pertains (for this case, the allowance pertains to all types of inventories).
[Disclose the paragraph below if entity has inventories carried at fair value less cost to sell]
PAS 2.36(c) The cost of inventories carried at fair value less cost to sell amounted to [PXXX] and [PXXX] as at
[Reporting Date for Current and Comparatives], respectively.
PAS 2.36(d) The cost of inventories recognized as an expense on continuing operations during the period was
[PXXX] million in 2020 and [PXXX] million in 2019. This includes [PXXX] in 2020 and [PXXX] in
2019 in respect of write-downs of inventory to net realizable value, and has been reduced by
[PXXX] in 2020 and [PXXX] in 2019 in respect of the reversal of such write-downs. Previous write-
downs have been reversed as a result of increased sales prices in certain markets.
Movements in the allowance for inventory obsolescence are as follows:
PAS 2.36(e)
PAS 2.36(f)
Finished goods WIP Raw Total
materials
Balance, January 1 P - P - P - P -
Loss on inventory obsolescence 2,340 - - 1,860
Write-offs - - - -
Recovery 300 - - 300
Reversals (1,840) - - (1,840)
Balance, December 31 P 800 P - P - P 800
PAS 2.36(h)
Inventories with a carrying amount of [Amount of inventories pledged in current and comparative
periods] have been pledged as security for the [Group]’s [Liability secured] in [Current and
99
comparative year], respectively.
PAS 1.61 Inventories amounting to [PXXX] million and [PXXX] million as at December 31, 2020 and 2019,
respectively, are expected to be recovered after more than twelve months.
PAS 1.77 13. PREPAYMENTS AND OTHER CURRENT ASSETS

The details of the [Group]’s prepayments and other current assets are shown below.
2020 2019
Prepaid insurance P100 P50
Advances to contractors and suppliers 20 10
P120 P60
Advances to contractors and suppliers are noninterest-bearing and generally have terms of 30 to
45 days. [or] Advances to suppliers are generally applied against future billings within next year.
[Check the applicability of disclosure. Note that advances for the purchase of property, plant, and
equipment are presented as non-current assets].
14. RIGHT TO RETURNED GOODS ASSET

PFRS 15.B21(c) The right to returned goods asset amounted to P250 and P250 in 2020 and 2019, respectively.
PFRS 15.126(a) The right to returned goods asset represents the [Group]'s right to recover products from
customers where customers exercise their right of return under the [Group]'s 30-day returns
policy. The [Group] uses its accumulated historical experience to estimate the number of returns
on a portfolio level using the expected value method.
15. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

PFRS 7.8(h) The movements in the financial assets at FVOCI are summarized as follows:
PFRS 7.11A(a), (c)

2020 2019
Redeemable notes P400 P200
Shares 300 300
P700 P500
The fair values of these securities are based on quoted market prices.
PFRS 9.4.1.2A
PFRS 7.42J(a)
The [Group] holds listed redeemable notes that carry interest at 7% per annum. The notes are
redeemable at par value in 2022. The notes are held with a single counterparty with an AA credit
rating. The [Group] holds no collateral over this balance.
These redeemable notes are held by the [Group] within a business model whose objective is both
to collect their contractual cash flows which are solely payments of principal and interest on the
principal amount outstanding and to sell these financial assets. Hence the redeemable notes are
classified as at FVOCI.
The [Group] holds 20% of the ordinary share capital of Rocket Corp Limited, a company involved
in the refining and distribution of fuel products. The directors of the [Group] do not consider that
the [Group] is able to exercise significant influence over Rocket Corp Limited as the other 80% of
the ordinary share capital is held by one shareholder, who also manages the day-to-day
operations of that company. At December 31, 2020, the [Group] also continues to hold a 10%
interest in E Plus Limited, a former associate.
PFRS 7.8(f) 16. FINANCIAL ASSETS AT AMORTIZED COST

The movements in the financial assets at amortized cost are summarized as follows:
2020 2019
Balance, January 1 P1,240 P1,120
Additions 30 50
100
Maturities 10 70
Amortization of discount (premium) 20 20
Exchange differences - -
1,300 1,260
Allowance for impairment (20) (20)
Reversal of impairment - -
Balance, December 31 P1,280 P1,240
The account is composed of investments in the following securities:
2020 2019
Cost:
Bill of exchange P1,100 P1,070
Debentures 140 110
1,240 1,180
Unamortized discount/premium 60 80
Allowance for impairment (20) (20)
P1,280 P1,240
The [Group] holds bills of exchange that carry interest at variable rate. The weighted average
interest rate on these securities is 7.10% per annum (2019: 7.0% per annum). The bills have
maturity dates ranging between 3 to 18 months from the end of the reporting period. The
counterparties have a minimum A credit rating. None of these assets had been past due or
impaired at the end of the reporting period.
The debentures carry interest at 6% per annum payable monthly, and mature in March 2020. The
counterparties have a minimum B credit rating. None of these assets had been past due or
impaired at the end of the reporting period.
The following table shows the movement in expected credit losses that has been recognized for
the respective financial assets:
PFRS 7.35H
[12-month ECL]
Bills of Other
Exchange Debentures asset
Balance, January 1, 2019 under PAS 39
Adjustment upon application of PFRS 9
Balance, January 1, 2019-As restated
Increase (Decrease) in loss allowance arising from
new financial assets recognized in the year
Balance, December 31, 2019-As restated
Original balance under PAS 39
Adjustment upon application of PFRS 9
Increase (Decrease) in loss allowance arising from
new financial assets recognized in the year
Balance, December 31, 2020
17. INVESTMENTS IN ASSOCIATES

This account consists of:
2020 2019
Investment in A Plus Limited P2,490 P2,020
Investment in B Plus Limited 2,620 2,230
Others (Describe) 280 1,320
P5,390 P5,570
The [Group]’s material associates as at December 31 are as follows:
101
PFRS 12.21(a)(iv)
Ownership Interest Voting Interest
Name of Associate 2020 2019 2020 2019
A Plus Limited 35% 37% 35% 37%
B Plus Limited 17% 17% 17% 17%
Pursuant to a shareholder agreement, the [Group] has the right to cast 37% of the votes at
shareholder meetings of A Plus Limited.
PFRS 12.22(b)
PFRS 12.21(b)(iii)
The financial year end date of A Plus Limited is October 31. This was the reporting date
PFRS 13.97 established when that company was incorporated, and a change of reporting date is not permitted
in M Land. For the purposes of applying the equity method of accounting, the financial statements
of A Plus Limited for the year ended October 31, 2020 have been used, and appropriate
adjustments have been made for the effects of significant transactions between that date and
December 31, 2020. As at December 31, 2020 and 2019, the fair value of the [Group]’s interest
in A Plus Limited, which is listed on the stock exchange of M Land, was [PXXX] million and [PXXX]
million, respectively, based on the quoted market price available on the stock exchange of M
Land, which is a level 1 input in terms of PFRS 13.
PFRS 12.21(b)(ii)
PFRS 12.B12
The significant financial information of the groups of material associates on the financial
PFRS 12.B14(a) statements, as at and for the years ended December 31 of the [Group]’s material associates are
shown below.
A plus limited
A Plus Limited was incorporated in M Land on January 1, 2006. This subsidiary is primarily
engaged in the manufacturing and selling of leisure goods. The subsidiary’s registered address
and principal place of business is at 123 1st Street, Bonifacio Global City, Taguig City, Philippines.
PFRS 12.B12(b)(i)
PFRS 12.B12(b)(ii) 2020 2019
PFRS 12.B12(b)(iii)
PFRS 12.B12(b)(iv) Financial position:
Current assets P10,000 P8,730
Non-current assets 4,895 4,000
Current liabilities (3,560) (3,060)
Non-current liabilities (4,220) (4,210)
Net assets P 7,115 P5,460
PFRS 12.B12(b)(v)
PFRS 12.B12(b)(vi) Results of operations:
PFRS 12.B12(b)
(vii) Revenue P 2,550 P2,560
PFRS 12.B12(b) Profit or loss from continuing operations 1,330 1,330
(viii)
PFRS 12.B12(b)(ix) Profit or loss from discontinued operations - -
PFRS 12.B12(a) Profit (loss) for the year 1,330 1,330
Other comprehensive income for the year - -
Total comprehensive income for the year 1,330 1,330
Dividends received from the associate
during the year - -
PFRS 12.B14(b)
The reconciliation of the above summarized financial information to the carrying amount of the
interest in A Plus Limited recognized in the consolidated financial statements is shown below:
2020 2019
Net assets of the associate P7,115 P5,460
Ownership interest in A Plus Limited 35% 37%
Proportion of the Group’s ownership
interest in A Plus Limited 2,490 2,020
Goodwill - -
Adjustment for share in net loss to the
extent of the carrying amount of investment - -
Adjustment for uniform accounting policy - -
Other adjustments (please specify) - -
P2,490 P2,020
B plus limited
102
PFRS 12.21(b)(ii)
PFRS 12.B12
B Plus Limited was incorporated in A Land on January 1, 2009. This subsidiary is primarily
PFRS 12.B14(a) engaged in steel manufacturing. The subsidiary’s registered address and principal place of
business is at 456 1st Street, Bonifacio Global City, Taguig City, Philippines.
PFRS 12.B12(b)(i)
PFRS 12.B12(b)(ii) 2020 2019
PFRS 12.B12(b)(iii)
PFRS 12.B12(b)(iv) Financial position:
Current assets P19,130 P18,410
Net assets P15,410 P13,120
PFRS 12.B12(b)(v)
PFRS 12.B12(b)
(vii) Revenue P 5,790 P 5,890
PFRS 12.B12(b) Profit or loss from continuing operations 2,270 2,260
(viii)
PFRS 12.B12(b)(ix) Profit or loss from discontinued operations - -
PFRS 12.B12(a) Profit (loss) for the year 2,270 2,260
Total comprehensive income for the year 2,270 2,260
during the year - -
103
PFRS 12.B14(b) The reconciliation of the above summarized financial information to the carrying amount of the
interest in B Plus Limited recognized in the consolidated financial statements is shown below:
2020 2019
Net assets of the associate P15,410 P 13,1

Ownership interest in A Plus Limited 17% 17%
Proportion of the Group’s ownership

interest in A Plus Limited 2,620 2,230
Goodwill - -
Adjustment for share in net loss to the extent
of the carrying amount of investment - -
Adjustment for uniform accounting policy - -
P2,620 P2,230
Other associates
PFRS 12.21(c)(ii) The table below shows the aggregate information of associates that are not individually material to
the [Group]:
PFRS 12.B16(a)
PFRS 12.B16(b)
2020 2019
PFRS 12.B16(c)
PFRS 12.B16(d) [Group]’s share of profit (loss) from
PFRS 12.B16 continuing operations - -
[Group]’s share of post-tax profit (loss) from
discontinued operations - -
[Group]’s share of other comprehensive
income - -
[Group]’s share of total comprehensive -
income -
Aggregate carrying amount of the [Group]’s
interests in these associates - -
[Disclose when there is unrecognized share of loss]

PFRS 12.22(c) The details of the [Group]’s unrecognized share of losses in its associate/s are as follows:
2020 2019
Unrecognized share of loss in
an associate for the year P - P -
Unrecognized cumulative share of loss in

an associate P - P -
[If there is a change in ownership interest in associate]

PAS 28.22 In the prior year, the [Group] held a 40% interest in E Plus Limited and accounted for the
investment as an associate. In December 2019, the [Group] disposed of a 30% interest in E Plus
Limited to a third party for proceeds of [PXXX] million (received in January 2020). The [Group]
has accounted for the remaining 10% interest as an available-for-sale investment whose fair value
at the date of disposal was [PXXX], which was determined using a discounted cash flow model.
This transaction has resulted in the recognition of a gain in profit or loss, calculated as follows:
Proceeds of disposal -
Fair value of investment retained (10% ownership interest) -
Carrying amount of investment on the date of -
loss of significant influence
Gain on disposal of ownership interest in an associate -
The gain recognized in the current year comprises a realized profit of [PXXX], which is the
proceeds of [PXXX] million less [PXXX] carrying amount of the interest disposed of, and an
unrealized profit of [PXXX], which is the fair value less the carrying amount of the 10% interest
retained. A current tax expense of [PXXX] rose on the gain realized in the current year, and a
deferred tax expense of [PXXX] has been recognized in respect of the portion of the profit
104
recognized that is not taxable until the remaining interest is disposed of.
[If there are significant restrictions on the financial ability of associates]

PFRS 12.22(a) When there are significant restrictions on the ability of associates to transfer funds to the [Group]
in form of cash dividends, or to repay loans or advances made by the [Group], the [Group] should
disclose the nature and extent of significant restrictions in the financial statements.
E.g. Associate 1 cannot make a transfer of fund to the [Group] due to the loan covenant entered
with Bank B. Accordingly, Associate 1 is required to maintain specific balance of current assets
and certain capital ratios. [disclose other type of restrictions, whichever is applicable]
18. JOINT ARRANGEMENTS

PFRS 12.21(a) Interest in Joint Ventures
The details of the [Group]’s material joint venture as at December 31 is as follows:
Name of joint Principal activity Place of incorporation and Proportion of

venture principal place of business ownership interest and
voting rights held by
the Group
2020 2019
JV Electronic Limited Manufacture of M Land
electronic equipment 33% 33%
Other - - - -
Guidance Note:
Similar to the disclosures applicable to investments in associates, PFRS 12 requires the following information to be
disclose for each of the Group’s material joint ventures. In this model, the Group only has one joint venture, JV
Electronics Limited, and for illustrative purposes, JV Electronics Limited is assumed material to the Group.
JV Electronic Limited
JV Electronics Limited was registered in M Land on January 1, 2001. This subsidiary is primarily
engaged in the manufacturing and selling of electronic equipment. The subsidiary’s registered
address and principal place of business is at 12 Ayala Ave., Makati City.
PFRS 12.21(b)(i) The above joint venture is accounted for using the equity method in these consolidated financial
statements.
PFRS 12.B14
PFRS 12.21(b)(ii)
The significant information on the financial statements of JV Electronic Limited as at and for the
PFRS 12.B14(a) years ended December 31 is as follows:
PFRS 12.B12(b)(i)
PFRS 12.B12(b)(ii)
2020 2019
PFRS 12.B12(b)(iii)
PFRS 12.B12(b)(iv)
Financial position:
Current assets P 5,450 P 7,070
Net assets P12,120 P11,100
The above amounts of assets and liabilities include the following:
PFRS 12.B13(a)
PFRS 12.B13(b)
2020 2019
PFRS 12.B13(c)
Cash and cash equivalents P 300 P 500
Current financial liabilities (excluding trade
and other payables and provisions) (1,250) (1,350)
Non-current financial liabilities (excluding
trade and other payables and provisions) 12,720 12,370
105
The above amounts of profit or loss for the year include the following:
PFRS 12.B13(d)
PFRS 12.B13(e)
2020 2019
PFRS 12.B13(f)
PFRS 12.B13(g)
Depreciation and amortization P 200 P 180
Interest income - -
Interest expense 50 40
Income tax expense 30 40
PFRS 12.B12(b)(v)
PFRS 12.B12(b) Revenue P6,430 P6,070
(vii)
PFRS 12.B12(b) Profit or loss from continuing operations 1,020 730
(viii) Profit or loss from discontinued operations - -
PFRS 12.B12(b)(ix)
PFRS 12.B12(a) Profit (loss) for the year 1,020 730
Total comprehensive income for the year 1,020 730
during the year - -
The reconciliation of the above summarized financial information to the carrying amount of the
interest in the joint venture recognized in the consolidated financial statements is as follows:
PFRS 12.21(c)(i)
PFRS 12.B16
2020 2019
Net assets of the joint venture P12,120 P11,100
Ownership interest in the joint venture 33% 33%
Proportion of the [Group]’s ownership
interest in the joint venture 4,000 3,660
Goodwill - -
Adjustment for share in net loss to the
extent of the carrying amount of investment - -
P 4,000 P 3,660
Other joint ventures [Check the applicability of disclosures]

The table below shows the aggregate information of joint ventures that are not individually
material to the [Group]’s:
2020 2019
PFRS 12.B16(a)
PFRS 12.B16(b) [Group]’s share of profit (loss) from
PFRS 12.B16(c) continuing operations P - P -
PFRS 12.B16(d)
PFRS 12.B16 [Group]’s share of post-tax profit (loss) from
[Group]’s share of other comprehensive
income - -
[Group]’s share of total comprehensive
income - -
Aggregate carrying amount of the [Group]’s
interests in these associates - -
The details of the [Group]’s unrecognized share of losses in its joint venture/s are as follows:
PFRS 12.22(c)
2020 2019
Unrecognized share of loss in
joint venture for the year P - P -
Unrecognized cumulative share of loss in

joint venture P - P -
PFRS 12.22(a) [If there are significant restrictions on the financial ability of joint venture]
When there are significant restrictions on the ability of joint ventures to transfer funds to the
[Group] in form of cash dividends, or to repay loans or advances made by the [Group], the
[Company, [Group] should disclose the nature and extent of significant restrictions in the financial
statements.
106
e.g. JV 1 cannot make a transfer of fund to the [Group] due to the loan covenant entered with
Bank B. Accordingly, JV 1 is required to maintain specific balance of current assets and certain
capital ratios .[disclose other type of restrictions, whichever is applicable.]
PFRS 12.21(a) Joint Operations

The [Group] has a material joint operation, Project ABC. The [Group] has a 25% share in the
ownership of a property located in Central District, City A. The property upon completion will be
held for leasing purposes. The [Group] is entitled to a proportionate share of the rental income
received and bears a proportionate share of the joint operation’s expenses.
19. BIOLOGICAL ASSETS
The carrying amounts of the [Group]’s biological assets are broken down as follows:
PAS 41.43
2020 2019
Consumable P P
Others
P P
PAS 41.41
Consumable biological assets include [livestock intended for the production of meat; livestock
held-for-sale; fish in farms; crops such as maize and wheat; and trees being grown for lumber ].
[Disclose agricultural activities of the [Group] relating to consumable biological assets].
PAS 41.41 The [Group]’s bearer biological assets include [e.g. livestock from which milk is produced; grape
vines; fruit trees; and trees from which firewood is harvested while the tree remains]. [Disclose
agricultural activities of the [Company, Branch, Bank, or any appropriate alternative] relating to
bearer biological assets].
PAS 41.50 The movements of the carrying amounts of the biological assets are shown below:
PAS 41.50(b)
PAS 41.50(g)
Consumable Bearer Total
PAS 41.50(e)
PAS 41.50(d) Balance, January 1, 2019
PAS 41.50(c) Purchases
PAS 41.50(c)
PAS 41.40,50(a) Births/death
PAS 41.51 Business combination
PAS 41.51
PAS 41.50(f) Harvest
PAS 41.50 Sales
Reclassification to assets held for sale/disposal
group
Changes in fair value less estimated point of sale
costs:
Due to price change
Due to physical change
Effect of movements in exchange rates
Current
Non-current
Balance, January 1, 2020

Purchases
PAS 41.50(b)
PAS 41.50(g) Births/death
PAS 41.50(e)
PAS 41.50(d)
Business combination
PAS 41.50(c) Harvest
PAS 41.50(c)
Sales
Reclassification to assets held for sale/disposal group
107
PAS 41.40,50(a)
PAS 41.51
Changes in fair value less estimated point of sale costs:
PAS 41.51 Due to price change
PAS 41.50(f)
PAS 41.50
Due to physical change
Effect of movements in exchange rates
Current
Non-current
PAS 41.49(a) [If entity has biological assets that are pledged]
Biological assets with carrying amounts of [Amount of inventories pledged in current and
comparative periods] have been pledged as security for the [Group]’s [Liability secured] in 2020
PAS 41.49(b) [Disclose amount of commitments for the development or acquisition of biological assets]
PAS 41.49(c) [Disclose financial risk management strategies related to agricultural activity]
PAS 41.54 [If fair value less estimated-point-of-sale costs cannot be determined, disclose the following:]
PAS 41.54(a) • description of biological assets;
PAS 41.54(b) • explanation why the amount cannot be determined;
PAS 41.54(d) • depreciation method and useful lives used;
PAS 41.54(c) • the range of estimates within which fair value is highly likely to lie; and
PAS 41.54(f) • the gross carrying amount and the accumulated depreciation, aggregated with accumulated
impairment losses, at the beginning and at the end of the reporting period.
[If there has been a change in estimate relating to useful life, amortization method and residual
values of biological assets, disclose that fact.]
20. PROPERTY, PLANT AND EQUIPMENT – net

Movements in the carrying amounts of the [Group]’s property, plant and equipment are as
follows:
PAS 16.73(d),(e)
Equipment
PAS 16.73(e)(i)
PAS 16.73(e)(ii) Plant and under Bearer
PAS 16.73(e)(iii) Land Buildings equipment finance lease plants Total
PAS 16.73(e)(ii)
PAS 16.73(e)(iv) Cost or Fair Value
PAS 16.73(e)(viii)
PAS 16.73(e)(ix)
P15,610 P12,650 P102,100 P630 P - P130,990
PFRS 13.93(e)
PAS 16.73(e)(i)
PAS 16.73(e)(ii)
Additions - 1,000 10,850 40 - 11,890
PAS 16.73(e)(ii) - - (27,290) - - (27,290)
PAS 16.73(e)(ii) Disposals
PAS 16.73(e)(iii)
PAS 16.73(e)(ii)
Acquisition through
PAS 16.73(e)(iv) business combination - - - - - -
PAS 16.73(e)(viii) Reclassifications - - - - - -
PAS 16.73(e)(ix)
PAS 16.74(b) Revaluation increase - - - - - -
PFRS 16:95 Net foreign currency
exchange differences - - - - - -
Others (Describe) - - - - - -
Balance, December 31, 2019 15,610 13,650 85,660 670 - 115,590
- - 21,470 - - 21,470
Additions
(1,430) (1,200) (12,400) (620) - (15,650)
Disposals
Transferred as consideration - - - - - -
for acquisition of subsidiary
Derecognition on disposal of - - - - - -
a subsidiary
Acquisition through
business combination
- - - - - -
Reclassified as held for sale
- - - - - -
Revaluation increase
108
Effects of foreign currency - - - - - -

exchange differences
- - - - - -
Others (Describe)
Balance, December 31, 2020 P14,180 P12,450 P94,730 P50 P - P121,410
109
PAS 16.73(d),(e)
Equipment
PAS 16.73(e)(vii)
PAS 16.73(e)(ii) Plant and under Bearer
PAS 16.73(e)(ii) Land Buildings equipment finance lease plants Total
PAS 16.73(e)(vii)
PAS 16.73(e)(viii) Accumulated Depreciation
PAS 16.73(e)(ix)
PAS 16.73(e)
Balance, January 1, 2019 P - P 1,550 P20,960 P370 P - P22,880
Depreciation - -
Cost - - 14,400 130 - 14,530
Revaluation - - - - - -
Derecognition on disposals - - (4,610) - - (4,610)
Eliminated on revaluation
Reclassifications - - - - - -
Effects of foreign currency
exchange difference - - - - - -
Balance, December 31, 2019 - 1,550 30,750 500 - 32,800
PAS 16.73(e)(vii) Depreciation
PAS 16.73(e)(ii)
PAS 16.73(e)(ii) - 12,830 10 - 12,840
PAS 16.73(e)(ii) Cost -
PAS 16.73(e)(viii) - - - - -
PAS 16.73(e)(ix)
Revaluation -
(100) (3,600) (500) - (4,200)
Disposals -
- - - - -
Disposal of a subsidiary -
- - - - -
Eliminated on revaluation -
- - - - -
Reclassified as held for sale -
Effects of foreign currency - - - - -
exchange difference -
- - - - -
Others (Describe)
Balance, December 31, 2020 P - P 1,450 P39,980 P10 P - P41,440

PAS 36.126(a) Accumulated Impairment
PAS 36.126(b)
PFRS 13.93(e) Balance, January 1, 2019 P - P - P - P - P - P -
PAS 36.126(a)
PAS 36.126(b) Impairment loss - - - - - -
Reversal of impairment loss - - - - - -
Balance, December 31, 2019 - - - - - -
Impairment loss - - - - - -
Reversal of impairment loss - - - - - -
Balance, December 31, 2020 P - P - P - P - P - P -

Carrying Amount
PAS 16.77(e) As at December 31, 2020
PAS 16.77(e) Comprising:
P14,180 P11,000 P54,750 P 40 P - P79,970
At cost
- - - - - -
At revaluation
P14,180 P11,000 P54,750 P 40 P - P79,970
Carrying Amount
As at December 31, 2019
Comprising:
P15,610 P12,100 P54,910 P170 P - P82,790
At cost
- - - - - -
At revaluation
P15,610 P12,100 P54,910 P170 P - P82,790

PAS 16.74(a) [If entity has PPE that are pledged]
The [Group] has pledged [Items of PPE] having a carrying amount of [Amount of PPE items
pledged as at reporting date in the current and comparative periods] as at [Reporting Date for
Current and Comparative periods], to secure banking facilities granted to the [Company, Branch,
Bank, or any appropriate alternative].
PAS 16.77(a),(b) [If entity has revalued PPE]

The [Group]’s land and buildings are stated at their revalued amounts, being the fair value at the
110
date of revaluation, less any subsequent accumulated depreciation and subsequent accumulated
impairment losses. The fair value measurements of the [Group]’s land and buildings as at
[Reporting Date for Current and Comparative periods] were performed by an independent
valuator not related to the [Group], on [Date of revaluation].
111
PAS 16.77(e) [If entity has revalued PPE]

Had the [Group]’s land and buildings (other than land and buildings classified as held for sale or
included in a disposal group) been measured on a historical cost basis, their carrying amount
would have been as follows.
2020 2019
Land P11,950 P13,100
Building 7,260 10,340
P19,210 P23,440
[If entity has firm commitment to purchase PPE item/s]

PAS 16.74(c) The [Group] had entered into contractual commitments for the acquisition of property, plant and
equipment amounting to [Amounts of contractual commitments in the current and comparative
periods] as at [Current and Comparative year].
PAS 23.8 [If entity has incurred borrowing cost for qualifying asset]
As at [Reporting Date for Current and Comparative periods], capitalized borrowing costs related to
the [state the qualifying asset] amounted to [disclose amount capitalized as borrowing cost], with
a capitalization rate of [Indicate capitalization rate].
[If entity has PPE that are not fully paid]

