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Transcript of 2013 Financial Report Analysis
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2013 Financial Report Analysis of
Loisse Danielle D. Vitug
4E3
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Table of Contents
2013 Financial Report . 3
Copany !ac"groun# 12
Earnings an# Re$enue %ro&t' . 13
Cas' Flo& (ren# 14
De)t Loa# 1*
+otes to Financial ,tateent . 1-
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3
UNIVERSALROBINACORPORATIONANDSUBSIDIARIESCONSOLIDATEDSTATEMENTSOFFINANCIALPOSITION
ASSETS
CurrentAssetsCashandcashequivalents(Note
7)Financialassetsatfairvalue
through
profitorloss(Notes8and9)Available-for-saleinvestments(Notes9
!"and!#)$eceivables(Notes!"and
%&)'nventories(Note!!)
iologicalassets(Note!&)
thercurrentassets(Note
!*)
+otalCurrentAssets
NoncurrentAssets
,ropertplantandequipment(Note!%)'ntangibleassets(Note!.)
iologicalassets(Note!&)'nvestmentina/ointventure(Note!7)'nvestmentproperties(Note!8)0eferredta1assets(Note%%)thernoncurrentassets(Note
!9)+otalNoncurrent
Assets
TOTALASSETS
LIABILITIESANDEQUITY
CurrentLiabilities
Accountspaableandother
accruedliabilities(Notes*!and%&)
Currentportionoflong-term
debt(Notes***%and
%!)
2hort-termdebt(Notes*"*%and%!)+rustreceiptsandacceptances
paable
(Notes!!and
*%)'ncometa1
paable
+otalCurrent3iabilities
!
"#
P$"%!##%#!&%
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(For6ard)
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NoncurrentLiabilities3ong-termdebt-netofcurrentportion
(Notes***%and%!)0eferredta1liabilities(Note%%)
Netpensionliabilit(Note%*)
+otalNoncurrent3iabilities
+otal3iabilities
E/uit0
quitattributabletoequitholdersoftheparent
,aid-upcapital(Note*%)
$etainedearnings(Note*%)thercomprehensiveincome
(Note*#)
quitreserve(Note*%)
+reasurshares(Note*%)
quitattributabletonon-controlling
interests
+otalquit
TOTALLIABILITIESANDEQUITY
!"#
P$,
#*"%#(%##(
+!(%(")%''"
**'%)("%&&'
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SeeaccompanyingNotestoConsolidatedFinancialStatements.
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UNIVERSALROBINACORPORATIONANDSUBSIDIARIES
CONSOLIDATEDSTATEMENTSOFINCOME
YearsEn3e3Se-te.ber#!
*"!*(Asrestated
!"# seeNote*)
*"!!(Asrestated
seeNote*)
SALEOF4OODSANDSERVICES
(Notes.and%&)
COSTOFSALES(Notes*&and%&)
P$&!%**'%"'%+
(
')%))+%!!(%&'
4,7!*"!.777
79
&*7%"&%9#
4,.7!.7.%"#8!
&".#&*7%.&8
4ROSSPROFIT2ellinganddistributioncosts(Note*.)
eneralandadministrative e1penses
(Notes*7and%&)
OPERATIN4INCOME
:ar;etvaluationgain(loss)onfinancialassetsatfairvaluethroughprofitorloss(Notes.and8)
Financerevenue(Notes.8and%")Financecosts(Notes.*"**and%!)'mpairmentlosses
(Notes.!"!!!%and!.)
Netforeigne1changelosses
quitinnetincomeofa/ointventure(Note!7)
ain(loss)onsaleofinvestments(Notes8!#and%8)
therincome(e1penses)-net
INCOMEBEFOREINCOMETA5
PROVISIONFORINCOMETA5
(Note%%)
NETINCOME
NETINCOMEATTRIBUTABLETO6
quitholdersoftheparent(Note%#)
Non-controllinginterests
EARNIN4SPERS7ARE(Note%#)
asic
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*SGVFS004
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UNIVERSALROBINACORPORATIONANDSUBSIDIARIES
CONSOLIDATEDSTATEMENTSOFCOMPRE7ENSIVEINCOME
Se-te.ber#!*"!*
(Asrestated
!"# seeNote*)
*"!!(Asrestated
seeNote*)
NETINCOME P$"!%"")%#*%+"! 4,8!8&"#8"99
4,&"*.%798%!
