FS TEMPLATE FULL (2019) Trading

TOP CORPORATION
FINANCIAL STATEMENTS
DECEMBER 31, 2019 AND 2018
TAGNIA, ORTEGA & PARTNERS, CPAs

TOP CORPORATION
STATEMENTS OF FINANCIAL POSITION
As at December 31, 2019 and 2018
(Amounts in Philippine Peso)
Note
s 2019 2018
ASSETS
Current assets
Cash
Trade and other receivables, net
Inventories
Advances to related parties
Prepayments and other current assets
Total current assets
Non-current assets
Property and equipment, net
Intangible assets, net
Right-of-use assets
Deferred tax assets
Other non-current assets
Total non-current assets
TOTAL ASSETS
LIABILITIES AND SHAREHOLDERS' EQUITY (CAPITAL DEFICIENCY)

Current liabilities
Trade and other payables
Borrowings - current
Lease liabilities -current
Payable to government agencies
Income tax payable
Other current liabilities
Total current liabilities
Non-current liabilities
Borrowings - non-current
Lease liabilities - non-current
Retirement benefit obligation
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
TOTAL LIABILITIES
Shareholders' equity (Capital deficiency)

Share capital
Appropriated retained earnings (Deficit)
Unappropriated retained earnings
TOTAL SHAREHOLDERS' EQUITY (CAPITAL DEFICIENCY)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (CAPITAL DEFICIENCY)
See accompanying Notes to Financial Statements

TOP CORPORATION
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
For the years ended December 31, 2019 and 2018
Notes 2019 2018
REVENUES/SALES
COST OF SERVICES/SALES
GROSS PROFIT
OPERATING EXPENSES
NET INCOME (LOSS) FROM OPERATIONS
Finance income
Finance charges
Other income
Other charges
NET INCOME (LOSS) BEFORE TAX
Income tax (benefit) expense
NET INCOME (LOSS) AFTER TAX
OTHER COMPREHENSIVE INCOME
Items that may be reclassified to profit or loss
Items that will not be reclassified to profit or loss
Revaluation of land and buildings
Changes in the fair value of equity investments at fair
value through other comprehensive income
Remeasurements of post-employment benefit
obligations
Income tax relating to these items
Other comprehensive income for the period, net of tax
TOTAL COMPREHENSIVE INCOME (LOSS)

TOP CORPORATION
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

Other
Retained comprehensive
Retained earnings -
Share capital earnings - income
unappropriated *Remeasurement
Total
(Note x,x) appropriated
(Note x) gains or losses on
retirement or financial
assets at FVOCI
At the beginning of January 1, 2018

Effect of adoption of PFRS 9
Restated total equity, January 1, 2018
Net income (loss) for the period
Dividends declared
Appropriation of retained earnings
Re-measurement gain (loss) on retirement benefit plan
At the end of the year, December 31, 2018
At the beginning of January 1, 2019

Net income (loss) for the period
Dividends declared
Appropriation of retained earnings
Re-measurement gain (loss) on retirement benefit plan
At the end of the year, December 31, 2019

TOP CORPORATION
STATEMENTS OF CASH FLOWS
Notes 2019 2018
Cash flows from operating activities

Net income (loss) before tax
Adjustments for:
Depreciation
Interest expense
Gain on sale of properties
Interest income
Cash flows before working capital changes
(Increase) decrease in:
Trade and other receivables
Inventories
Prepayments and other current assets
Increase (decrease) in:
Cash generated from (used in) operations
Interest received
Interest paid
Income tax paid
Net cash provided by (used in) operating activities
Cash flows from investing activities

Cash paid for purchase of property and equipment
Cash received for disposal of property and equipment
Additional (Payment of) advances to related parties
Cash paid for purchase of other non-current assets
Cash received for disposal of other non-current assets
Net cash provided by (used in) investing activities

Cash flows from financing activities
Grant (Payment) of advances from related parties
Net cash provided by (used in) financing activities
Net increase (decrease) in cash
Cash, beginning
Cash effect on FOREX transactions
CASH, ENDING

TOP CORPORATION
NOTES TO FINANCIAL STATEMENTS
December 31, 2019 and 2018
Note 1 - Corporate Information
TOP CORPORATION (“the Company”) was incorporated in the Philippines and registered with the
Securities and Exchange Commission (SEC) on September 10, 1962 under Registration No. 21357.
The Company’s primary purpose is to engage in trading, manufacturing (reformulation), importation

and distribution of goods such as agricultural chemicals, fertilizers and other farm inputs on
wholesale or retail basis.
The registered office of the Company is located at 4th floor, Planters Product Building, Esteban St,
Legaspi Village, Makati City.
Status of Operations*Only if capital deficit (negative equity)
The Company incurred accumulated deficit of PhP2.73 billion and PhP2.77 billion in 2019 and 2018,
respectively, due to its recurring losses. As at December 31, 2019 and 2018, total capital deficiency
amounted to PhP2.540 billion and PhP2.58 billion, respectively. These circumstances indicate a
material uncertainty which may cast doubt about the Company’s ability to continue as a going
concern.
To enable the Company to operate as a going concern, the Company’s shareholders has committed
to provide the necessary level of financial and operational support to the Company to timely meet
its obligations and to sustain its operations.
The financial statements have been prepared on the assumption that the Company will continue as a
going concern and do not include adjustments that may result from the outcome of the uncertainty.
Note 2 - Summary of Accounting Policies
2.1 Basis of Preparation of Financial Statements
The financial statements of the Company have been prepared in accordance with Philippine
Financial Reporting Standards (PFRS). PFRS includes statements named PFRS, Philippine
Accounting Standards (PAS) and Philippine Interpretations from International Financial
Reporting Interpretations Committee (IFRIC), issued by the Financial Reporting Standards
Council (FRSC) and adopted by SEC.
The Company has qualified as a small and medium-sized entity (SME) as defined under PFRS
for SMEs as adopted by the SEC because its total assets and liabilities do not exceed the
threshold set by the SEC for SMEs. However, as allowed under the exemptions granted by the
SEC, the Company has adopted to use full PFRS in the preparation of its financial statements
on the basis that the Company is a subsidiary of a parent company reporting under full PFRS.
Basis of Measurement
The financial statements have been prepared using the historical cost basis and are presented
in Philippine Peso, the Company’s functional and presentation currency. All amounts are
rounded off to the nearest peso, except when otherwise indicated.
2.2 Adoption of New and Revised PFRS
Pronouncements issued and effective beginning on or after January 1, 2019 are listed below.
Unless otherwise indicated, the Company does not expect that the future adoption of the said
pronouncements to have a significant impact on financial statements.
Effective beginning on or after January 1, 2019
 PFRS 16, Leases
Under the new standard, lessees will no longer classify their leases as either operating or
finance leases in accordance with PAS 17, Leases. Rather, lessees will apply the single-
asset model. Under this model, lessees will recognize the assets and related liabilities for
most leases on their balance sheets, and subsequently, will depreciate the lease assets
and recognize interest on the lease liabilities in their profit or loss. Leases with a term of
12 months or less or for which the underlying asset is of low value are exempted from
these requirements.
The accounting by lessors is substantially unchanged as the new standard carries forward
the principles of lessor accounting under PAS 17. Lessors, however, will be required to
disclose more information in their financial statements, particularly on the risk exposure to
residual value.
When adopting PFRS 16, an entity is permitted to use either a full retrospective or a
modified retrospective approach, with options to use certain transition reliefs.
The effect of the adoption of PFRS 16 is discussed in Note 21.