Of the total amount of additions to property, plant and equipment, during the year [Amount of
portion paid] were paid in cash while the balance is supported by a [Short-term loan; Long-term
loan; Promissory note] as disclosed in Note [indicate note number].
PAS 16.74(d) [If the entity not disclosed separately in the statement of comprehensive income, the amount of
compensation from third parties for items of property, plant and equipment that were impaired,
lost or given up that is included in profit or loss.]
The [Group] received compensation amounting to [disclose amount] from a third party for its
[state the specific Property, plant and equipment] that was [impaired, lost or given up] as
disclosed in Note [indicate note number].
[If entity has gain/disposal on PPE]
PAS 16.68 Gain (Loss) recognized from the disposal of property, plant and equipment amounted to [disclose
amount of gain (loss) recognized from sale of property, plant and equipment] in [Reporting Date
for Current and Comparative periods], respectively, as disclosed in Note [X].
During the year, as the result of the unexpected poor performance of a [state the specific
Property, plant and equipment], the [Group] carried out a review of the recoverable amount of
that [state the specific Property, plant and equipment], and the related equipment. [If applicable]
These assets are used in the [Group]’s [specify reporting segment]. The review led to the
recognition of an impairment loss of [PXXX] which has been recognized in profit or loss.
The [Group] also estimated the fair value less costs to sell of the [state the specific Property,
plant and equipment], and the related equipment, which is based on the recent market prices of
assets with similar age and obsolescence. The fair value less costs to sell is less than the value in
use and hence the recoverable amount of the relevant assets has been determined on the basis of
their value in use. The discount rate used in measuring value in use was [X%] per annum. No
impairment assessment was performed in 2020 as there was no indication of impairment. [If
entity has no impairment loss on PPE]
PAS 36.130(a)-(g) [If entity has impairment loss on PPE]

The impairment loss recognized during the year is due to [State the reason leading to the
impairment of the asset]. In measuring the impairment loss, the [Group] used the asset’s [net
selling price; value in use] amounting to [net recoverable amount] as the asset’s net recoverable
amount and compared it with the carrying value of [carrying amount]. [If net selling price used,
disclose basis for the determination of selling price; If value in use, disclose discount rate]. The
discount rate used in measuring value in use was [X%] per annum. No impairment assessment
was performed in 2020 as there was no indication of impairment. Of the total amount of
impairment loss, [PXXX] was recognized in 2020 and 2019 in the profit or loss, respectively. The
remaining balance of the loss was recognized in other comprehensive income.
112
PAS 36.126 (a)

PAS 36.131
Additional impairment losses recognized in respect of property, plant and equipment in the year
amounted to [PXXX]. These losses are attributable to greater than anticipated wear and tear.
Those assets have been impaired in full and they belonged to the [Group]’s electronic equipment
reportable segment.
PAS 36.130(a)-(g)
PAS 36.130(b)
[If entity has reversal of impairment loss on PPE]
During 2020, the [Group] reversed an impairment loss it has recognized in prior years. The
reversal of the impairment loss amounting to [Amount of reversal] was due to [Explain reason for
reversal of impairment]. The reversal of impairment loss was included as part of other income as
Management believes that there is no indication that an impairment loss has occurred.
[If entity has PPE item classified as non-current asset held for sale.]
Total property, plant and equipment held by the [Group] as at [Reporting Date for Current and
Comparative periods] amounted to [Total of carrying amounts of PPE presented above and the
carrying amount of PPE presented as assets held for sale], comprising the amounts analyzed
above and assets classified as held-for-sale amounting to [Carrying amounts of PPE presented as
assets held for sale] in 2020 and 2019, respectively.
21. INVESTMENT PROPERTIES

[If entity used the fair value method]
The fair value of the [Group]’s investment properties follows:
PAS 40.76(a)
PAS 40.76(b)
2020 2019
PAS 40.76,(f)
PAS 40.76(d)
PAS 40.76(e) Additions 10 200
Disposals - (50)
Acquisition through
business combination - -
Reclassifications - -
Fair value gain during the year 30 290
Net foreign currency exchange differences - -
PAS 40.79(c)
[If entity used the cost method]

The carrying amounts of the [Group]’s investment properties follow:
PAS 40.79(d)(i)
PAS 40.79(d)(i) 2020 2019
PAS 40.79(d)(ii)
PAS 40.79(d)(iii) Cost
PAS 40.79(d)(iii) Balance, January 1 P P
PAS 40.79(d)(vii)
PAS 40.79(d)(vi) Additions from acquisitions
Additions from subsequent expenditures
Acquisition through
Disposals
Reclassified as held for sale/disposal group
Transfers to/from inventories and owner
occupied property
Net foreign currency exchange differences
Balance, December 31
PAS 40.79(d)(iv)
PAS 40.79(d)(v) Accumulated Depreciation
PAS 40.79(d)(v)
PAS 40.79(d)(iii) Balance, beginning
PAS 40.79(d)(iii)
PAS 40.79(d)(vi)
Depreciation
Impairment loss
Reversal of impairment loss
Disposals
Reclassifications
Net foreign currency exchange differences
113
Balance, ending
Carrying Amount
If investment properties are carried in FV model

PAS 40.75(d)(e) The fair values of the [Group]’s investment properties as at [Report date for the current and
PFRS 13.91(a),
93(d)
comparative periods] were determined based on the valuations carried out at those dates by
[Name of appraiser], who holds a recognized and relevant professional qualifications and has
recent experience in the location and category of the investment property being valued. The
valuation, which conforms to International Valuation Standards, was arrived at by reference to
market evidence of transaction prices for similar properties. The fair value was determined [based
on the market comparable approach that reflects recent transaction prices for similar
properties/other methods [describe]]. In estimating the fair value of the properties, the highest
and best use of the properties is their current use. There has been no change to the valuation
technique during the year.
[If entity carries investment property at cost but fair value can be ascertained]
The aggregate fair value of the investment property amounted to [Fair value of the investment
properties as at reporting date for the current and comparative periods] as at [Reporting date for
the current and comparative periods], respectively.
PAS 40.79(e) The investment properties are [leased to outside parties to earn rentals; held for capital
appreciation] the fair value of which cannot be determined reliably at the end of the reporting
period since [Disclose the reason why fair value cannot be determined].
PAS 40.75(f)(i) The property rental income earned by the [Group] from its investment property, all of which is
leased out under operating leases, amounted to [Amount of rental income for the current and
comparative periods] during [Current and Comparative year], respectively.
PAS 40.75(f)(ii) Direct operating expenses that generated rental income arising on the investment property in the
period amounted to [Amount of rental income for the current and comparative periods] during
2020 and 2019, respectively.
PAS 40.75(f)(iii) Direct operating expenses that did not generate rental income arising on the investment property
in the period amounted to [Amount of rental income for the current and comparative periods]
during [Current and Comparative year], respectively.
PAS 40.75(g) [If entity carries investment property that are pledged]
The [Group] has pledged its investment property with carrying amounts of [disclose carrying
amount of investment property pledge as security for the current and comparative periods] as at
[Reporting date for the current and comparative periods] to secure general banking facilities that
the [Group] has availed as disclosed in Note [X].
[If entity disposed investment property]

Gain (Loss) recognized from the disposal of investment properties amounted to [disclose amount
of gain (loss) recognized from sale of property, plant and equipment] in [Current and
Comparative year], respectively, as disclosed in Note [X].
PAS 36.130(a)-(g)
PAS 36.126 (a)
[If entity has impairment loss on investment property]
disclose basis for the determination of selling price; If value in use, disclose discount rate ]. The
discount rate used in measuring value in use was [discount rate used] per annum. No impairment
assessment was performed in 2020 as there was no indication of impairment. The impairment loss
recognized amounted to [Amount of loss recognized in profit or loss in the current and
comparative periods], which has been recognized in profit or loss in 2020. Of the total amount of
impairment loss, [Amount of loss recognized in profit or loss in the current and comparative
periods] was recognized in [Current and Comparative year] in the profit or loss, respectively. The
remaining balance of the loss was recognized in other comprehensive income.
[If entity has no impairment loss on investment property]
114
Management believes that there is no indication that an impairment loss has occurred on its
investment properties.
115
PAS 40.75(h) [Disclose the contractual obligation to purchase, construct or develop investment property, if
any.]
[If there has been a change in estimate relating to useful life, amortization method and residual
values of PPE, disclose that fact.]
22. INTANGIBLE ASSETS – net

The movement of the carrying amounts of the [Group]’s intangible assets is as follows:
PAS 38.118(e)
PAS 38.118(c) Capitalized Development Patents Trademarks Licenses Total
PAS 38.118(e)(i)
PAS 38.118(e)(i) Cost
PAS 38.118(e)(ii) Balance, January 1, 2019 P3,230 P5,820 P4,710 P6,940 P20,700
PAS 38.118(e)(ii)
PAS 38.118(e)(iii) Additions from internal
PAS 38.118(e)(vii) development 350 - - - 350
PAS 38.118(e)(i)
PAS 38.118(e)(ii) Additions from business
PAS 38.118(e)(ii)
PAS 38.118(e)(vii)
combinations
Disposals - - - - -
Reclassified to non-current
assets
held for sale or disposal
group - - - - -
Revaluation - - - - -
Net foreign currency
exchange differences - - - - -
Balance, December 31, 2020 P3,580 P5,820 P4,710 P6,940 P21,050
Additions 10 - - - 10
Disposals - - - - -
Reclassifications - - - - -

PAS 38.118(e)(vi)
PAS 38.118(e)(vii) Patents Trademarks Licenses Total
Capitalized Development
PAS 38.118(e)(vi)
PAS 38.118(e)(vii) Accumulated
Amortization
Balance, January 1, 2019 P1,000 P 870 P3,530 P2,770 P8,170
Amortization 680 290 230 340 1,540
Disposals - - - - -
Amortization 710 290 230 340 1,570
Disposals - - - - -
PAS 36.130(b)
PAS 38.118(e)(iv) Accumulated Impairment
PAS 36.130(b)
PAS 38.118(e)(iii)
Loss
PAS 36.130(b) Balance, January 1, 2019 P - P - P - P - P -
PAS 38.118(e)(v)
PAS 38.118(e)(iii) Impairment loss recognized
PAS 36.130(b) in profit or loss - - - - -
PAS 38.118(e)(iv)
PAS 36.130(b) Impairment loss recognized
PAS 38.118(e)(iii) in OCI - - - - -
PAS 36.130(b)
PAS 38.118(e)(v) Reversal of impairment loss
PAS 38.118(e)(iii) in profit or loss - - - - -
in OCI - - - - -
Balance, December 31, 2019 - - - - -
116
Impairment loss recognized

in profit or loss - - - - -
Impairment loss recognized
in OCI - - - - -
in profit or loss - - - - -
in OCI - - - - -
Balance, December 31, 2020 P - P - P - P - P -
Carrying Amount
December 31, 2020
Comprising:
At cost P1,200 P4,370 P720 P3,490 P9,780
At revaluation - - - - -
P1,200 P4,370 P720 P3,490 P9,780
Carrying Amount December

31, 2019
Comprising:
At cost P1,900 P4,660 P950 P3,830 P11,340
At revaluation - - - - -
P1,900 P4,660 P950 P3,830 P11,340
[If entity has significant intangible assets]

PAS 38.122(b) The [Group] holds a patent for the manufacture of its Series Z electronic equipment. The carrying
amounts of the patent of [PXXX] million and [PXXX] million as at December 31, 2020 and 2019,
respectively. As at those dates, this patent will be fully amortized in 15 and 16 years,
respectively.
PAS 38.124(a),(c) [If entity has revalued assets]

[Specific Intangible Asset] were revalued at [Date of revaluation] by [Name of appraisers] on the
basis of market value. Had the revalued assets been carried at cost, their carrying amounts would
have been [Carrying amount using cost method] as at [Reporting Date for Current and
Comparative periods]. [disclose the method and significant assumptions applied in estimating the
assets fair values]
The revaluation surplus is disclosed in Note [X].
[If entity has not fully paid certain intangible assets]

Of the total amount of additions to property, plant and equipment, during the year [Amount of
portion paid] were paid for in cash while the balance is supported by a [Short-term loan; Long-
term loan; Promissory note].
[If entity has disposed certain intangibles assets]

Gain (Loss) recognized from the disposal of investment properties amounted to [disclose amount
of gain (loss) recognized from sale of property, plant and equipment] in [Current and
Comparative year], respectively, as disclosed in Note [X].
PAS 38.122(e) [If entity has firm commitment to purchase Intangibles]

The [Group] had entered into contractual commitments for the acquisition of Intangible Asset
amounting to [Amounts of contractual commitments in the current and comparative periods] as at
[Reporting Date for Current and Comparative periods].
PAS 38.122(d) [If entity has firm Intangibles that are pledged as security]
The [Group] has pledged [Items of Intangible Assets] having a carrying amount of [Amount of
Intangible Asset items pledged as at reporting date in the current and comparative periods] as at
[Reporting Date for Current and Comparative periods] to secure banking facilities granted to the
[Group].
117
PAS 36.130(a)-(g)
PAS 36.126(a)
[If entity has impairment loss on intangible assets]
disclose basis for the determination of selling price; If value in use, disclose discount rate]. Of the
total amount of impairment loss, [Amount of loss recognized in profit or loss in the current and
comparative periods] was recognized in [Current and Comparative year] in the profit or loss,
respectively. The remaining balance of the loss was directly recognized in equity.
[If entity has reversal of impairment loss on intangibles]

During [Current and Comparative year], the [Group] reversed an impairment loss it recognized in
prior years. The reversal of the impairment loss amounting to [Amount of reversal] was due to
[Explain reason for reversal of impairment]. The reversal of impairment loss was included as part
of other income/OCI as disclosed in Note [X].
[If entity has no impairment loss on intangible assets]

Management believes that there is no indication that an impairment loss has occurred on its
intangible assets with definite useful lives. The [Group] has determined, based on annual
impairment testing that the carrying amounts of intangible assets with indefinite useful life are not
in excess of their net recoverable amounts.
PAS 38.121 [If there has been a change in estimate relating to useful life, amortization method and residual
values of intangible asset, disclose that fact.]
23. Leases
PFRS 16:52
PFRS 16:59(a)
The [Group] as Lessee
The leases several assets including buildings, plants, IT equipment. The average lease term is [XX]
years (2019: [XX] years).
The [Group] has options to purchase certain manufacturing equipment for a nominal amount at the
end of the lease term. The [Group]'s obligations are secured by the lessors' title to the leased
assets for such leases.
Right-of-use assets
Buildings Plant Equipment Total

PFRS 16:53(j)
Cost
At January 1, 2019
Additions
At December 31, 2019
Additions
PFRS 16:53(a)
Accumulated depreciation
At January 1, 2019
Charge for the year
Charge for the year
Carrying amount
PFRS 16:53(h)
118
Approximately one fifth of the leases for property, plant and equipment expired in the current
financial year. The expired contracts were replaced by new leases for identical underlying assets.
PFRS 16:53(j) This resulted in additions to right-of-use assets of [CU] million in 2020 (2019: [CU] million).
The maturity analysis of lease liabilities is presented in note [32].
Amounts recognized in profit or loss
2019
2020 (Restated)
Depreciation expense on right-of-use assets
Interest expense on lease liabilities
Expense relating short-term leases
Expense relating to leases of low value assets
PFRS 16:53(a) Expense relating variable lease payments not included in the
measurement of the lease liability
PFRS 16:53(b) Income from subleasing right-of-use assets
PFRS 16:53(c)
PFRS 16:53(d)
At 31 December 2020, the [Group] is committed to [CU] million (2019: [CU] million) for short-
PFRS 16:53(e) term leases.
PFRS 16:53(f)
Some of the property leases in which the [Group] is the lessee contain variable lease payment
terms that are linked to sales generated from the leased stores. Variable payment terms are used
to link rental payments to store cash flows and reduce fixed cost. The breakdown of lease
payments for these stores is as follows.
PFRS 16:55
PFRS 16:B59
2019
2020 (Restated)
Fixed payments
Variable payments
Total payments
Overall the variable payments constitute up to [%] of the [Group]'s entire lease payments. The
[Group] expects this ratio to remain constant in future years. The variable payments depend on
sales and consequently on the overall economic development over the next few years. Taking into
account the development of sales expected over the next years, variable rent expenses are
expected to continue to present a similar proportion of store sales in future years.
Additionally, as discussed in note [4], the [Group] has benefited from a [__]month waiver of lease
payments on buildings in [A land] and a [__]month lease payment holiday on buildings in [B land].
The waiver of lease payments of [CU] million and the decrease in the lease liability of [CU] million,
has been accounted for as a negative variable lease payment in profit or loss.
The total cash outflow for leases amount to [CU] million (2019: [CU] million).
PFRS16:B59
(b)(i)
PFRS 16:B49
[Disclose if there are leases not yet commenced to which the lessee is committed to]
On [date] 2020, [Group] entered into a 10-year lease to rent property, which had not commenced
by the year-end and as a result, a lease liability and right-of-use asset has not been recognized at
31 December 2020. The aggregate future cash outflows to which the Group is exposed in respect
of this contract is fixed payments of [CU] million per year, for the next 10 years.
There are no extension or termination options on the lease.
119
PFRS 16:53(g)
PFRS 16:59(b)(iv)
24. GOODWILL
The details of this account consist of:
PFRS 3.B67(d)
PFRS 3.B67(d)(ii)
Note 2020 2019
PFRS 3.B67(d)(iv)
PFRS 3.B67(d)(iv)
Cost
PFRS 3.B67(d)(vi) Balance, January 1 P24,120 P24,120
Additions - -
Derecognized on disposal of a subsidiary - -
Reclassified as held for sale - -
Net foreign currency exchange differences - -
Balance, December 31 P24,120 24,120
Disclose if there are accumulated impairment losses.
120
Note 2020 2019

Accumulated impairment losses
Balance, January 1 P - P -
Impairment losses recognized in the year - -
Derecognized on disposal of a subsidiary - -
Classified as held for sale - -
Balance, December 31 P - P -
PAS 38.122(a) [Disclose the reasons supporting the assessment of an indefinite useful life. Describe the factor(s)
that played a significant role in determining that the asset has an indefinite useful life.]
PAS 36.134
PAS 36.135
Goodwill has been allocated for impairment testing purposes to the following cash-generating
units. Before recognition of impairment losses, the carrying amount of goodwill (other than
goodwill relating to discontinued operations) was allocated to cash-generating units as follows:
PAS 36.134(a)
Notes 2020 2019
Leisure goods - retail outlets P10,160 P9,620
Electronic equipment - internet sales 8,620 8,470
Construction operations - Murphy
Construction 230 230
Construction operations – other 1,500 1,500
P20,510 P19,820
Leisure goods - retail outlets

PAS 36.134(c),(d)
The recoverable amount of this cash-generating unit is determined based on a value in use
calculation which uses cash flow projections based on financial budgets approved by the directors
covering a [X] period, and a discount rate of [X]% and [X]% per annum in 2020 and 2019,
respectively.
Cash flow projections during the budget period are based on the same expected gross margins and
raw materials price inflation throughout the budget period. The cash flows beyond that five-year
period have been extrapolated using a steady [X]% per annum growth rate in 2020 and 2019
which is the projected long-term average growth rate for the international leisure goods market.
The directors believe that any reasonably possible change in the key assumptions on which
recoverable amount is based would not cause the aggregate carrying amount to exceed the
aggregate recoverable amount of the cash-generating unit.
PAS 36.134(c),(d) Electronic equipment - internet sales

The recoverable amount of the ‘electronic equipment - internet sales’ segment as a cash-
generating unit is determined based on a value in use calculation which uses cash flow projections
based on financial budgets approved by the directors covering a [X] period, and a discount rate of
[X]% in 2020 and [X]% in 2019. Cash flows beyond that five-year period have been extrapolated
using a steady [X]% in 2020 and [X]% in 2019 growth rate. This growth rate exceeds by [X]
percentage points the long-term average growth rate for the international electronic equipment
market.
However, among other factors, the internet sales cash-generating unit benefits from the protection
of a [X]-year patent on the Series Z electronic equipment, granted in 2008, which is still
acknowledged as one of the top models in the market. The steady growth rate of [X]% is
estimated by the directors of the [Group] based on past performance of the cash-generating unit
and their expectations of market development. The directors estimate that a decrease in growth
rate by [X] to [X]% would result in the aggregate carrying amount of the cash-generating unit
exceeding the recoverable amount of the cash-generating unit by approximately [PXXX] to [PXXX]
million. The directors believe that any reasonably possible change in the other key assumptions on
which recoverable amount is based would not cause the ‘electronic equipment - internet sales’
carrying amount to exceed its recoverable amount.
121
Construction operations - Murphy Construction
The goodwill associated with Murphy Construction arose when that business was acquired by the
[Group] in 2007. The business has continued to operate on a satisfactory basis, but without
achieving any significant increase in market share. During the year, the government of A Land
introduced new regulations requiring registration and certification of builders for government
contracts. In the light of the decision to focus the [Group]’s construction activities through the
other operating units in Subthree Limited, the directors have decided not to register Murphy
Construction for this purpose, which means that it has no prospects of obtaining future contracts.
The directors have consequently determined to write off the goodwill directly related to Murphy
Construction amounting to [PXXX]. No other write-down of the assets of Murphy Construction is
considered necessary. Contracts in progress at the end of the year will be completed without loss
to the [Group].
[If entity has material impairment loss or reversal]

The impairment loss has been included in profit or loss in the ‘other expenses’ line item.
PAS 36.134(f) [Disclose key assumptions and reasonable possible change in the determination of recoverable
amount]
The key assumptions used in the value in use calculations for the leisure goods and electronic
equipment cash-generating units are as follows:
Bugeted market share

Average market share in the period immediately before the budget period, plus a growth of [X to
X]% of market share per year. The values assigned to the assumption reflect past experience and
are consistent with the director’s plans for focusing operations in these markets. The directors
believe that the planned market share growth per year for the next [X] years is reasonably
achievable.
Budgeted gross margin

Average gross margins achieved in the period immediately before the budget period, increase for
expected efficiency improvements. This reflects past experience, except for efficiency
improvements. The directors expect efficiency improvements of [X to X]% per year to be
reasonably achievable.
Raw materials price inflation

Forecast consumer price indices during the budget period for the countries from which raw
materials are purchased. The values assigned to the key assumption are consistent with external
sources of information.
25. NON-CURRENT ASSETS CLASSIFIED AS HELD-FOR-SALE

PFRS 5.41(a-d) [Disclose all relevant information including the date of BOD’s decision to dispose the asset and
other]
The [Group] intends to dispose of a [specify the covered property] it no longer utilizes in the next
12 months. The property, located on the freehold land, was previously used in the [Group]’s toy
operations and has been fully depreciated. A search is underway for a buyer. [If no impairment
was recognized]. No impairment loss was recognized on reclassification of the land as held for sale
as at December 31, 2020 as the directors of the [Group] expect that the fair value (estimated
based on the recent market prices of similar properties in similar locations) less costs to sell is
higher than the carrying amount.
PFRS 5.38 The major classes of assets and liabilities comprising the operations classified as held-for-sale are
as follows: [If entity has classified a segment as NCAHS/ disposal group]
2020 2019
Land P 1,260 P -
Assets related to bicycle business 21,070 -
Total assets classified as held-for-sale 22,330 -
Liabilities related to bicycle business 3,680 -
Total liabilities associated with assets classified as held-for-sale 3,680 -

Net assets of disposal group P18,650 P -
122
As described in Note __, the [Group] plans to dispose of its bicycle business and anticipates that
the disposal…
The major classes of assets and liabilities of the bicycle business at the end of the December 31,
2020 are as follows:
PFRS 5.38
PFRS 5.38
Cash and bank balances Notes
Cash and bank balances P 10
Trade receivables 720
Inventories 2,090
Property, plant and equipment 16,940
Goodwill 1,310
Total assets classified as held-for-sale 21,070
Trade payables (3,250)
Current tax liabilities -
Deferred tax liabilities (430)
Total liabilities associated with assets classified as held-for-sale (3,680)
Net assets of disposal group P17,390
[If entity has changed plan to sell the NCAHS]
As at [Current and Comparative year] the [Group] has classified the above non-current assets as
held-for-sale since [Disclose the facts and circumstances leading to the sale or expected disposal
of the assets].
In [Current and Comparative year], the [Group] has recognized gains (losses) for the subsequent
changes in fair value less costs to sell of the non-current assets held-for-sale or disposal group
amounting to [Amount of gain/loss due to change in fair value] as disclosed in Note [indicate note
number].
[Disclose decision to change the plan to sell the non-current asset or disposal group]
PFRS 15.116(a) 26. CONTRACT ASSETS

The details of the [Group]'s contract assets are as follows:
2020 2019
Construction contracts P100 P100
Installation services 200 200
P300 P300
2020 2019
Current P150 P150
Non-current 150 150
P300 P300
Amounts relating to construction contracts are balances due from customers under construction
PFRS 15.117 contracts that arise when the [Group] receives payments from customers in line with a series of
performance – related milestones. The [Group] will previously have recognized a contract asset for
any work performed. Any amount previously recognized as a contract asset is reclassified to trade
receivables at the point at which it is invoiced to the customer.
Payment for installation of software services is not due from the customer until the installation
services are complete and therefore a contract asset is recognized over the period in which the
installation services are performed to represent the entity’s right to consideration for the services
transferred to date.
PFRS 15.113(b) [Disclose if no impairment losses were recognized]

There were no impairment losses recognized on any contract asset in the reporting period.
123
[Disclose if impairment losses were recognized]

Impairment losses recognized on the contract assets amounted to [PXXX] and [PXXX] in 2020 and
2019, respectively.
124
PFRS 15.128(a)
PFRS 15.127(a)
[Disclose if the entity has Contract Costs]
PFRS 15.127(b) CONTRACT COSTS
PFRS 15.128(b)
2020 2019
Cost to obtain contracts P - P -
Costs to obtain contracts relate to incremental commission fees of 2% paid to intermediaries as a

result of obtaining residential property sales contracts.
These costs are amortized on a straight–line basis over the period of construction (in general, 2
years) as this reflects the period over which the residential property is transferred to the customer.
Amortization amounting to [PXXX] and [PXXX] in 2020 and 2019, respectively, was recognized as
part of cost of sales in the consolidated statement of profit or loss. There was no impairment loss
in relation to the costs capitalized.
27. TRADE AND OTHER PAYABLES

Guidance Note:
Entities covered under Part 2 of Revised SRC Rule 68 should comply with Annex 68-K, (1)(F) of Revised SRC Rule
68 regarding items to be disclosed for Trade and other payables.
The [Group]’s trade and other payables consist of:

2020 2019
Trade payables:
Third parties P29,710 P30,690
Related parties 620 220
Advances from directors, officers, employees,
principal stockholders and related parties - -
Lease incentives 90 90
Cash-settled share-based payments - -
Accrued expenses - -
Withholding and other taxes - -
Social Security System and other contributions - -
Unearned income - -
Others (Describe) - 10
P30,420 P31,010
The average credit period on purchases of certain goods from suppliers is four months. No interest
PFRS 7.7 is charged on trade payables for the first 60 days from the date of the invoice. Thereafter, interest
is charged at [X]% per annum on the outstanding balance. The [Group] has financial risk
management policies in place to ensure that all payables are paid within the credit timeframe.
Revised SRC Rule