OT7ERCOMPRE7ENSIVEINCOME
1LOSS2
Itemstobereclassifiedtoprofitorloss
insubsequentperiods>
?nreali@edgain(loss)onavailable-for-
saleinvestments(Notes!#and*#)Cumulativetranslation
ad/ustments(Note*#)
Itemnottobereclassifiedtoprofitorloss
insubsequentperiods:
$emeasurementlossesondefinedbenefitplans(Notes*#and%*)
'ncometa1effect
OT7ERCOMPRE7ENSIVEINCOME
1LOSS2FORT7EYEAR
1+'!%'!(%)#&2
('&%"'%)"#
1"*%#'%!'2
1#*%&"+%&!)2
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TOTALCOMPRE7ENSIVE
INCOMEFORT7EYEAR
TOTALCOMPRE7ENSIVE
INCOMEATTRIBUTABLETO6
quitholdersoftheparentNon-controllinginterests
P$*%)')%"!'%&!
4,8!99".#.&8
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SeeaccompanyingNotestoConsolidatedFinancialStatements.
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UNIVERSALROBINACORPORATIONANDSUBSIDIARIES
CONSOLIDATEDSTATEMENTS OFC7AN4ESINEQUITY
FORT7EYEARSENDEDSEPTEMBER#!%!"#%!"AND!""
Attributable toE/uit07ol3erso9t:eParent
Pai3;u-Ca-ital(Note*%) Retaine3Earnin
$P%)%+#&%*#
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A33itional
Pai3;in
Ca-ital
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Total
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Una--ro-riate3
Retaine3
Earnin
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Attributable toE/uit07ol3erso9t:eParent
Pai3;u-Ca-ital(Note*%) Retaine3Earnin
A33itionalPai3;inCa-ital
TotalPai3;u-Ca-ital
Una--ro-riate3Retaine3Earnin
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UNIVERSALROBINACORPORATIONANDSUBSIDIARIES
CONSOLIDATEDSTATEMENTSOFCAS7FLOS
YearsEn3e3Se-te.ber#!
CAS7FLOSFROMOPERATIN4ACTIVITIES
'ncome before income ta1Ad/ustments for>
0epreciation and amorti@ation of>,ropert plant and equipment (Note !%)'nvestment properties (Note !8)
'ntangible assets (Note !.):ar;et valuation loss (gain) on financial
assets at fair value through profit or loss(Note 8)
Finance revenue (Note %")Finance cost (Note %!)Net foreign e1change losses
3oss (gain) arising from changes in fair valueless estimated costs to sell of s6inestoc;s (Note !&)
'mpairment losses on>$eceivables (Note !")'nventories (Note !!)
,ropert plant and equipment (Note !%)'ntangibles (Notes !. and %8)
3oss (gain) on sale of>,ropert plant and equipmentNet assets of disposal group classified as
held for sale (Note %8)Available for sale investments (Note !#)Financial assets at fair value through profit
or loss (Note 8)quit in net income of a /oint venture
(Note !7)Amorti@ation of debt issuance costs:ar;et valuation gain on derivative
transactions (Note 8)perating income before 6or;ing capital
changes 0ecrease (increase) in>
$eceivables'nventoriesiological assetsther current assets
!"#
P$""%'(*%))"%(!
&
#%+")%*('%'&*
#%+')%)&)
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"#%)++%)+)%*
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*"!*(As restated
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(For6ard)
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253*
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YearsEn3e3Se-te.ber#!