 Amendments to PAS 28, Long-term Interests in Associates and Joint Venture
The amendments clarify that an entity applies PFRS 9 "Financial Instruments" to long-term
interests in an associate or joint venture that form part of the net investment in the
associate or joint venture but to which the equity method is not applied.
The amendments are to be applied retrospectively, but they provide transition
requirements similar to those in IFRS 9 for entities that apply the amendments after they
first apply PFRS 9. They also include relief from restating prior periods for entities electing,
in accordance with PFRS 4 Insurance Contracts, to apply the temporary exemption from
PFRS 9. Full retrospective application is permitted if that is possible without the use of
hindsight.
 Amendments to PFRS 9, Prepayment Features with Negative Compensation
These amend the existing requirements in PFRS 9 regarding termination rights in order to
allow measurement at amortised cost (or, depending on the business model, at fair value
through other comprehensive income) even in the case of negative compensation
payments.
Under the amendments, the sign of the prepayment amount is not relevant, i.e.
depending on the interest rate prevailing at the time of termination, a payment may also
be made in favour of the contracting party effecting the early repayment. The calculation
of this compensation payment must be the same for both the case of an early repayment
penalty and the case of an early repayment gain.
The amendments are to be applied retrospectively for fiscal years beginning on or after
January 1, 2019, one year after the first application of PFRS 9 in its current version.
 Amendments to PAS 19, Plan Amendment, Curtailment or Settlement
The amendments to PAS 19 address the accounting when a plan amendment, curtailment
or settlement occurs during a reporting period. The amendments specify that when a plan
amendment, curtailment or settlement occurs during the annual reporting period, an
entity is required to determine the current service cost for the remainder of the period
after the plan amendment, curtailment or settlement, using the actuarial assumptions
used to remeasure the net defined benefit liability (asset) reflecting the benefits offered
under the plan and the plan assets after that event. An entity is also required to determine
the net interest for the remainder of the period after the plan amendment, curtailment or
settlement using the net defined benefit liability (asset) reflecting the benefits offered
under the plan and the plan assets after that event, and the discount rate used to
remeasure that net defined benefit liability (asset).
 Philippine Interpretation IFRIC-23, Uncertainty over Income Tax Treatments
This clarifies how the recognition and measurement requirements of IAS 12 Income taxes,
are applied where there is uncertainty over income tax treatments. IFRIC 23 explains how
to recognise and measure deferred and current income tax assets and liabilities if there is
uncertainty over a tax treatment. An uncertain tax treatment is any tax treatment applied
by an entity where there is uncertainty over whether that approach will be accepted by
the tax authority. For example, a decision to claim a deduction for a specific expense or
not to include a specific item of income in a tax return is an uncertain tax treatment if its
acceptability is uncertain under tax law. IFRIC 23 applies to all aspects of income tax
accounting where there is an uncertainty regarding the treatment of an item, including
taxable profit or loss, the tax bases of assets and liabilities, tax losses and credits and tax
rates.
The requirements are applied by recognizing the cumulative effect of initially applying
them in retained earnings, or in other appropriate components of equity, at the start of
the reporting period in which an entity first applies them, without adjusting comparative
information. Full retrospective application is permitted, if an entity can do so without using
hindsight.
Annual Improvements 2015-2017 Cycle
 Amendments to PFRS 3, Business Combinations
The amendments clarify that, when an entity obtains control of a business that is a joint
operation, it applies the requirements for a business combination achieved in stages,
including remeasuring previously held interests in the assets and liabilities of the joint
operation at fair value. In doing so, the acquirer remeasures its entire previously held
interest in the joint operation. An entity applies those amendments to 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, 2019, with early application permitted.
 Amendments to PFRS 11, Joint Arrangements
An entity that participates in, but does not have joint control of, a joint operation might
obtain joint control of the joint operation in which the activity of the joint operation
constitutes a business as defined in IFRS 3. The amendments clarify that the previously
held interests in that joint operation are not remeasured. An entity applies those
amendments to transactions in which it obtains joint control on or after the beginning of
the first annual reporting period beginning on or after January 1, 2019, with early
application permitted.
 Amendments to PAS 12, Income Taxes
The amendments clarify that the income tax consequences of dividends are linked more
directly to past transactions or events that generated distributable profits than to
distributions to owners. Therefore, an entity recognises the income tax consequences of
dividends in profit or loss, other comprehensive income or equity according to where it
originally recognised those past transactions or events.
An entity applies the amendments for annual reporting periods beginning on or after
January 1, 2019, with early application permitted. When the entity first applies those
amendments, it applies them to the income tax consequences of dividends recognised on
or after the beginning of the earliest comparative period.
 Amendments to PAS 23, Borrowing Costs
The amendments clarify that an entity treats as part of general borrowings any borrowing
originally made to develop a qualifying asset when substantially all of the activities
necessary to prepare that asset for its intended use or sale are complete. The entity
applies the amendments to borrowing costs incurred on or after the beginning of the
annual reporting period in which the entity first applies those amendments. An entity
applies those amendments for annual reporting periods beginning on or after January 1,
2019, with early application permitted.
Pronouncements issued and effective beginning on or after January 1, 2018 are listed below.
Unless otherwise indicated, the Company does not expect that the future adoption of the said
pronouncements to have a significant impact on financial statements.
Annual Improvements to PFRSs 2012 - 2014 Cycle
 Amendment to PFRS 5, Non-current Assets Held for Sale and Discontinued Operations,
Changes in Methods of Disposal
The amendment is applied prospectively and clarifies that changing from a disposal
through sale to a disposal through distribution to owners and vice-versa should not be
considered to be a new plan of disposal, rather it is a continuation of the original plan.
There is, therefore, no interruption of the application of the requirements in PFRS 5. The
amendment also clarifies that changing the disposal method does not change the date of
classification.
 Amendment to PFRS 7, Financial Instruments: Disclosures, Servicing Contracts
PFRS 7 requires an entity to provide disclosures for any continuing involvement in a

transferred asset that is derecognized in its entirety. The amendment clarifies that a
servicing contract that includes a fee can constitute continuing involvement in a financial
asset. An entity must assess the nature of the fee and arrangement against the guidance
for continuing involvement in PFRS 7 in order to assess whether the disclosures are
required. The amendment is to be applied such that the assessment of which servicing
contracts constitute continuing involvement will need to be done retrospectively.
However, comparative disclosures are not required to be provided for any period
beginning before the annual period in which the entity first applies the amendments.
 Amendment to PFRS 7, Applicability of the Amendments to PFRS 7 to Condensed Interim

Financial Statements
This amendment is applied retrospectively and clarifies that the disclosures on offsetting
of financial assets and financial liabilities are not required in the condensed interim
financial report unless they provide a significant update to the information reported in the
most recent annual report.
 Amendment to PAS 19, Employee Benefits, Discount Rate: Regional Market Issue
This amendment is applied prospectively and clarifies that market depth of high quality
corporate bonds is assessed based on the currency in which the obligation is
denominated, rather than the country where the obligation is located. When there is no
deep market for high quality corporate bonds in that currency, government bond rates
must be used.
 Amendment to PAS 34, Interim Financial Reporting, Disclosure of Information ‘Elsewhere

in the Interim Financial Report’
The amendment is applied retrospectively and clarifies that the required interim
disclosures must either be in the interim financial statements or incorporated by cross-
reference between the interim financial statements and wherever they are included
within the greater interim financial report (e.g., in the management commentary or risk
report).
 Amendments to PFRS 2, Share-based Payment, Classification and Measurement of Share-

based Payment Transactions
The amendments to PFRS 2 address three main areas: the effects of vesting conditions on
the measurement of a cash-settled share-based payment transaction; the classification of
a share-based payment transaction with net settlement features for withholding tax
obligations; and the accounting where a modification to the terms and conditions of a
share-based payment transaction changes its classification from cash settled to equity
settled.
On adoption, entities are required to apply the amendments without restating prior
periods, but retrospective application is permitted if elected for all three amendments and
if other criteria are met. Early application of the amendments is permitted.
 Amendments to PFRS 4, Insurance Contracts, Applying PFRS 9, Financial Instruments, with
PFRS 4
The amendments address concerns arising from implementing PFRS 9, the new financial
instruments standard before implementing the forthcoming insurance contracts standard.
They allow entities to choose between the overlay approach and the deferral approach to
deal with the transitional challenges. The overlay approach gives all entities that issue
insurance contracts the option to recognize in other comprehensive income, rather than
profit or loss, the volatility that could arise when PFRS 9 is applied before the new
insurance contracts standard is issued. On the other hand, the deferral approach gives
entities whose activities are predominantly connected with insurance an optional
temporary exemption from applying PFRS 9 until the earlier of application of the
forthcoming insurance contracts standard or January 1, 2021.
The overlay approach and the deferral approach will only be available to an entity if it has
not previously applied PFRS 9.
The amendments are not applicable to the Company since it does not have activities that
are predominantly connected with insurance or issue insurance contracts.
 PFRS 15, Revenue from Contracts with Customers
PFRS 15 establishes a new five-step model that will apply to revenue arising from contracts
with customers. Under PFRS 15, revenue is recognized at an amount that reflects the
consideration to which an entity expects to be entitled in exchange for transferring goods
or services to a customer. The principles in PFRS 15 provide a more structured approach to
measuring and recognizing revenue.
The new revenue standard is applicable to all entities and will supersede all current
revenue recognition requirements under PFRSs. Either a full or modified retrospective
application is required for annual periods beginning on or after January 1, 2018.
 PFRS 9, Financial Instruments
PFRS 9 reflects all phases of the financial instruments project and replaces PAS 39,
Financial Instruments: Recognition and Measurement, and all previous versions of PFRS 9.
The standard introduces new requirements for classification and measurement,
impairment, and hedge accounting. PFRS 9 is effective for annual periods beginning on or
after January 1, 2018, with early application permitted. Retrospective application is
required, but providing comparative information is not compulsory. For hedge accounting,
the requirements are generally applied prospectively, with some limited exceptions.
The adoption of PFRS 9 will have an effect on the classification and measurement of the
Company’s financial assets and impairment methodology for financial assets, but will have
no impact on the classification and measurement of the Company’s financial liabilities. The
adoption will also have an effect on the Company’s application of hedge accounting and on
the amount of its credit losses.
 Amendments to PAS 28, Measuring an Associate or Joint Venture at Fair Value (Part of
Annual Improvements to PFRSs 2014 - 2017 Cycle)
The amendments clarify that an entity that is a venture capital organization, or other
qualifying entity, may elect, at initial recognition on an investment-by-investment basis, to
measure its investments in associates and joint ventures at fair value through profit or
loss. They also clarify that if an entity that is not itself an investment entity has an interest
in an associate or joint venture that is an investment entity, the entity may, when applying
the equity method, elect to retain the fair value measurement applied by that investment
entity associate or joint venture to the investment entity associate’s or joint venture’s
interests in subsidiaries. This election is made separately for each investment entity
associate or joint venture, at the later of the date on which (a) the investment entity
associate or joint venture is initially recognized; (b) the associate or joint venture becomes
an investment entity; and (c) the investment entity associate or joint venture first
becomes a parent. The amendments should be applied retrospectively, with earlier
application permitted.
 Amendments to PAS 40, Investment Property, Transfers of Investment Property
The amendments clarify when an entity should transfer property, including property under
construction or development into, or out of investment property. The amendments state
that a change in use occurs when the property meets, or ceases to meet, the definition of
investment property and there is evidence of the change in use. A mere change in
management’s intentions for the use of a property does not provide evidence of a change
in use. The amendments should be applied prospectively to changes in use that occur on
or after the beginning of the annual reporting period in which the entity first applies the
amendments. Retrospective application is only permitted if this is possible without the use
of hindsight.
 Philippine Interpretation IFRIC-22, Foreign Currency Transactions and Advance

Consideration
The interpretation clarifies that in determining the spot exchange rate to use on initial
recognition of the related asset, expense or income (or part of it) on the de-recognition of
a non-monetary asset or non-monetary liability relating to advance consideration, the date
of the transaction is the date on which an entity initially recognizes the nonmonetary asset
or non-monetary liability arising from the advance consideration. If there are multiple
payments or receipts in advance, then the entity must determine a date of the
transactions for each payment or receipt of advance consideration. The interpretation may
be applied on a fully retrospective basis. Entities may apply the interpretation
prospectively to all assets, expenses and income in its scope that are initially recognized on
or after the beginning of the reporting period in which the entity first applies the
interpretation or the beginning of a prior reporting period presented as comparative
information in the financial statements of the reporting period in which the entity first
applies the interpretation.
New standards issued but not yet effective
Pronouncements issued but not yet effective are listed below. Unless otherwise indicated, the
Company does not expect that the future adoption of the said pronouncements to have a significant
impact on financial statements.
 PFRS 3, Definition of a Business
These amendments clarify the minimum requirements for a business, remove the
assessment of whether market participants are capable of replacing any missing elements,
add guidance to help entities assess whether an acquired process is substantive, narrow
the definitions of a business and of outputs, and introduce an optional fair value
concentration test. New illustrative examples were provided along with the amendments.
Since the amendments apply prospectively to transactions or other events that occur on
or after the date of first application, the Company will not be affected by these
amendments on the date of transition.
 PAS 1, Presentation of Financial Statements, and PAS 8, Accounting Policies, Changes in