68 Annex K (1)(F)
Details of accrued expenses are shown below:
(iii)
2020 2019
Salaries and employee benefits P - P -
Retirement benefits - -
Rentals - -
Utilities - -
Taxes and licenses - -
Interest - -
Others (Describe) - -
P - P -
Disclose the following information: (a) current liability guaranteed by others (b) Assets pledged
against secured liabilities as required by Revised SRC Rule 68, Annex 68-K(1), (F)(iii)
125
28. BORROWINGS
PFRS 7.8(f) This account is composed of:
2020 2019
Current
Bank loans P - P -
Bank overdrafts 240 250
Bills of exchange - -
Loans from:
Related parties - -
Other entities - -
Government - -
Redeemable preferred shares - -
Convertible notes - -
Perpetual notes - -
P 240 P 250
Non-current
Bank loans - net of current portion P10,670 P13,480
Bank overdrafts 20 70
Loans from other entities 570 650
Transferred receivables 920 -
Finance lease liabilities 20 90
P12,200 P14,290
Summary of borrowing arrangements/terms:

PFRS 7.7 a. Bills of exchange with a variable interest rate were issued in 2006. The weighted average
effective interest rate on the bills is [X]%per annum in both 2020 and 2019.
b. Amounts repayable to related parties of the Group. As at December 31, 2020 and 2019,
interest of [X]%– [X]% and [X]%– [X]%, respectively, per annum is charged on the
outstanding loan balances.
c. Fixed rate loans with a finance company with remaining maturity periods not exceeding [three
years] in 2020 and [four years] in 2019. The weighted average effective interest rate on the
loans is [X]% and [X]% per annum in 2020 and 2019, respectively. The [Group] hedges a
portion of the loans for interest rate risk via an interest rate swap exchanging fixed rate
interest for variable rate interest. The outstanding balance is adjusted for fair value
movements in the hedged risk, being movements in the inter-bank rate in A Land.
d. On 17 December 2019, the [Group] received an interest-free loan of P [X] million from the
government of A Land to finance staff training over a two-year period. The loan is repayable in
full at the end of that two-year period. Using prevailing market interest rates for an equivalent
loan of [X]%, the fair value of the loan is estimated at P [X] million. The difference of P [X]
between the gross proceeds and the fair value of the loan is the benefit derived from the
interest-free loan and is recognized as deferred revenue. Interest expenses of P [X] were
recognized on this loan in 2020 and P [X] will be recognized in 2020.
e. 2,500 perpetual notes with a coupon rate of [X]% per annum were issued on 27 August 2019
at P [X] million principal value. Issue costs of P [X] million were incurred. Secured by a
mortgage over the Group’s freehold land and buildings. The weighted average effective
interest rate on the bank loans is [X]% per annum in 2019 and [X]% per annum in 2019.
f. Secured by a charge over certain of the [Group]’s trade receivables.

g. Secured by a mortgage over the [Group]’s freehold land and buildings. The weighted average
effective interest rate on bank loans is [x]% in 2020 and [x]% in 2019.
126
PFRS 7.18 Breach of loan agreement

During the current year, the [Group] was late in paying interest for the first quarter on one of its
loans with a carrying amount of P [X] million. The delay arose because of a temporary lack of
funds on the date when interest was payable due to a technical problem on settlement. The
interest payment outstanding of P [X] was repaid in full a week later, including the additional
interest and penalty. The lender did not request accelerated repayment of the loan and the terms
of the loan were not changed. Management has reviewed the Group’s settlement procedures to
ensure that such circumstances do not recur.
PAS 7.44A-44E 29. RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES

The table below details the changes in the [Group]’s liabilities arising from financing activities,
including both cash and non-cash changes. Liabilities arising from financing activities are those for
which cash flows were, or future cash flows will be, classified in the [Group]’s consolidated
statement of cash flows as cash flows from financing activities.
2020
Non-cash changes
Equity
component Fair
of Acquisitio Disposal value
Beginning Financing convertible n of of adjust Other Closing
Note balance cash flows notes subsidiary subsidiary ments changes balance
Convertible notes - - - - - - - -
Perpetual notes
- - - - - - - -
Government loans
- - - - - - - -
Bank loans
- - - - - - - -
Loans from related
parties - - - - - - - -
Other borrowings
- - - - - - - -
Redeemable preference
shares - - - - - - - -
Interest rate swaps fair
value hedging - - - - - - - -
Contingent
consideration - - - - - - - -
- - - - - - - -
30. CONVERTIBLE LOAN NOTES

PFRS 7.7 Financial liabilities
Conversion may occur at any time between 13 July 2020 and 12 September 2020. If the notes
have not been converted, they will be redeemed on 13 September 2019 at P [X] each. Interest of
5.5% per annum will be paid quarterly up until the notes are converted or redeemed.
The convertible notes contain two components: liability and equity elements. The equity element is
presented in equity under the heading of “option premium on convertible notes”. The effective
interest rate of the liability element on initial recognition is 8.2% per annum.
2020 2019
Net proceeds from issuance of convertible loan notes P4,950 P4,950
Liability component at the date of issue (4,110) (4,110)
Equity component-net of deferred tax P 840 P 840
Interest expense recognized for the year ended December 31, 2020 and 2019 are P [X] and [X],
respectively is included as finance costs in Note [X].
Movements in the liability component of the convertible loan notes follow:
2020 2019
Balance, beginning P4,110 P4,110
Interest charged 220 220
Interest paid (220) (220)
Balance, end P4,110 P4,110
The liability component is measured at amortized cost and included under Note [X].
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128
31. RETIREMENT BENEFIT PLANS
Requirement of Republic Act (RA) 7641

RA 7641 provides for the minimum retirement pay to qualified private sector employees in the
Philippines. Benefits due under RA 7641 are accounted for as defined benefit plan under PAS 19.
However, there are instances when an employer establishes a defined contribution plan and does
not have an equivalent defined benefit plan covering the benefits required under RA 7641.
An employee upon reaching the age of sixty (60) years or more, but not beyond sixty-five (65)
years which is declared the compulsory retirement age, who has served at least five (5) years in
the said establishment, may retire and shall be entitled to retirement pay equivalent to at least
one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being
considered as one whole year.
The [Group] is in compliance of the minimum requirement of RA 7641 as at December 31, 2020
Guidance Note:
In the Philippines, all retirement plans are classified as defined benefit plan unless the entity has a separate plan
that complies with RA 7641 in addition to its formal contribution plan.
Defined Contribution Plans

The [Group] operates defined contribution retirement benefit plans for all qualifying employees of
its subsidiary in C Land. The assets of the plans are held separately from those of the [Group] in
funds under the control of trustees. Where employees leave the plans prior to full vesting of the
contributions, the contributions payable by the [Group] are reduced by the amount of forfeited
contributions.
The employees of the [Group]’s subsidiary in B Land are members of a state-managed retirement
benefit plan operated by the government of B Land. The subsidiary is required to contribute a
specified percentage of payroll costs to the retirement beneft scheme to fund the benefits. The
only obligation of the Group with respect to the retirement benefit plan is to make the specified
contributions.
PAS 19.53 The total expense recognized in proft or loss of [PXXX] and [PXXX] in 2020 and 2019, respectively,
represents contributions payable to these plans by the Group at rates specified in the rules of the
plans. The required contributions of [PXXX] in 2020 and [PXXX] in 2019 have not been paid as at
December 31, 2020 and 2019, respectively.
PAS 19.43 [If entity has a contribution plan]

As discussed in Note [X], the [Group] maintains a defined contribution (DC) plan which is
accounted for as a defined benefit (DB) plan with minimum guarantee.
Following are the details of the Company’s DB obligation for the DB minimum guarantee: (The
[Group] should provide here the applicable disclosure requirements for DB plans under the
amended PAS 19.)
Defined Benefit Plans

PAS 19.139 [Disclose if the [Group] sponsor funded; unfunded, contributory; non- contributory] defined
benefit plans for qualifying employees of its subsidiaries in A Land. The defined benefit plans are
administered by a separate Fund that is legally separated from the entity. The board of the
pension fund is composed of an equal number of representatives from both employers and
(former) employees. The board of the pension fund is required by law and by its articles of
association to act in the interest of the fund and of all relevant stakeholders in the scheme, i.e.
active employees, inactive employees, retirees, employers. The board of the pension fund is
responsible for the investment policy with regard to the assets of the fund.
Under the plans, the employees are entitled to post-retirement yearly installments amounting to
1.75% of final salary for each year of service until the retirement age of 65. The pensionable
salary is limited to P [X]. The pensionable salary is the difference between the current salary of the
employee and the state retirement benefit. In addition, the service period is limited to 40 years
resulting in a maximum yearly entitlement (life-long annuity) of 70% of final salary.
129
130
The defined benefit plans requires contributions from employees. Contributions are in the following
two forms; or based on the number of years of service and the other one is based on a fixed
percentage of salary of the employee. Employees can also make discretionary contributions to the
plans.
PAS 19.139(b) The plans in A-land typically expose the [Group] to actuarial risks such as: investment risk,
interest rate risk, longevity risk and salary risk.
Investment risk
The present value of the defined benefit plan liability is calculated using a discount rate determined
by reference to high quality corporate bond yields; if the return on plan asset is below this rate, it
will create a plan deficit. Currently the plan has a relatively balanced investment in equity
securities, debt instruments and real estates. Due to the long-term nature of the plan liabilities,
the board of the pension fund considers it appropriate that a reasonable portion of the plan assets
should be invested in equity securities and in real estate to leverage the return generated by the
fund.
Interest risk
A decrease in the government bond interest rate will increase the plan liability; however, this will
be partially offset by an increase in the return on the plan’s debt investments.
Longevity risk
The present value of the defined benefit plan liability is calculated by reference to the best
estimate of the mortality of plan participants both during and after their employment. An increase
in the life expectancy of the plan participants will increase the plan’s liability.
Salary risk
The present value of the defined benefit plan liability is calculated by reference to the future
salaries of plan participants. As such, an increase in the salary of the plan participants will increase
the plan’s liability.
The risk relating to benefits to be paid to the dependents of plan members (widow and orphan
benefits) is re-insured by an external insurance company.
No other post-retirement benefits are provided to these employees.
PAS 19.144 The most recent actuarial valuation of the plan assets and the present value of the defined benefit
obligation were carried out at December 31, 2020 by an Independent Actuary. The present value
of the defined benefit obligation, and the related current service cost and past service cost, were
measured using the projected unit credit method.
The principal assumptions used for the purposes of the actuarial valuations were as follows:
PAS 19.120,135
Valuation at
2020 2019
Discount rate 5.52% 5.20%
Expected rate of salary increases 5.00% 5.00%
Average longevity at retirement age for current pensioners
(years)*
Males 27.5 27.3
Females 29.8 29.6
Average longevity at retirement age for current employees
(future pensioners) (years)*
Males 29.5 29.3
Females 31.0 30.9
* Based on A Land’s standard mortality table.
131
Amounts recognized in statement of comprehensive income in respect of these defined benefit

plans are as follows:
PAS 19.141
2020 2019
Service cost
Current service cost P1,260 P740
Past service cost - -
Settlement loss (gain) - -
Net interest expense 80 110
Components of defined benefit costs recognized in profit or
loss P1,340 P850
Remeasurement on the net defined benefit liability:
Return on plan assets
(excluding amounts included in net interest expense) (520) (140)
Actuarial gains and losses:
from changes in demographic assumptions 30 (10)
from changes in financial assumptions (220) (20)
from experience adjustments (40) (20)
Adjustments for restrictions on the defined benefit asset - -
Components of defined benefit costs recognized in other
comprehensive income (750) (190)
Deferred tax P 590 P660
PAS 19.135
Of the expense for the year, an amount of [PXXX] in 2020 and [PXXX] in 2019 has been included
in profit or loss as cost of sales and the remainder has been included in administration expenses.
PAS 19.140 The amount included in the consolidated statement of financial position arising from the [Group]’s
obligation in respect of its defined benefit plans is as follows:
December 31
2020 2019
Present value of defined benefit obligations P6,110 P5,730
Fair value of plan assets (3,130) (3,470)
Unfunded retirement obligation - -
Restrictions on asset recognized - -
Others [please describe] - -
Net liability arising from defined benefit obligation P2,980 P2,260
PAS 19.141
Movements in the present value of defined benefit obligations in are as follows:
2020 2019
Current service cost 1,260 740
Interest cost 300 320
Remeasurement (gains)/losses:
Actuarial gains and losses arising from changes in
demographic assumptions 30 (10)
Actuarial gains and losses arising from changes in
financial assumptions (220) (20)
Actuarial gains and losses arising from experience
adjustments (40) (20)
Business combinations - -
Losses (gains) on curtailments - -
Liabilities extinguished on settlements - -
Exchange differences - -
Benefits paid (950) (1,480)
132
133
Movements in the fair value of plan assets are as follows:
PAS 19.141
2020 2019
Interest income 220 210
Remeasurement (gains)/losses:
Return on plan assets (excluding amounts included in net
interest expense) (520) (140)
Contributions from the employer 910 870
Contributions from plan members - -
Exchange difference - -
Benefits paid (950) (1,480)
Business combinations - -
Assets distributed on settlements - -
Disclose whether the reporting entity’s funds is in a form of a trust being maintained by a trustee
SEC Memo Circ. 12- bank or company or in the form of a corporation which has been created for the purpose of
2012
(VII)(1) managing the Fund.
The movement of the remeasurement of the defined benefit costs recognized in other
comprehensive income was as follows:
2020 2019
Balance, January 1 (P190) P -
Addition (750) (190)
Balance, December 31 (P940) (P190)
The analysis of the fair value of plan assets at the end of each reporting period was as follows:
PAS 19.142
2020 2019
Cash and cash equivalents P - P -
Equity instruments categorized by industry type:
Consumer industry 300 280
Manufacturing industry - -
Energy and utilities 310 300
Financial institutions - -
Health and care - -
ICT and telecom 410 400
Equity instrument funds - -
1,020 980
Debt instruments categorized by issuers credit rating:
AAA 1,970 1,830
AA - -
A 10 20
BBB and lower - -
Not rated - -
1,980 1,850
Properties categorized by nature and location:
Retail shops in A land - -
Commercial properties in B land 50 260
Residential properties in C land - 290
50 550
Derivatives
Interest rate swaps 50 70
Forward foreign exchange contracts 30 20
80 90
134
P3,130 P3,470
The fair values of the above equity and debt instruments are determined based on quoted market
PAS 19.142 prices in active markets whereas the fair values of properties and derivatives are not based on
quoted market prices in active markets. It is the policy of the fund to use interest rate swaps to
hedge its exposure to interest rate risk. This policy has been implemented during the current and
prior years. Foreign currency exposures are fully hedged by the use of the forward foreign
exchange contracts.
SEC Memo Circular

No. 12-2012
If entity has material transactions with the retirement fund:
(VII)(3-5)  Provide a brief discussion of each of the above category.
 Disclose volume and outstanding balances of transactions of the Fund with the reporting entity
or subsidiaries including the terms and conditions.
The Fund has the following investments in securities with the company and its subsidiaries in
2019:
Gains/
SEC Memo Circ. 12- Amount Losses
2012
(VII)(6) Investment with the company:
Equity P - P -
Debt - -
Investment with the company’s
Subsidiaries:
Equity - -
Debt - -
Indicate any limitations or restrictions provided in the plan (if any). In case the Fund has
investment in equity security of the Company, disclose the relationship of the person/s who
exercises voting rights over the shares held by the Fund with the directors or officers of the
Company or with the Company.
The significant information of the Fund as at December 31 are as follows:
SEC Memo Circ. 12-

2012
2020 2019
(VII)(2)
Carrying Carrying
amount Fair value amount Fair value
Total assets P2,610 P3,130 P3,330 P3,470
Total liabilities - - - -
Net assets P2,610 P3,130 P3,330 P3,470
The actual return on plan assets was P [X] million in 2020 and P [X] million in 2019.
As at December 31, 2020 and 2019, the plan assets include ordinary shares of the Company with
an aggregate fair value of P [X] million and P [X] million, respectively, and a property occupied by
a subsidiary of the Company with fair value of P [X] million and P [X] million, respectively.
PAS 19.144 Significant actuarial assumptions for the determination of the defined obligation are discount rate,
expected salary increase and mortality. The sensitivity analysis below have been determined based
on reasonably possible changes of the respective assumptions occurring at the end of the
reporting period, while holding all other assumptions constant.
PAS 19.145(a)
2020
Increase (Decrease)
Change in on Retirement Benefit
Assumption Obligation
Discount rate +100 basis points 190
-100 basis points 130
Expected salary growth rate +1% 180
-1% 180
135
Life expectancy + 1 year 120

- 1 year 110
136
2019
Increase (Decrease)
Change in on Retirement Benefit
Assumption Obligation
Discount rate +100 basis points 140
-100 basis points 90
Expected salary growth rate +1% 140
-1% 90
Life expectancy + 1 year 100
- 1 year 90
The sensitivity analysis presented above may not be representative of the actual change in the
defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation
of one another as some of the assumptions may be correlated.
PAS 19.145(b) Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit
obligation has been calculated using the Projected Unit Credit method at the end of the reporting
period, which is the same as that applied in calculating the defined benefit obligation liability
recognized in the statements of financial position.
There was no change in the methods and assumptions used in preparing the sensitivity analysis
from prior years.
PAS 19.146 Each year an Asset-Liability-Matching study is performed in which the consequences of the
strategic investment policies are analyzed in terms of risk-and-return profiles. Investment and
contribution policies are integrated within this study. Main strategic choices that are formulated in
the actuarial and technical policy document of the Fund are:
Asset mix based on [X]% equity instruments, [X]% debt instruments and [X]% investment
property.
Interest rate sensitivity caused by the duration of the defined benefit obligation should be reduced
by [X]% by the use of debt instruments in combination with interest rate swaps.
Maintaining an equity buffer that gives a [X]% assurance that assets are sufficient within the next
12 months.
There has been no change in the process used by the [Group] to manage its risks from prior
periods.
PAS 19.147 The [Group]’s subsidiaries fund the cost of the entitlements expected to be earned on a yearly
basis. Employees pay a fixed [X]% percentage of pensionable salary. The residual contribution
(including back service payments) is paid by the entities of the [Group]. The funding requirements
are based on the local actuarial measurement framework. In this framework the discount rate is
set on a risk free rate. Furthermore, premiums are determined on a current salary base. Additional
liabilities stemming from past service due to salary increases (back-service liabilities) are paid
immediately to the Fund. Apart from paying the costs of the entitlements, the [Group]’s
subsidiaries are not liable to pay additional contributions in case the Fund does not hold sufficient
assets. In that case, the Fund would take other measures to restore its solvency, such as a
reduction of the entitlements of the plan members.
PAS 19.147 As at December 31, 2020 and 2019, the average duration of the benefit obligation is [X] years and
[X] years, respectively. This number can be analyzed as follows:
2020 2019
Active employees 19.4 years 18.4 years
Deferred employees 22.6 years 21.5 years
Retired employees 9.3 years 8.5 years
PAS 19.147 The [Group] expects to make a contribution of P [X] million in 2019 and P [X] million in 2019 to
the defined benefit plans during the next financial year.
137
138
32. Lease Liabilities

2019
2020 (Restated)
Amounts due for settlement within 12 months (shown under
current liabilities)
Amounts due for settlement after 12 months
Maturity analysis
2019
2020 (Restated)
Not later than 1 year
PFRS 16:58 Later than 1 year and not later than 5 years
PFRS 7:39(a)
PFRS 16:B11;
Later than 5 years
PFRS 16:B49
The [Group] does not face a significant liquidity risk with regard to its lease liabilities. Lease
liabilities are monitored within the [Group]'s treasury function.
As discussed in note 4, the [Group] has derecognized [CU] million of the lease liability that has
PFRS 7:39(c)
been extinguished by the forgiveness of lease payments on buildings in [A land].
Additionally, the [Group] has benefited from a [__]month lease payment holiday on buildings in [B
land]. The payment holiday reduces payments in the period to [date] by [CU] million, and
increases in payments in the period to [date] by [CU] million. The Group has remeasured the lease
liability using the revised lease payments and the discount rate originally applied to the lease,
resulting in a decrease in the lease liability of [CU] million, which has been recognized as a
negative variable lease payment in profit or loss.
33. PROVISIONS
This account is composed of:
Notes 2020 2019

Employee benefits 32.a P1,330 P4,380
Rectification work 32.b 3,500 -
Warranties 32.c 320 290
Onerous 32.d 600 750
P5,640 P5,420
Analyzed as:
Short-term provisions P3,350 P3,190
Long-term provisions 2,290 2,230
P5,640 P5,420
PAS 37.84(a)
PAS 37.84(b) Employee Rectification
PAS 37.84(c) Benefits work Warranties Onerous Total
PAS 37.84(c)
PAS 37.84(d) (P’000) (P’000) (P’000) (P’000) (P’000)
PAS 37.84(e)
PAS 37.84(a) Balance, beginning P4,380 P - P300 P740 P5,420
Additional provisions
during the year 50 4,170 330 370 4,920
Reductions arising from
settlements (3,100) (1,110) (90) (310) (4,610)
Reduction resulting from
remeasurement - - (20) (100) (120)
Reduction through - - - - -
139
reversals
Unwinding of discount - - - 30 30
Others (Please describe) - - - - -
Balance, end P1,330 P3,060 P520 P730 P5,640
140
The details of the [Group]’s provisions are as follows:

PAS 37.85(a),(b)
PFRS 3.B64(j)
a. The provision for employee benefits represents annual leave and vested long service leave
entitlements accrued and compensation claims made by employees. On the acquisition of
Subsix Limited, the [Group] recognized an additional contingent liability of P [X] in respect of
employees’ compensation claims outstanding against that company, which was settled in
February 2020. The decrease in the carrying amount of the provision for the current year
results from benefits being paid in the current year.
PAS 37.85(a),(b) b. The provision for rectification work relates to the estimated cost of work agreed to be carried
out for the rectification of goods supplied to one of the [Group]’s major customers (see note
[X]. Anticipated expenditure for 2019 is P [X] million, and for 2020 is P[X] million. These
amounts have not been discounted for the purposes of measuring the provision for rectification
work, because the effect is not material.
PAS 37.85(a),(b) c. The provision for warranty claims represents the present value of the directors’ best estimate
of the future outflow of economic benefits that will be required under the [Group]’s obligations
for warranties under local sale of goods legislation. The estimate has been made on the basis
of historical warranty trends and may vary as a result of new materials, altered manufacturing
processes or other events affecting product quality.
PAS 37.85(a),(b) d. The provision for onerous lease contracts represents the present value of the future lease
payments that the [Group] is presently obligated to make under non-cancellable onerous
operating lease contracts, less revenue expected to be earned on the lease, including
estimated future sub-lease revenue, where applicable. The estimate may vary as a result of
changes in the utilization of the leased premises and sub-lease arrangements where
applicable. The unexpired terms of the leases range from [X] to [X] years.
The Company did not have an asset retirement obligation (ARO). For illustration purposes,
consider the example disclosure below on an ARO pertaining to a leasehold improvement:
Movements in the asset retirement obligation are disclosed as follows:

2020 2019
Balance, beginning P P
Additions during the year
Accretion expense
Balance, end P P
The [Group] has a legal obligation to dismantle all improvements it made on the office spaces it is
currently leasing at the end of the lease term as discussed in Note [Note number to lease
contracts].
PFRS 7.8(e) 34. OTHER FINANCIAL LIABILITIES
Fair value as at December 31

2020 2019
Financial guarantee contracts P 20 P20
Foreign currency forward 90 -
Interest rate swap 10 -
120 20
Other non-current financial liabilities
Contingent consideration in a business combination 70 -
Interest rate swap 50 -
120 -
2020 2019
Redeemable cumulative preference shares P14,870 P -
141
35. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Contingent Liabilities
PFRS 12.23(b)
PAS 37.86(a)
Notes 2020 2019
PFRS 12.23(b)
Contingent liabilities incurred by the Group
arising from its interests in a joint venture
Group’s share of associates’ contingent liabilities
PFRS 12.23(b) a. A number of contingent liabilities have arisen as a result of the [Group]’s interest in its joint
PAS 37.86(b)
venture. The amount disclosed represents the aggregate amount of such contingent liabilities
for which the [Group] as an investor is liable. The extent to which an outflow of funds will be
required is dependent on the future operations of the joint venture being more or less
favorable than currently expected. The [Group] is not contingently liable for the liabilities of
other ventures in its joint venture.
b. The amount disclosed represents the [Group]’s share of contingent liabilities of associates.
The extent to which an outflow of funds will be required is dependent on the future operations
of the associates being more or less favorable than currently expected.
Contingent Assets
An entity in the [Group] has a claim outstanding against a supplier for the supply of faulty
products. Based on negotiations to date, the directors believe that it is probable that their claim
PAS 37.89 will be successful and that compensation of P [X] million will be recovered.
36. DERIVATIVE FINANCIAL INSTRUMENTS

Disclose if the entity has Derivative Financial Instruments
Currency Derivatives
PFRS 7.22,33,34 It is the policy of the [Group] to enter into forward foreign exchange contracts to cover specific
foreign currency payments and receipts within [X]% to [X]% of the exposure generated. The
[Group] also enters into forward foreign exchange contracts to manage the risk associated with
anticipated sales and purchase transactions out to [X] months within [X]% to [X]% of the
exposure generated. Basis adjustments are made to the carrying amounts of non-financial hedged
items when the anticipated sale or purchase transaction takes place.
In the current year, the [Group] has designated certain forward contracts as a hedge of its net
investment in Subfour Limited, which has B Currency as its functional currency. The [Group]’s
policy has been reviewed and, due to the increased volatility in B Currency, it was decided to
hedge up to [X]% of the net assets of the Subfour Limited for forward foreign currency risk arising
on translation of the foreign operation. The [Group] utilizes a rollover hedging strategy, using
contracts with terms of up to [X] months. Upon the maturity of a forward contract, the [Group]
enters into a new contract designated as a separate hedging relationship.
The following table details the forward foreign currency (FC) contracts outstanding at the end of
the reporting period:
142
Outstanding Average Notional/