'ncrease (decrease) in>Accounts paable and other accrued liabilities
+rust receipts and acceptances paable
Net cash generated from operations'nterest received'nterest paid
'ncome ta1es paid
Net cash provided b operating activities
CAS7FLOSFROMINVESTIN4ACTIVITIES
Acquisitions of>,ropert plant and equipment (Note !%)
Financial assets at fair value through profitor loss
Non controlling interest (Note *%),roceeds from the sale of>
Financial assets at fair value through profitor loss (Note 8)
Available-for-sale investments (Note !#),ropert plant and equipment
Net assets of disposal group classified asheld for sale (Note %8)
0ecrease (increase) in>ther noncurrent assetsNet pension asset (liabilit)
0ividends received (Note !7)Net cash provided b (used in) investing activities
CAS7FLOSFROMFINANCIN4ACTIVITIES
$epaments of>2hort-term debt3ong-term debt (Note **)
,roceeds from availment of short term debt,roceeds from the sale of treasur shares net of
transaction costs (Note *%)
Cash dividends paid (Note *%),urchase of treasur shares (Note *%)
Net cash used in financing activitiesNETINCREASEINCAS7AND
CAS7EQUIVALENTS
CAS7ANDCAS7EQUIVALENTSATBE4INNIN4OFYEAR
CAS7ANDCAS7EQUIVALENTSATENDOFYEAR
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COMPANY BACKGROUND
ni$ersal Ro)ina Corporation /RC is one of t'e largest )ran#e# foo# pro#uct
copanies in t'e 'ilippines &it' t'e #istinction of )eing calle# t'e countrys first
'ilippine ultinational5 an# 'as a gro&ing presence in ot'er Asian ar"ets. 6t &as
foun#e# in 1784 &'en 9r. :o'n %o"ong&ei :r. esta)lis'e# ni$ersal Corn ro#ucts
6nc. a cornstarc' anufacturing plant in asig. ('e copany is in$ol$e# in a &i#e
range of foo#;relate# )usinesses inclu#ing t'e anufacture an# #istri)ution of )ran#e#
consuer foo#s pro#uction of 'ogs an# #ay;ol# c'ic"s anufacture of anial an# fis'
fee#s glucose an# $eterinary copoun#s flour illing an# sugar illing an# refining.
('e copany is a #oinant player &it' lea#ing ar"et s'ares in sa$ory snac"s
can#ies an# c'ocolates an# is a significant player in )iscuits &it' lea#ing positions in
coo"ies an# pret
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I. Earnings and Reen!e Gro"t#
RC generate# a consoli#ate# sale of goo#s an# ser$ices of = >0.778 )illion for t'e
fiscal year en#e# ,epte)er 30 2013 13.>? sales gro&t' o$er 2012. ('is gi$es t'e
copany 'ig'er gross re$enue t'an last year feasi)ly t'roug' eans of o)taining ra&
aterials an# goo#s at lo&er costs lea#ing to an increase# profit argin. ('is
increase# profit argin can allo& ore #iscounts an# increase spen#ing in areas of
in$estent for t'e copany.
('e operating argin of RC is 'ig'er )y .01- points in 2013. ('is iplies t'at t'ere is
a 'ig'er percentage of sales t'at &as left o$er after all e@penses &ere pai# )y t'e)usiness. ('e copany &as a)le to co$ert sales into net incoe ore effecti$ely t'an
in 2012. 6n$estors &ant to a"e sure profits are 'ig' enoug' to #istri)ute #i$i#en#s
&'ile cre#itors &ant to a"e sure t'e copany 'as enoug' profits to pay )ac" its loans.
('e operating profit argin is significant as it &oul# in#icate &'et'er t'e e@penses are
too 'ig' an# t'e copany nee#s to )u#get an# cut e@penses in RCs case users
ust feel confi#ent since t'e copany 'as )een consistently generating ore re$enues
&'ile "eeping e@penses constant.
6t is also crucial for a copany to coen#a)ly aintain a goo# perforance of itsassets &'ile ta"ing into consi#eration long;ter financing t'is is easure# )y t'e
profita)ility ratio return on capital eploye# /RBCE. 6n sipler ters it s'o&s 'o&
uc' in profit eac' peso of capital eploye# generates. 6t ta"es into account t'e
longe$ity of a copany. RCs RBCE 'as increase# in 2013 &it' 0.22 points as
copare# to 2012s 0.1> points. ('is in#icates t'at for e$ery peso in$este# in capital
eploye# t'e copany a#e 22 centa$os of profit. ('is ratio is )ase# on a calculation
)et&een operating profit an# capital eploye#. B)$iously a 'ig'er ratio &oul# )e ore
fa$ora)le for RC to entice ore in$estors to engage in t'e copany.
A easure of t'e net incoe pro#uce# )y total assets is calle# t'e return on assets
ratio /RBA. RCs RBA 'as increase# )y 0.038 points &it' 0.187 in 2013 an# 0.124 in
2012. ('is con$eys t'ere 'as )een a ore efficient anageent of assets to pro#uce
profits in 2013 t'an 2012. ('is ratio 'elps )ot' anageent an# in$estors to loo" 'o&
copetent t'e copany can con$ert its asset in$estents into profit. A positi$e RBA
ratio usually in#icates an up&ar# profit tren# as &ell.