Accounting Estimates and Errors, Definition of Material
These amendments align the definition of “material” across the standards and to clarify
certain aspects of the definition. The new definition states that, ’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.’
The amendments to the definition of material are not expected to have a significant
impact on the Company’s financial statements.
 PFRS 17, Insurance Contracts
Once effective, IFRS 17 will replace PFRS 4 Insurance Contracts (PFRS 4) that was issued in
2005. PFRS 17 applies to all types of insurance contracts (i.e., life, non-life, direct insurance
and re-insurance), regardless of the type of entities that issue them, as well as to certain
guarantees and financial instruments with discretionary participation features. A few
scope exceptions will apply. The overall objective of PFRS 17 is to provide an accounting
model for insurance contracts that is more useful and consistent for insurers. In contrast
to the requirements in PFRS 4, which are largely based on grandfathering previous local
accounting policies, PFRS 17 provides a comprehensive model for insurance contracts,
covering all relevant accounting aspects. The core of PFRS 17 is the general model,
supplemented by:
 A specific adaptation for contracts with direct participation features (the variable fee
approach)
 A simplified approach (the premium allocation approach) mainly for short-duration

contracts
PFRS 17 is effective for reporting periods beginning on or after 1 January 2021, with
comparative figures required. Early application is permitted, provided the entity also applies
PFRS 9 and PFRS 15 on or before the date it first applies PFRS 17. This standard is not
applicable to the Company.
2.3 Financial Instruments
Recognition
Financial instruments are recognized in the statements of financial position when the
Company becomes a party to the contractual provisions of the instrument. Purchases or sales
of financial assets that require delivery of assets within the time frame established by
regulation or convention in the market place are recognized on the trade date.
Financial instruments are recognized initially at fair value. Except for financial instruments at
fair value through profit or loss (FVPL), the initial measurement of financial instruments
includes transaction costs. 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.
“Day 1” Difference. Where the transaction price in a non-active market is different from the
fair value from other observable current market transactions in the same instrument or based
on a valuation technique whose variables include only data from observable market, the
Company recognizes the difference between the transaction price and fair value (a “Day 1”
difference) in profit or loss, unless it qualifies for recognition as used some other type of asset.
In cases where data used as inputs in a valuation model are not observable, the Company
deemed the transaction price as the best estimate of fair value and recognizes the difference
in the statement of comprehensive income when the inputs become observable or when the
instruments is de-recognized. For each transaction, the Company determines the appropriate
method of recognizing the “Day 1” difference.
Classification
The Company classifies its financial asset as: financial assets at FVPL, financial assets at FVOCI
and financial assets at amortized cost. The Company classifies its financial liabilities as:
financial liabilities at FVPL and other financial liabilities at amortized cost. The classification
depends on the purpose for which the instruments were acquired or incurred and whether
these are quoted in an active market. Management determines the classification of its
financial instruments at initial recognition and, where allowed and appropriate, re-evaluates
such designation at every reporting date. All regular way purchases or sales of financial assets
are recognized and de-recognized on a trade date basis. Regular way purchases or sales are
purchases or sales of financial assets that require delivery of assets within the time frame
established by regulation or convention in the marketplace.
Determination of Fair Value
The fair value for financial instruments traded in active markets at the financial reporting date
is based on their quoted market price or dealer price quotation (bid price for long positions
and ask price for short positions), without any deduction for transaction costs. When current
bid and asking prices are not available, the price of the most recent transaction provides
evidence of the current fair value as long as there has not been a significant change in
economic circumstances since the time of the transaction.
If the financial instruments are not listed in an active market, the fair value is determined
using appropriate valuation techniques which include recent arm’s length market transactions,
net present value techniques, comparison to similar instruments for which market observable
prices exists, options pricing models, and other relevant valuation models.
Fair Value Hierarchy
The Company categorizes its financial asset and financial liability based on the lowest level
input that is significant to the fair value measurement. The fair value hierarchy has the
following levels:
Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 – inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived
from prices); and
Level 3 – inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
The level in the fair value hierarchy within which the financial asset or financial liability is
categorized is determined on the basis of the lowest level input that is significant to the fair
value measurement. Financial assets and financial liabilities are classified in their entirety into
only one of the three levels.
Financial Assets
Financial Assets at FVPL. Financial assets at fair value through profit or loss include financial
assets held for trading, financial assets designated upon initial recognition at fair value through
profit or loss, or financial assets mandatorily required to be measured at fair value. Financial
assets are classified as held for trading if they are acquired for the purpose of selling or
repurchasing in the near term. Derivatives, including separated embedded derivatives, are also
classified as held for trading unless they are designated as effective hedging instruments.
Financial assets with cash flows that are not solely payments of principal and interest are
classified and measured at fair value through profit or loss, irrespective of the business model.
Notwithstanding the criteria for debt instruments to be classified at amortized cost or at fair
value through OCI, debt instruments may be designated at fair value through profit or loss on
initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch.
Financial assets at fair value through profit or loss are carried in the statement of financial
position at fair value with net changes in fair value recognized in the statement of profit or
loss.
This category includes derivative instruments and listed equity investments which the
Company had not irrevocably elected to classify at fair value through OCI. Dividends on listed
equity investments are also recognized as other income in the statement of profit or loss when
the right of payment has been established.
The Company does not have financial assets classified as FVPL as at December 31, 2019 and
2018.
Financial assets at FVOCI (debt instruments). The Company measures debt instruments at
FVOCI if both the following conditions are met:
 The financial asset is held within a business model with the objective of both holding
to collect contractual cash flows and selling; and
 The contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation
and impairment losses or reversals are recognized in the statement of profit or loss and
computed in the same manner as for financial assets measured at amortized cost. The
remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative fair
value change recognized in OCI is recycled to profit or loss.
The Company does not have financial assets classified as FVOCI (debt instruments) as at
December 31, 2019 and 2018.
Financial assets designated at fair value through OCI (equity instruments). Upon initial
recognition, the Company can elect to classify irrevocably its equity investments as equity
instruments designated at fair value through OCI when they meet the definition of equity
under PAS 32 Financial Instruments: Presentation and are not held for trading. The
classification is determined on an instrument-by-instrument basis.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are
recognized as other income in the statement of profit or loss when the right of payment has
been established, except when the Company benefits from such proceeds as a recovery of part
of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity
instruments designated at fair value through OCI are not subject to impairment assessment.
The Company elected to classify irrevocably its non-listed equity investments under this
category.
or
The Company has no financial assets designated at fair value through OCI as at December 31,
2019 and 2018.
Financial assets at amortized cost (debt instruments). The Company measures financial assets
at amortized cost if both of the following conditions are met:
 The financial asset is held within a business model with the objective to hold financial
assets in order to collect contractual cash flows; and
 The contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding
Financial assets at amortized cost are subsequently measured using the effective interest (EIR)
method and are subject to impairment. Gains and losses are recognized in profit or loss when
the asset is derecognized, modified or impaired.
The Company’s financial assets at amortized cost include cash and cash equivalents trade and
other receivables, loans and receivables and advances to related parties.
Financial Liabilities
Financial Liability at FVPL. Financial liabilities at fair value through profit or loss include
financial liabilities held for trading and financial liabilities designated upon initial recognition as
at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are incurred for the purpose of
repurchasing in the near term. This category also includes derivative financial instruments
entered into by the Company that are not designated as hedging instruments in hedge
relationships as defined by PFRS 9. Separated embedded derivatives are also classified as held
for trading unless they are designated as effective hedging instruments.
The Company does not have financial liabilities classified as FVPL as at December 31, 2019 and
2018.
Financial liabilities at amortized cost. This category pertains to financial liabilities that are not
held for trading or not designated as at FVPL upon the inception of the liability. These include
liabilities arising from operations or borrowings. The financial liabilities are recognized initially
at fair value and are subsequently carried at amortized cost, taking into account the impact of
applying the effective interest method of amortization (or accretion) for any related premium,
discount and any directly attributable transaction costs.
The Company’s financial liabilities at amortized cost include trade and other payables,
borrowings and advances from related parties.
Offsetting Financial Instruments
Financial assets and liabilities are offset and the net amount reported in the statements of
financial position if, and only if, there is a currently enforceable right to offset the recognized
amounts and there is intention to settle on a net basis, or to realize the asset and settle the
liability simultaneously.
De-recognition of Financial Assets and Liabilities
Financial Assets. A financial asset (or, where applicable a part of a financial asset or part of a
group of similar financial assets) is de-recognized when:
 the rights to receive cash flows from the asset expired;
 the Company retains the right to receive cash flows from the asset, but has assumed an
obligation to pay them in full without material delay to a third party under a “pass-
through” arrangement; or
 the Company has transferred its rights to receive cash flows from the asset and either:
a. has transferred substantially all the risks and rewards of the assets; or
b. has neither transferred nor retained substantially all the risks and rewards of the
asset, but has transferred control of the asset.
Where the Company has transferred its rights to receive cash flows from an asset and has
neither transferred nor retained substantially all the risks and rewards of the asset nor
transferred control of the asset, the asset is recognized to the extent of the Company’s
continuing involvement in the asset. Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at the lower of the original carrying amount
of the asset and the maximum amount of consideration that the Company could be required
to repay.
Financial Liabilities. A financial liability is de-recognized when the obligation under the liability
is discharged, cancelled, or has expired. When an existing financial liability is replaced by
another from the same lender on substantially different terms, or the terms of an existing
liability are substantially modified, such an exchange or modification is treated as a de-
recognition of the original liability and the recognition of a new liability, and the difference in
the respective carrying amounts is recognized in profit or loss.
Impairment of Financial Assets. The Company recognizes an allowance for expected credit
losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are
based on the difference between the contractual cash flows due in accordance with the
contract and all the cash flows that the Company expects to receive, discounted at an
approximation of the original effective interest rate. The expected cash flows will include cash
flows from the sale of collateral held or other credit enhancements that are integral to the
contractual terms.
ECLs are recognized in three stages. For credit exposures for which there has not been a
significant increase in credit risk since initial recognition, ECLs are provided for credit losses
that result from default events that are possible within the next 12-months (a 12-month ECL).
For those credit exposures for which there has been a significant increase in credit risk since
initial recognition, a loss allowance is required for credit losses expected over the remaining
life of the exposure, irrespective of the timing of the default (a lifetime ECL).
For trade receivables, the Company applies a simplified approach in calculating ECLs. For debt
securities that are considered impaired, lifetime ECL is recognized and the effective interest
rate is applied to the carrying value of the financial assets. The Company does not track
changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each
reporting date. The Company has established a provision matrix that is based on its historical
credit loss experience, adjusted for forward-looking factors specific to the debtors and the
economic environment.