Contracts Exchange Rate Foreign Currency Contract Value Fair Value
2020 2019 2020 2019 2020 2019 2020 2019
Cash flow hedges
Buy PHP
Less than three
months - - - - - - - -
Three to six months - - - - - - - -
Sell PHP - - - - - - - -
Less than three
months - - - - - - - -
Buy PHP - - - - - - - -
Less than three
months - - - - - - - -
Net investment
hedge
Buy PHP - - - - - - - -
Less than three
months - - - - - - - -
- - - - - - - -
The [Group] has entered into contracts to supply electronic equipment to customers in B Land.
The [Group] has entered into forward foreign exchange contracts (for terms not exceeding [X]
months) to hedge the exchange rate risk arising from these anticipated future transactions, which
are designated as cash flow hedges.
PFRS 7.23(a) The aggregate amount of losses under forward foreign exchange contracts recognized in other
comprehensive income and accumulated in the cash flow hedging reserve relating to the exposure
on these anticipated future transactions is P [X] in 2020 and gains of P [X] in 2019. It is
anticipated that the sales will take place during the first [X] months of the next financial year, at
which time the amount deferred in equity will be reclassified to profit or loss.
The [Group] has entered into contracts to purchase raw materials from suppliers in B Land and C
Land. The [Group] has entered into forward foreign exchange contracts (for terms not exceeding
[X] months) to hedge the exchange rate risk arising from these anticipated future purchases,
which are designated into cash flow hedges.
PFRS 7.23(a) The aggregate amount of unrealized gains under forward foreign exchange contracts recognized in
other comprehensive income and accumulated in the cash flow hedging reserve relating to these
anticipated future purchase transactions is P[X] in 2020 and P[X] in 2019. It is anticipated that
the purchases will take place during the first [X] months of the next financial year at which time
the amount deferred in equity will be included in the carrying amount of the raw materials. It is
anticipated that the raw materials will be converted into inventory and sold within [X] months
after purchase, at which time the amount deferred in equity will be reclassified to profit or loss.
PFRS 7.23(b)
PFRS 7.23(c)
At the start of the third quarter of 2020, the [Group] reduced its forecasts on sales of electronic
equipment to B Land due to increased local competition and higher shipping costs. The [Group]
had previously hedged P [X] million of future sales of which [PXXX] are no longer expected to
occur, and [PXXX] remain highly probable. Accordingly, the [Group] has reclassified [PXXX] of
gains on foreign currency forward contracts relating to forecast transactions that are no longer
expected to occur from the cash flow hedging reserve to profit or loss.
At 31 December 2020, no ineffectiveness has been recognized in profit or loss arising from
hedging the net investment in Subfour Limited.
Interest rate swaps

PFRS 7.22,33,34 Under interest rate swap contracts, the [Group] agrees to exchange the difference between fixed
and floating rate interest amounts calculated on agreed notional principal amounts. Such
contracts enable the [Group] to mitigate the risk of changing interest rates on the fair value of
issued fixed rate debt and the cash flow exposures on the issued variable rate debt. The fair value
of interest rate swaps at the end of the reporting period is determined by discounting the future
cash flows using the curves at the end of the reporting period and the credit risk inherent in the
143
contract, and is disclosed below. The average interest rate is based on the outstanding balances
at the end of the reporting period.
The following tables detail the notional principal amounts and remaining terms of interest rate
swap contracts outstanding at the end of the reporting period:
Cash flow hedges

PFRS 7.34(a)
Average
Contracted Fixed Notional Principal
Outstanding Contracts Interest Rate Amount Fair Value
2020 2019 2020 2019 2020 2019
Less than one year - - - - - -
One to two years - - - - - -
Two to five years - - - - - -
Beyond five years - - - - - -
- - - - - -
The interest rate swaps settle on a quarterly basis. The floating rate on the interest rate swaps is
the local interbank rate of A Land. The [Group] will settle the difference between the fixed and
floating interest rate on a net basis.
PFRS 7.22,23(a) All interest rate swap contracts exchanging floating rate interest amounts for fixed rate interest
amounts are designated as cash flow hedges in order to reduce the [Group]’s cash flow exposure
resulting from variable interest rates on borrowings. The interest rate swaps and the interest
payments on the loan occur simultaneously and the amount accumulated in equity is reclassified
to profit or loss over the period that the floating rate interest payments on debt affect profit or
loss.
Fair value hedges

PFRS 7.24(a) Average
Contracted Fixed Notional Principal
Outstanding Contracts Interest Rate Amount Fair Value
2020 2019 2020 2019 2020 2019
Less than one year - - - - - -
One to two years - - - - - -
Two to five years - - - - - -
Beyond five years - - - - - -
- - - - - -
Held for trading interest rate - - - - - -

Swaps 1 to 2 years - - - - - -
- - - - - -
PFRS 7.24(a)
Interest rate swap contracts exchanging fixed rate interest for floating rate interest are designated
and effective as fair value hedges in respect of interest rates. During the year, the hedge was [X]
% effective in hedging the fair value exposure to interest rate movements and as a result the
carrying amount of the loan was adjusted by [PXXX] which was included in profit or loss at the
same time that the fair value of the interest rate swap was included in profit or loss.
144
PFRS 15.116(a) 37. CONTRACT LIABILITIES
The details of the [Group]'s contract liabilities are as follows:
Reference 2020 2019

Amounts received in advance of delivery for internet
sales 36. (a) P 30 P 40
Maintenance services 36. (b) 40 20
Arising from customer loyalty program 36. (c ) 20 30
Amounts related to construction contracts 36. (d) 100 50
P190 P140
2020 2019
Current P100 P 70
Non-current 90 70
P190 P140
[Disclose the a brief description on the contract liabilities of the entity]
PFRS 15.117 (a) For internet sales, revenue is recognized when control of the goods has transferred to the
customer, being at the point the goods are delivered to the customer. When the customer
initially purchases the goods online the transaction price received at that point by the [Group]
is recognized as contract liability until the goods have been delivered to the customer.
(b) Revenue relating to maintenance services is recognized over time although the customer pays
up-front in full for these services. A contract liability is recognized for revenue relating to the
maintenance services at the time of the initial sales transaction and is released over the
service period. A contract liability arises in respect of the [Group]'s customer loyalty program
as these points provide a benefit to customers that they would not receive without entering
into a purchase contract and the promise to provide loyalty points to the customer is therefore
a separate performance obligation. A contract liability is recognized for revenue relating to the
loyalty points at the time of the initial sales transaction.
(c) Contract liabilities relating to construction contracts are balances due to customers under
construction contracts. These arise if a particular milestone payment exceeds the revenue
recognized to date under the cost–to–cost method.
PFRS 15.118 (if no significant change) There were no significant changes in the contract liability balances during
the reporting period.
PFRS 15.116(b)
and (c )
The following table shows how much of the revenue recognized in the current reporting period
relates to brought– forward contract liabilities. There was no revenue recognized in the current
reporting period that related to performance obligations that were satisfied in a prior year.
2020 2019
Amounts received in advance of delivery for
internet sales P100 P120
Maintenance services 20 10
Arising from customer loyalty program 30 20
Amounts related to construction contracts 10 30
P160 P180
38. REFUND LIABILITY

The refund liability amounted to P50 and P70 in 2020 and 2019, respectively.
PFRS 15.119(d)
PFRS 15.126(a)
The refund liability relates to customers' right to return products within 30 days of purchase. At
the point of sale, a refund liability and a corresponding adjustment to revenue is recognized for
those products expected to be returned. The [Group] uses its accumulated historical experience to
estimate the number of returns on a portfolio level using the expected value method.
145
39. RELATED PARTY TRANSACTIONS
Guidance Note:
Common SEC Finding – An entity should include the manner or form of settlement of the related party receivable
or payable. Indicate whether it is collectible or payable in cash, to be net off against other asset or liability, to be
converted to other financial instrument or equity instrument of the entity, etc.
The summary of the [Group]’s transactions and outstanding balances with related parties as at
and for the year ended December 31, 2020 is as follows:
PAS 24.18,19,23 Outstanding Balance

SEC FRB No. 13
SEC Memo Circ. 12- Category Amounts Receivable Payable Terms Conditions Notes
2012 (IV)
Ultimate/Intermediate Parent
Sales of goods P690 P 200 P - Non-interest Unsecured, 38.a
bearing, unguaranteed,
to be collected in not impaired
cash,
30 to 60 days
term, 5% rebate
within the
discount period
Purchases of goods 440 - 3,570 Unsecured, 38.a
unguaranteed
Loans - 10,370 - 12% interest per Unsecured, 38.b
annum, unguaranteed,
cash,
due and
demandable
Administrative services 180 - - Non-interest Unsecured, 38.c
bearing, unguaranteed
to be settled in
cash,
due and
demandable
Subsidiaries
Sales of goods 1,290 390 - Non-interest Unsecured, 38.a
cash,
30 to 60 days
term, 5% rebate
within the
discount period
Purchases of goods 890 - 150 Non-interest Unsecured, 38.a
to be settled in
cash,
30 to 60 days
term
Associate
Sales of goods 400 30 - Non-interest Unsecured, 38.a
cash,
30 to 60 days
term, 5% rebate
within the
discount period
Balance, December 31, 2020 P10,990 P3,720
Key management personnel
Loans - 2,680 - 12% interest per Unsecured, 38.d
cash,
due and
demandable
Retirement Fund
Contributions from the 32
employer 910 4,200 - Not applicable Not applicable
146
The summary of the [Group]’s transactions and outstanding balances with related parties as at
and for the year ended December 31, 2019 is as follows:
PAS 24.18,19,23 Outstanding Balance

SEC FRB No. 13
Category Amounts Receivable Payable Terms Conditions Notes
Ultimate/Senior Parent
Sales of goods P580 P 200 P- Non-interest Unsecured, 38.a
cash,
30 to 60 days
term
to be settled in
cash,
30 to 60 days
term, at prevailing
market price
Loans - 2,980 - 12% interest per Unsecured, 38.b
cash,
due and
demandable
Administrative services 160 - - Non-interest Unsecured, 38.c
to be settled in
cash,
due and
demandable
Subsidiaries
cash,
30 to 60 days
term
to be settled in
cash,
30 to 60 days
term, at prevailing
market price
Associate
cash,
30 to 60 days
term
Balance, December 31, 2019 P3,720 P220
Key management personnel
Loans - 3,100 - 12% interest per Unsecured, 34.d
cash,
due and
demandable
Retirement Fund
Contributions from the 33
employer 870 4,320 - Not applicable Not applicable
Details of the [Group]’s related party transactions are as follows:
PFRS 7.7
SEC Memo Circ. 12-
a. Sales of goods to related parties were made at the [Group]’s usual list prices, less average
2012 (IV) discounts of [X]%. Purchases were made at market price discounted to reflect the quantity of
goods purchased and the relationships between the parties.
b. The [Group] has been provided loans at rates comparable to the average commercial rate of
interest. The loans from the ultimate controlling party are unsecured.
147
c. In addition to the above, the [Group] performed certain administrative services for the
[Company], for which a management fee of P [X] million in 2020 and P [X] million in 2019
was charged and paid, being an appropriate allocation of costs incurred by relevant
administrative departments.
d. The [Group] has entered into a commitment with Subsidiary 1 to provide a loan amounting to
[X] the following year. The [Group] also is a financial guarantor of Subsidiary 2 relating to
loan amounting to [X] borrowed from external financial institution.
The [Group] has provided several of its key management personnel with short-term loans at rates
comparable to the average commercial rate of interest.
[If outstanding balances has provision for doubtful debts]

The Group recorded an allowance for doubtful accounts for the receivables from Subsidiary 1
amounting to [X] and [X], in 2020 and 2019. The recognized expense during the period in relation
to the doubtful debts amounts to [X] and [X], in 2020 and 2019.
[Required for entities under Part II of Revised SRC Rule 68]
The following are Intra-group balances eliminated upon consolidation are as follows:
Revised SRC Rule

68, Annex
2020 2019
68-K, (1)(A)(ii)
Group’s receivable from:
Subsidiary 1 P - P -
Subsidiary 2 - -
Group’s receivable from:
Subsidiary 1 - -
Subsidiary 2 - -
Revenues:
Subsidiary 1 - -
Subsidiary 2 - -
Costs and expenses
Subsidiary 1 - -
Subsidiary 2 - -
[If there is an advance of or advances to related parties]

The Group has an approval requirement with one of its lending institution whenever the Company
will provide advances to its related parties amounting to [X] and the extent of the related party
transactions in 2020 and 2019.
Remuneration of Key Management Personnel
The remuneration of the Directors and other members of key management personnel of the Group
are set out below in aggregate for each of the categories specified in PAS 24, “Related Party
Disclosures”:
PAS 24.17
2020 2019
Short-term employee benefits P1,360 P1,027
Post-employment benefits 160 139
Other long-term benefits 110 176
Termination benefits - -
Share-based payments 90 86
P1,720 P1,430
40. BUSINESS COMBINATIONS

Guidance Note:
(PFRS 3.B66) Note: The disclosures illustrated are also required for business combinations after the end of the
reporting period but before the financial statements are authorized for issue unless the initial accounting for the
acquisition is incomplete at the time the financial statements are authorized for issue. In such circumstances, the
entity is required to describe which disclosures could not be made and the reasons why they could not be made.
Acquisition of Subsidiaries
148
PFRS 3.B64(a-d) The details of the subsidiaries acquired in 2020 are as follows:
Proportion
of voting
interest Consideration
Principal activity Date of acquisition acquired transferred
Manufacture of
Subsix Limited leisure goods July 15, 2020 80% P 510
Manufacture of
Subseven Limited leisure goods November 30, 2020 100% 690
P1,200
The details of the considerations transferred to acquire these subsidiaries are as follows:
PFRS 3.B64(f)
2020 2019
PAS 7.40(b)
Cash P500 P600
Transfer of land and buildings at fair value at date of
acquisition - -
Contingent consideration arrangement 10 -
Effect of settlement of legal claim against Subseven Limited - 90
P510 P690
PAS 7.40(a)
[If entity has contingent consideration in the acquisition]

PFRS 3.B64(g) Under the contingent consideration arrangement, the [Group] is required to pay the vendors an
additional P [X] if Subsix Limited’s profit before interest and tax in each of the years 2019 and
2020 exceeds P [X]. Subsix’s profit before interest and tax for the past three years has been P [X]
on average and the directors do not consider it probable that this payment will be required. P [X]
represents the estimated fair value of this obligation at the acquisition date.
PFRS 3.B64(l) [If entity has transactions that are recognized separately from the acquisition of assets and
assumption of liabilities in the business combination]
Prior to the acquisition of Subseven Limited, the [Group] was pursuing a legal claim against that
company in respect of damage to goods in transit to a customer. Although the Group was
confident of recovery, this amount had not previously been recognized as an asset. In line with
the requirements of PFRS 3, the Group has recognized the effective settlement of this legal claim
on the acquisition of Subseven Limited by recognizing P [X] (being the estimated fair value of the
claim) as a gain in profit or loss within the ‘other gains and losses’ line item. This has resulted in a
corresponding increase in the consideration transferred.
PFRS 3.B64(m) [If entity has separately recognized transactions required by PFRS 3.B64(l)]
Acquisition-related costs amounting to P [X] (Subsix Limited: P [X]; Subseven Limited: P [X])
have been excluded from the consideration transferred and have been recognized as an expense
in profit or loss in the current year, within the other expenses.
149
PFRS 3.B64(i) The details of assets acquired and liabilities recognized at the date of acquisition are as follows:
PAS 7.40(d)
Subsix Subseven
Limited Limited Total
Current assets
Cash and & cash equivalents P 20 P - P 20
Trade and other receivables 80 110 190
Inventories - 60 60
100 170 270
Non-current assets
Plant and equipment 140 370 510
Current liabilities
Trade and other payables 20 40 60
Contingent liabilities 40 - 40
60 40 100
Non-liabilities
Deferred tax liabilities 20 20
Net assets P320 P580 P900
[if the amounts recognized in the financial statements for the business combination thus have
PFRS 3.B67(a) been determined only provisionally]
The initial accounting for the acquisition of Subsix Limited has only been provisionally determined
at the end of the reporting period. For tax purposes, the tax values of Subsix’s assets are required
to be reset based on market values of the assets. At the date of finalization of these consolidated
financial statements, the necessary market valuations and other calculations had not been
finalized and they have therefore only been provisionally determined based on the BOD’s best
estimate of the likely tax values.
PFRS 3.B64(h) [If entity has receivables acquired in the business combination]
The receivables acquired, which principally comprised trade receivables, in these transactions with
a fair value of P [X] for Subsix Limited and P [X] for Subseven Limited had gross contractual
amounts of P [X] and P [X] respectively. The best estimate at acquisition date of the contractual
cash flows not expected to be collected are P [X] and P [X] for Subsix Limited and Subseven
Limited, respectively.
PFRS 3.B64(o) Non-controlling Interests

[If entity has acquired less than 100% equity interest in the acquire]
The non-controlling interest (20% ownership interest in Subsix Limited) recognized at the
acquisition date was measured by reference to the fair value of the non-controlling interest and
amounted to P [X]. This fair value was estimated by applying an income approach. The following
were the key model inputs used in determining the fair value:
 assumed discount rate of [X]%;
 assumed long-term sustainable growth rates of [X]% to [X]%; and
 assumed adjustments because of the lack of control or lack of marketability that market
participants would consider when estimating the fair value of the non-controlling interests in
Subsix Limited.
All outstanding share options granted by Subsix Limited to its employees had vested by the
acquisition date. These share options were measured at their market-based measure of P [X] and
were included in the non-controlling interest in Subsix Limited. Methods and significant
assumptions used in determining the market-based measure at the acquisition date are set out in
Note [X].
The goodwill arising on the acquisition of business in 2020 is as follows:
Subsix Subseven
Limited Limited Total
Consideration transferred P510 P690 P1,200
Non-controlling interests
(20% in Subsix Limited) 120 - 120
Non-controlling interests (outstanding share options
granted by SubsixLimited) 10 - 10
Fair value of identifiable net assets acquired (350) (490) (840)
150
P290 P191 P 490
[If entity has recognized goodwill relating to current year business combination]
PFRS 3.B64(e) Goodwill arose in the acquisition of Subsix Limited and Subseven Limited because the cost of the
combination included a control premium. In addition, the consideration paid for the combination
effectively included amounts in relation to the benefit of expected synergies, revenue growth,
future market development and the assembled workforce of Subsix Limited and Subseven Limited.
These benefits are not recognized separately from goodwill because they do not meet the
recognition criteria for identifiable intangible assets.
PFRS 3.B64(k) None of the goodwill arising on these acquisitions is expected to be deductible for tax purposes.
Guidance Note:
PAS 36.84 & 133 Note: If the initial allocation of goodwill acquired in a business combination during the period
cannot be completed before the end of the reporting period, the amount of the unallocated goodwill should be
disclosed together with the reasons why that amount remains unallocated.
The net cash outflow on acquisition of subsidiaries for the year ended December 31, 2020 is as
follows:
Consideration paid in cash P500

PAS 7.40(b) Cash and cash equivalent balances acquired (20)
PAS 7.40(c)
P480
PFRS 3.B64(q) Included in the profit for the year is P [X] attributable to the additional business generated by
Subsix Limited, and P [X] attributable to Subseven Limited. Revenue for the year includes P [X]
million in respect of Subsix Limited and P [X] million in respect of Subseven Limited.
PFRS 3.B64(q) [If business combination occurred after the beginning of the reporting period]
Had these business combinations been effected at January 1, 2020, the revenue of the Group from
continuing operations would have been P [X] million, and the profit for the year from continuing
operations would have been P [X] million. The BOD consider these ‘pro-forma’ numbers to
represent an approximate measure of the performance of the combined group on an annualized
basis and to provide a reference point for comparison in future periods.
Disclose if there is a disposal

Disposal of a Subsidiary
On November 30, 2020, the [Group] disposed of Subzero Limited which carried out its entire toy
manufacturing operations.
The details of the considerations received arising from the disposal of the subsidiary during the
year are as follows:
PAS 7.40(b)
PAS 7.40(a)
Note
Consideration received in cash
Deferred sales proceeds
Total consideration received
151
PAS 7.40(d) The details of assets acquired and liabilities over which control was lost are as follows:
Current assets
Cash and & cash equivalents
Trade and other receivables
Inventories
Non-current assets
Plant and equipment
Goodwill
Current liabilities
Payable
Non-liabilities
Borrowings
Deferred tax liabilities
Net assets
PFRS 12.19 The gain on disposal of subsidiary recognized in 2020 amounted to P [X]. The gain on disposal is
included in the profit for the year from discontinued operations, as disclosed in Note [X].
The net cash inflow on disposal of subsidiary is as follows:
PAS 7.40(c)
Consideration received in cash and cash equivalents
Cash and cash equivalent balances of disposed subsidiary
41. SHARE CAPITAL
Components of share capital are as follows:
PAS 1.79(a)
2020 2019
Ordinary shares
Fully paid P14,840 P20,120
Partly paid 1,770 1,770
16,610 21,890
Preference shares 1,200 1,100
P17,810 P22,990
152
Fully paid ordinary shares

An analysis of the [Group]’s fully paid ordinary shares are shown below:
Ordinary
Number of Share Share
Shares Capital Premium
Authorized: 25,000 P25,000
Issued and fully paid:

Balance at January 1, 2019 20,120 P20,120 P15,670
Movements [Specify/describe the
movements] - - -
Balance at December 31, 2019 20,120 P20,120 15,670
Issue of shares under employee share option
plan 310 310 330
Issue of shares for consulting services 10 10 10
Share buy-back (5,600) (5,600) (20)
Share buy-back costs - - -
Income tax relating to share buy-back costs - - 10
Distributions during the year - - -
Reacquisitions during the year - - -
Conversions during the year - - -
Cancellations during the year - - -
Balance at December 31,2020 14,840 P14,840 P16,000
[Disclose any significant transactions during or after the reporting period e.g. subsequent events,
application to increase number of shares, etc.]
Fully paid ordinary shares, which have a par value of P [X], carry one vote per share and carry a
right to dividends.
The fair value of shares issued for consulting services was determined by reference to the market
rate for similar consulting services.
The shares bought back in the current year were cancelled immediately.
PAS 1.79(a) Partly paid ordinary shares

An analysis of the [Group]’s partly paid ordinary shares are shown below:
Number of Ordinary Share

Shares Share Capital Premium
Authorized: 3,000 P25,000
Balance at January 1, 2019 2,500 P1,770 -
Movements (same with the details below)
[Specify/describe the movements] - - -
Balance at December 31, 2019 2,500 P1,770 -
Issue of shares under employee share
option plan - - -
Issue of shares for consulting services - - -
Share buy-back - - -
Share buy-back costs - - -
Income tax relating to share buy-back
costs - - -
Distributions during the year - - -
153
Partly paid ordinary shares, which have a par value of P [X], carry one vote per share but do not
carry a right to dividends.
Preference Shares
PAS 1.79(a)
Convertible non-participating preference share
An analysis of the [Group]’s preference shares are shown below:
Number of Preference Share

Shares Share Capital Premium
Authorized: 2,000 2,000

Balance at January 1, 2019 1,100 P1,100 -
Movements (same with the details below)
[Specify/describe the movements] - - -
Issue of shares under employee share
option plan - - -
Issue of shares for consulting services - - -
Share buy-back - - -
Income tax relating to share buy-back
costs - - -
Distributions during the year 100 100 -
Share issue cost - - -
Income tax relating to share issue cost - - -
The convertible non-participating preference shares are entitled to receive a discretionary 10%
preference dividend before any dividends are declared to the ordinary shareholders.
Preference shares are redeemable at the option of the [Group] and there is no defined period or
date over which redemption can take place. In the event of redemption, if there are insufficient
funds available, the redeemable preference shareholders may require the Group to issue ordinary
shares at part of equal aggregate nominal value to that of the shares which are requested to be
redeemed.
Share options granted under the [Group]’s employee share option plan
As at December 31, 2020, executives and senior employees held options over [X] ordinary shares
of the [Group] of which [X] will expire on March 30, 2020 and [X] will expire on September 28,
2020. As at December 31, 2019, executives and senior employees held options over [X] ordinary
shares of the [Group], of which [X] were due to expire on March 30, 2020 and [X] were due to
expire on September 29, 2020.
Share options granted under the [Group]’s employee share option plan carry no rights to
dividends and no voting right. Further details of the employees share option plan are provided in
Note [X].
Redeemable cumulative preference shares

The redeemable cumulative preference shares issued by the [Group] have been classified as
liabilities, as disclosed in Note [X].
154
Treasury Shares
[Disclose the nature of and other details on treasury stocks]
Details about the [Group]’s treasury shares as follow:
2020 2019
Shares Cost Shares Cost
Balance, beginning - - - -
Acquired in the period - - - -
Reissuance - - - -
Cancellations - - - -
Disposed of on exercise of options - - - -
Balance, end - - - -
Deposit for Future Stock Subscription

SEC FRB No. 6 On [Date] the [Group] received from its [stockholder, investor, or other related party (indicate
relationship)][the value received and nature of such consideration] accounted for as deposit for
future stock subscription.
On [date of BOD’s approval and date of stockholder’s approval], the Board of Directors and
stockholders of the [Group] approved the increase in authorized capital stock from P[Total
amount of original authorized share capital] (divided into[Number of shares] with par value of
[par value] per share) to P[Total amount of original authorized share capital] (divided
into[Number of shares] with par value of [par value] per share). The related application was filed
with the SEC on [date of filing with the SEC]. As at [date of report], [disclose the status of the
application if any].
The [Group] has received [disclose the consideration received whether cash or noncash and if
noncash, the basis of measurement] from [indicate the relationship (i.e. stockholder, investor, or
other related party)] in relation to application of increase in authorized capital stock.
If classified as equity
This deposit for future stock subscription is recognized in equity since the [Group] has met all of
the conditions required for such recognition as at the reporting date.
If classified as liability
The [Group] recognized the deposit for future stock subscription as liability since the [Group] has
not met all of the conditions required for recognition to equity as at the reporting date,
particularly [Indicate which condition was not met].
For listed entities only

Below are the [Group]’s tract record of registration of securities:
Date of SEC Order

Rendered Effective or Authorized
Permit to Sell Event Share Capital Issued Shares Issue Price
42. OTHER RESERVES

This account consists of:
Notes 2020 2019

General P1,000 P-
Currency translation reserve - -
Revaluation surplus - -
155
Fair value reserve FVOCI 290 380
Equity-settled employee benefits - -
Cash flow hedging - -
Option premium on convertible notes - -
P1,290 P380
General Reserve
2020 2019
PAS 1.106(d)
Balance at beginning of year P - P -
Others[describe] 1,000 -
Balance at end of year P1,000 P -
[Disclose description of each reserve]

