In today's presentation we will talk about Metropolitan Bank & Trust Company.

the company
operates in all areas of financial sectors and render its services to Filipino-Chinese community.

So para i-assess yung current financial statements ng venture from its previous one, horizontal
analysis is used.

The total assets of the entity increased by 13.6% in 2022 and yung pagtaas na ito is mostly
caused by growth in credit card portfolio.

Yung total liabilties rin ay nag-increase ng 15.6% in 2022 dahil sa growth ng derivative liabilities
and inter bank borrowings.

Wala namang pagbabago sa total equity ng entity in both years.

Net Income expound by 47.9% in 2022 dahil sa larger volume of investment securities and profit
from asset sold.

So para mameasure yung relative magnitude ng values in the financial statements, gumamit rin
ako ng financial ratios.

Return on Average equity. So makikita natin dito na yung entity ginamit nito yung mga investments
to maximize wealth produce, with the increase of 10.29%

Return on Average Assets. Ginamit rin ng venture yung mga assets nito in a way of generating
profit as there is an increase of 1.23% sa current year.

Next, yung mga accounts that are one time gain or loss ng isang entity.

Securities Purchased Under Resale Agreements - ito yung mga securities na binili ng bank from
another bank with the intention of reselling them.

Realized Loss on Sale of Equity Securities at FVOCI - ito naman yung negative discrepancy sa
selling price at acquisition cost ng equity securities.

Mine Exploration Cost - expenses incurred by the quality & extent of ore deposit.
Remeasurement Losses on Retirement Plans - modification sa value ng assets and liabilities ng
defined benefit plan dahil sa changes in actuarial
assumptions

Gain on Disposal of Investment Securities at Amortized Cost & Miscellaneous Income - ito naman
yung difference ng selling price at carrying value ng
investment security at the time of sale.

The entity performed assertions and substantive test in consideration of the ff:
1) Allowance for Credit Loss

Completeness & Reconciliation & Tracing: Para ma-verify yung information sa

ECL model, mahalang ireconcile yung mga data mula sa source system
reports papunta sa data warehouse and hanggang sa loss allowance models.

Valuation & Recomputation: Para naman ma-validate yung valuation na ginamit sa ECL models,
dapat irecompute yung impairment provisions ng kumpanya sa isang sample basis.

Occurence & Reperformance: Ginamit yung reperformance sa division mula sa source systems
hanggang sa loss allowance analysis.

2) Realizability of Deferred Taxes

Occurence & Vouching: Para ma-assess yung estimation, kailangang icompare yung loan portfolio
and deposit growth rates mula sa historical performance ng entity.

Existence & Testing: kinakailangang ng isang specialist para maevaluate

yung tax provisions at ma-test yung mga differences reported by the entity

Valuation & Recomputation: Para naman maverify yung valuation ng deferred tax assets,
recomputation of such is vital.

3) Recoverability of Goodwill
Existence and Vouching - para ma-determine yung fair value ng mga natitirang assets at liabilities
kailangang tumingin sa mga quoted prices ng listed equity at debt instruments.
Valuation & Recomputation - Recomputation of fair value less cost to sell (FVLCTS) account of the
entity is also performed.

Recognition of Assets and Liabilities

Rights and Obligations & Vouching- to check the validity of assets and liabilities mahalagang
ireview yung mga source documents ng entity tulad ng contract agreements, recipts & legal
documents.

Next, ito naman yung mga sinusundan regulations ng MetroBank:

BSP Circular No. 781- nag se-set ito ng minimum capital at disclosure requirements na kailangang
imaintain ng universal at commercial banks at all times tulad ng Total Capital Adequacy Ratio
(CAR) of 10.00%.

Republic Act (RA) No. 11534 also known as Corporate Recovery and Tax Incentives for
Enterprises (CREATE) pinababa nito yung RCIT rate ng mga large firms mula 30% to 25%, pati
na rin yung permissible deduction from 33% to 20% ng interest income subject to final tax.

BSP Circular Nos. 560 and 654 ito naman yung nagpro-provide ng rules and regulations that
govern loans, other credit accommodations and guarantees granted to subsidiaries and yung mga
affiliates ng mga banko na hindi dapat mageexceed ng 10.00%.

RA No. 7641 Retirement Pay Law - Sinasabi nito na kapag walang retirement plan ang isang
entity, nagrerequire ito ng provision para sa retirement pay ng mga eligible private sector
employees at yung mga retirement benefits under any agreements ay hindi dapat bababa mula sa
binigay na value ng legislation.

BSP Circular No.1007- nagooutline ng mga recommendations sa pag-execute ng adoption of Net

Stable Funding Ratio and kinakailangang laging magmaintain yung mga banko ng at least 100%
of the said ratio.

BSP Circular Nos. 881 and 990 - naglalaman naman ito ng mga implementation guidelines sa
Leverage Ratio framework na hindi dapat bababa ng 5.00%.