The Company considers a financial asset in default when contractual payments are more than
90 days past due. In addition, accounts with contract payments that are more than 30 days
past due are assessed to have significant increase in credit risk. However, in certain cases, the
Company may also consider a financial asset to be in default when internal or external
information indicates that the Company is unlikely to receive the outstanding contractual
amounts in full before taking into account any credit enhancements held by the Company. A
financial asset is written off when there is no reasonable expectation of recovering the
contractual cash flows.
Evidence of impairment may include indications that the debtors or a group of debtors is
experiencing significant financial difficulty, default or delinquency in interest or principal
payments, the probability that they will enter bankruptcy or other financial reorganization and
where observable data indicate that there is a measurable decrease in the estimated future
cash flows such as changes in arrears or economic conditions that correlate with defaults.
2.4 Advances to related parties
Advances to related parties generally arise from transactions outside the usual operating
activities of the Company. These are made on terms equivalent to those that prevail in arm’s
length transactions. Collateral is not normally obtained. These are recognized initially at
transaction price and subsequently measured at amortized cost using the effective interest
method. These are presented as current assets unless payment is not due within 12 months
after the reporting period. Outstanding balances at the year-end are unsecured and interest
free and settlement occurs in cash.
*Do not offset this with advances from.
2.5 Inventories
Inventories are initially recognized at the lower of cost and estimated selling price less costs to
complete and sell. Cost is determined using the first-in, first-out (FIFO) method. At each
reporting date, inventories are assessed for impairment. If inventory is impaired, the carrying
amount is reduced to its selling price less costs to complete and sell; the impairment loss is
recognized immediately in profit or loss.
Net realizable value represents the estimated selling price less all the estimated cost of
completion and cost to be incurred in marketing, selling, and distributing the goods.
The Company provides allowance for impairment losses due to obsolescence, deterioration,
damage, bad quality, age, and technological changes. Allowance for impairment losses is
determined using specific identification at the time of the physical count.
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.
2.6 Prepayments and Other Current Assets
The Company initially recognizes prepayments and other current assets at cost and expects to
realize or consume these assets within its normal operating cycle. Prepayments and other
current assets are carried at historical cost net of any provision for impairment.
2.7 Property and Equipment
Property and equipment are stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any. The cost of an asset comprises its purchase price and directly
attributable costs of bringing the asset to working condition for its intended use. Expenditures
for additions, improvements and renewals are capitalized; expenditures for repairs and
maintenance are charged to expense as incurred. When assets are sold, retired or otherwise
disposed of, the cost and their related accumulated depreciation are removed from the
accounts and any resulting gain or loss is recognized for the period.
The Company use the cost model (or the revaluation model) as its accounting policy and
applied that policy to an entire class of property and equipment. The Company choose
revaluation model for subsequent recognition of property and equipment.
Land is measured at cost less any impairment in value because no finite useful life for land can
be determined, related carrying amount is not depreciated. All other property and equipment
are stated at cost less accumulated depreciation and any impairment losses.
Any addition in the estimated life of the property and equipment would decrease the
Company’s recorded direct cost and operating expenses and increase non-current assets.
After recognition as an asset, an item of property and equipment whose fair value can be
measured reliably is carried at a revalued amount, being its fair value at the date of the
revaluation less any subsequent accumulated depreciation and subsequent accumulated
impairment losses. Revaluations shall be made with sufficient regularity to ensure that the
carrying amount does not differ materially from that which would be determined using fair
value at the end of the reporting period.
Increases in the carrying amounts arising on revaluation of land and buildings are recognized,
net of tax, in the other comprehensive income. To the extent that the increase reverses a
decrease previously recognized in profit or loss, the increase is first recognized in profit or loss.
Decrease that reverse previous increases of the same asset are first recognized in other
comprehensive income to the extent of the remaining surplus attributable to the asset; all
other decreases are charged to profit or loss. Each year, the difference between the
depreciation based on the revalued carrying amount of the asset charged to profit or loss and
depreciation based on the asset’s original cost, net of tax, is reclassified from property and
equipment revaluation surplus to retained earnings.
Depreciation is computed using the straight-line method over the following estimated useful
lives:
Useful life
Plant machinery and equipment 5-10 years
Transportation and equipment 5 years
Office furniture and equipment 5 years
Leasehold improvements 3-5 years
Computer and communication equipment 2 years
Fully depreciated and fully amortized assets are retained by the Company as part of property
and equipment until their disposal. Further change in depreciation is made with respect to
these assets.
The residual values and estimated useful lives of property and equipment are reviewed, and
adjusted if appropriate, at the end of each reporting period.
The carrying values of property and equipment are reviewed for impairment when events or
changes in circumstances indicate that their carrying values may not be recoverable. If any
such indication exists and where the carrying values exceed the estimated recoverable
amount, the assets or cash generating units are written down to their recoverable amount.
The recoverable amount is the higher of fair value less costs to sell and value in use.
In assessing the value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessment of the time value
of money and the risks specific to the asset.
For assets that do not generate largely independent cash inflows, the recoverable amount is
determined for the cash generating unit to which the asset belongs. Impairment loss is
recognized in profit or loss.
An item of property and equipment, including the related accumulated depreciation, is de-
recognized upon disposal or when no future economic benefits are expected to arise from the
continued use of the asset.
Gain or loss arising on de-recognition of the asset (calculated as the difference between the
net disposal proceeds and the carrying amount of the item) is included in the profit or loss in
the year the item is de-recognized.
2.8 Intangible Assets
Intangible asset is defined as identifiable non- monetary assets without physical substance. An
asset meets the identifiably criterion in the definition of an intangible asset when:
 It is probable, meaning, the asset is capable of being separated from the entity and sold,
transferred, licensed, rented or exchanged, either individually or together with related
contract, asset or liability.
 It arises from contractual or other legal rights, regardless of whether these rights are
transferable or separable from the entity or form other rights and obligations.
Initial recognition: An intangible asset is measured initially at cost. The cost of a separately
acquired intangible asset comprises: (a) its purchase price, including import duties and non-
refundable purchase taxes, after deducting trade discounts and rebates; and (b) any directly
attributable cost of preparing the asset for its intended use.
Measurement after recognition: The entity chose the cost model (or the revaluation model) as
its accounting policy. If an intangible asset is accounted for using the cost model (revaluation
model), all the other assets in its class shall also be accounted for using the same model,
unless there is no active market for those assets.
Cost model: After initial recognition, an intangible asset is carried at its cost less any
accumulated amortization and any accumulated impairment losses.
Amortization is computed using the straight-line method over the following estimated useful
lives:
Useful life
Computer software 5-10 years
Franchise 2 years
2.9 Investment Properties
Investment properties are measured initially at cost, including transaction costs. Subsequent
to initial recognition, the Company has elected to state investment properties purchased at
cost less accumulated depreciation.
Investment properties are derecognized either when they have been disposed of (i.e., at the
date the recipient obtains control) or when they are permanently withdrawn from use and no
future economic benefit is expected from their disposal. The difference between the net
disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the
period of derecognition. In determining the amount of consideration from the derecognition
of investment property the Company considers the effects of variable consideration, existence
of a significant financing component, non-cash consideration, and consideration payable to
the buyer (if any).
Transfers are made to (or from) investment property only when there is a change in use. For a
transfer from investment property to owner-occupied property, the deemed cost for
subsequent accounting is the fair value at the date of change in use. If owner-occupied
property becomes an investment property, the Company accounts for such property in
accordance with the policy stated under property and equipment up to the date of change in
use.
2.10 Other Non-Current Assets
Other non-current assets include rent and guarantee deposits required by the lease contract.
Deposits are initially recognized at cost and can be refunded or applied to future billings
depending on the restrictions as to its use or withdrawal mandated by the lease contract.
Refundable deposits are carried at cost which is determined based on amounts stipulated in
contracts. Other non-current assets are generally carried at historical cost and expected to be
realized or applied over the period it will benefit the Company.
The Company’s security deposit represents deposit arising from the lease contract that will be
refunded at the end of the contract. Security deposit is initially measured at fair value plus
transaction cost. Subsequently, the refundable deposit is measured at amortized cost using
the effective interest rate method.
2.11 Impairment of Non-financial Assets Other than Inventories
Assets that are subject to depreciation or amortization are assessed at each reporting date to
determine whether there is any indication that the assets are impaired. Where there is any
indication that an asset may be impaired, the carrying value of the asset (or cash-generating
unit to which the asset has been allocated) is tested for impairment. An impairment loss is
recognized for the amount by which the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset’s (or CGU’s) fair value less costs to
sell and value in use. For the purpose of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable cash flows (CGUs).
If an impairment loss subsequently reverses, the carrying amount of the asset is increased to
the revised estimate of its recoverable amount, but not in excess of the amount that would
have been determined had no impairment loss been recognized for the asset in prior years. A
reversal of an impairment loss is recognized immediately in profit or loss.
2.12 Other Current Liabilities
Other current liabilities are the obligations incurred by the Company that will be settled within
the next twelve months, other than financial liabilities. This account includes payable to
government agencies. Payable to government agencies are recognized in the period when a
legally enforceable claim against the Company is established. The Company’s government
dues include withholding taxes, percentage tax, SSS and PhilHealth contributions.
Other current liabilities are recognized initially at the transaction price and subsequently
measured at amortized cost using the effective interest method.
2.13 Advances from Related Parties
Advances from related parties generally arise from transactions outside the usual operating
activities of the Company. These are made on terms equivalent to those that prevail in arm’s
length transactions. These are recognized initially at transaction price and subsequently
measured at amortized cost using the effective interest method. These are presented as
current liabilities unless payment is not due within 12 months after the reporting period.
Outstanding balances at the year-end are unsecured and interest free and settlement occurs in
cash.
2.14 Other Non-Current Liabilities
The Company’s other non-current liabilities consist of refundable deposits and deferred
output VAT. Refundable deposit is initially measured at fair value plus transaction cost.
Subsequently, the refundable deposit is measured at amortized cost using the effective
interest rate method.
2.15 Employee Benefits
Short-term Benefits
Liabilities for wages and salaries, including the non-monetary benefits and accumulating sick
leave that are expected to be settled wholly within 12 months after the end of the period in
which the employees render the related service are recognized in respect of the employees’
services up to the end of the reporting period and are measured at the amounts expected to
be paid when the liabilities are settled.
Termination Benefits
Termination benefits are payable when employment is terminated before the normal
retirement date, or whenever an employee accepts voluntary redundancy in exchange for
these benefits. The Company recognizes termination benefits when it is demonstrably
committed to either: (i) terminating the employment of current employees according to a
detailed formal plan without possibility of withdrawal; or (ii) providing termination benefits as
a result of an offer made to encourage voluntary redundancy. Benefits falling due more than
12 months after the reporting period are discounted to present value.
Compensated Absences
Compensated absences are recognized for the number of paid leave days (including holiday
entitlement) remaining at the end of the reporting period. They are included in “Trade and
Other Payables” account in the statement of financial position at the undiscounted amount
that the Company expects to pay as a result of the unused entitlement.
Post-employment Defined Benefit Plan