PAS 1.79(b) The general reserve is used from time to time to transfer profits from retained earnings for
appropriation purposes. There is no policy of regular transfer. As the general reserve is created by
a transfer from one component of equity to another and is not an item of other comprehensive
income, items included in the general reserve will not be reclassified subsequently to profit or loss.
Revaluation Surplus
The revaluation surplus arises on the revaluation of property, plant and equipment. When revalued
assets are sold, the portion of the revaluation surplus reserve that relates to that asset is
transferred directly to retained earnings. [Check applicability of last sentence]
PAS 1.106(d)
PAS 16.77(f) 2020 2019
PAS 36.126(c)
PAS 36.126(d) Balance at beginning of year - -
Increase arising on revaluation of properties - -
Impairment losses - -
Reversals of impairment losses - -
Deferred tax liability arising on revaluation - -
Reversal of deferred tax liability on
revaluation - -
Transferred to retained earnings - -
- -
[Disclose description of each reserve]
PAS 1.79(b) The properties revaluation surplus arises on the revaluation of land and buildings. When revalued
PAS 1.82A
land or buildings are sold, the portion of the properties revaluation reserve that relates to that
asset is transferred directly to retained earnings. Items of other comprehensive income included in
the properties revaluation reserve will not be reclassified subsequently to profit or loss.
PAS 1.106(d)
PAS 1.106A
Fair Value Reserve on Financial Assets at FVOCI
PFRS 7.20(a)
2020 2019
Balance at beginning of year - -
Net gain arising on revaluation of FVOCI
financial assets - -
Income tax relating to gain arising on
revaluation of FVOCI - -
Cumulative (gain)/loss reclassified to profit
or loss on sale of FVOCI - -
Cumulative loss reclassified to profit or loss
on impairment of FVOCI - -
- -
PAS 1.79(b) The fair value reserve on FVOCI financial assets represents accumulated gains and losses arising
156
PAS 1.82A on the revaluation of FVOCI financial assets that have been recognized in other comprehensive
income, net of amounts reclassified to profit or loss when those assets have been disposed of or
are determined to be impaired.
157
PAS 1.106(d)
PAS 1.106A
If there is a currency translation reserve
Currency Translation Reserve
2020 2019
Exchange differences arising on - -
translating the foreign operations
Income tax relating to gains arising on
translating the net assets of foreign - -
operations
Loss on hedging instruments designated
in hedges of the net assets of foreign - -
operations
Income tax relating to loss on hedge of - -
the net assets of foreign operations
Gain/loss reclassified to profit or loss on - -
disposal of foreign operations
Income tax related to gain/loss
reclassified on disposal of foreign - -
operations
Gain/loss on hedging instruments
reclassified to profit or loss on disposal - -
of foreign operations
Income tax related to gain/loss on
hedging instruments reclassified on - -
disposal of foreign operation
- -
Others (Describe)
- -
The currency translation reserve comprises all foreign currency exchange differences relating to
PAS 1.79(b) the translation of the results and net assets of the [Group]’s foreign operations from their
PAS 1.82A
functional currencies to the [Group]’s presentation currency are recognized directly in other
comprehensive income and accumulated in the foreign currency translation reserve. Gains and
losses on hedging instruments that are designated as hedging instruments for hedges of net
investments in foreign operations are included in the foreign currency translation reserve.
Exchange differences previously accumulated in the foreign currency translation reserve (in
respect of translating both the net assets of foreign operations and hedges of foreign operations)
are reclassified to profit or loss on the disposal of the foreign operation.
PAS 1.106(d) Equity-settled Employee Benefits Reserve
2020 2019
- -
Arising on share-based payments
- -
Others (Describe)
Balance at end of year - -
The equity-settled employee benefits reserve arises on the grant of share options to employees
PAS 1.79(b) under the employee share option plan. Further information about share-based payments to
employees is set out in Note [X].
158
PAS 1.106(d)
PAS 1.90
Cash Flow Hedging Reserve
PAS 1.106A
2020 2019
Balance, January 1 - -
PFRS 7.23(c) - -
Gain (Loss) recognized on cash flows hedges:
- -
Foreign currency forward exchange contracts
- -
Interest rate swaps
- -
Currency swaps
- -
Income tax related to gains losses recognized in OCI
- -
Transferred to profit or loss:
- -
- -
Interest rate swaps
- -
Currency swaps
- -
Income tax related to amounts transferred to profit or loss
PFRS 7.23(e) - -
Transferred to initial carrying amount of hedged item:
- -
- -
Currency swaps
Income tax related to amounts transferred to initial carrying - -
amount of hedged item
- -
Others [describe]
Balance, December 31 - -
The cash flow hedging reserve represents hedging gains and losses recognized on the effective
PAS 1.79(b) portion of cash flow hedges. The cumulative deferred gain or loss on the hedge is recognized in
PAS 1.82A
other comprehensive income; the hedged transaction impacts the profit or loss, or is included as a
basis adjustment to the non-financial hedged item, consistent with the applicable accounting
policy.
Gains and losses transferred from equity into the profit or loss during the period are included in
the following line items in the statements of comprehensive income:
2020 2019
Revenue - -
- -
Other income
- -
Finance costs
- -
Other expenses
- -
Income tax expense
- -
Others [describe]
- -
PAS 1.106(d) Option premium on convertible notes
2020 2019
Balance, January 1 - -
Recognition of option premium on issue of - -
convertible notes
- -
Related income tax
159
Balance, December 31 - -
The option premium on convertible notes represents the equity component, i.e. conversion rights,
PAS 1.79(b) of the P [X] million [X]% convertible as discussed in Note [X].
Business Expansion Reserve

On [Date of approval of BOD] the BOD approved the appropriateness of retained earnings amount
to P[X] for [description of the project] that will be executed on [timeline of the project].
160
PAS 1.106(a)(b)(d) 43. NON – CONTROLLING INTERESTS

2020 2019
Balance at beginning of year P3,390 P3,390
Share of profit for the year - -
Non-controlling interests arising on the acquisition of Subsix (1,190) -
Limited
Additional non-controlling interests arising on disposal of 440 -
interest in Subone Limited
Non-controlling interest relating to outstanding vested share - -
options held by the employees of Subsix Limited
Balance at end of year P2,640 P3,390
As at 31 December 2020, executives and senior employees of Subsix Limited held options over [X]
ordinary shares of Subsix Limited, of which [X] will expire on 12 March 2020 and [X] will expire on
17 September 2020. These share options were issued by Subsix Limited before it was acquired by
the Group in the current year. All of the outstanding share options had vested by the acquisition
date of Subsix Limited. P [X] represents the market-based measure of these share options
measured in accordance with PFRS 2 at the acquisition date as disclosed in Note [X].
44. DIVIDENDS DECLARED
PAS 1.107 The [Group] has declared the following dividends to its equity holders:
Dividends Per Share Total Dividends

2020 2019 2020 2019
Cash dividends P - P - P - P -
Property dividends - - - -
Stock dividends - - - -
P - P - P - P -
After the end of the reporting periods the following dividends were proposed by the directors. The
dividends have not been provided for and there are no income tax consequences.
PAS 1.107 On [X], the [Group] declared and paid P[X] dividends per share totaling to P [X] cash dividend
against the [Group] unrestricted earnings to all shareholders of record as at the declared date in
proportion to their respective shareholdings. In [X], the dividend paid was P [X] per share totaling
to P [X].
PAS 1.137(a)
PAS 10.13
[Disclose the amount of any cumulative preference dividends not recognized]
In respect of the current year, the BOD proposed that a dividend of [X] cents per share be paid to
shareholders on [X]. This dividend is subject to approval by shareholders at the Annual General
Meeting and has not been included as a liability in these consolidated financial statements. The
proposed dividend is payable to all shareholders on the Register of Members on [X]. The total
estimated dividend to be paid is P [X] million. The payment of this dividend will not have any tax
consequences for the [Group].
45. SHARE-BASED PAYMENTS
Employee Stock Purchase Plan (ESPP)

PFRS 2.44 The ESPP gives benefit-eligible employees an opportunity to purchase the common stock of the
[Group] at a price lower than the fair market value of the stock at grant date. There are
designated ESPP purchase periods and an employee may elect to contribute an allowable
percentage of the base pay through salary deduction. During the years 2020 and 2019,
employees purchased [Number of shares purchased by employees during the current year] shares
at an average price of [Average price per share during the current year] per share and [Number
of shares purchased by employees during the comparative year] shares at an average price of
[Average price per share during the comparative year] per share, respectively. Total incentive
compensation related to the purchased plans is [Amount of compensation expense arising form
ESPP for the current period and comparative periods] for fiscal years 2020 and 2019, respectively.
Stock Options
The [Group] has a share option scheme for executives and senior employees of the [Group] and
its subsidiaries. In accordance with the terms of the plan, as approved by shareholders at a
161
previous annual general meeting, executives and senior employees with more than five years’
service with the [Group] may be granted options to purchase ordinary shares.
Each employee share option converts into one ordinary share of the [Group] on exercise. No
amounts are paid or payable by the recipient on receipt of the option. The options carry neither
rights to dividends nor voting rights. Options may be exercised at any time from the date of
vesting to the date of their expiry.
The number of options granted is calculated in accordance with the performance-based formula
approved by shareholders at the previous annual general meeting and is subject to approval by
the remuneration committee. The formula rewards executives and senior employees to the extent
of the [Group]’s and the individual’s achievement judged against both qualitative and quantitative
criteria from the following financial and customer service measures:
 reduction in warranty claims
 improvement in net profit
 results of client satisfaction surveys
 improvement in return to shareholders
 reduction in rate of staff turnover
The following share-based payment arrangements were in existence during the current and prior
years:
Fair value
Grant Exercise at grant
Number Date Expiry Date Price date
Granted on 31 March 2019 140,000 3/31/17 3/30/18 P 1 P1.15
Granted on 30 September 2019 150,000 9/30/17 9/29/18 1 1.18
Granted on 31 March 2020 160,000 3/31/18 3/30/19 1 0.98
Granted on 29 September 2020 60,000 9/29/18 9/28/19 2.40 0.82
All options vested on their date of grant and expire within twelve months of their issue, or one
month after the resignation of the executive or senior employee, whichever is the earlier.
Inputs into the model
Option
Series
Series 1 Series 2 Series 3 Series 4
Grant date share price 1.32 1.37 1.29 2.53
Exercise price 1.00 1.00 1.00 2.40
Expected volatility 15.20% 15.40% 13.10% 13.50%
Option life 1 year 1 year 1 year 1 year
Dividend yield 13.27% 13.12% 13.00% 13.18%
Risk-free interest rate 5.13% 5.14% 5.50% 5.45%
Others [describe] - - - -
Movements in the number of share options outstanding and their related weighted average
exercise prices as follow:
PFRS 2.45(c) 2020 2019

Weighted Weighted
Average Average
Number of Exercise Number of Exercise
Options Price Options Price
Balance at beginning of year 29,000 P1.00 - P -
Options granted 22,000 1.38 29,000 1.00
Options exercise (31,400) 1.00 - -
Options forfeited - - - -
Options expired - - - -
Options transferred - - - -
Balance at end of year 82,400 P1.43 29,000 P1.00
162
The following are the details of the share options were exercised during year:
Share price
Number at exercise
Option series exercised Exercise date date
Granted on March 31, 2019 3,000 05/01/16 P2.50
Granted on March 31, 2019 4,500 31/01/16 2
Granted on March 31, 2019 6,500 15/03/16 3
Granted on September 30, 2019 6,500 03/07/16 3
Granted on September 30, 2019 8,500 28/08/16 3
Granted on March 31, 2020 2,400 20/12/17 4
31,400
Fair value of each share option is estimated on the date of grant using Black-Scholes pricing model
PFRS 2.46, 47(a) with the following assumptions:
2020 2019
Dividend yield - -
Risk free interest rate - -
Expected life - -
Volatility - -
[If Binomial Model is used]
PFRS 2.46, 47(a) Options were priced using a binomial option pricing model. When relevant, the expected life used
in the model has been adjusted based on management’s best estimate for the effects of non-
transferability, exercise restrictions, including the probability of meeting market conditions
attached to the option, and behavioral considerations. Expected volatility is based on the historical
share price volatility over the past five years. To allow for the effects of early exercise, it was
assumed that executives and senior employees would exercise the options after vesting date the
share price was two and a half times the exercise price.
2020 2019
Grant date share price 1.32 1.37
Exercise price 1.00 1.00
Expected volatility 15.20% 15.40%
Option life 1 year 1 year
Dividend yield 13.27% 13.12%
Risk-free rate 5.13% 5.14%
[Describe option series]
[For share-based payment arrangements that were modified during the period: disclose an
explanation of those modifications; incremental FV granted as a result of modification and
information on how incremental FV was measured]
The share options outstanding at the end of the year had a weighted average exercise price of P
[X] in 2020 and P [X] in 2019, and a weighted average remaining contractual life of [X] days in
2020 and [X] days in 2019.
46. REVENUE – net
PFRS 15.113(a) An analysis of the [Group]’s revenue is as follows:

2020 2019
Revenue from sale of goods P 86,660 P107,930
Revenue from rendering of services 16,390 18,210
Revenue from construction contracts 5,300 4,770
P108,350 P130,910
Guidance Note:
IFRS 15:144 requires disaggregation of revenue from contracts with customers into categories that depict how the
nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The
disaggregation will depend on the entity’s individual facts and circumstances.
163
164
47. INVESTMENT INCOME

An analysis of the [Group]’s investment income is disclosed as follows:
PFRS 16.90(b)
PAS 40.75(f)
2020 2019
PFRS 7.20(d)
PFRS 7.20(b)
Rental revenue:
PFRS 7.B5(e) Finance lease contingent rental revenue P - P -
PFRS 7.11A(d)
PFRS 7.11A(d)
Operating lease rental revenue:
Investment properties 20 10
Contingent rental revenue - -
Other - -
20 10
Interest income:
Bank deposits 1,650 540
Financial assets measured at amortized cost 440 410
Investment in debit instruments measured at FVOCI 230 110
2,320 1,060
Royalties 160 160
Dividends from equity investments designated as at FVOCI 80 30
Impaired financial assets - -
Others (Describe) 1,000 1,140
P3,580 P2,400
Fair value gains and losses, as well as interest income on financial instruments classified as at
FVTPL are included in ‘other gains and losses’ in note [X].
Investment revenue earned on financial assets, analyzed by category, as follows:
PFRS 7.20(b)
2020 2019
Investment in debit instruments measured at FVOCI P 230 P 110
Financial assets at amortized cost 440 410
Total interest income earned on financial assets that are
not designated as at FVTPL 670 520
Dividend income on AFS investments 80 30
Investment income earned on non-financial assets 2,830 1,850
P3,580 P2,400
Income relating to financial assets classified as at fair value through profit or loss is included in
‘other gains and losses’ in Note [X].
48. RESTRUCTURING COSTS

In [Date of disposal], the [Group] disposed of [Name of division]. Certain of the non-core assets of
the [Specific segment/activity] division were retained by the [Group]. The assets retained were
scrapped, and an impairment loss recognized in respect of their previous carrying amount. To the
extent that workers could not be redeployed, termination terms were agreed. The impairment loss
recognized amounted to [Amount of impairment loss].
49. EMPLOYEE BENEFITS

Aggregate employee benefits expense comprised:
PAS 19.51,56-60
PAS 19.165, 169
Notes 2020 2019
PFRS 2.50,51(a)
PAS 1.104
Short-term benefits P - P -
Post-employment benefits 1,490 1,000
Share-based payments 200 330
Termination benefits - -
Other long-term benefits 8,850 10,610
165
P10,540 P11,940
166
PAS 1.104 50. DEPRECIATION AND AMORTIZATION

Details of depreciation and amortization charged to profit or loss are disclosed below:
Notes 2020 2019

Cost of Sales
Depreciation of property, plant and P12,840 P14,530
equipment
Amortization of intangible assets 1,570 1,540
Depreciation of right-of-use assets - -
14,410 16,070
Operating expenses
PFRS 16:53(a) Depreciation of property, plant and - -
equipment
Depreciation of investment property - -
Depreciation of right-of-use assets - -
Amortization of intangible assets - -
P14,410 P16,070
PFRS 16:53(a)
PAS 38.118(d) [If entity has discontinued operations]

Attributable to:
2020 2019
Continuing operations P - P -
Discontinued operations - -
P - P -
51. IMPAIRMENT LOSSES ON FINANCIAL ASSETS

PFRS 7.20(e)
Details of impairment losses on financial assets charged to profit or loss are disclosed below:
2020 2019
Impairment loss on trade receivables P - P -
Impairment loss on financial assets through
other comprehensive income - -
Impairment loss on financial liabilities
through other comprehensive income - -
Impairment loss on financial assets at
measured amortized cost 20 20
Impairment loss on loans carried at
amortized cost - -
P20 P20
167
52. FINANCE COSTS

An analysis of the [Group]’s finance costs are shown below:
PFRS 7.20(b)
PAS 23.26(a)
2020 2019
PFRS 7.24(a)
PFRS 7.24(a)
Trade payables P3,060 P3,540
PFRS 9.6.5.8(a) Related party loans - -
PFRS 9.6.5.8(b)
PFRS 7.23(d) Discount on provision - -
PFRS 5.17 Convertible notes payable 220 220
PFRS 9.6.5.11(d)
(ii) Finance leases 80 60
PFRS 9.6.5.12(b) Perpetual notes payable - -
Lease liabilities - -
PFRS16:53(b)
Total interest expense for financial liabilities not classified as
at FVTPL 3,360 3,820
Borrowing cost included in qualifying assets 10 30
3,370 3,850
Loss (gain) arising on derivatives as designated hedging
instruments
in fair value hedges - -
Loss (gain) arising on adjustment for hedged item
attributable to the hedged risk
in designated fair value hedge accounting relationship - -
- -
(Gain)/loss arising on interest rate swaps as designated
hedging instruments in cash flow hedges of floating rate
debt reclassified from equity to profit or loss (130) (90)
Unwinding of discounts on provisions 30 30
Unwinding of discount on costs to sell non-current assets
classified as held for sale - -
Other finance costs - -
(100) (60)
P3,470 P3,910
[If finance cost include amount related to FVTPL financial liabilities]

Finance cost relating to financial liabilities classified as at fair value through profit or loss are
included in ‘other expenses’ in Note [X].
There was no finance costs related to financial liabilities classified as fair value through profit or
loss.
[Check the applicability of the disclosure]

Borrowing costs included in the cost of qualifying assets during the year arose on the general
borrowing pool and are calculated by applying a capitalization rate of [Capitalization rate] % to
expenditure on such assets.
PAS 23.26(b) The weighted average capitalization rate on funds borrowed generally is [X]% and [X]% per
annum in 2020 and 2019, respectively.
168
53. OTHER INCOME
The [Group]’s other income consist of:

PAS 1.98(c)
PAS 1.98(d)
2020 2019
PAS 21.52(a)
PFRS 7.20(a)
Gain on property, plant and equipment P - P-
PAS 40.76(d) Gain on disposal of investments - -
PFRS 7.24(b)
PFRS 7.24A(c)
Government grants received for staff re-training - -
PFRS 7.24C(b)(ii) Foreign exchange gains - -
Gain arising on effective settlement of legal claim - -
Change in fair value of financial assets designated at FVTPL 330 290
Change in financial liabilities designated as at FVTPL 150 -
Change in financial assets mandatorily measured at FVTPL - -
Change in financial liabilities mandatorily measured at FVTPL - -
Reclassification of net gain/(loss) on debt investments - -
classified as at FVOCI from equity to profit or loss upon
disposal
Change in fair value of investment property 30 290
Hedge ineffectiveness on net investment hedges - -
Hedge ineffectiveness on cash flows hedges - -
P510 P580
54. OTHER EXPENSES
The [Group]’s other expense consist of:
PAS 1.98(c)
PAS 1.98(d)
2020 2019
PAS 21.52(a)
PFRS 7.20(a)
Loss on property, plant and equipment
PAS 40.76(d) Loss on disposal of FVOCI investments
PFRS 7.24A(c)
PFRS 7.24C(b)(ii)
Foreign exchange losses
PFRS 7.24(b) Change in fair value of financial assets designated at FVTPL
Change in financial liabilities designated as at FVTPL
Change in financial assets mandatorily measured at FVTPL
Change in financial liabilities mandatorily measured at FVTPL
Reclassification of net gain/(loss) on debt investments
classified as at FVOCI from equity to profit or loss upon
disposal
Change in fair value of investment property
Hedge ineffectiveness on net investment hedges
Hedge ineffectiveness on cash flows hedges
55. OPERATING LEASE AGREEMENTS

PFRS 16:89
Operating leases, in which the [Group] is the lessor, relate to investment property owned by the
Group with lease terms of between [__] to [__] years, with a [__] year extension option. All
operating lease contracts contain market review clauses in the event that the lessee exercises its
option to renew. The lessee does not have an option to purchase the property at the expiry of the
lease period.
The unguaranteed residual values do not represent a significant risk for the Group, as they relate to
property which is located in a location with a constant increase in value over the last [__] years.
PFRS 16:92(b) The Group did not identify any indications that this situation will change.
Maturity analysis of operating lease payments.
2020 2019
Year 1
PFRS 16:97
Year 2
Year 3
Year 4
Year 5
169
Year 6 and onwards

Total
The following table presents the amounts reported in profit or loss:
2020 2019
Lease income on operating leases
Therein lease income relating to variable lease payments that
do not depend on an index or rate
PFRS 16:90(b)
56. INCOME TAXES

Components of income tax expense charged to profit or loss are as follows:
PAS 12.79
PAS 12.80
2020 2019
Current tax expense P10,970 P10,860
Deferred tax expense relating to:
Origination and reversal of temporary differences 220 2,870
Reclassified from equity to profit or loss - -
Effects of changes in tax rates and laws - -
Write downs of deferred tax assets - -
Final withholding tax - -
P11,190 P13,730
[If client has discontinued operations]

Attributable to:
2020 2019
Continuing operations P - P -
Discontinued operations - -
P - P -
PAS 12.81(c) The reconciliation between tax expense (benefit) and the product of accounting profit (loss)
multiplied by 30% in 2020 and 2019 follows:
2020 2019
Accounting profit (loss) from continuing operations P37,300 P45,760
Tax expense (benefit) at 30% 11,190 13,730
Tax effect of expenses that are non-deductible:
Equity share in net income (loss) - -
Non-deductible representation expense - -
Non-deductible interest expense - -
Other non-deductible expenses - -
Tax effect of income that are non-taxable: - -
Dividends subject to final tax - -
Interest income subject to final tax - -
Tax effect of deferred tax assets not recognized - -
Tax effect of expiration of
net operating loss carry-over (NOLCO) - -
170
Tax effect of expiration of

minimum corporate income tax (MCIT) - -
Tax effect of changes in deferred tax balances
due to the change in income tax rate - -
P11,190 P13,730
PAS 12.81(d)
PAS 12.81(c) The tax rate used for the 2020 and 2019 reconciliations above is the corporate tax rate of 30%
payable by corporate entities in A Land on taxable profits under tax law in that jurisdiction.
171
Details of NOLCO from 2015 to 2019 are as follows

Applied Applied
Year Previous Current Expiry
Incurred Amount Year Year Expired Unapplied Date
2015 P - P - P - P - P - 2018
2016 - - - - - 2019
2017 - - - - - 2020
2018 - - - - - 2021
2019 - - - - - 2022
P - P - P - P - P -
Disclose if there is 2020 NOLCO that is carried over for 5 years under RR 25-2020.
Details of NOLCO covered by Revenue Regulation (RR) No. 25-2020 is as follows:
Applied Applied
2020 P - P - P - P - P - 2025
The NOLCO incurred by the [Group] for taxable years 2020 and 2021 shall be carried over as a
deduction for the next five consecutive taxable years immediately following the year of such loss
pursuant to the provisions of RR No. 25-2020 and to Section 4 COVID-19 Response and Recovery
Interventions (bbbb) of Republic Act (R.A.) No. 11494, otherwise known as “Bayanihan to Recover
as One Act”
Details of MCIT are as follows:
Applied Applied
2011 P - P - P - P - P - 2014
2012 - - - - - 2019
2013 - - - - - 2020
2014 - - - - - 2020
2019 - - - - - 2020
2020 - - - - - 2020
P - P - P - P - P -
Disclose if there are components of income tax expense recognized directly to equity
Components of income tax expense recognized directly to equity are as follows:
2020 2019
Current tax
Share issue costs - -
Share buy-back costs - -
PAS 12.81(a) Others [describe] - -
- -
Deferred tax
Arising on transactions with owners:

Initial recognition of the equity component of convertible
notes - -
Share issue and buy-back expenses deductible over 5 years - -
Excess tax deductions related to share-based payments - -
- -
- -
PAS 12.81(ab) Components of income tax expense recognized in OCI are as follows:
2020 2019
172
Current tax P - P-
- -
Deferred tax
Arising on income and expenses recognized in OCI

Translation of foreign operations - -
Fair value remeasurement of hedging instruments
entered into for a hedge of a net investment in a foreign
operation - -
Fair value remeasurement in FVOCI (50) -
Fair value remeasurement of hedging instruments entered
into for cash flow hedges - -
Property revaluations - -
Remeasurement of defined benefit obligation (30) (60)
(80) (60)
Arising on income and expenses reclassified from equity
to profit or loss:
Relating to cash flow hedges - -
Relating to FVOCI financial assets - -
On disposal of a foreign operation - -
- -
Arising on gains/losses of hedging instruments in cash
flow hedges transferred to the initial carrying amounts of
hedged items - -
(P80) (P60)
57. DEFERRED TAXES

The following are the composition of deferred tax assets/liabilities recognized by the [Group]:
PAS 12.81(a),(g)
2020
Liabilities
associated
with
Reclassified assets
Recognized from equity classified
Beginning Recognized in Recognized directly in to profit or Acquisitions as held for Closing
balance profit or loss in OCI equity loss /disposals sale balance
Cash flow hedge P - P- P- P - P - P - P - P -
Net investment
hedges - - - - - - - -
Associates - - - - - - - -
Joint venture - - - - - - - -
Property, plant
and equipment (50) 50 - - - - - -
Finance leases (180) 180 - - - - - -
Intangible assets - - - - - -
FVTPL financial
assets - (30) - - - - - (30)
FVOCI financial
assets - - (50) - - - - (50)
Deferred
revenue - - - - - - - -
Convertible
notes - - - - - - - -
Exchange
differences on
foreign
operations - - - - - - - -
Provisions (320) 320 - - - - - -
Doubtful debts - - - - - - - -
Defined benefit
obligation 680 (500) (30) - - - - 150
Other financial
liabilities - 30 - - - - - 30
Unclaimed share
issue and buy-

back costs - - - - - - -
Others
[describe] (80) 250 - - - - 170
50 300 (80) - - - - 270
Tax losses - - - - - - - -
173
Others
(Describe) - - - - - - - -
P50 P300 (P80) P - P - P - P - P270

PAS 12.81(a),(g)
2019
Liabilities
associated
Reclassified with assets
Recognized from equity classified
Beginning Recognized in Recognized directly in to profit or Acquisitions/ as held for Closing
balance profit or loss in OCI equity loss disposals sale balance
Cash flow hedge P- P - P - P - P - P - P - P -
Associates - - - - - - - -
Joint venture - - - - - - - -
Property, plant
and equipment (4,380) 4,330 - - - - - (50)
Finance leases (280) 100 - - - - - (180)
Intangible assets - - - - - - - -
FVTPL financial
assets - - - - - - - -
FVOCI financial
assets - - - - - - - -
Deferred
revenue - - - - - - - -
Exchange
differences on
foreign
operations - - - - - - - -
Provisions 1,230 (1,550) - - - - - (320)
Doubtful debts 20 (20) - - - - - -
Defined benefit
obligation 590 150 (60) - - - - 680
Other financial
liabilities - - - - - - - -
Others
[describe] - (80) - - - - - (80)
(2,820) 2,930 (60) - - - - 50
Tax losses - - - - - - - -
Others
(Describe) - - - - - - - -
(P2,820) P2,930 (P60) P - P - P - P - P50

Deferred Tax Assets
The following are the composition of deferred tax assets recognized by the [Group]:
[DTA 1] [DTA 2] [DTA 3] Total