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('e earnings per s'are of RC in 2013 is 4.* 'ig'er )y .7 in 2012 &it' a $alue of only
3.-. ('is easure is also calle# net incoe per s'are it is a ar"et prospect ratiot'at
easures t'e aount of net incoe earne# per s'are of stoc" outstan#ing. 6t is t'e
aount of oney eac' s'are of stoc" &oul# o)tain if t'e profit &as e$enly #istri)ute# to
t'e outstan#ing s'ares at t'e en# of t'e year. 6t is profoun#ly influence# on 'o& anys'ares are outstan#ing. ('e 'ig'er t'is easure is t'e greater t'e stoc" price of a
copany ay )ecoe.
B$erall RCs net incoe aounte# to = 10.11- )illion an# = >.1>8 )illion in
2013 an# 2012 respecti$ely. ('is resulte# to a = 1.732 )illion increase. ('e ain
contri)utor to t'is increase &as t'e 'eig'tene# operating incoe. ('is gro&t' is
reflecti$e of RCs #ri$e to&ar#s largely )ranc'ing out into t'e retail ar"et an# an
attri)ution to econoic upsurge &'ic' le# to a positi$e rippling effect on its custoers.
II. Cas# $lo" Trends
RC ust al&ays ensure t'at it ta"es in ore cas' t'an &'at it sen#s out. A copany
cannot sur$i$e e$en if it 'as a rapi# gro&t' on sales an# profit it also 'as to 'a$e a
proper an# efficient cas' anageent.
('e aount of oney a copany sen#s in fro regular operational acti$ities suc' asanufacturing an# selling goo#s in t'e case of RC is calle# t'e cas' flo& fro
operating acti$ities. ('is #oes not consi#er long;ter capital or in$estent costs. ('ere
'as )een a #ecrease of = 1.407 )illion in 2013 copare# to 2012 in RCs cas' flo&
fro operating acti$ities. ('is eans t'at t'e copany 'as )een ore successful in
financing its s'ort;ter capital in 2012 t'an t'e latter year.
Alost all cas' flo& easures are s&aye# profoun#ly )y t'e state of a copanys cas'
fro operational acti$ities &'ic' t'en is 'ea$ily influence# )y net incoe.
=ig'er re$enues an# lo&er o$er'ea# are siultaneous #ri$ers of cas' flo& frooperating acti$ities. Copanies can control its cas' flo& fro operations t'roug'
lengt'ening t'e tie t'ey consue in paying )ills t'us preser$ing cas' an#
accelerating t'e receipt of cas'.
A positi$e cas' flo& fro in$esting acti$ities in 2013 for RC is e$i#ent aounting to
= 7.748 )illion. ('is in$ol$es in$esting transactions t'at generate cas' outflo&s suc'
http://www.myaccountingcourse.com/financial-ratios/market-prospect-ratioshttp://www.investinganswers.com/financial-dictionary/financial-statement-analysis/net-income-808http://www.investinganswers.com/financial-dictionary/businesses-corporations/revenue-5108http://www.investinganswers.com/financial-dictionary/businesses-corporations/overhead-799http://www.investinganswers.com/financial-dictionary/financial-statement-analysis/net-income-808http://www.investinganswers.com/financial-dictionary/businesses-corporations/revenue-5108http://www.investinganswers.com/financial-dictionary/businesses-corporations/overhead-799http://www.myaccountingcourse.com/financial-ratios/market-prospect-ratios -
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as capital e@pen#itures for plant property an# euipent. ,ale of assets )usinesses
an# in$estent securities are resulte# to cas' inflo&s. 6n$estent on capital
e@pen#itures is #eee# to )e t'e ost iportant in financing acti$ities since it is a
priary necessity for t'e proper aintenance of RCs p'ysical assets to support
efficient operations an# copetiti$eness. ('e copanys net capital e@pen#iture is =30.1>0 )illion in 2013. Bf t'is aount t'e capital e@pen#iture &as e@pense# /not
capitali
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III. Debt %oad
RC 'as a #e)t ratio of .24 in 2013. ('is is relati$ely lo& copare# to ot'er copanies.