*if Company has actuarial valuation during the year
Post-employment benefit that an employee will receive on retirement, usually dependent on
one or more factors such as age, years of service and salary. The legal obligation for any
benefits from this kind of post-employment plan remains with the Company, even if plan
assets for funding the defined benefit plan have been acquired.
The liability recognized in the statement of financial position for post-employment defined
benefit pension plans is the present value of the defined benefit obligation (DBO) at the end of
the reporting period less the fair value of plan assets, together with adjustments for
unrecognized actuarial gains or losses and past service costs.
The defined benefit obligation is calculated annually by independent actuaries using the
projected unit credit method. The present value of the DBO is determined by discounting the
estimated future cash outflows using interest rates of high quality corporate bonds that are
denominated in the currency in which the benefits will be paid and that have terms to
maturity approximating to the terms of the related post-employment liability.
Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are charged or credited to equity in other comprehensive income in the period in
which they arise.
Past service cost arises when an entity amends a benefit plan to provide additional benefits for
services in prior periods. Past-service costs are recognized immediately in profit or loss,
regardless of vesting requirements.
*if there is no actuarial valuation during the year.

The Company provides for retirement benefit of employees based on the minimum benefits
required under Republic Act No. 7641, Retirement Pay Law. The retirement benefit that a
qualified employee shall receive upon retirement depends on such factors as age, years of
service and compensation.
The Company does not have a formal retirement benefit plan for its employees and no
actuarial valuation was made during the year because the Company believes that the amount
of retirement obligation is not material to the financial statements as of the financial
statement date considering that there are no qualified employees as at December 31, 2019.
Other Long-term Employee Benefit Obligations
The liabilities for long service leave and annual leave are not expected to be settled wholly
within 12 months after the end of the period in which the employees render the related
service. These are therefore measured as the present value of the expected future payments
to be made in respect of services provided by employees up to the end of the reporting period
using the projected unit credit method. Consideration is given to expected future wage and
salary levels, experience of employee departures and periods of service. The obligations are
presented as current liabilities in the balance sheet if the entity does not have an
unconditional right to defer settlement for at least twelve months after the reporting period,
regardless of when the actual settlement is expected to occur.
Profit-sharing and Bonus Plans
The Company recognizes a liability and an expense for bonuses and profit-sharing based on
the formula that takes into consideration the profit attributable to the Company’s
shareholders after certain adjustments. The Company recognizes a provision where
contractually obliged or where there is past practice that has created a constructive obligation.
2.16 Leases
The Company assesses at contract inception whether a contract is, or contains, a lease. That is,
if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration.
Company as a lessee
The Company applies a single recognition and measurement approach for all leases, except for
short-term leases and leases of low-value assets. The Company recognizes lease liabilities to
make lease payments and right-of-use assets representing the right to use the underlying
assets.
Right-of-use assets
The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the
date the underlying asset is available for use). Right-of-use assets are measured at cost, less
any accumulated depreciation and impairment losses, and adjusted for any remeasurement of
lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities
recognized, initial direct costs incurred, and lease payments made at or before the
commencement date less any lease incentives received. Right-of-use assets are depreciated
on a straight-line basis over the shorter of the lease term and the estimated useful lives of the
assets, as follows:
Useful life
Plant machinery and equipment 5-10 years
Transportation and equipment 5 years
Lease liabilities
At the commencement date of the lease, the Company recognizes lease liabilities measured at
the present value of lease payments to be made over the lease term. The lease payments
include fixed payments (including in substance fixed payments) less any lease incentives
receivable, variable lease payments that depend on an index or a rate, and amounts expected
to be paid under residual value guarantees. The lease payments also include the exercise price
of a purchase option reasonably certain to be exercised by the Company and payments of
penalties for terminating the lease, if the lease term reflects the Company exercising the
option to terminate. Variable lease payments that do not depend on an index or a rate are
recognized as expenses (unless they are incurred to produce inventories) in the period in
which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Company uses its incremental
borrowing rate at the lease commencement date because the interest rate implicit in the lease
is not readily determinable. After the commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced for the lease payments made. In
addition, the carrying amount of lease liabilities is remeasured if there is a modification, a
change in the lease term, a change in the lease payments (e.g., changes to future payments
resulting from a change in an index or rate used to determine such lease payments) or a
change in the assessment of an option to purchase the underlying asset.
The Company’s lease liabilities are presented in Note 21.

or
The Company has no lease liabilities as at December 31, 2019.
Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term leases of
machinery and equipment (i.e., those leases that have a lease term of 12 months or less from
the commencement date and do not contain a purchase option). It also applies the lease of
low-value assets recognition exemption to leases of office equipment that are considered to
be low value. Lease payments on short-term leases and leases of low value assets are
recognised as expense on a straight-line basis over the lease term.
Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards
incidental to ownership of an asset are classified as operating leases. Rental income arising is
accounted for on a straight-line basis over the lease terms and is included in revenue in the
statement of profit or loss due to its operating nature. Initial direct costs incurred in
negotiating and arranging an operating lease are added to the carrying amount of the leased
asset and recognised over the lease term on the same basis as rental income. Contingent rents
are recognised as revenue in the period in which they are earned.
Accounting policy prior to January 1, 2019.
Leases in which substantially all the risks and rewards of ownership are retained by the lessor
are classified as operating leases. Payments made under operating leases (net of any
incentives received from the lessor) are charged to profit or loss on a straight-line basis over
the period of the lease.
Leases of property and equipment, where the Company has substantially all the risks and
rewards of ownership, are classified as finance leases. Finance leases are capitalized at the
lease’s commencement at the lower of the fair value of the leased property and the present
value of the minimum lease payments.
Each lease payment is apportioned between the liability and finance charges using the
effective interest method. Rental obligations, net of finance charges, are included in
borrowings in the statement of financial position. The property and equipment acquired under
finance leases are depreciated over the shorter of the useful life of the asset and the lease
term.
Company as Lessee
Lessee in which a significant portion of the risks and rewards of ownership are retained by the
lessor are classified as operating leases. Payments made under operating leases (net of any
incentives received from the lessor) are changed to the statements of comprehensive income
on a straight- line basis over the period of the lease.
Leases which transfer to the Company substantially all risks and benefits incidental to
ownership of the leased item are classified as finance leases and are recognized as assets and
liabilities in the statement of financial position at amounts equal to the fair value of the leased
property at the inception of the lease or, if lower, at the present value of minimum lease
payments. Lease payments are apportioned between the finance costs and reduction of the
lease liability so as to achieve a constant rate of interest on the remaining balance of liability.
Finance costs are recognized in profit and loss. Capitalized leased assets are depreciated over
the shorter of the estimated useful life of the asset or the lease term.
Finance lease obligations, net of finance charges, are presented as “Finance Lease Obligation”
account in the statement of financial position.
Company as Lessor
The Company as a lessor of operating lease does not transfer substantially all the risks and
rewards of ownership of an asset. Initial direct costs incurred in negotiating and arranging an
operating lease are added to the carrying amount of the leased asset and recognized over the
lease term on the basis as rental income. Contingent rents are recognized as revenue in the
period in which they are earned.
The Company has entered into commercial property leases on its property portfolio. The
Company has determined, based on an evaluation of the terms and conditions of the
arrangements, such as the lease term not constituting a major part of the economic life of the
commercial property and fair value of the asset, that it retains all the significant risks and
rewards of ownership of these properties and accounts for the contracts as operating leases.
Or
The Company did not enter any lease agreement during the year.
2.17 Related Party Transactions
Related party relationship exists when one party has the ability to control, directly, or
indirectly through one or more intermediaries, the other party or exercises significant
influence over the other party in making financial and operating decisions. Such relationships
also exist between and/or among entities which are under common control with the reporting
enterprise, or between, and/or among the reporting enterprise and its key management
personnel, directors, or its shareholders.
In considering each possible related party relationship, attention is directed to the substance
of the relationship, and not merely the legal form.
2.18 Share Capital
Ordinary shares and/or preferred shares are classified as equity.
Equity instruments are measured at the fair value of the cash or other resources received or
receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and
the time value of money is material, the initial measurement is on a present value basis.
Share capital is measured at par value for all shares issued.When the shares are sold at a
premium, the difference between the proceeds and the par value is credited to the
“Additional paid-in capital” account. When shares are issued for a consideration other than
cash, the proceeds are measured at the fair value of the consideration received. In case the
shares are issued to extinguish or settle the liability of the Company, the shares shall be
measured either at the fair value of the shares issued or fair value of the liability settled,
whichever is more reliably determinable.
2.19 Revenue and Expenses Recognition
Revenues from Contracts with Customers
The Company is in the business of providing fire prevention and electronics equipment and
installation services. Revenue from contracts with customers is recognized when control of the
goods or services are transferred to the customer at an amount that reflects the consideration
to which the Company expects to be entitled in exchange for those goods or services. The
following provides information about the nature and timing of the satisfaction of performance
obligations in contracts with customers, including significant payment terms, and the related
revenue recognition policies.
Sale of goods - fire prevention and electronics equipment
The Company sells/manufactures/distributes a fire prevention and electronics equipment