BSP Circular No. 905 - nagbibigay ng guidelines para sa pagimplement ng Liquidity Coverage
Ratio.Dapat daw i calculate ito as the ratio of high-quality liquid assets to total net cash outflows
and hindi dapat bababa ng 100%.
In today's presentation we will talk about, SUN LIFE OF CANADA PROSPERITY BALANCED
FUND INC. it is an insurance company na nagtretrade ng redeemable shares and aims to deliver
returns sa pamamagitan ng paginvest sa debt and equity instruments ng domestic at
overseas issuers.

So para i-assess yung current financial statements ng venture from its previous one, horizontal
analysis is used.

Yung total assets ng entity decreased by 4.9% in 2021 dahil sa pagtaas ng repayments at
allowance for impairment ng entity. Yung interest receivable ay bumaba dahil sa smaller value of
fixed-income securities at corporate loans.

Yung total liabilities rin ay bumaba ng 49% in 2021 which is caused solely by the decrease sa
amount ng accrued expenses at iba pang payables.

Yung total equity ng entity falls down by 4.6% sa current period.

However, yung total Net Income grows immensely by 43.6%. Yung pagtaas nito is mainly the
cause of the expound in equity and fixed-income securities. It must also take into consideration
yung impact ng pandemic sa growth ng mga insurance companies.

So para mameasure yung relative magnitude ng values in the financial statements, gumamit rin
ako ng financial ratios.

Working Capital Ratio. So makikita natin na nabayaran ng entity yung mga current obligation nito
more effectively in the current period as the ratio increases to 225.22:1 in 2021.

Capital Intensity Ratio. makikita naman natin dito na yung entity nag-invest ng malakihang capital
para sa operation process nito and efficiently utilized its assets para mag-produce revenue as this
ratio increases by 19.19 is to 1 in the current period.

Next, yung mga accounts that are one time gain or loss ng isang entity.

Custodian Fees - ito yung mga compensation na binabayad sa isang brokerage company para sa
investment management services na pinoprovide nito.
Provision for expected credit losses - ito naman yung estimate ng mga future losses na pwedeng
danasin ng insurance company dahil sa credit risk.

Proceeds from disposal financial assets at FVTPL - ito naman yung difference ng selling price at
carrying value ng isang financial assets at the time of sale.

The entity performed assertions and substantive test which are the ff:

Valuation and Allocation Reconciliation - So para maassess yung appropriatness ng value ng

retained earnings, mahalagang ireconcile yung mga retained earnings na available para sa
dividend declaration and other supplementary information in compliance sa SEC requirement.

Presentation and Disclosure Vouching- Para naman iensure na yung mga assets at liabilities ng
entity ay maayos na naka-classify and adequate yung mga disclosure sa notes to financial
statements, mahalagang i-review yung mga accounts sa financial records by tracing forward from
loan agreements, receipts and etc.

Valuation and Allocation and recomputation - Since yung entity is exposed sa financial assets,
yung typical audit process para i-test yung account na ito is through recomputation. This is vital to
ensure that the accounts of the entity are properly valued.

Existence or Occurence Vouching So yung pag examine ng existence or occurrence of an

account and transaction is critical para maiwasan yung overstatement. To correctly execute this
assertion, kinakailangang ireview yung mga account for probable overstatement by tracing
backward mula sa financial information papuntang source documents

Next, ito naman yung mga sinusundan regulations ng SunLife:

SEC Memorandum Circular No. 21, Series of 2019 - Yung memorandum na ito nag laid down
ng mga provisions para sa insurance firms sa pag-calculate ng independent Net Asset Value at
nag-implement ng minimum equity requirement na P50,000,000.

Republic Act (RA) No. 11534 also known as Corporate Recovery and Tax Incentives for
Enterprises (CREATE) pinababa nito yung RCIT rate ng mga large firms from 30% to 25%, and
the permissible deduction for interest expenditure from 33% to 20% of the interest income subject
to final tax.
Section 6.10 of the Implementing Rules and Regulations of the Investment Company Act series of
2018 - Sinasabi ng provision nito na yung liquidity considerations na iinvest ng isang investment
company sa liquid/semi-liquid assets ay hindi dpaat bababa ng 10% ng total assets nito.

Circular Letter No. 2018-48 - ito yung current legislative mechanisms para malabanan yung
money laundering and terrorism funding, and to provide for relevant problems.

In today's presentation we will talk about San Miguel Food and Beverage, Inc. It is the
Philippines' top food and beverage corporation and yung goods nito are among the
most recognizable and well-known in the industry.

So para i-assess yung current financial statements ng venture from its previous one, horizontal
analysis is used.

Yung total assets ng entity increased by 8% in 2021 and yung pagtaas nito is caused mostly by
increased ending inventory levels at growth projects ng entity.

Tumaas din yung total liabilities ng entity by 5% in 2021 and dahil ito sa availability ng mga long-
terms debt mula sa Beer, NAB,and Food sectors ng venture.