6t is a easure of a firs total lia)ilities as a percentage of its total assets. ,iply put it
s'o&s t'e a)ility of t'e copany to pay off its lia)ilities &it' its assets. 6t in#icates t'atRC 'as efficient anageent of its lia)ilities since it 'as lo& le$els of lia)ilities
copare# &it' assets resulting to lo& ris"s for len#ers. RCs #e)t ratio 'as gone
#o&n fro 0.34 to 0.24 in 2013 an# t'is iplies a ore fir )usiness &it' t'e potential
of longe$ity )ecause a copany &it' lo&er ratio also 'as lo&er o$erall #e)t. =a$ing
= **.848 )illion total assets an# = 18.-18 total lia)ilities it eans t'at t'e
copany 'as t&ice as any assets as lia)ilities. Essentially only its cre#itors o&n 'alf
of t'e copanys assets an# t'e s'are'ol#ers o&n t'e reain#er of t'e assets. ('e
#e)t ratio is a $ital sol$ency ratio )ecause cre#itors an# len#er are $ery concerne# &it'
repayent. ('is 'elps in$estors analy
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NOTE& TO $INANCIA% &TATEMENT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of PreparationThe accompanying consolidated fnancial statements o the Grop ha!e "eenprepared on a historical cost "asis# e$cept or fnancial assets at air !ale throghproft or loss %FV&'(# a!aila"le)or)sale %FS( in!estments and deri!ati!e fnancialinstrments that ha!e "een measred at air !ale# and "iological assets andagricltral prodce that ha!e "een measred at air !ale less estimated costs tosell+ The consolidated fnancial statements o the Grop are presented in &hilippine&eso+ The nctional and presentation crrency o the &arent ,ompany and its&hilippine s"sidiaries %as -ell as certain oreign s"sidiaries( is the &hilippine &eso+
Statement of Compliance
The consolidated fnancial statements o the Grop ha!e "een prepared incompliance -ith the &hilippine Financial .eporting Standards %&F.S(+
Reen!e Reco"nition.e!ene is recogni/ed to the e$tent that it is pro"a"le that the economic "enefts-ill 0o- to the Grop and the re!ene can "e relia"ly measred+ .e!ene ismeasred at the air !ale o the consideration recei!ed# e$clding disconts#re"ates and other sales ta$es or dties+ The ollo-ing specifc recognition criteriamst also "e met "eore re!ene is recogni/ed
Sale of "oo#s
.e!ene rom sale o goods is recogni/ed pon deli!ery# -hen the signifcant rissand re-ards o o-nership o the goods ha!e passed to the "yer and the amont ore!ene can "e measred relia"ly+ .e!ene is measred at the air !ale o theconsideration recei!ed or recei!a"le# net o any trade disconts# prompt paymentdisconts and !olme re"ates+
Ren#erin" of serices.e!ene deri!ed rom tolling acti!ities# -here"y ra- sgar rom traders andplanters is con!erted into refned sgar# is recogni/ed as re!ene -hen the relatedser!ices ha!e "een rendered+
$ii#en# income
i!idend income is recogni/ed -hen the shareholders right to recei!e the paymentis esta"lished+
Rent income.ent income arising on in!estment properties is acconted or on a straight)line"asis o!er the lease term on ongoing leases+
Interest income
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5nterest income is recogni/ed as it accres sing the e6ecti!e interest rate %75.(method nder -hich interest income is recogni/ed at the rate that e$actly discontsestimated tre cash receipts throgh the e$pected lie o the fnancial instrmentto the net carrying amont o the fnancial asset+
Cas% an# Cas% E&!ialents
,ash incldes cash on hand and in "ans+ ,ash e8i!alents are short)term# highlyli8id in!estments that are readily con!erti"le to no-n amonts o cash -ithoriginal matrities o three months or less rom dates o placement# and that ares"9ect to insignifcant ris o changes in !ale+
Reco"nition of Financial Instr!ments
$ate of reco"nitionThe Grop recogni/es a fnancial asset or a fnancial lia"ility in the consolidatedstatement o fnancial position -hen the Grop "ecomes a party to the contractalpro!isions o the instrment+ &rchases or sales o fnancial assets that re8iredeli!ery o assets -ithin the time rame esta"lished "y reglation or con!ention in
the maretplace are recogni/ed on the settlement date+ eri!ati!es are recogni/edon a trade date "asis+
Initial reco"nition of 'nancial instr!mentsFinancial instrments are recogni/ed initially at air !ale+ 7$cept or fnancialinstrments !aled at FV&'# the initial measrement o fnancial assets incldestransaction costs+ The Grop classifes its fnancial assets into the ollo-ingcategories fnancial assets at FV&'# FS in!estments and loans and recei!a"les+