and installation services. Sales of goods are recognised when control of the products has
transferred, being when the products are delivered to the buyer, the buyer has full
discretion over the channel and price to sell the products, and there is no unfulfilled
obligation that could affect the buyer’s acceptance of the products. Delivery occurs when
the products have been shipped to the specific location, the risks of obsolescence and loss
have been transferred to the buyer, and either the buyer has accepted the products in
accordance with the sales contract, the acceptance provisions have lapsed, or the Company
has objective evidence that all criteria for acceptance have been satisfied. Revenue from
these sales is recognised based on the price specified in the contract, net of the estimated
volume discounts. Accumulated experience is used to estimate and provide for the
discounts, using the expected value method, and revenue is only recognised to the extent
that it is highly probable that a significant reversal will not occur. A contract liability is
recognized for expected volume discounts payable to customers in relation to sales made
until the end of the reporting period. No element of financing is deemed present as the sales
are made with a credit term of 30 days, which is consistent with market practice. A
receivable is recognized when the goods are delivered as this is the point in time that the
consideration is unconditional because only the passage of time is required before the
payment is due.
Expenses
Expenses are decreases in economic benefits during the accounting period in the form of
outflows or decrease of assets or incurrence of liabilities that result in decrease in equity,
other than those relating to distributions to equity participants. Expenses are recognized in the
year in which they are incurred and specific criteria have been met for each of the Company’s
activities as described below.
Cost of Sales
Cost of sales is recognized in profit and loss upon utilization of the assets at the date they
are incurred.
Expenses that are directly attributable to the recognition of revenue are recognized in the
period when the corresponding revenues are recognized. When expenses benefit more
than one accounting period, these are systematically allocated to the periods benefited.
All other expenses are recognized as expense when incurred.
Operating Expenses
Operating expenses represent expenses for the general and administrative functions
ordinarily incurred during the year. Ordinarily, operating expenses include taxes, licenses
and other miscellaneous expenses.
Finance Charges
Finance charges comprise interest expense on borrowings, bank charges and foreign
currency losses. All finance charges are recognized in profit or loss as they accrue under
Finance Charges, net.
2.20 Income Tax
Income tax expense includes current tax expense and deferred tax. The current tax expense is
based on taxable profit for the year. The current income tax charge is calculated on the basis
of tax rates and laws that have been enacted or substantively enacted at the reporting.
Deferred tax is recognized on differences between the carrying amounts of assets and
liabilities in the financial statements and their corresponding tax bases. Deferred tax liabilities
(DTL) are recognized for all taxable temporary differences that are expected to increase
taxable profit in the future. Deferred tax assets (DTA) are recognized for all deductible
temporary differences, carry forward benefits of unused tax credits from the excess of
minimum corporate income tax (MCIT) over the regular corporate income tax (RCIT) and
unused net operating loss carryover (NOLCO), to the extent that it is probable that taxable
profit will be available against which the deductible temporary differences and carry forward
benefits of unused tax credits and unused tax losses can be utilized. Deferred tax, however, is
not recognized when it arises from the initial recognition of an asset or liability in a transaction
that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss.
The carrying amount of deferred tax assets is reviewed at each statement of financial position
date and reduced 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 asset to be utilized. Unrecognized deferred
tax assets are reassessed at each statement of financial position date and are recognized to
the extent that it has become probable that future taxable profit will allow the deferred tax
asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to
the period when the asset is realized or the liability is settled, based on tax rates (and tax laws)
that have been enacted or substantively enacted at the statement of financial position date.
Current tax and deferred tax relating to items recognized directly in equity, if any, is also
recognized in statement of changes in equity and not in the statement of comprehensive
income.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to
set off current tax assets against current tax liabilities and the deferred taxes relate to the
same taxable entity and the same taxation authority.
2.21 Foreign Currency Translation
Functional and Presentation Currency
The financial statements are presented in Philippine Peso, which is the Company’s functional
and presentation currency.
Transactions and Balances
Foreign currency transactions are translated into Philippine Peso using the exchange rates
prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from
the settlement of such transactions and from the translation at year-end exchange rates of
monetary assets and liabilities denominated in foreign currencies are recognized in the profit
or loss.
Exchange differences arising from the translation of any net investment in foreign entities, and
of borrowings and other financial instruments designated as hedges of such investments, are
recognized in the other comprehensive income.
2.22 Events after the Reporting Date
Post year-end events that provide additional information about the Company’s position at the
statements of financial position date (adjusting events) are reflected in the financial
statements. Post year-end events that are non-adjusting events are disclosed in the notes to
the financial statements when material.
2.23 Changes in Accounting Policies
IFRIC Interpretation 23 Uncertainty over Income Tax Treatment
The Interpretation addresses the accounting for income taxes when tax treatments involve
uncertainty that affects the application of PAS 12 Income Taxes. It does not apply to taxes or
levies outside the scope of PAS 12, nor does it specifically include requirements relating to
interest and penalties associated with uncertain tax treatments. The Interpretation specifically
addresses the following:
 Whether an entity considers uncertain tax treatments separately
 The assumptions an entity makes about the examination of tax treatments by taxation
authorities
 How an entity determines taxable profit (tax loss), tax bases, unused tax losses,
unused tax credits and tax rates
 How an entity considers changes in facts and circumstances
The Company determines whether to consider each uncertain tax treatment separately or
together with one or more other uncertain tax treatments and uses the approach that better
predicts the resolution of the uncertainty.
The Company applies significant judgement in identifying uncertainties over income tax
treatments. Since the Company operates in a complex multinational environment, it assessed
whether the Interpretation had an impact on its consolidated financial statements.
Upon adoption of the Interpretation, the Company considered whether it has any uncertain
tax positions, particularly those relating to transfer pricing. The Company’s and the
subsidiaries’ tax filings in different jurisdictions include deductions related to transfer pricing
and the taxation authorities may challenge those tax treatments. The Company determined,
based on its tax compliance and transfer pricing study that it is probable that its tax
treatments will be accepted by the taxation authorities.
Note 3 - Financial Risks and Capital Management
The Company’s activities expose it to a variety of financial risks and those activities involve the
analysis, evaluation, acceptance and management of some degree of risk or combination of risks.
Taking risk is core to the financial business, and the operational risks are an inevitable consequence
of being in business. The Company’s aim is therefore to achieve an appropriate balance between risk
and return and minimize potential adverse effects on the Company’s financial performance.
The Company’s risk management policies are designed to identify and analyze these risks, to set
appropriate risk limits and controls, and to monitor the risks and adherence to limits by means of
reliable and up-to-date information systems. The Company regularly reviews its risk management
policies and systems to reflect changes in markets, products and emerging best practice.
The Board of Directors provides written principles for overall risk management, as well as policies
covering specific areas such as interest rate risk and credit risk.
The management is responsible for the management of market and liquidity risks. Their objective is
to minimize adverse impacts on Company’s financial performance due to the unpredictability of
financial markets. Market and credit risks management is carried out through policies approved by
the Board of Directors.
The most important types of risk that Company manages are liquidity risk, credit risk and market
risk.
Capital Management Framework
The primary objective of the Company’s capital management is to ensure that it maintains a strong
credit rating and healthy capital ratios in order to support its business and maximize shareholder
value.
The Company considers capital to include paid-up capital and retained earnings. The Company
manages its capital structure and makes adjustments to it, in light of changes in economic
conditions. To maintain or adjust its capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares.
The Company manages its capital structure and makes adjustments to it, in light of changes in
economic conditions. To maintain or adjust the capital structure, the Company may adjust the
dividend payment to shareholders, return capital to shareholders, re-acquire its own shares, or issue
new shares. The Company monitors capital on the basis of current ratio and debt-to-equity ratio.
The Company’s strategy, which was unchanged from the prior year, was to maintain current ratio
and debt-to-equity ratio at manageable levels.
The Company’s current ratio, calculated as total current assets over total current liabilities, and
debt-to-equity ratio, calculated as total liabilities over equity, as at December 31, 2019 and 2018 are
as follows.
Current Ratio

2019 2018
Current assets
Current liabilities

Debt-to-Equity Ratio

2019 2018
Total liabilities
Total equity

3.1 Credit Risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial
instrument or customer contract, leading to a financial loss. The Company has two types of
financial assets that are subject to the expected credit loss model:
 trade receivables for sales of inventory

 advances to related parties
While cash and cash equivalents are also subject to the impairment requirements of PFRS 9, the
identified impairment loss was immaterial.
Cash in Bank
The Company limits its exposure to credit risk by investing its cash only with banks that have
good credit standing and reputation in the local and in territorial banking industry. These
instruments are graded in the top category by an acceptable credit rating agency, and therefore,
are considered to be low credit risk.
Risk Management
The Company transacts only with recognized and creditworthy customers. It is the Company’s
policy to meet the performance standards promised to its customers so that the customers will
continue their relationship with the Company.
The Company limits its exposure to credit risk by transacting mainly with recognized and
creditworthy entities that have undergone its credit evaluation and approval process.
Historically, trade receivables are substantially collected within one (1) year.
The Company has no significant concentration of credit risk with any single counterparty or
group of counterparties having similar characteristics.
Trade receivables and contract assets
The Company applies the PFRS 9 simplified approach to measuring expected credit losses which
uses a lifetime expected loss allowance for all trade receivables and contract assets.
To measure the expected credit losses, trade receivables and contract assets have been grouped
based on shared credit risk characteristics and the days past due. The contract assets relate to
unbilled work in progress and have substantially the same risk characteristics as the trade
receivables for the same types of contracts. The Company has therefore concluded that the
expected loss rates for trade receivables are a reasonable approximation of the loss rates for the
contract assets.
The expected loss rates are based on the payment profiles of sales over a period of 36 month
before December 31, 2019 or January 1, 2019 respectively and the corresponding historical
credit losses experienced within this period. The historical loss rates are adjusted to reflect
current and forward-looking information on macroeconomic factors affecting the ability of the
customers to settle the receivables. The Company has identified the GDP and the unemployment
rate of the country in which it sells its goods and services to be the most relevant factors, and
accordingly adjusts the historical loss rates based on expected changes in these factors.
On that basis, the loss allowance as at December 31, 2019 and 2018 was determined as follows
for trade receivables:
December 31, 2019