Balance, January 1, 2019 P - P - P - P -
Charged to income - - - -
Charged to equity - - - -
Recycled from equity to income - - - -
Acquisitions/disposals - - - -
Exchange differences - - - -
Changes in tax rate - - - -
Balance, December 31, 2019 - - - -
Charged to profit or loss for the year - - - -
Balance, December 31, 2020 P - P - P - P -
The following are the deferred tax assets not recognized by the [Group]:
2020 2019
Deductible temporary differences
[Unrecognized DTA 1] - -
- -
The above deferred tax assets were not recognized since Management believes that it is not
probable that future taxable profit will available against which deferred tax asset can be utilized.
174
Deferred Tax Liabilities

The following are the composition of deferred tax liabilities recognized by the [Group]:
[DTL 1] [DTL 2] [DTL 3] Total

Charged to profit or loss for the year P - P - P - P -
Balance, December 31, 2019 - - - -
Charged to income - - - -
Balance, December 31, 2020 P - P - P - P -
58. FAIR VALUE INFORMATION

The categorization of fair value measurements into different levels of the fair value hierarchy
depends on the degree to which the inputs to the fair value measurement are observable and the
significance of the inputs to the fair value measurement. The below categorizations are for
illustrative purposes only. Specific facts and circumstances should be assessed for each individual
class of asset or liability in determining the appropriate categorization.
Assets and liabilities measured at fair value on a recurring basis

PFRS 13.93(a)
PFRS 13.93(b)
The following table gives information about how the fair values of the [Group]’s assets and
PFRS 13.93(d) liabilities, which are measured at fair value at the end of each reporting period, are determined (in
particular, the valuation technique(s) and inputs used).
Fair value as at December 31

2020 2019
PFRS 13.93(g)
PFRS 13.93(h)(i) Derivative financial instruments
PFRS 3.B64(f)(iii) Foreign currency forward P - P - Level 2 Discounted Not applicable Not applicable
PFRS 3.B64(g) contracts cash flow (a)
PFRS 3.B67(b) Interest rate swap - - Level 2 Discounted Not applicable Not applicable
PFRS 3.IE65(e) cash flow (b)
PFRS 7.27 P - P -
Financial assets at FVTPL P1,530 P1,630 Level 1 Quoted bid prices in Not applicable Not applicable
an active market
Financial assets at FVOCI
Listed redeemable notes P400 P200 Level 1 Quoted bid prices in Not applicable Not applicable
an active market
Investments in Rocket 300 300 Level 3 Discounted See (c)
Corp. Limited cash flow
Investments in E Plus - - Level 3 Discounted See (c)
Limited cash flow
P700 P500
Property, plant and equipment - -
Land - - Level 2 Market comparable Prices per The estimated fair
approach (d) square meter, value increases the
Premium higher are
(discount) on premiums for
the quality of higher quality land
the land
Buildings - - Level 3 Cost approach (e) Prices per The estimated fair
square meter, value increases the
Premium higher are
the quality of higher quality
the building buildings
- - Level 2 Market comparable Prices per The estimated fair
Investment property
approach (d) square meter, value increases the
Premium higher are
the quality of higher quality
the property properties
Biological Assets - - Level 3 Discounted cash flow Actual selling The higher the fair
(i& j) price value of similar
approximating products in the
those at year- market, the higher
end less the price of
estimated biological assets
costs to sell.
175
Redeemable cumulative Level 2 Discounted cash flow Not applicable Not applicable
preference shares (f)
- - Level 2 Discounted cash flows Not applicable Not applicable
Financial guarantee contracts (a)
Foreign currency forward (a)
Interest rate swap (b)
- -
Fair value as at December 31 Relationship of
Significant unobservable inputs
PFRS 13.93(a)
Fair value unobservable to fair value
PFRS 13.93(b)
Assets/liabilities 2020 2019 hierarchy Valuation techniques input
PFRS 13.93(d)
PFRS 13.93(g) Other non-current financial - -
PFRS 13.93(h)(i) liabilities
PFRS 3.B64(f)(iii) Contingent consideration in a - - Level 3 Discounted cash flows See (g)
Interest rate swap - - Level 2 Discounted cash flows Not applicable Not applicable
(b)
- -
a. Future cash flows are estimated based on forward exchange rates (from observable forward
PFRS 3.B64(g) exchange rates at the end of the reporting period) and contract forward rates, discounted at a
rate that reflects the credit risk of various counterparties.
b. Future cash flows are estimated based on forward interest rates (from observable yield curves
PFRS 3.B67(b) at the end of the reporting period) and contract interest rates, discounted at a rate that
reflects the credit risk of various counterparties.
c. FVOCI financial assets
Significant unobservable input Relationship of unobservable inputs to

fair value
Significant unobservable input: Long-term revenue The higher the revenue growth rate,
growth rates, taking into account management’s the higher the fair value.
experience and knowledge of market conditions of the
specific industries, ranging from 4.9% to 5.5% in 2020
and 4.8% to 5.4% in 2019.
Long-term pre-tax operating margin taking into account The higher the pre-tax operating
management’s experience and knowledge of market margin, the higher the fair value.
conditions of the specific industries, ranging from 5% to
12% in 2020 and 5% to 10% in 2019.
Weighted average cost of capital, determined using a The higher the pre-tax operating
Capital Asset Pricing Model, ranging from 11.9% to margin, the higher the fair value.
12.5% in 2020 and 11.2% to 12.1% in 2019.
Discount for lack of marketability, determined by The higher the discount, the lower the
reference to the share price of listed entities in similar fair value.
industries, ranging from 5% to 20% in 2020 and 4% to
19% in 2019.
d. The fair value of the land was determined based on the market comparable approach that
reflects recent transaction prices for similar properties. In estimating the fair value of the
properties, the highest and best use of the properties is their current use. There has been no
change to the valuation technique during the year. [Describe other methods]
e. The fair value of the buildings was determined using the cost approach that reflects the cost
to a market participant to construct assets of comparable utility and age, adjusted for
obsolescence. There has been no change to the valuation technique during the year.
[Describe other methods]
f. Discounted cash flow at a discount rate of 8% in 2020 and 7.5% in 2019 that reflects the
issuer’s current borrowing rate at the end of the reporting period.
g. Contingent consideration in a business combination.
h. The fair value is determined by applying the market comparison approach. The valuation
model is based on the market price of the estimated recoverable volumes, net of harvesting
and transportation cost. [Applicable for Bio assets (agricultural plants)]
176
i. The fair value is calculated by applying the discounted cash flow approach. The valuation
model considers the present value of the net cash flows expected to be generated by the
plantation at maturity, the expected additional biological transformation and the risks
associated with the asset.
j. The fair value is determined by applying the market comparison approach. The valuation
model is based on the market price of livestock of similar age, eight, breed and genetic make-
up.
Significant unobservable input Relationship of unobservable inputs to

fair value
PFRS 13.93(a)
PFRS 13.93(b) Discounted cash flow at a discount rate of 8% in 2020 The higher the discount rate, the
PFRS 13.93(d)
PFRS 13.93(g) and 7.5% in 2019 that reflects the issuer’s current lower the fair value.
borrowing rate at the end of the reporting period.
Probability-adjusted revenues and profits, with a range The higher the amounts of revenue
from P100,000 to P150,000 and a range from P60,000 and profit, the higher the fair value.
to P90,000, respectively.
177
PFRS 13.93(h)(i)
PFRS 3.B64(f)(iii)
The table below shows the sensitivity of the above unobservable inputs to the valuation model to
the carrying amount of the shares as at December 31:
Increase (Decrease) in
Change in Unobservable Carrying Amount of
PFRS 3.B64(g) Input to Valuation Model Shares
PFRS 3.B67(b)
2020 +10% P7,100
2019 -10% (8,000)
There were no transfers to other levels during in the period.
PFRS 13.93(e) The following presents the movements of the [Group]’s recurring fair value measurements of
assets and liabilities within Level 3 hierarchy: Disclose if applicable
PFRS 7.27B(c)
Assets
AFS financial Other Level 3
asset Land Liabilities Total
January 1, 2019
Fair value gain:
in profit or loss
in equity
Purchases/Additions
Depreciation
Issues
Settlements
Effect of foreign currency exchange
differences
Transfers out of Level 3
December 31, 2019
Fair value gain:
in profit or loss
in equity
Purchases/Additions
Depreciation
Issues
Disposals
Effect of foreign currency exchange
differences
Settlements
Transfers out of Level 3
December 31, 2020
The only financial liabilities subsequently measured at fair value on Level 3 fair value
178
measurement represent contingent consideration relating to the acquisition of Subsix Limited, as

disclosed in Note [X]. No gain or loss for the year relating to this contingent consideration has
been recognized in profit or loss.
PFRS 13.93(f)
PFRS 7.27B(d)
The total gains or losses for the year included an unrealized gain of P72,000 and P73,000 in 2020
and 2019, respectively, relating to financial assets that are measured at fair value at the end of
each reporting period. Such fair value gains or losses are included in ‘other gains and losses’, as
PFRS 13.93(e)(ii)
PFRS 7.27B(d)
All gains and losses included in OCI relate to unlisted shares and redeemable notes held at the end
of the reporting period and are reported as changes of ‘Investment revaluation reserve’, as
179
Guidance Note:
PFRS 7.25: Except as set out in PFRS 7.29, for each class of financial assets and financial liabilities, an entity shall
disclose the fair value of that class of assets and liabilities in a way that permits it to be compared with its carrying
amount. An entity shall disclose the fair value of that class of assets and liabilities in a way that permits it to be
compared with its carrying amount.
PFRS 7.29: Disclosures of fair value are not required when the carrying amount is a reasonable approximation of
fair value, for example, for financial instruments such as short-term trade receivables and payables; or for lease
liabilities.
Financial Asset and liabilities not measured at fair value

PFRS 7.25, 29
PFRS 13.97
[If the financial assets and liabilities that are not measured at fair values on a recurring basis]
The Management consider that the carrying amounts of financial assets and liabilities recognized in
the consolidated financial statements approximate their fair values.
[If there are financial assets and liabilities that are not measured at fair values on a recurring
basis that do not approximate their fair values]
The following financial assets and financial liabilities are not measured at fair values on recurring
basis but the fair value disclosure is required:
PFRS 7.25, 29(a)

2020 2019
Carrying Carrying Fair Value
Amount Fair Value Amount Fair Value Hierarchy
Financial Assets
Due from related parties
Financial lease receivables Level 2
Loans receivable Level 3
Refundable deposits
Financial Liabilities
Convertible notes Level 2
Perpetual notes Level 1
Bills of exchange Level 1
Bank loans payable Level 3
Loans from related parties Level 3
Loans from third parties Level 3
Interest-free government loans
Level 2
Other non-current financial
liabilities Level 2
Finance lease payable Level 2
PFRS 13.97
PFRS 13.93 (d)
The fair values of the financial assets and financial liabilities included in the level 2 and level 3
categories above have been determined in accordance with generally accepted pricing models
based on a discounted cash flow analysis, with the most significant inputs being the discount rate
that reflects the credit risk of counterparties.
The fair value of the liability component of convertible notes is determined assuming redemption
on [Date of redemption] and using a [Discount rate]% interest rate based on a quoted swap rate
of [Market rate]% for a [Term in months] months loan and holding the credit risk margin
constant.
Management believes that the cash and cash equivalents, trade and other receivables, due from
related parties and trade and other payables approximate their fair values. Accordingly, fair value
of the financial assets and liabilities are not disclosed.
The available-for-sale financial is measured at cost since there is no reliable market data to which
180
the fair value can be obtained.
181
Fair value of the non-financial assets not measured at fair value
The fair value of the [Group]’s investment property amounted to P[X] and P[X] as at December
31, 2020 and 2019, respectively. The fair value was determined based on the market comparable
approach that reflects recent transaction prices for similar properties. In estimating the fair value
of the properties, the highest and best use of the properties is their current use. There has been
no change to the valuation technique during the year.
59. FINANCIAL RISK MANAGEMENT

The following are examples and illustrations of the types of disclosures that might be required in this
area. The matters disclosed will be dictated by the specific circumstances of the individual entity,
significance of judgments and estimates made to the results of operations and financial position, and
the information provided to key management personnel.
Financial Risk Management Objectives and Policies

PFRS 7.31 [Choose the applicable provisions]
The [Group] is exposed to financial risks such as market risk which includes foreign exchange risk
and fair value interest rate risk, credit risk and liquidity risk. The [Group]’s policies and objective in
managing these risks are summarized below:
Market risk
PFRS 7.33
Market risk refers to the possibility that changes in market prices, such as foreign exchange rates,
interest rates and equity prices will affect the [Group]’s profit or the value of its holdings of
financial instruments. The [Group] focuses on two market risk areas such as interest rate risk and
foreign currency risk. The objective and management of these risks are discussed below.
[Disclose if the entity has foreign currency denominated transactions]

Foreign currency exchange risk
PFRS 7.33, 34(a),
(b)
Foreign currency exchange risk arises when an investment’s value changing due to changes in
currency exchange rate. The [Group] undertakes certain transactions denominated in foreign
currencies, hence, exposures to exchange rate fluctuations arose. Significant fluctuation in the
exchange rates could significantly affect the Group’s financial position.
[Select and disclose the applicable provisions]

To manage the risk, the [Group] enters into foreign currency forward contracts for all foreign
currency denominated transactions. [Or] The [Group] seeks to mitigate its foreign currency risk
exposures by mitigating its costs at consistent levels, regardless of any upward or downward
movements in the foreign currency exchange rates.
[If no policy to manage foreign currency exchange risk]

The [Group] has no established policy in managing foreign exchange rate risk. Any favorable or
unfavorable movements of foreign currency exchange rates are absorbed by the [Group].
The carrying amounts of the [Group]’s foreign currency denominated monetary assets and
monetary liabilities at the end of each reporting period are as follows:
Assets Liabilities
2020 2019 2020 2019
Currency of B Land - - - -
Currency of C Land - - - -
- - - -
The following table details the [Group]’s sensitivity to a [X]% increase and decrease in the
PFRS 7.34(a), functional currency of the [Group] against the relevant foreign currencies. The sensitivity rate
40(b)
used reporting foreign currency risk internally to key management personnel is [X]% and it
represents Management’s assessment of the reasonably possible change in foreign exchange
rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary
items and adjusts their translation at the period end for a [X]% in foreign currency rates. The
sensitivity analysis includes all of the [Group]’s foreign currency denominated monetary assets
and liabilities. A positive number below indicates an increase in profit and other equity when the
Functional currency of the [Group]’s strengthens 10% against the relevant currency. For a [X]%
182
weakening of the Functional currency of the [Group] against the relevant currency, there would be
an equal and opposite impact on the profit and other equity and the balances below would be
negative.
2020 2019
PFRS 7.40(a)
Effect in Profit Effect in Effect in Profit Effect in
or Loss Equity or Loss Equity
Currency B - - - -
Currency C - - - -
PFRS 7.33(c) [Discuss significant changes in the exposures to foreign currency exchange risks]
The [Group]’s sensitivity to foreign currency has decreased during the current year mainly due to
the disposal of Currency B investments and the reduction in Currency B sales and purchases in the
last quarter of the financial year which has resulted in lower Currency B denominated trade
receivables and trade payables.
PFRS 7.33(c) [If there are changes in exposure to risks, objectives and policies for managing the risks]
The [Group]’s sensitivity to foreign currency has decreased during the current year mainly due to
the disposal of Currency B investments and the reduction in Currency B sales and purchases in the
last quarter of the financial year which has resulted in lower Currency B denominated trade
receivables and trade payables.
PFRS 7.42 [Explain if management assesses that the sensitivity analysis is unrepresentative of the foreign
exchange risk]
In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign
exchange risk because the exposure at the end of the reporting period does not reflect the
exposure during the year. Currency B-denominated sales are seasonal, with lower sales volumes
in the last quarter of the financial year, resulting in a reduction in Currency B receivables at the
end of the reporting period.
Interest rate risk

Interest rate risk refers to the possibility that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market interest.
[Select and disclose what is applicable]

The [Group]’s exposure to interest rate risk relates to borrowing of funds at both fixed and
PFRS 7.33, 34 floating interest rates. This risk is managed by maintaining an appropriate mix between fixed and
floating rate borrowings, and by the use of interest rate swap contracts and forward interest rate
contracts. Hedging activities are evaluated regularly to align with interest rate views and defined
risk appetite; ensuring optimal hedging strategies are applied, by either positioning the
statements of financial position or protecting interest expense through different interest rate
cycles. [Or] To manage the risk, the [Group] ensures borrowings from various sources of funds
are availed at the cheapest possible cost at acceptable terms. [If applicable] These balances are
short-term in nature and with the current interest rate level, any variation in the interest will not
have a material impact on profit or loss of the [Group].
[If no policy to manage interest rate risk]

The [Group] has no established policy for managing interest rate risk. Management believes that
fluctuations on the interest rates will not have significant effect on the [Group]’s financial
performance.
The sensitivity analysis below have been determined based on the exposure to interest rates for
PFRS 7.40(b) both derivatives and non-derivative instruments at the end of each reporting period. For floating
rate liabilities, the analysis is prepared assuming the amount of liability outstanding at the end of
each reporting period was outstanding for the whole year. A 0.5% sensitivity rate is used in
reporting interest rate risk internally to key management personnel and represents Management’s
assessment of the reasonably possible change in interest rates.
If interest rates had been 0.5% higher/lower, the [Group]’s:

PFRS 7.40(a)
• profit for the year ended December 31, 2020 and 2019 would decrease/increase by P[X] and
P[X], respectively. This is mainly attributable to the Group’s exposure to interest rates on its
variable rate borrowings; and
• other comprehensive income for the year ended December 31, 2020 and 2019 would
183
decrease/ increase by P[X] and P[X], respectively, mainly as a result of the changes in the fair
value of available-for sale fixed rate instruments.
184
PFRS 7.33(c) [PFRS 7.33(c): Discuss significant changes in the exposures to interest rate risks]
The [Group]’s sensitivity to interest rates has decreased during the current year mainly due to the
reduction in variable rate debt instruments and the increase in interest rate swaps to swap floating
rate debt to fixed.
[Explain if management assesses that the sensitivity analysis is unrepresentative of the interest
PFRS 7.42 rate risk]
Equity price risk
Equity price risk is the risk that the fair value of equity investment decreases as the result of
changes in the value of individual stocks. The [Group]’s exposure to equity price risk relates
primarily to the [Group]’s quoted investment. The [Group] intends to hold these investments
indefinitely in response to liquidity requirements or changes in market conditions. The [Group] does
not actively trade these investments.
PFRS 7.40(b) The sensitivity analysis below have been determined based on the exposure to equity price risks at
the end of the reporting period.
If equity prices had been 5% higher/lower:

PFRS 7.40(a)
• profit for the year ended December 13, 2020 would have been unaffected as the equity
investments are classified as AFS financial assets and no investments were disposed of or
impaired; and
• other comprehensive income for the year ended December 31, 2020 would increase/decrease
by P286,000 in 2020 and P265,000 in 2019 as a result of the changes in fair value of AFS
shares.
PFRS 7.40(c) The [Group]’s sensitivity to equity prices has not changed significantly from the prior year.
Credit Risk
Credit risk refers to the possibility that counterparty will default on its contractual obligations
resulting in financial loss to the [Group]. The [Group] has adopted a policy of only dealing with
creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of
mitigating the risk of financial loss from defaults. The [Group] only transacts with entities that are
rated the equivalent of investment grade and above. This information is supplied by independent
rating agencies where available and, if not available, the [Group] uses other publicly available
financial information and its own trading records to rate its major customers. The [Group]’s
exposure and the credit ratings of its counterparties are continuously monitored and the aggregate
value of transactions concluded is spread amongst approved counterparties. Credit exposure is
controlled by counterparty limits that are reviewed and approved by the risk management
committee annually.
PFRS 7.33, 34,B8 The [Group] trades only with recognized, credit worthy third parties. It is the [Group]’s policy that
all customers who wish to trade on credit terms are subject to credit verification procedures. In
addition, receivable balances are monitored on an ongoing basis with the result that the [Group]’s
exposure to bad debts is not significant. The [Group] does not grant credit terms without the
specific approval of the credit departments under the direction of the credit committee. Moreover,
the credit committee regularly reviews the age and status of outstanding accounts.
PFRS 7:35G (a)

PFRS 9:B5.5.17
The [Group] analyzes all data collected using statistical models and estimates the remaining
lifetime PD of exposures and how these are expected to change over time. The factors taken into
account in this process include [disclose the factors e.g. (macro-economic data such as GDP
growth, unemployment, benchmark interest rates) and the process. (e.g. The [Group] generates a
‘base case’ scenario of the future direction of relevant economic variables as well as a
representative range of other possible forecast scenarios. The [Group] then uses these forecasts,
which are probability-weighted, to adjust its estimates of PDs. The [Group] uses different criteria
to determine whether credit risk has increased significantly per portfolio of assets. The criteria
used are both quantitative changes in PDs as well as qualitative. The table below summarizes per
type of asset the range above which an increase in lifetime PD is determined to be significant, as
well as some indicative qualitative indicators assessed.)]
Trade receivables consist of a large number of customers, spread across diverse industries and
geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts
receivable and when appropriate, credit guarantee insurance cover is purchased.
185
PFRS 7.B8
PFRS 7.34(c),
The [Group] does not have significant credit risk exposure to any single counterparty.
35B (c ) Concentration of credit risk related to Company A did not exceed 20% of gross monetary assets at
any time during the year. Concentration of credit risk to any other counterparty did not exceed
5% of gross monetary assets at any time during the year. The credit risk on liquid funds and
derivative financial instruments is limited because the counterparties are banks with high credit-
ratings assigned by international credit-rating agencies.
In addition, the [Group] is exposed to credit risk in relation to financial guarantees given to banks
PFRS 7.B10(c) provided by the [Group]. The [Group]’s maximum exposure in this respect is the maximum
amount the [Group] will have to pay if the guarantee is called on, as disclosed in Note [X]. As at
31 December 2020 and 2019, an amount of P[X] and P[X], respectively, has been recognized in
the consolidated financial position as financial liabilities, as disclosed in Note [X].
The [Group] does not hold any collateral or other credit enhancements to cover its credit risks
PFRS 7.35K(b) associated with its financial assets, except that the credit risk associated with finance lease
receivables is mitigated because they are secured over the leased storage equipment. The
carrying amount of finance lease receivables amounts to P[X] and the fair value of the leased
assets is estimated to be approximately P[X]. The [Group] is not permitted to sell or repledge the
collateral in the absence of default by the lessee. There has not been any significant changes in
the quality of the collaterals held for finance lease receivables. The [Group] has not recognized a
loss allowance for the finance lease receivables as a result of these collaterals.
The table below presents the [Group]’s maximum exposure to credit risk without taking account of
the value of any collateral obtained:
2020 2019
[Source of Credit Risk Exposure 1] P - P -
[Source of Credit Risk Exposure 2] - -
[Source of Credit Risk Exposure 3] - -
P - P -
PFRS 7.35B(a)
PFRS 7.35F(a)(i)
In order to minimize credit risk, the [Group] has tasked its credit management committee to
develop and maintain the [Group]’s credit risk grading to categorize exposures according to their
degree of risk of default. The credit rating information is supplied by independent rating agencies
where available and, if not available, the credit management committee uses other publicly
available financial information and the [Group]’s own trading records to rate its major customers
and other debtors. The [Group]'s exposure and the credit ratings of its counterparties are
continuously monitored and the aggregate value of transactions concluded is spread amongst
approved counterparties. The [Group]’s current credit risk grading framework comprises the
following categories:
PFRS 7.35M
Basis for recognizing
PFRS 7.35N Category Description
PFRS 7.36(a) expected credit losses
The counterparty has a low risk of default and does not
Performing 12m ECL
have any past-due amounts
Amount is >30 days past due or there has been a Lifetime ECL - not credit-
Doubtful
significant increase in credit risk since initial recognition impaired
Amount is >90 days past due or there is evidence

In default Lifetime ECL - credit-impaired
indicating the asset is credit-impaired
There is evidence indicating that the debtor is in severe
Write-off financial difficulty and the Group has no realistic prospect Amount is written-off
of recovery
186
The tables below detail the credit quality of the [Group]’s financial assets and other items, as well
as the [Group]’s maximum exposure to credit risk by credit risk rating grades:
PFRS 7.35M Gross Net

PFRS 7.35N External credit Internal credit 12m or carrying Loss carrying
PFRS 7.36(a)
2020 Note rating rating lifetime ECL? amount (i) allowance amount
Loans to Lifetime ECL
related (not credit
parties N/A Performing impaired) P10,370 P - P10,370
Bills of
exchange A Performing 12m ECL 1,110 - 1,110
Redeemable
notes AA Performing 12m ECL - - -
Debentures BBB- Doubtful 12m ECL 140 (20) 120
Lifetime ECL
Trade and other (simplified
receivables N/A (ii) approach) 17,400 (790) 16,610
Lifetime
Finance lease ECLI(simplifie
receivables N/A (ii) d approach) 1,020 - 1,020
Amounts due
from
customers
under Lifetime ECL
construction (simplified
contracts N/A (ii) approach) - - -
Financial
guarantee
contracts N/A Performing 12m ECL - - -
P30,040 (P810) P29,230
Gross Net
External credit Internal credit 12m or carrying Loss carrying
2019 Note rating rating lifetime ECL? amount (i) allowance amount
Loans to Lifetime ECL
related (not credit
parties N/A Doubtful impaired) P2,980 P - P 2,980
Bills of
exchange A Performing 12m ECL 1,070 - 1,070
Redeemable
notes AA Performing 12m ECL - - -
Debentures BBB- Doubtful 12m ECL 140 (20) 120
Lifetime ECL
Trade and other (simplified
receivables N/A (ii) approach) 14,560 (830) 13,730
Lifetime ECL
Finance lease (simplified
receivables N/A (ii) approach) 890 - 890
Lifetime ECL
(simplified
Contract assets N/A (ii) approach) - - -
Amounts due
from
customers
under Lifetime ECL
construction (simplified
contracts N/A (ii) approach) - - -
Financial
guarantee
contracts N/A Performing 12m ECL - - -
P19,660 (P850) P18,810
187
Provide a brief description on the information above. Sample disclosures are as follows:
(i) For financial guarantee contracts, the gross carrying amount represents the maximum
amount the [Group] has guaranteed under the respective contracts, and the net carrying
amount represents the loss allowance recognized for the contracts.
(ii) For trade receivables, finance lease receivables and amounts due from customers under
construction contracts, the [Group] has applied the simplified approach in PFRS 9 to
measure the loss allowance at lifetime ECL. The [Group] determines the expected credit
losses on these items by using a provision matrix, estimated based on historical credit loss
experience based on the past due status of the debtors, adjusted as appropriate to reflect
current conditions and estimates of future economic conditions. Accordingly, the credit
risk profile of these assets is presented based on their past due status in terms of the
provision matrix. Note [X] include further details on the loss allowance for these assets
respectively.
(iii) The loss allowance on redeemable notes measured at FVOCI is recognized against other
comprehensive income and accumulated in the investment revaluation reserve. See note
[X].
Liquidity risk
PFRS 7.33, 35,
39(c)
Liquidity risk arises when the [Group] encounters difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. The
[Group]’s objective of managing liquidity risk is to ensure, as far as possible, that it will always
have sufficient liquidity to meet its liabilities when due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the [Group]’s reputation.
[If the entity has negative liquidity ratio]