The Grop classifes its fnancial lia"ilities into fnancial lia"ilities at FV&' and otherfnancial lia"ilities+ The classifcation depends on the prpose or -hich thein!estments -ere ac8ired and -hether they are 8oted in an acti!e maret+:anagement determines the classifcation o its in!estments at initial recognition
and# -here allo-ed and appropriate# re)e!alates sch designation at e!erystatement o fnancial position date+
$etermination of fair al!eThe air !ale or fnancial instrments traded in acti!e marets at the statement ofnancial position date is "ased on their 8oted maret price or dealer price8otations %"id price or long positions and as price or short positions(# -ithotany dedction or transaction costs+ ;hen crrent "id and as prices are nota!aila"le# the price o the most recent transaction pro!ides e!idence o the crrentair !ale as long as there has not "een a signifcant change in economiccircmstances since the time o the transaction+
Financial assets fnancial asset %or# -here applica"le a part o a fnancial asset or part o a gropo fnancial assets( is derecogni/ed -hen
*The rights to recei!e cash 0o-s rom the asset ha!e e$pired arrangement< or
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*The Grop has transerred its rights to recei!e cash 0o-s rom the asset andeither %a( has transerred s"stantially all the riss and re-ards o o-nershipand retained control o the asset# or %"( has neither transerred nor retainedthe ris and re-ards o the asset "t has transerred the control o the asset+
Financial lia(ilities fnancial lia"ility is derecogni/ed -hen the o"ligation nder the lia"ility isdischarged or cancelled or has e$pired+ ;here an e$isting fnancial lia"ility isreplaced "y another rom the same lender on s"stantially di6erent terms# or theterms o an e$isting lia"ility are s"stantially modifed# sch an e$change ormodifcation is treated as a derecognition o the original lia"ility and the recognitiono a ne- lia"ility# and the di6erence in the respecti!e carrying amonts isrecogni/ed in the consolidated statement o income+Finis%e# "oo#s) *or+,in,process) ra* materials) containers an# pac+a"in"materials,ost is determined sing the -eighted a!erage method+ Finished goods and -or)in)process inclde direct materials and la"or# and a proportion o manactring
o!erhead costs "ased on actal goods processed and prodced# "t e$clding"orro-ing costs+
Materials in,transit,ost is determined sing the specifc identifcation "asis+
Spare parts an# s!pplies,ost is determined sing the -eighted a!erage method+
Propert-) Plant an# E&!ipment&roperty# plant and e8ipment# e$cept land# are carried at cost less accmlateddepreciation and amorti/ation and impairment losses# i any+ The cost o an item o
property# plant and e8ipment comprises its prchase price and any costattri"ta"le in "ringing the asset to its intended location and -oring condition+
Intan"i(le Assets5ntangi"le assets ac8ired separately are measred on initial recognition at cost+Follo-ing initial recognition# intangi"le assets are measred at cost less anyaccmlated amorti/ation and impairment losses# i any+
Contin"encies,ontingent lia"ilities are not recogni/ed in the consolidated fnancial statements "t
disclosed nless the possi"ility o an ot0o- o resorces em"odying economic"enefts is remote+,ontingent assets are not recogni/ed in the consolidated fnancial statements "tdisclosed -hen an in0o- o economic "enefts is pro"a"le+
E.penses
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7$penses are decreases in economic "enefts dring the acconting period in theorm o ot0o-s or decrease o assets or incrrence o lia"ilities that reslt indecreases in e8ity# other than those relating to distri"tions to e8ity participants+7$penses are recogni/ed -hen incrred+
Forei"n C!rrenc- Translation/Transactions
The nctional and presentation crrency o the &arent ,ompany and its &hilippines"sidiaries %as -ell as certain consolidated oreign s"sidiaries( is the &hilippine&eso+
Common Stoc+,ommon stocs are classifed as e8ity and are recorded at par+ &roceeds in e$cesso par !ale are recorded as ?dditional paid)in capital in the consolidatedstatement o fnancial position+ 5ncremental costs directly attri"ta"le to the isse one- shares or options are sho-n in e8ity as a dedction# net o ta$# rom theproceeds+