Current and
30 days past 31-60 days 61-90 days More than 90
due past due past due days past due Total
Financial assets at amortized
cost:
Trade receivables
Loss allowance
December 31, 2018

Current and
30 days past 31-60 days 61-90 days More than 90
due past due past due days past due Total
Financial assets at amortized
cost:
Trade receivables
Loss allowance
Trade receivables and contract assets are written off when there is no reasonable expectation of
recovery. Indicators that there is no reasonable expectation of recovery include, amongst others,
the failure of a debtor to engage in a repayment plan with the Company and a failure to make
contractual payments for a period of greater than 90 days past due.
Impairment losses on trade receivables and contract assets are presented as net impairment
losses within operating profit. Subsequent recoveries of amounts previously written off are
credited against the same line item.
The identified loss as a result of applying the expected credit risk model for other financial assets
at amortized cost was considered immaterial. Hence, no loss allowance was recognized on
December 31, 2019 and 2018.
3.2 Market Risk
The Company takes on exposure to market risk, which is the risk that changes in market prices,
such as interest rates and foreign exchange rates, will affect the Company’s income or the value
of its holdings of financial instruments. The objective of market risk management is to manage
and control market risk exposures within acceptable parameters, while optimizing the return.
3.3 Interest Rate Risk

Cash flow interest rate risk is the risk that future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. Fair value interest rate risk is the risk that
the value of a financial instrument will fluctuate because of changes in market interest rates. The
Company takes on exposure to the effects of fluctuations in the prevailing levels of market
interest rates on both its fair value and cash flow risks. Interest margins may increase as a result
of such changes but may reduce losses in the event that unexpected movements arise.
The Company is exposed to interest rate risk only to the extent that it earns bank interest on
cash and deposits.
Likewise, the Company has no significant exposure to interest rate risks as interest-bearing
financial instruments are based mostly on fixed interest rates.
3.4 Foreign Currency Risk
Cash flow foreign currency risk is the risk that future cash flows of a financial instrument will
fluctuate because of changes in market exchange rates. Fair value foreign currency risk is the risk
that the value of a financial instrument will fluctuate because of changes in market exchange
rates. The Company takes on exposure to the effects of fluctuations in the prevailing levels of
market exchange rates on both its fair value and cash flow risks.
Foreign currency risk can only arise on financial instruments that are denominated in a currency
other than the functional currency in which they are measured. As at December 31, 2018, the
Company has no financial instruments denominated in a currency other than the functional
currency in which they are measured .*if no accounts denominated in foreign currency.
The Company’s exposure to foreign exchange risk results from its business transactions and
financing arrangements denominated in foreign currency. if with accounts denominated in foreign
currency
Sensitivity
Impact on post-tax profit (loss)

2019 2018
PhP/USD exchange rate - increase by 10%*
PhP/USD exchange rate - decrease by 10%*
*Holding all other variables constant
(a)
3.5 Liquidity Risk
Liquidity risk is the risk that the Company is unable to meet its payment obligations associated
with its financial liabilities when they fall due and to replace funds when they are withdrawn.
The consequence may be the failure to meet obligations to repay creditors.
Liquidity Risk Management Process
The Company’s liquidity management process, as carried out within the Company and
monitored by management includes:
 Day-to-day funding, monitoring and projection of cash flows to ensure that requirements
can be met. This includes replenishment of funds as they mature.
Monitoring and reporting take the form of cash flow measurement and projections. They are
performed every day, weekly and monthly, respectively. These are the key periods for liquidity
management. The starting point for those projections is an analysis of the contractual maturity
of the financial liabilities and the expected collection date of the financial assets.
2019
Less than 6 6 to 12 More than
Total
months months 1 Year
Advances from related parties
Borrowings
Total
2018
Less than 6 6 to 12 More than
Total
months months 1 Year
Borrowings
Total
3.6 Categories and Fair Values of Financial Assets and Liabilities

The carrying amounts and fair values of the categories of assets and liabilities presented in the
statements of financial position as at December 31, 2019 and 2018 are shown below.
2019 2018
Carrying Carrying Fair
Financial Assets values Fair values values values
Cash and cash equivalents
Security deposits
There were no transfers in and out of Level 2 fair value measurements during the year.
The following table provides the fair value measurement hierarchy for assets as at December 31,
2019:
2019
Quoted
Prices in Significant Significant

Active Observable Unobservabl
Market Inputs e Inputs
Financial Liabilities Total Level 1 Level 2 Level 3
Security deposits

The following table provides the fair value measurement hierarchy for assets as at December 31,
2018:
2018
Quoted Prices Significant Significant
in Active Observable Unobservabl
Security deposits

The following table provides the fair value measurement hierarchy for liabilities as at December
31, 2019:
2019
Quoted
Prices in Significant Significant

Active Observable Unobservabl
Borrowings

The following table provides the fair value measurement hierarchy for liabilities as at December
31, 2018:
2018
Quoted Prices Significant Significant
in Active Observable Unobservabl
Borrowings

Note 4 - Significant Accounting Estimates and Judgments
Estimates and judgments are continually evaluated. They are based on historical experience and
other factors, including expectations of the future.
The preparation of the financial statements in Philippine Financial Reporting Standards requires the
management of the Company to make estimates and assumptions that affect the amounts reported
in the financial statements and accompanying notes. Future events may occur which will cause the
assumption used in arriving at the estimates to change. The effects of changes in estimates will be
reflected in the financial statements as they become reasonably determinable.
Judgments
In the process of applying the Company’s accounting policies, management has made the following
judgements, which have the most significant effect on the amounts recognized in the financial
statements:
Determining the Lease Term of Contracts with Renewal and Termination Options -
Company as Lessee
The Company determines the lease term as the non-cancellable term of the lease, together
with any periods covered by an option to extend the lease if it is reasonably certain to be
exercised, or any periods covered by an option to terminate the lease, if it is reasonably
certain not to be exercised.
The Company has several lease contracts that include extension and termination options.
The Company applies judgement in evaluating whether it is reasonably certain whether or
not to exercise the option to renew or terminate the lease. That is, it considers all relevant
factors that create an economic incentive for it to exercise either the renewal or
termination. After the commencement date, the Company reassesses the lease term if there
is a significant event or change in circumstances that is within its control and affects its
ability to exercise or not to exercise the option to renew or to terminate (e.g., construction
of significant leasehold improvements or significant customisation to the leased asset).
The Company included the renewal period as part of the lease term for leases of plant and
machinery with shorter non-cancellable period (i.e., three to five years). The Company
typically exercises its option to renew for these leases because there will be a significant
negative effect on operations if a replacement asset is not readily available. The renewal
periods for leases of plant and machinery with longer non-cancellable periods (i.e., 10 to 15
years) are not included as part of the lease term as these are not reasonably certain to be
exercised. In addition, the renewal options for leases of motor vehicles are not included as
part of the lease term because the Company typically leases motor vehicles for not more
than five years and, hence, is not exercising any renewal options. Furthermore, the periods
covered by termination options are included as part of the lease term only when they are
reasonably certain not to be exercised.
Refer to Note 20 for information on potential future rental payments relating to periods
following the exercise date of extension and termination options that are not included in the
lease term.
Key Sources of Estimation Uncertainty

The Company makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual results. The estimates and assumptions
that have significant risk of causing a material Adjustment to the carrying amounts of assets and
liabilities within the next financial year are disclosed below.
Classification of Financial Instruments
The Company classifies a financial instrument, or its component parts, on initial recognition as
a financial asset, a financial liability or an equity instrument in accordance with the substance
of the contractual agreement and the definitions of a financial asset, a financial liability or an
equity instrument. The substance of a financial instrument, rather than its legal form, governs
its classification in the Statements of financial position.
Useful Lives of Property and Equipment
The Company reviews annually the estimated useful lives of property and equipment based on
the period over which the assets are expected to be available for use 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 assets. It is possible that
future results of operations could be materially affected by changes in these estimates brought
about by changes in the factors mentioned. A reduction in the estimated useful lives of
property and equipment would increase the recorded depreciation expenses and decrease
non-current assets. The carrying amounts of property and equipment and intangible asset are
analysed in Notes 7 and 8, respectively.
Provision for expected credit losses of trade receivables
The Company applies the PFRS 9 simplified approach to measuring expected credit losses
which uses a lifetime expected loss allowance for all trade receivables and contract assets.
To measure the expected credit losses, trade receivables have been grouped based on shared
credit risk characteristics and the days past due. The contract assets relate to unbilled work in
progress and have substantially the same risk characteristics as the trade receivables for the
same types of contracts. The Company has therefore concluded that the expected loss rates
for trade receivables are a reasonable approximation of the loss rates for the contract assets.
The expected loss rates are based on the payment profiles of sales over a period of 36 month
before 31 December 2019 or 1 January 2019 respectively and the corresponding historical
credit losses experienced within this period. The historical loss rates are adjusted to reflect
current and forward-looking information on macroeconomic factors affecting the ability of the
customers to settle the receivables. The Company has identified the GDP and the
unemployment rate of the countries in which it sells its goods and services to be the most
relevant factors, and accordingly adjusts the historical loss rates based on expected changes in
these factors.
Provisions and contingencies

The Company in the ordinary course of business sets up appropriate provisions for its present
legal or constructive obligations, if any, in accordance with its policies on provisions and
contingencies. In recognizing and measuring provisions, management takes risk and
uncertainties into account.
Realizable Amount of Deferred Tax Assets
The Company reviews its deferred tax assets at the end of each reporting period and reduces
the carrying amount 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 asset to be utilized. There are no
recognized deferred tax assets for the years 2019 and 2018 (see Note 17).
Impairment of Non-financial Assets
The Company’s policy on estimating the impairment of non-financial assets is discussed in