PFRS 7.39(c) The [Group] manages liquidity risk by [Risk management approach e.g. maintaining adequate
reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast
and actual cash flows and matching the maturity profiles of financial assets and liabilities. “Or” to
measure and forecast its cash commitments and maintain a level of cash on hand and in banks
deemed sufficient to finance the operations and to mitigate the effects of fluctuations in cash
flows.]
The [Group] manages negative liquidity ratio by [Disclose how the management manages
negative liquidity ratio].
The following tables detail the [Group]’s remaining contractual maturity for its non-derivative
financial liabilities. The tables have been drawn up based on the undiscounted cash flows of
PFRS 7.34, 39(a) financial liabilities based on the earliest date on which the Group can be required to pay. The table
includes both interest and principal cash flows.
Note: Amounts to be disclosed in the table should be the liabilities’ future value (principal payment
plus any related interests
Less
than One- Three-
Weighted Average One- Three Months to One-Five Five+
Effective Interest Rate Month Months One Year Years years Total
2020
Non-interest bearing - P15,450 P1,240 P3,000 P12,500 P - P19,690
Finance lease liability 4.50% - - 10,000 6,000 - 16,000
Variable interest rate
instruments 8.18% - - - - - -
Fixed interest rate
instruments 7.56% - - 23,900 15,660 - 39,560
188
Financial guarantee
contracts - - - - - - -
P15,450 P1,240 P36,900 P34,160 P - P87,750
Less
than One- Three-
PFRS 7.34, 39(a) Weighted Average One- Three Months to One-Five Five+
Effective Interest Rate Month Months One Year Years years Total
2019
Non-interest bearing - P14,910 P4,000 P2,000 P13,100 P - P 34,010
Finance lease liability 5.50% - - 18,000 4,000 - 22,000
instruments 8.08% - - - - - -
Fixed interest rate
instruments 8.03% - - 37,600 17,980 - 55,580
Financial guarantee
contracts - - - - - - -
P14,910 P4,000 P57,600 P35,080 P - P111,590
The difference between the carrying amount of trade and other payables disclosed in the
statements of financial position and the amount disclosed in this note pertains to dividend
payables, deferred revenues and government payables that are not considered as financial
liabilities.
189
PFRS7.B10(c) The amounts included above for financial guarantee contracts are the maximum amounts the
[Group] could be forced to settle under the arrangement for the full guaranteed amount if that
amount is claimed by the counterparty to the guarantee. Based on expectations at the end of the
reporting period, the [Group] considers that it is more likely than not that such an amount will not
be payable under the arrangement. However, this estimate is subject to change depending on the
probability of the counterparty claiming under the guarantee which is a function of the likelihood
that the financial receivables held by the counterparty which are guaranteed suffer credit losses.
PFRS 7.34, 35 The following table details the [Group]’s expected maturity for its non-derivative financial assets.
The table below has been drawn up based on the undiscounted contractual maturities of the
financial assets including interest that will be earned on those assets except when the [Group]
anticipates that the cash flows will occur in a different period.
Note: Amounts to be disclosed in the table should be the liabilities’ future value (principal payment
plus any related interests
Weighted
Average Three
Effective Less than Months to
Interest One One-Three One-Five Above Five
Rate Month Months One Year Years Years Total
2020
Non-interest bearing - P14,650 P8,020 P 750 P - P - P23,420
instruments 5.75% - - - - - -
Fixed interest rate
instruments 7.38% - - 10,950 1,320 - 12,270
P14,650 P8,020 P11,700 P1,320 P - P35,690
Weighted
Average Three
Effective Less than Months to
Interest One One-Three One-Five Above Five
Rate Month Months One Year Years Years Total
2019
Non-interest bearing - P13,400 P7,090 P 580 P - P - P21,070
instruments 4.83% - - - - - -
Fixed interest rate
instruments 7.00% - - 3,270 1,280 - 4,550
P13,400 P7,090 P3,850 P1,280 P - P25,620
PFRS 7.B10A(b) The amounts included above for variable interest rate instruments for both non-derivative financial
assets and liabilities is subject to change if changes in variable interest rates differ to those
estimates of interest rates determined at the end of the reporting period.
The [Group] has access to financing facilities as described in Note [X], of which P9.268 and
PFRS 7.39(c) P12.617 million were unused as at December 31, 2020 and 2019, respectively. The [Group]
expects to meet its other obligations from operating cash flows and proceeds of maturing financial
assets.
The following table details the [Group]’s liquidity analysis for its derivative financial instruments.
PFRS 7.39(b) The table has been drawn up based on the undiscounted net cash inflows/(outflows) on the
derivative instrument that settle on a net basis and the undiscounted gross inflows and (outflows)
on those derivatives that require gross settlement. The amount payable or receivable is not fixed;
the amount disclosed has been determined by reference to the projected interest rates as
illustrated by the yield curves existing at the end of each reporting period.
190
Three
Less than Months
One- to
One Three One One-Five Five+
Month Months Year Years Years Total
2020
Net settled:
Interest rate swaps
Foreign exchange forward
contracts
Gross settled:
contracts
Currency swaps
2019
Net settled:
Interest rate swaps
contracts
Gross settled:
contracts
Currency swaps
60. CAPITAL RISK MANAGEMENT
[If entity is on a going concern basis]

PAS 1.134 The [Group] manages its capital to ensure that the [Group] will be able to continue as a going
concern while maximizing the return to stakeholders through the optimization of the debt and
equity balance.
The Group’s overall strategy remains unchanged from 2019.

[or] were reviewed and revised by management during the current year, the changes made were
(state the changes made).
[If entity is on a basis other than going concern]

During the liquidation process, the [Group]’s overall strategy is to have a successful end to the
[Group]’s operations.
Management will ensure that all stakeholders will be protected by disposing all of its assets and
using the proceeds as settlement for all its obligations. The [Group]’s overall strategy [remains
unchanged from 2019; were reviewed and revised by management during the current year, the
changes made were (state the changes made)].
PAS 1.135(a) [Disclose the composition of what the entity manages as capital]
The capital structure of the [Group] consists of debt, which includes the current and non-current
liabilities excluding non-financial liabilities, disclosed in Note [X], as offset by cash and cash
equivalents and equity and equity attributable to equity holders of the parent, comprising issued
capital, reserves and retained earnings, as disclosed in Notes [X], respectively.
[Disclose how capital risk is being managed, for example refer to the paragraph below]
The [Group]’s risk management committee reviews the capital structure on a semi-annual basis.
As part of this review, the committee considers the cost of capital and the risks associated with
each class of capital. The [Group] has a target gearing ratio of 15% to 25% determined as the
proportion of net debt to equity. Based on the committee’s recommendations, the [Group] expects
to increase its gearing ratio closer to 25% through the issue of new debt and the payment of
dividends.
191
PAS 1.135(b) The gearing ratio at year-end was as follows:
2020 2019
Debt P 96,500 P105,400
Cash and cash equivalents 23,170 20,200
Net debt P73,330 P85,200
Equity P146,160 P128,840
Net debt to equity ratio 0.50 0.66
Management believes that the above ratios are within the acceptable range.
PAS 1.135(c) [Disclose the change in capital management if any]

[Disclose if no change]
There were no changes in the [Group]’s approach to capital management during the year.
PAS 1.135(d)
[If subject to externally imposed capital requirement, disclose the nature of those requirements
and how those requirements are incorporated into the management of capital.
[Disclose if not subject to externally imposed capital requirements]

The [Group] is not subject to externally imposed capital requirements.
[If the entity complied with externally imposed capital requirement, please disclose this fact.]
PAS 1.135(a.iii)(e) [If the entity does not comply with externally imposed capital requirement, please disclose the
consequences of non-compliance.]
[Disclose if there are discontinued operations]

61. DISCONTINUED OPERATIONS
PFRS 5.30
PFRS 5.41
Disposal of Toy Manufacturing Operations
[If entity has actual disposal of operations]
On September 28, 2020, the [Group] entered into a sale agreement to dispose of Subzero Limited,
which carried out all of the [Group]’s toy manufacturing operations. The proceeds of sale
substantially exceeded the carrying amount of the related net assets and, accordingly, no
impairment losses were recognized on the reclassification of these operations as held for sale. The
disposal of the toy manufacturing operations is consistent with the [Group]’s long-term policy to
focus its activities in the electronic equipment and other leisure goods markets. The disposal was
completed on November 30, 2020, on which date, control of the toy manufacturing operations
passed to the acquirer. Details of the assets and liabilities disposed of, and the calculation of the
profit or loss on disposal, are disclosed in Note [X].
[State reason for the disposal]
PFRS 5.30
PFRS 5.41
Plan to Dispose of the Bicycle Business
[If entity has planned disposal of operations]
On November 30, 2020, the BOD announced a plan to dispose of the [Group]’s bicycle business.
The disposal is consistent with the [Group]’s long-term policy to focus its activities on the
electronic equipment and other leisure goods markets. The Group is actively seeking a buyer for
its bicycle business and expects to complete the sale by July 31, 2020. The Group has not
recognized any impairment losses in respect of the bicycle business, neither when the assets and
liabilities of the operation were reclassified as held for sale nor at the end of the reporting period,
as disclosed in Note [X].
[State reason for the disposal]
192
PFRS 5.33(b) The results of the discontinued operations which have been included in profit or loss were as
follows:
PAS 12.81(h)
PFRS 5.33(d)
2020 2019
Revenue - -
Other income - -
- -
Expenses - -
Profit before tax - -
Attributable tax expense - -
Gain (Loss) on discontinued operations-net - -
Gain (Loss) on disposal of discontinued operations - -
Loss on remeasurement to fair value less costs to sell - -
Attributable tax expense - -
Loss on disposal of discontinued operations-net - -
Net loss attributable to discontinued operations - -
During 2020 and 2019, Bicycle business contributed the following cash flows to the [Group]:
PFRS 5.33(c)
2020 2019
Net operating activities - -
Investing activities - -
Financing activities - -
- -
The bicycle business has been classified and accounted for at December 31, 2020 as a disposal
group held for sale, as disclosed in Note [X].
A loss of [Amount of loss on disposal] arose on the disposal of [Name of discontinued

division/segment], being the proceeds of disposal less the carrying amount of the division’s net
assets.
The effect of discontinued operations on segment results is disclosed in Note [X].
PAS 7.43 62. NON-CASH TRANSACTIONS AND FINANCING FACILITIES

During the current year, the [Group] entered into the following non-cash investing and financing
activities which are not reflected in the consolidated statement of cash flows:
• the [Group] disposed of property, plant and equipment with an aggregate fair value of P0.4
million to acquire Subseven Limited as indicated in Note [X];
• proceeds in respect of the [Group]’s disposal of part of its interest in E Plus Limited and its
entire interest in Subzero Limited amounting to P1.245 million and P0.96 million, respectively,
as disclosed in Notes [X] and [X], had not been received in cash as at December 31, 2020 and
2019, respectively;
• share issue proceeds of P8,000 were received in the form of consulting services, as disclosed
in Note [X]; and in addition, the [Group] acquired P40,000 of equipment under a finance lease
in 2020.
193
63. EARNINGS PER SHARE

Guidance Note:
This is required only if the entity is a publicly listed or deemed public. However, if a regular entity opted to disclose
this information, it should comply with all the disclosure requirements of the related standard.
Basic and Diluted Earnings per Share

The earnings and weighted average number of ordinary shares used in the calculation of basic and
diluted earnings per share are as follow:
PAS 33.68
Basic Diluted
2020 2019 2020 2019
From continuing operations
From discontinued operations
Basic Earnings per Share

PAS 33.70(a) The earnings and weighted average number of ordinary shares used in the calculation of basic
earnings per share are as follows:
2020 2019
Profit for the year attributable to owners of the Group - -
Dividends paid on convertible non-participating preference
shares - -
Profit for the purposes of basic earnings - -
per share - -
Profit for the year from discontinued operations - -
Profit used in the calculation of basic earnings per share from

continuing operations - -
Weighted average number of ordinary shares for the purposes

of basic earnings per share - -
PAS 33.70(b)
Diluted Earnings per Share

The earnings used in the calculation of diluted earnings per share are as follows.
PAS 33.70(a)
2020 2019
Profit for the purposes of basic earnings - -
per share - -
Interest on convertible notes - net of tax - -
Profit used in the calculation of diluted earnings per share - -
Profit used in the calculation of diluted earnings per share from
Weighted average number of ordinary shares for the purposes

of diluted earnings per share - -
The weighted average number of ordinary shares for the purpose of diluted earnings per share
PAS 33.70(b) reconciles to the weighted average number of ordinary shares used in the calculation of basic
earnings per share as follows:
2020 2019
194
Weighted average number of ordinary shares used - -

in the calculation of basic earnings per share
Shares deemed to be issued for no consideration in - -
respect of:
Employee options - -
Partly paid ordinary shares - -
Profit used in the calculation of diluted earnings per - -

share from continuing operations
[Check the applicability of the disclosure]

PAS 33.70(c) The following potential shares are not dilutive and are therefore excluded from the weighted
average number of ordinary shares for the purposes of diluted earnings per share:
2020 2019
[Others] (Describe) - -
- -
PFRS 10.C2A
PFRS 11.C1B
Changes in the [Group]’s accounting policies during the year are described in detail in Note [X].
PAS 8.28(f) To the extent that those changes have had an impact on results reported for [Current and
Comparative year], they have had an impact on the amounts reported for earnings per share.
The following table summarizes that impact on both basic and diluted earnings per share:
Changes in Profit
for the Year
Attributable to the
Owners of the Basic Earnings Diluted Earnings
Company Per Share Per Share
2020 2019 2020 2019 2020 2019
Change in accounting
policies relating to: - - - - - -
Application of PFRS 9 - - - - - -
Application of PFRS 15 - - - - - -
- - - - - -
64. CHANGE IN ACCOUNTING POLICY
PAS 8.28(f)(i) [Applicable only for entities applying the full retrospective restatement approach. Disclose only
what is applicable]
The tables below show the amount of adjustment for each financial statement line item affected by
the application of PFRS 9 and PFRS 15 for the current year.
December 31, 2020 December 31, 2019

PFRS 9 PFRS 15 Total PFRS 9 PFRS 15 Total
Profit or loss
Revenue P - P(11,500) P(11,500) P- P - P -
Cost of sales - (1,800) (1,800) - - -
Investment income - - - - - -
Distribution expenses - - - - - -
Marketing expenses - - - - - -
Administration expenses (220) - (220) (115) - (115)
Finance costs - - - - - -
Income tax expenses 70 (1,200) (1,130) 35 - 35
Other gains and losses (20) - (20) - - -
Increase (decrease) in profit for the year 170 (14,500) (14,670) 80 - 80
OCI - - - - - -
Items that will not be reclassified subsequently
to profit or loss: - - - - - -
Net fair value gain on investments in equity
instruments designated as at
FVOCI 40 - 40 30 - 30
195
Net fair value gain on financial liabilities

designated as at FVTPL
attributable to changes in credit risk 10 - 10 - - -
Net fair value gain on hedging instruments
entered into for cash flow
hedges subject to basis adjustment 50 - 50 - - -
Increase (decrease) in total comprehensive
income attributable to: - - - - - -
Owners of the Group - - - - - -
Items that may be reclassified subsequently to
profit or loss: - - - - - -
Net fair value gain on available-for-sale
financial assets (60) - (60) (50) - (50)
Net fair value gain on investments in debt
instruments measured at
FVOCI 20 - 20 10 - 10
hedges (PAS 39 categorization) (40) - (40) - - -
hedges not subject to basis adjustment 170 - 170 - - -
Increase (decrease) in other comprehensive

income 190 - 190 (10) - (10)
Increase (decrease) in total comprehensive

income P360 (P14,500) (P14,140) P70 P - P70
Increase (decrease) total comprehensive

income attributable to: - - - - - -
Owners of the Group (150) - (150) (90) - (90)
Non-controlling interest - - - - - -
P210 (P14,500) (P14,290) P(20) P - (P20)

PAS 8.28(f)(i) The table below summarizes the impact on assets, liabilities and equity as at January 1, 2019 for
the retrospective application of new standards effective beginning January 1, 2020:
January 1, 2019 Adjustments January 1, 2019

(As previously reported) PFRS 9 PFRS 15 (As restated)
Trade and other receivables P16,410 (P500) (P3,200) P12,710

Contract assets - - - -
Amounts due from customers under
construction contracts 630 - (630) -
Financial assets at FV, AC and Other financial
assets 5,780 (250) - 5,530
Right to returned goods asset - - - -
Property, plant and equipment - - - -
Trade and other payables - - - -
Contract liabilities - - - -
Deferred tax liabilities 7,095 225 (2,650) 4,670
Deferred revenue 80 - (40) 40
Refund liability - - - -
Retained earnings 41,025 525 6,520 48,070
Total effect on net assets P71,020 P - P - P71,020
The table below summarizes the impact on assets, liabilities and equity as at December 31, 2019
for the retrospective application of new standards effective beginning January 1, 2020:
December 31,
December 31, 2019 Adjustments 2019
(As previously reported) PFRS 9 PFRS 15 (As restated)
Trade and other receivables P14,300 (P550) P - P13,750

Contract assets - - 80 80
Amounts due from customers under
construction contracts 230 - (230) -
Financial assets at FV, AC and Other financial
assets 4,670 (300) - 4,370
Right to returned goods asset - - 250 250
Property, plant and equipment - - - -
Trade and other payables - - - -
Contract liabilities - - 80 80
Deferred tax liabilities 290 260 - 550
Deferred revenue - current - - - -
Deferred revenue - noncurrent 40 - (40) -
Refund liability - - 70 70
Retained earnings 69,910 590 (210) 70,290
Total effect on net assets P89,440 P - P - P89,440
Disclose a brief description on the information summarized above. Sample disclosures are as
follows:
For internet sales of electronic equipment there is a timing difference between payment for the
goods and when control of the goods passes to the customer on delivery. An adjustment to
revenue has therefore been made to reflect the change in accounting. A contract liability has also
been recognized for this amount. Previously no amounts were deferred as the impact was not
196
considered to be material.
Under the [Group]’s standard contract terms for the sale of leisure goods and electronic
equipment, customers have a right of return within 30 days. At the point of sale, a refund liability
and a corresponding adjustment to revenue is recognized for those products expected to be
returned. At the same time, the [Group] has a right to recover the product from customers when
they exercise their right of return so consequently recognizes a right to returned goods asset and
a corresponding adjustment to cost of sales. No adjustments were previously made for this in the
[Group]’s financial statements, as the impact was not considered to be material.
197
Disclose impact of the application of the standards on the cash flows.

PAS 8.28(f)(i) The table below summarizes the impact on cash flows for the year ended December 31, 2019 for
the retrospective application of new standards effective beginning January 1, 2020:
Adjustments
PFRS 9 PFRS 15 Total
Net cash inflow (outflow) from
operating activities P - P - P -
investing activities - - -
financing activities - - -
P - P - P -
PAS8.28(f)(ii) The impact of the application of the new and revised accounting standards in the current reporting
period are discussed in Note [X].
If none, please disclose the paragraph below.

The application of PFRS 9 and 15 has had no impact on the consolidated cash flows of the [Group].
PAS8.28(f)(ii) The impact of the retrospective application of the new and revised Standards on basic and diluted
earnings per share is disclosed in Note [X].
PFRS 1 65. TRANSITION TO PFRS

[If entity is a first-time adopter of PFRS, select and disclose only what is applicable]
The [Group] has applied the following transition exceptions and exemptions to full retrospective
application of PFRS:
• share-based payment transactions;
• insurance cost;
• deemed cost;
• leases;
• employee benefits;
• cumulative translation differences;
• investments in subsidiaries, jointly controlled entities and associates;
• assets and liabilities of subsidiaries, associates and joint ventures;
• compound financial instruments;
• designation of previously recognized financial instruments;
• fair value measurement of financial assets or financial liabilities at initial recognition;
• decommissioning liabilities included in the cost of property;
• property, plant and equipment;
• financial assets or intangible assets accounted for in accordance with Philippine IFRIC 12,
Service Concession Arrangements;
• borrowing cost;
• transfers of assets from customers;
• derecognition of financial assets and financial liabilities;
• hedge accounting;
• non-controlling interests;
• business combination;
198
Reconciliation
PFRS 1.24(a)(i)(ii) The following reconciliations show the effect on the [Group]’s equity of the transition from PFRS
for SMEs to full PFRS at [Reporting Date for Current and Comparative periods, and beginning of
the earliest comparative period], and the [Group]’s profit or loss and other comprehensive income
for the years ended [Reporting Date for Current and Comparative period].
December 31 January 1
2020 2019 2019
Total Equity under [PFRS for SMEs] P P P
PFRS adjustments increase (decrease):
PFRS 1.22,24,25 Securitizations of trade receivables
Revaluation of property and equipment
Impairment of property and equipment
Revaluation of available-for-sale equity investments
Share of PFRS adjustments relating to associate
Restructuring liability
Employee future benefits – actuarial gains and losses
Employee future benefits – past service costs
Deferred income tax
Warrants
Non-controlling interests
Total Equity under PFRS P P P
PFRS 1.22
PFRS 1.24 Notes 2020 2019
PFRS 1.25
Results for the Year under [PFRS for SMEs] P P

Increase (Decrease) in profit for the year for:
PFRS adjustments increase (decrease):
Depreciation on revaluation of property, plant and
equipment
Impairment of property, plant and equipment
Share of PFRS adjustments relating to associate
Restructuring expenses
Employee future benefits - past service costs
Deferred income tax
Fair value adjustment on warrants
Non-controlling interest
Share-based payments amortization
Impairment of debt securities
Change in fair value of cash flow hedges
Increase (Decrease) in other comprehensive income
for:
Change in fair value of equity investments
Employee future benefits – actuarial gains and
losses
Deferred income tax
Impairment of debt securities
Change in fair value of cash flow hedges
Result for the Year under full PFRS P P
[Briefly explain the adjustment made per line item presented under the reconciliation]
PFRS 1.25
Adjustments to the Statements of Cash Flows

The transition from PFRS for SMEs to full PFRS had no significant impact on cash flows generated
by the [Group] except, [specify the difference in reporting under PFRS for SMEs and the PFRS if
applicable].
199
66. COMMITMENT FOR EXPENDITURE

2020 2019
Commitments for the acquisition of property plant and
PAS 16.74(c) equipment P - P -
Commitment to purchase raw materials - -
P - P -
In addition, the [Group] has entered into a contract for the management and maintenance of its
PAS 40.75(h) investment property for the next five years, which will give rise to an annual expense of P[X].
PFRS 12.23(a)
PFRS 12.B18 - B19
The [Group]’s share of the capital commitments made jointly with other joint ventures relating to
its joint venture, JV Electronics Limited, is as follows:
2020 2019
Commitments to contribute funds for the acquisition of
property, plant and equipment P - P -
Commitments to provide loans - -
Commitments to acquire other venturer’s ownership interest
when a particular event occurs or does not occur in the
future (please specify what the particular event is) - -
Other (Describe) - -
P - P -
PAS 8.49
67. PRIOR PERIOD ADJUSTMENTS
Guidance Note:
[Disclose (1) nature of error (2) for each prior period presented, to the extent practicable, the amount of the
correction for each financial statement line item affected, and for basic and diluted earnings per share if PAS 33
applies to the entity (3) to the extent practicable, the amount of the correction at the beginning of the earliest prior
period presented and (4) an explanation if it is not practicable to determine the amounts to be disclosed in (2) or
(3) above.]
[For example] [The following are the restatements made due to prior period adjustments in the
[Group]’s financial statements as at December 31, 2019 and January 1, 2019:
• Increase in amounts of due to related parties by P[X] due to material effect of retranslation of
intercompany balance using BSP issued foreign exchange rates as against the internal foreign
exchange rates as at December 31, 2019.
• Decrease in amounts of due to related parties by P[X] due to material effect of retranslation
of intercompany balance using BSP issued foreign exchange rates as against the internal
foreign exchange rates as at January 31, 2019.
• Decrease of loan balance from Company A by P [X] as a result of correction upon discounting
the loan in correct interest rate. The [Group] previously discounted the loan every year due to
varying interest rates which is not in accordance with PAS 39 as at December 31, 2019.
The above adjustments resulted in net increase in [Group]’s retained earnings by P[X] as at
December 31, 2019 and decrease by P[X] as at January 1, 2019.
[Disclose the impact in the statement of financial position and statement of comprehensive income
(same disclosure with the application of new accounting policy)]
200
68. RECLASSIFICATION OF COMPARATIVE AMOUNTS

[Disclose only what is applicable]
Certain amounts in the comparative financial statements and note disclosures have been
PAS 8.41 reclassified to conform to the current year’s presentation. The reclassifications include comparative
amount of [amount] previously presented in the [Group]’s financial statements as part of [old line
item] which has been reclassified to [new line item].
Management believes that the above reclassifications would reflect the nature of the transactions
and did not have any impact on prior year’s profit or loss.
Summary of changes on profit or loss and on OCI arising from reclassification are shown below:
December 31,
2019 December 31,
(Previously Effects of 2019 (As
Stated) Reclassification Restated)
Profit or loss
Revenue P - P - P -
Cost of sales - - -
Investment income - - -
Distribution expenses - - -
Marketing expenses - - -
Administration expenses - - -
Finance costs - - -
Share of profit of associates - - -
Income tax expenses - - -
Share in profit of a joint venture - - -
Increase (decrease) in profit for the year P - P - P -
OCI
Increase in remeasurement of
defined benefit obligation - - -
Increase in income tax relating
to items of OCI - - -
Increase (decrease) in OCI P - P - P -
Increase (decrease) in total

comprehensive income P - P - P -
Increase (decrease) in profit or

loss attributable to:
Owners of the Group P - P - P -
Non-controlling interest - - -
P - P - P -
Increase (decrease) total

comprehensive income
attributable to:
Owners of the Group P - P - P -
Non-controlling interest - - -
P - P - P -
201
Summary of changes on assets, liabilities and equity arising from reclassification are shown below:
December 31, December 31,

2019 (Previously Effects of 2019 (As
Stated) Reclassification Restated)
Cash and bank balances P - P - P -
Trade and other receivables - - -
Inventories - - -
Investment in a joint venture - - -
Investments in associates - - -
Goodwill - - -
Property, plant and equipment - - -
Trade and other payables - - -
Current tax liabilities - - -
Deferred tax liabilities - - -
Retirement benefit obligation - - -
Borrowings - non-current - - -
Total effect on net assets P - P - P -
Non-controlling interests P - P - P -
Retained earnings - - -
Total effect on net assets P - P - P -
Summary of changes on cash flows arising from reclassification are shown below:
December 31, December 31,