The total equity also increased by 10% in 2021 and dahil sa net income ng entity P31.42 million
na inoffset ng distribution of dividends in the amount of P18.41 million.

So para mameasure yung relative magnitude ng values in the financial statements, gumamit rin
ako ng financial ratios.

Operating Margin. yung operations ng entity sa current period is functioning as it is designed to

and efficiently na nagproprovide ng profit for the entity dahil sa increase of 14.11% in current year.

Return on Assets. yung entity mas maayos nitong ginagamit at minamanage yung mga assets nito
appropriately the entity in a way that it will generate profit and open opportunities as there is an
increase of 10.95% in the current year.
Next, yung mga accounts that are one time gain or loss ng isang entity.

Corporate special program - ito yung mga program na nag assist sa businesses in improving their
operations management procedures at strategies.

Gain (loss) on sale of investments and property and equipment - ito naman yung mga discrepancy
sa purchase price at carrying value ng asset sold.

Biological Assets - ito naman yung mga living resources na kinakailangan sa pagcreate ng profit.
In most situations, ito yung mga assets na kinoconvert into goods and binebenta sa market.

Loss on impairment of property, plant and equipment and non-current assets- ito naman yung
reduction sa appraised value ng long-term asset ng isang entity na resulta ng mga events na
naging dahilan sa pagbaba ng fair market value ng asset sa book value nito.

Gain on sale of scrap materials - ito naman yung certain amount ng money na natatanggao ng
corporation mula sa pagbebenta ng scrap materials that had previously been used by the entity in
its activities.

The entity performed assertions and substantive test in consideration of the ff:
1) Impairment Testing of Trademarks and Brand Names

Existence & Vouching - So kinakailangang iassesse yung forecasts ng entity sa long-term growth
rate nito by comparing such forecast sa historical results, economic, and industry forecasts.

Valuation & Recomputation - Specialist is needed para irecalculate yung weighted average cost of
capital ng entity sa pamamagaitan ng paggamit ng marketable comparable data.

Presentation & Disclosure & Examination - Kinakailangan ring iexamine yung appropriateness ng
presentation and yung adequacy ng disclosures that is included in the financial statement of the
entity.

Completeness & Tracing - Mula sa cash flow forecast ng entity, it is much needed na iverify yung
reasonableness nito by tracing them sa recently approved budget ng Boards and also considered
the historical accuracy of the forecasts sa pagcompare ng actual outcome and yung forecast nung
previous year.
2) Revenue recognition
Valuation & Examination - Yung assistance ng information technology specialist in the audit is
kinakailangan para sa mga automated controls na ginagamit ng entity sa pagrecord ng mga
revenue transactions.

Existence and Occurrence & Vouching - Kinakailangan ring magsagawa ng two-way and three-
way test para iensure na yung revenue recognition criteria are properly met.Kada magkakaroon ng
unmatched items, kinakailangang ivouch yung transaction na to sa mga source document such as
sales invoice and delivery documents para maexamine kung yung transactions ba actually exist or
falsified.

Presentation and Disclosure & Examination - Kinakailangan ring iassess yung appropriateness ng
mga accounts na nakalagay sa financial statement ng entity and yung adequacy ng mga
disclosures in the notes to financial statements.

Impairment of Goodwill, Trademarks and Brand Names, Licenses, and Formulas

and Recipes, and Franchise with Indefinite Useful Lives.
Valuation & Recalculation - Kinakailangan ring irecompute yung mga impairment na
nirecognize ng entity na nakabase sa understanding nila sa value in use ng goodwill, trademarks
and brand names, licenses, and formulas and recipes, and franchise.

Next, ito naman yung mga sinusundan regulations ng San Miguel Corporation

Circular Letter No. 2020-62 - ito yung dahilan ng delay sa implementation ng PFRS 17 by two
years. Sinasabi rin nito na kinakilangan ng full retroactive application. Kapag imposible itong
mangyari pwedeng gamitin ng entity ung modified retrospective or fair value method.

Executive Order No. 226 and Republic Act. No. 9728 - ito naman yung regulation na kung saan
naghihikayat sa mga private Filipino and international investors in industry, agriculture, forestry,
mining, tourism, and other economic sectors na mag-encourage ng competition at iprevent yung
monopoly sa pamamagitan ng unified and integrated investment incentives law

SEC Memorandum Circular No. 19, series of 2019 - sinasaba ng batas na ito na yung major
related party transaction must amount to at least 10% ng total consilidated assets ng entity in
aggregate over a 12-month period simula sa first transaction with the same related party.
SEC Memorandum Circular No. 19, series of 2016 - The Code of Corporate Governance
aims to bring Philippine firms' corporate governance standards up to par with those of their
regional and worldwide peers.

SEC Memorandum Circular No. 17, series of 2017 - a document issued by SEC that offers rules
for the registration of securities and other relevant transactions.