2019 Effects of 2019
(Previously Stated) Reclassification (As Restated)
operating activities P - P - P -
investing activities - - -
financing activities - - -
P - P - P -
If impractical to reclassify comparative amounts [disclose why reclassification is not practicable and the nature of
the adjustment that would have been made if the amounts had been reclassified].
202
On January 18, 2020, the premises of Subfive Limited were seriously damaged by fire. Insurance claims are in
process, but the cost of refurbishment is currently expected to exceed the amount that will be reimbursed by P8.3
million.
[If the bill is enacted before the issuance of the FS and the impact is deemed significant]
On February 3, 2021, both houses of Congress ratified the bicameral committee report on the “Corporate Recovery
and Tax Incentives for Enterprises Act” or “CREATE” bill, which seeks to reduce the corporate income tax rates and
to rationalize the current fiscal incentives by making it time-bound, targeted, and performance-based.
This bill once approved by the President and passed into law, [disclose what is applicable based on the new bill] will
result to the reduction of the [Group]’s related corporate income tax rate from [30%] to [25%] effective July 1,
2020.
The significant effects of the changes in the tax rates are as follows:
As of December 31,2020 Under the CREATE bill Impact

Income tax expense
Income tax payable
Prepaid income tax
Deferred tax assets
Deferred tax liabilities
69. EVENTS AFTER THE REPORTING PERIOD

PAS 10.21
[If dividends were declared after reporting date]
In a meeting held on [Date of meeting], the Board of Directors declared cash dividend in the amount of [Amounts
of dividends declared] payable on [Date of payment] to stockholders of record as at [Date of record] based on the
number of shares held by them as at the same date.
[Disclose any other subsequent events]
PAS 10.21
[For each material category of non-adjusting event] disclose the nature of the event and an estimate of its
financial effect, or a statement that such an estimate cannot be made.
70. SUPPLEMENTARY INFORMATION REQUIRED BY THE BUREAU OF INTERNAL

REVENUE (BIR) UNDER REVENUE REGULATIONS NOS. 15-2010 AND 34-2020
The following supplementary information are presented for purposes of filing with the BIR and are
not a required part of the basic financial statements.
Revenue Regulations No. 15-2010

Output VAT
Details of the [Group]’s output VAT declared during the year are as follows:
Vatable Zero- VAT- Total
203
rated exempt
Revenue P - P - P - P -
Account - - - -
title for
income
1
Account - - - -
title for
income
2
Account - - - -
title for
income
3
- - - -
Output 12% 0% -
VAT
rate
P - P - P - P -
[Disclose the nature and legal basis for zero-rated and exempt transactions]
Input VAT
Details of the [Group]’s input VAT claimed are as follows:
Balance, January 1 P -
Add: Current year’s domestic purchases/payments for: -
Goods for resale/manufacture or further processing -
Goods other than for resale or manufacture -
Capital goods subject to amortization -
Capital goods not subject to amortization -
Services lodged under cost of goods sold -
Services lodged under other accounts -
Total available input VAT -
Less: Claims for: -
Tax credit -
Tax refund -
Other adjustments -
-
Balance, December 31 P -
Taxes on importation of goods

Total landed cost of imports in [Current year] and [Prior year] amounted to [Amount of landed
cost of imported goods for the current year] and [Amount of landed cost of imported goods for the
prior year], respectively. Total custom duties and tariff fees paid and accrued in relation to the
imports amounted to [Amount of landed cost of imported goods for the current year] and [Amount
of landed cost of imported goods for the prior year], in [Current year] and [Prior year],
respectively.
[Disclose if the client is not covered Section 2 of RR 34-2020]
Revenue Regulations No. 34-2020
BIR issued Revenue Regulations (RR) No. 34-2020, Prescribing the Guidelines and Procedures for
the Submission of BIR Form No. 1709, Transfer Pricing Documentation (TPD) and other Supporting
Documents, Amending for this Purpose the Pertinent Provisions of RR Nos. 19-2020 and 21-2002,
as amended by RR No. 15-2010, to streamline the guidelines and procedures for the submission of
BIR Form No. 1709, TPD and other supporting documents by providing safe harbors and
materiality thresholds. Section 2 of the RR lists the taxpayers that are required to file and submit
the RPT Form, together with the Annual Income Tax Return.
204
The [Group] is not covered by the requirements and procedures for related party transactions
provided under RR 34-2020 as it is not covered under Section 2 of the RR.
205
Excise tax
Details of the [Group]’s excise taxes paid or accrued per major product category are classified as
follows:
Locally Produced Excisable Items P -

Alcohol products -
Tobacco products -
Oil and petroleum products -
Mineral products -
Automobiles -
Non-essential goods -
-
Imported Excisable Items -
Alcohol products -
Tobacco products -
Oil and petroleum products -
Mineral products -
Automobiles -
Non-essential goods -
-
P -
Documentary stamp tax

Details of the [Group]s documentary stamp tax paid or accrued are as follows:
Loan agreements, instruments and papers P -

Original issue of shares of stock -
Sales, agreements to sell, memoranda of sales, deliveries or transfer of -
shares or certificates of stock
Bonds, debentures certificates of stock or indebtedness issued in foreign -
countries
Certificates of profits or interest in property or accumulations -
Bank checks, drafts, certificates of deposit not bearing interest, and -
other instruments
Debt instruments -
Bills of exchange or drafts -
Acceptance of bills of exchange and others -
Foreign bills of exchange and letters of credit -
Life insurance policies -
Policies of insurance upon property -
Fidelity bonds and other insurance policies -
Policies of annuities and pre-need plans -
Indemnity bonds -
Certificates -
Warehouse receipts -
Jai-Alai, horse race tickets, lotto or other authorized number games -
Bills of lading or receipts -
Proxies -
Powers of attorney -
Lease and other hiring agreement -
Mortgages, pledges and deeds of trust -
Deeds of sale and conveyance of real property -
Charter parties and similar instruments -
Assignments and renewals of certain instruments -
P -
206
Other taxes and licenses

Details of the [Group]’s other taxes and licenses and permit fees paid or accrued are as follows:
Charged to Cost of Sales P -

Donor’s tax -
Other percentage tax -
Real property tax -
Residence or community tax -
Permit fees -
Others (Describe) -
-
Charged to Operating Expenses -
Donor’s tax -
Other percentage tax -
Real property tax -
Residence or community tax -
Permit fees -
Others (Describe) -
-
P -
Withholding taxes
Details of the [Group]’s withholding taxes paid or accrued during the year is as follows:
Withholding tax on compensation and benefits P -

Expanded withholding taxes -
Final withholding taxes -
P -
[Disclose the nature of final withholding taxes]
Deficiency tax assessments and tax cases

[Disclose period covered and amounts of deficiency tax assessments whether protested or not.]
[Disclose tax cases, and amount involved under preliminary investigation, litigation and/or
prosecution in courts or bodies outside the BIR]
207
71. SUPPLEMENTARY INFORMATION REQUIRED BY SEC UNDER SEC MEMO NO. 17 –

SERIES OF 2019
[This is only applicable for branch with securities deposits complying with Section 4.2d of SEC
Memo No. 17-2019]
The following are the required information under SEC Memo No. 17 – Series of 2019 for the year
ended [Date] is presented for purposes of filing with the SEC and is not a required part of the
basic financial statements.
Revenue from sale of goods -

Revenue from sale of services -
-
Less: Sales discounts, returns and allowances -
-
Direct cost and expenses from foreign entities: -
Cost of sales
Professional services -
Commission charges -
Transportation -
Consultancy fees -
Postage and communication -
Depreciation and amortization1 -
Security services -
Miscellaneous expenses -
-
Direct cost and expenses from foreign related parties: -
Professional services -
Commission charges -
Transportation -
Consultancy fees -
Postage and communication -
Depreciation and amortization1 -
Security services -
-
Gross Income -
72. APPROVAL OF FINANCIAL STATEMENTS
PAS 10.17
The financial statements of the [Group] have been approved and authorized for issuance by the
BOD on March 15, 2021.
[If the [Company, Branch, Bank, or any appropriate alternative] owner’s or others have the power
to amend the Financial Statements after issue, it shall disclose that fact]
***
208
Appendix 1 – Areas of the model financial statements affected by climate change and
COVID 19
Climate change
Risks and uncertainties arising from climate change could impact the following areas of the
Section Area Commentary

1. Corporate Going concern All entities are required to make an assessment of
Information assessment whether an entity is a going concern when preparing
financial statements, considering all information available
about the future. PAS 1 requires that the information
should cover at least 12 months from the end of the
reporting period but not be limited to that period.
Management would consider information about the
impacts of climate change as part of this assessment.
6. Critical Impairment of The uncertainties in relation to climate change may result
accounting non-financial in changes to management’s cash flow projections or to
judgments and assets the level of risk associated with achieving those cash
key sources of flows, in which case they form part of a value-in-use or
estimation fair value assessment. An entity should consider the
uncertainty long-term impacts of climate change and consider
disclosing climate-related assumptions as key
17. Investments assumptions.
in associates
18. Joint
arrangements
20. Property,
plant and
equipment – net
21. Investment
properties
22. Intangible
assets – net
6. Critical Useful lives of Climate change-related factors may indicate that an

accounting assets asset could become physically unavailable or
judgments and commercially obsolete earlier than previously expected.
key sources of Furthermore, the expected timing of the replacement of
estimation existing assets may be accelerated. Such factors should
uncertainty be incorporated into a review of an asset’s useful
economic life or its residual value.
20. Property,
plant and
equipment – net
33. Provisions Provisions, The pace and severity of climate change, as well as
contingencies accompanying government policy and regulatory
35. Contingent and onerous measures, may impact the recognition, measurement
liabilities and contracts and disclosure of provisions, contingencies and onerous
contingent assets contracts.
6. Critical Key judgements If assumptions related to the impact of climate change

accounting and have a significant risk of resulting in a material
judgments and estimates adjustment to the carrying amounts of assets and
key sources of disclosures liabilities within the next financial year, then disclosures
estimation about the nature of the assumptions should be provided.
uncertainty
209
6. Critical Information that If users of the financial statements could reasonably

accounting is relevant to expect that climate change-related risks will have
judgments and understanding significant impact on the Company and this would
key sources of the qualitatively influence their decisions, then management
estimation financial should clearly disclose information about the climate
uncertainty statements change assumptions that they have made (if not
disclosed elsewhere), including disclosures around the
sensitivity of those assumptions. This is to enable users
to understand the basis of forecasts on which the
financial statements are prepared. This may mean that
disclosure is provided even if the effects of climate
change on the Company may only be experienced in the
medium to longer term.
6. Critical Impairment of Climate-related events, such as floods and hurricanes,

accounting financial assets can impact the creditworthiness of borrowers due to
judgments and business interruption, impacts on economic strength,
key sources of asset values and unemployment. In addition, borrowers’
estimation ability to pay debts might be diminished if they are in
uncertainty industries that have fallen out of favour and are therefore
depressed. The impact on receivables in entities
9. Trade and operating in non-financial industries is likely to be less
other receivables severe because the economic conditions are less likely to
– net change during the collection period of the debtors.
However, where a significant climate-related event has
occurred, the effect of this event on trade receivables at
11. Finance lease
balance sheet date should be assessed.
receivables
15. Financial
assets at fair
value through
other
comprehensive
income
16. Financial
assets at
amortized cost
26. Contract
Assets
10. Financial Assets Climate change risk may impact the measurement of fair
assets at fair measured on a value in respect of assets measured at fair value or
value through fair value basis tested for impairment on a fair value less costs of
profit or loss disposal basis.
15. Financial
assets at fair
value through
other
comprehensive
income
20. Property,
plant and
equipment – net
21. Investment
properties
210
22. Intangible
assets – net
58. Fair value

information
31. Retirement Impact on Pension trustees are required to consider all material
benefit plans pension risks financial risks, including the exposure of pension assets
from climate to climate change risk.
Demographic assumptions and investment performance
can vary significantly under different climate change
scenarios, impacting the measurement of pension asset
and liability balances at the balance sheet date.
57. Deferred Recoverability Assumptions underlying the forecast of future taxable

taxes of deferred tax profits that supports the recoverability of deferred tax
assets assets should be consistent with assumptions underlying
other profit forecasts used in the preparation of the
financial statements or disclosed in the narrative reports.
6. Critical New levies or New levies or taxes may be introduced to encourage

accounting taxes decarbonization. Any levy liabilities should be recognized
judgments and as the obligation is triggered under law (per IFRIC 21)
key sources of and any income tax effects should be incorporated into
estimation normal PAS 12 accounting. Care should be taken when
uncertainty distinguishing between a levy and income tax and the
application of IFRIC 21 or PAS 12 as this has proven to
56. Income taxes be a challenging area as new taxes/levies have been
introduced in the past.
33. Provisions
35. Contingent
liabilities and
contingent assets
22. Intangible Carbon trading There are currently different acceptable approaches to
assets – net schemes account for carbon trading schemes. The accounting
policy applied by the entity should be disclosed if this is
relevant for users to understand the financial statements.
45. Share-based Incentive Entities may introduce incentive schemes to incentivize

payments schemes management to decarbonize. Such schemes may either
fall in the scope of PAS 19 or PFRS 2 depending on the
nature of the awards. Decarbonization targets should be
treated as any other uncertainties or actuarial
assumptions for PAS 19 benefits and should be treated as
performance conditions for share-based payments under
PFRS 2.
COVID-19
Financial statement disclosures will need to convey the material effects of the COVID-19
pandemic. Entities must carefully consider their unique circumstances and risk exposures when
analyzing how recent events may affect their financial statements. The areas mentioned below are
discussed further in our IFRS in Focus 'Accounting considerations related to the Coronavirus 2019
Disease'.
Section Area Commentary

 Consolidated Statement of Caution should be used when excluding COVID-19-
statement of profit or loss related items from operating profit. Many impacts of
profit or loss COVID-19 are part of the entity’s normal activities and
therefore part of the underlying business performance.
211
They should therefore not be excluded from ‘underlying’

 Consolidated results in the statement of profit or loss and other
statement of comprehensive income.
profit or loss
and other
comprehensive
income
 Consolidated Alternative  The introduction of new APMs or the adjustment of

statement of performance existing APMs should be carefully evaluated.
profit or loss measures
(APMs)  Caution should be used when excluding COVID-19-
 Consolidated related items from operating profit. Many impacts of
statement of COVID-19 are part of the entity’s normal activities
profit or loss and therefore part of the underlying business
and other performance. They should therefore not be excluded
comprehensive from ‘underlying’ results in the statement of profit or
income loss and other comprehensive income.
 It is also important to consider local regulators’

guidance on APMs as it might contain explicit
restrictions on COVID-19-related items.
1. Corporate Going concern Material uncertainties that cast a significant doubt on the
information entity’s ability to continue as a going concern may arise
from COVID-19-related events. PAS 1 requires that an
entity discloses those material uncertainties in the
6. Critical Material Entities should provide as much context as possible as to

accounting judgements and how COVID-19 affects the assumptions and predictions
judgments and estimates they have used when estimating amounts recognized in
key sources of the financial statements.
estimation
uncertainty
6. Critical Impairment of  Entities will need to assess whether any impairment

accounting nonfinancial triggers have arisen from the impact of COVID-19 for
judgments and Assets assets that are covered by PAS 36. The recoverable
key sources of amount of assets will also likely be affected given the
estimation • Assets subject estimation uncertainty associated with COVID-19.
uncertainty to the
requirements of  The COVID-19 pandemic may also affect the
12. Inventories – PAS 36. recoverability of inventory balances.
net • Valuation of
inventories.
17. Investments • Costs to
in associates obtain or fulfil a
revenue
contract and
18. Joint
up-front
arrangements
payments to
customers.
20. Property,
plant and
equipment – net
21. Investment
properties
22. Intangible
assets – net
212
26. Contract
Assets
5. Significant Non-financial The COVID-19 pandemic will likely affect fair value
accounting assets measurements. The fair value should reflect market
policies measured on a participant views and market data at the measurement
fair value date under current market conditions.
6. Critical basis
accounting
judgments and
key sources of
estimation
uncertainty
20. Property,
plant and
equipment – net
21. Investment
properties
22. Intangible
assets – net
5. Significant Financial  The COVID-19 pandemic will likely affect fair value
accounting Instruments measurements. The fair value should reflect market
policies participant views and market data at the
• Allowance for measurement date under current market conditions.
6. Critical expected credit
accounting losses (ECL).  COVID-19 can affect the ability of debtors to meet
judgments and their obligations under trade receivables and loan
key sources of • Fair value relationships.
estimation measurements.
uncertainty  Disruptions in production and reduced sales can have
• Liquidity risk implications on an entity’s working capital and could
9. Trade and management. lead to a breach of a debt covenant resulting in a
other receivables liability becoming current.
– net
• Classification
of financial  For classification of financial assets, an increase in
10. Financial assets. frequency and value of sales of financial assets may
assets at fair result in the need to consider whether there has been
value through a change in the entity’s business model or whether a
• Debt
profit or loss new business model has been initiated.
modifications.
11. Finance lease  Modifications of financial assets and liabilities may be

• Changes in
receivables more common due to the COVID-19 pandemic and
estimated cash
flows. can have an accounting impact. When a transaction
15. Financial has been designated as the hedged item in a cash
assets at fair flow hedge relationship the entity will need to
• Hedge consider whether the transaction is still a “highly
value through
accounting. probable forecasted transaction”.
other
comprehensive
income • Financial vs  The significant disruption to supply and demand may
nonfinancial result in net cash settlement of contracts to buy or
assets and sell commodities or other non-financial assets, which
16. Financial
liabilities.
213
assets at will bring those contracts in scope of PFRS 9 and may

amortized cost result in classification of the contracts as financial
assets or liabilities.
26. Contract
Assets  With regard to contract assets, COVID-19 may
require an entity to update its amortisation approach
51. Impairment to reflect any significant changes in the expected
losses on timing of the transfer of the related goods or
financial assets services. It could also give rise to impairment loss on
those items.
36. Derivative
financial
instruments
58. Fair value

information
59. Financial risk

management
5. Significant Revenue from  Entities should carefully assess whether their revenue
accounting contracts with recognition policies are affected by situations that
policies customers arise as a result of the COVID 19-pandemic.
6. Critical • Contract
accounting enforceability
judgments and
key sources of • Collectability
estimation
uncertainty
• Contract
modification
26. Contract
Assets
• Variable
consideration
37. Contract
liabilities
• Material right
46. Revenue –
• Significant
net
financing
component
• Implied
performance
obligations
• Recognition of
revenue
48. Restructuring Restructuring  In a difficult economic environment and facing

costs plans difficulties in obtaining financing, an entity may be
considering or implementing restructuring plans such
61. Discontinued as the sale or closure of part of its businesses or the
operations downsizing (temporarily or permanently) of
operations.
 If an entity disposes of or classifies as held for sale a

component that meets the definition of a
discontinued operation, the presentation and
disclosure requirements of PFRS 5 apply.
 Entities may reduce their workforce through
214
temporary employee layoffs or may be forced to

consider subsequent restructuring actions as
information becomes available on the long-term
effects of the pandemic on an entity’s operations.
33. Provisions Onerous Because of the impacts of COVID-19, unavoidable costs
contracts of meeting the obligations under a contract may exceed
provisions the benefits expected to be received, resulting in an
onerous contract.
6. Critical Insurance Entities that incur losses stemming from the COVID-19
accounting recoveries pandemic may be entitled to insurance recoveries.
judgments and
key sources of
estimation
uncertainty
5. Significant • Lease Impairments to right-of use (ROU) assets could occur as
accounting contracts a result of business closures, supply chain disruption, or
policies • Impairments other consequences of the pandemic that negatively
affect the future cash flows expected to be derived from
6. Critical the use of the underlying asset.
accounting
judgments and
key sources of
estimation
uncertainty
23. Leases (The

Group as Lessee)
32. Lease
Liabilities
4. Adoption of Amendment to With regard to rent concessions, the PASB published an
new and revised PFRS 16 Covid- amendment to PFRS 16 adding a practical expedient
accounting 19-Related Rent which allows a lessee to elect not to assess whether a
standards Concessions COVID-19-related rent concession is a lease modification.
Entities applying the amendment are required to state
5. Significant that fact and whether or not they have used the
accounting expedient.
policies
6. Critical
accounting
judgments and
key sources of
estimation
uncertainty
23. Leases (The

Group as Lessee)
32. Lease
Liabilities
3. Composition of Consolidation The COVID-19 pandemic may give rise to specific
the group transactions or events that could change a reporting
entity’s governance rights over other legal entities and
5. Significant thereby affect accounting conclusions for consolidation.
accounting
policies
6. Critical
accounting
judgments and
key sources of
estimation
215
uncertainty
17. Investments
in associates
18. Joint
arrangements
3. Composition of Acquisitions and In the current circumstances, entities may seek to
the group disposals dispose of certain assets or group of assets as a means
• Business to raise funds. In those cases PFRS 5 may apply.
61. Discontinued combinations
operations • Disposals
31. Retirement Defined benefit The significant economic uncertainty associated with the
benefit plans plans COVID-19 pandemic may affect specific assumptions in
the measurement of defined benefit obligations and plan
assets.
45. Share-based Share-based  Some businesses may cease operations or operate at

payments payments reduced capacity as a result of the impacts of COVID-
19, which could affect the probability that vesting
conditions for share-based payments with
performance conditions will be met.
 In addition, entities may decide to modify the terms
or conditions of an equity-settled award, for example
a change in the fair value-based measure, vesting
conditions, or classification of the award.
5. Significant Government In response to the COVID-19 pandemic, governments in

accounting assistance many jurisdictions are implementing legislation to help
policies entities that are experiencing financial difficulty
stemming from the pandemic. An entity should carefully
53. Other assess whether the benefit received is a government
income grant or government assistance as this affects the
accounting for or disclosure for the benefit.
6. Critical Income tax  Entities should consider how profitability, liquidity

accounting and impairment concerns that could result from the
judgments and impacts of COVID-19 might affect their income tax
key sources of accounting under PAS 12.
estimation  For deferred tax assets, when assessing whether
uncertainty sufficient probable future taxable profits will be
available against which a deductible temporary
56. Income taxes difference can be utilized, entities should ensure the
reasonableness of their business plan and its impact
on future taxable profits and the consistency of
57. Deferred
assumptions compared to projections used in other
taxes
financial statements estimates for elements that
should be comparable (e.g. goodwill impairment).
5. Significant Breach of Economic downturn may increase the risk that entities
accounting covenants breach financial covenants. This can affect the
policies classification of a liability as current or non-current. In
addition, the impending liquidity shortfall might affect an
28. Borrowings entity’s ability to continue as a going concern.
5. Significant Cash and cash Entities may need to consider whether investments
accounting equivalents classified as cash equivalents continue to meet the
policies requirement for such a classification as previously highly
liquid investments might no longer meet that condition.
216
8. Cash and cash Also, for an investment to qualify as a cash equivalent its
equivalents value must not change significantly, which might no
longer be the case given the uncertainties associated
with the pandemic.
5. Significant Capitalization of If the entity suspends activities related to the
accounting borrowing costs construction or production of a qualifying asset for an
policies extended period, capitalization of borrowing costs should
also cease until such time as activities are resumed.
20. Property,
plant and
equipment – net
28. Borrowings
5. Significant Exchange rates For practical reasons, it is common for entities that
accounting engage in a large number of foreign currency
policies transactions to use a monthly or quarterly rate of
exchange to measure those transactions in their
accounting records and to disregard day-to-day
fluctuations in exchange rates. Entities will need to
evaluate if foreign currency transactions should be
analyzed into shorter periods (e.g. quarterly periods,
months or weeks) with an average rate determined for
each, or even a date-specific exchange rate.
69. Events after Events after the It may be challenging for an entity to determine if an
the reporting reporting period event after the end of the reporting period is adjusting or
period non-adjusting in a global marketplace that is extremely
volatile and in which major developments occur daily.
217

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PAS 1.10 (e)

PAS 1.138 (a)

PAS 1.138 (c)

SEC FRB No. 2

fully in [Note X].

2. FINANCIAL REPORTING FRAMEWORK AND BASIS OF PREPARATION AND

PAS 1.16 Statement of Compliance

[If client adopts full PFRS for the first time]

Impact on assets and equity as at December 31, 2020

Amount of allowance recognized/amortized for the period

PAS 1.17 (b)

PAS 1.36 (a)

PIC Q&A 2009-01

PAS 1.51 (d)

[Disclose if client prepares separate financial statements]

PAS 27.16 (a)

PAS 1.17 (b)

PFRS 12.10 (a)(i)

Subone Limited 90% 100%

[Disclose if the FS of the subsidiary is audited or unaudited]

Total comprehensive income for the year P30 P30

Profit attributable to:

Dividends paid to non-controlling interests - -

Net cash inflow (outflow) from investing activities - -

Net cash outflow from financing activities - -

Net cash inflow P30 P20

Total comprehensive income for the year P20 P10

Profit attributable to:

Total comprehensive income for the year

Dividends paid to non-controlling interests - -

Net cash inflow (outflow) from investing activities - -

Net cash outflow from financing activities - -

Net cash inflow P30 P20

Total comprehensive income for the year - -

Profit (loss) attributable to:

Total comprehensive income for the year - -

Dividends paid to non-controlling interests - -

Net cash inflow (outflow) from investing activities - -

Net cash outflow from financing activities - -

Net cash inflow P10 P20

PFRS 12.13 Significant Restrictions

PFRS 12.14-17 Financial Support to Subsidiaries

4. ADOPTION OF NEW AND REVISED ACOUNTING STANDARDS

Adoption of New and Revised Accounting Standards Effective in 2020

PAS 8.31(a) Amendments to PFRS 16, COVID-19-Related Rent Concessions

[Disclose if applied earlier that the effective date]

[Disclose if the Group has a financial impact on financial statements]

PAS 8.31(a) Amendments to PFRS 3, Definition of a Business

PAS 8.31(b-d) The amendments are to:

PAS 8.31(a) Amendments to PAS 1 and PAS 8, Definition of Material

PAS 8.31(b-d) The amendments relate to a revised definition of 'material':

PAS 8.31(a) PFRS 17 — Insurance Contracts

PAS 8.31(a) Amendments to PFRS 3, References to the Conceptual Framework

PAS 8.31(a) Amendments to PAS 1, Classification of Liabilities as Current or Non-current

PAS 8.31(a) Annual Improvements to PFRS Standards 2018-2020 Cycle

Amendments to PFRS 1 – Subsidiary as a first-time adopter

Amendments to PFRS 16 – Lease Incentives

Amendments to PAS 41 – Taxation in fair value measurements

This portion must be updated as of the date of the auditors’ report.

New Accounting Standards Effective in 2020 - Adopted by Financial Reporting Standards

PIC Q&A Amended Amendment

PIC Q&A Withdrawn