Note 2.9. Though management believes that the assumptions used in the estimation of fair
values reflected in the financial statements are appropriate and reasonable, significant
changes in these assumptions may materially affect the assessment of recoverable values and
any resulting impairment loss could have a material adverse effect on the results of
operations.
No impairment loss was recognized by the Company on property and equipment and
intangible assets as at December 31, 2019.
Retirement Benefits
The determination of the Company’s retirement benefit obligation is dependent on the
selection of certain assumptions used by actuaries in calculating such amounts. Those
assumptions includes, among others, discount rate and salary increase rate. In accordance
with PFRS, actual results that differ from the assumptions are accumulated and amortized over
future periods and therefore, generally affect the recognized expense and recorded obligation
in such future periods.
Fair Value of Financial Assets and Liabilities
Any changes in the fair value of these financial assets and liabilities would require certain
financial assets and liabilities to be carried and disclosed at fair value, which requires extensive
use of accounting estimates and judgments. While significant components of fair value
measurement were determined using verifiable objective evidences (i.e., foreign exchange
rates, interest rates, volatility rates), the amount of changes in fair value would differ if the
Company utilized a different directly affect profit or loss and equity.
The fair value of financial assets and liabilities are discussed in Note 2.
Leases - Estimating the Incremental Borrowing Rate
The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses
its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest
that the Company 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. The IBR therefore reflects what the Company ‘would have to pay’,
which requires estimation when no observable rates are available (such as for subsidiaries that
do not enter into financing transactions) or when they need to be adjusted to reflect the terms
and conditions of the lease (for example, when leases are not in the subsidiary’s functional
currency). The Company estimates the IBR using observable inputs (such as market interest
rates) when available and is required to make certain entity-specific estimates (such as the
Company’s stand-alone credit rating).
Note 5 - Cash and Cash Equivalents
This account consists of:
2019 2018
Cash in banks
Petty cash fund
Short-term deposits
Cash in banks generally earn interest at respective bank deposit rates.
Petty cash fund is intended for payment of small expenditures to support the Company’s daily
operations.
Short-term deposits are made for varying periods of between one day and three months, depending
on the immediate cash requirements of the Company, and earn interest at the respective short-term
deposit rates.
Note 6 - Trade and Other Receivables, Net
2019 2018
Trade receivables
Allowance expected credit losses
Advances to suppliers
Advances to employees
Other financial receivables
Trade receivables pertain to the Company’s collectible accounts arising from sale of goods in the
ordinary course of the Company’s business. Trade receivables are non-interest bearing and are
generally on terms of 30 to 90 days.
Advances to suppliers pertain to full or partial payment for goods and services before they are
actually received by the Company.
Advances to employees consists of salary loan and advances used in the daily operations of the
Company. These advances are non-interest bearing and expected to be liquidated within the next
period.
Set out below is the movement in the allowance for expected credit losses of trade receivables:
2019 2018
As at January 1
Provision for expected credit losses (Note 3.1)
Write-off
As at December 31
Note 7 - Inventories
2019 2018
Inventories
Allowance for inventory obsolescence

Inventories are comprised of fire prevention and electronics equipment.

The movement in allowance for impairment loss on inventory obsolescence are as follows:
2019 2018
As at January 1
Provision for impairment loss
Write off/ reversal
As at December 31
Total costs of inventories sold are presented as part of Cost of Sales in the period in which the
related revenue is recognized.
Note 8 - Prepayments and other Current Assets
2019 2018
Prepaid income tax
Prepaid MCIT
Prepaid input VAT
Prepayments

Prepaid income tax refers to excess tax credit other than MCIT which can be subsequently credited
against subsequent tax dues.
Prepaid MCIT pertains to excess of MCIT over regular income tax due which may be carried over
within the three (3) succeeding taxable years and credited against normal income tax dues.
Prepaid input VAT refers to the excess of input VAT over the output VAT for the current taxable year.
Prepayment pertains to expenses that are not yet used or consumed by the Company that are
amortized and spread evenly throughout the months of period benefited.
Note 9 - Property and Equipment, Net
The details of this account are shown in the reconciliation presented below:
Computer and
Plant machinery and Transportation communication Office furniture
equipment equipment equipment and equipment Total
At December 31 ,2017
Opening net book values
Additions
Disposals
Depreciation
Balances at December 31, 2018
At December 31, 2018

Cost
Accumulated depreciation
Net book values

Additions
Disposals
Depreciation

Cost
Accumulated depreciation
Net book values
The breakdown of the depreciation expense of property and equipment are as follows:
2019 2018
Cost of sales
Operating expenses

*If depreciation is wholly charged to opex/ direct cost, state “The PhPxxx depreciation expense is presented
in the Statement of Comprehensive Income/Loss under direct cost/operating expenses.”
Note 10 - Intangible Assets, Net
The details of this account are shown in the reconciliation presented below:
Computer software
At December 31 ,2017
Additions
Disposals
Amortization

Cost
Accumulated amortization
Net book values

Additions
Disposals
Amortization

Cost
Accumulated amortization
Net book values
Note 11 - Trade and Other Payables
2019 2018
Trade payables
Accrued expenses
Other payables

Trade payables are non-interest bearing obligations that are due within the next accounting
period that pertains to purchases of goods and services from various suppliers.
Accrued expenses comprise of unpaid amounts of advertisement and promotions, utilities,

professional fees, securities and other expenses which are expected to be settled within 12 months
from separate statement of financial position date.
Note 12 - Payable to Government Agencies
2019 2018
SSS,PHIC,HDMF payables
VAT payable
Withholding tax payable - expanded
Withholding tax payable - compensation

Note 13 - Borrowings
2019 2018
Loans payable, at the beginning of the period
Additions
Accretion of interest
Payments
Loans payable, at the end of the period
Current
Non-current
During August and December 2016, the Company obtained a 3-year auto financing loan from a local
commercial bank which bears an interest rate of 9.13% and 8.94%, respectively. Interest expense
from these loans amounted to PhPxxx,xxx and PhPxxx,xxx in 2019 and 2018, respectively, is
presented as Finance Charges in the Statements of Comprehensive Income.
The Company obtained 5 year promissory notes from reputable banks amounting to PhP100,000,000
and PhP20,000,000 on August 2015 and December 15, 2017, which bears an interest rate at 3.88%
and 5.00%, respectively. Total interest incurred on these loans amounted to PhPxxx,xxx in 2019.
These amounts are reported as Finance Charges in the Statements of Comprehensive Income.
Note 14 - Share Capital
The Company’s authorized capital stock is three hundred million (PhP300,000,000) pesos, divided
into three hundred million (300,000,000) shares with the par value of one (PhP1) peso per share.
Three hundred million (300,000,000) shares were subscribed and paid for three hundred million
(Php300,000,000) pesos as at December 31, 2019 and 2018.
The details of this account are shown below:
2019 2018
Shares Amount Shares Amount
Authorized share capital- PhP100 par value
Unissued share capital
Subscribed share capital
Subscription receivable
Paid-up capital
Note 15 - Revenues
2019 2018
DISAGGREGATED REVENUE INFORMATION
Type of goods or service
Sale of fire prevention equipment
Sale of electronics equipment
Total revenue from contracts with customers
Timing of revenue recognition

Revenues at a point in time
Revenues over time
Total revenue from contracts with customers
Note 16 - Cost of Sales
2019 2018
Cost of sales

Analyses of Cost of Sales are as follows:
2019 2018
Inventory, beginning
Purchases
Disallowed input tax charged to cost of sales
Cost of goods available for sale
Inventory, ending
Cost of sales
Note 17 - Operating Expenses
2019 2018
Salaries and wages
Contracted services
Depreciation (Note 7)
Commissions and incentives
Advertising and promotion
Other employee benefits
Provision for inventory obsolescence
Directors and other allowances
Retirement cost
Taxes, fees and licenses
Travel, meeting and conferences
Communication, light and water
Rental (Note 7)
Repairs and maintenance
Consultants and professional fees
Insurance
SSS, Pag-ibig and other contributions
Freight and storage
Representation and entertainment
Fringe benefit
Contributions and membership
Employee activities and trainings
Research and development
Bank charges
Materials and supplies
Miscellaneous

Note 18 - Finance Income (Charges), Net
2019 2018
Interest income
Unrealized foreign exchange gain
Note 19 - Finance Charges
2019 2018
Interest expense
Unrealized foreign exchange loss
Note 20 - Other Income
2019 2018
Gain on sale of scrap materials
Others

Other income represents income derived from reversal of accruals and from sale of scrap material
and other assets.
Note 21 - Leases
Company as a lessee
The Company has lease contracts for various items of plant, machinery, vehicles and other
equipment used in its operations. Leases of plant and machinery generally have lease terms
between 3 and 15 years, while motor vehicles and other equipment generally have lease terms
between 3 and 5 years. The Company’s obligations under its leases are secured by the lessor’s title
to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased
assets and some contracts require the Company to maintain certain financial ratios. There are
several lease contracts that include extension and termination options and variable lease payments,
which are further discussed below.
The Company also has certain leases of machinery with lease terms of 12 months or less and leases
of office equipment with low value. The Company applies the ‘short-term lease’ and ‘lease of low-
value assets’ recognition exemptions for these leases.
Set out below are the carrying amounts of right-of-use assets recognized and the movements during
the period:
Plant and Motor Other

machinery vehicles equipment Total
As at January 1, 2018 (Restated)
Additions
Depreciation
As at December 31, 2018
Additions
Depreciation
Set out below are the carrying amounts of lease liabilities and the movements during the period:
2018

2019 (Restated)
As at January 1
Additions
Accretion of interest
Payments
As at December 31
Current
Non-current
The maturity analysis of lease liabilities is disclosed in Note 3.5.

Leases continued
The following are the amounts recognized in profit or loss:
2018

2019 (Restated)
Depreciation expense of right-of-use assets
Interest expense on lease liabilities
Expense relating to short-term leases and leases of
low-value assets (included in operating expenses)
Payments
Total amount recognized in profit or loss
The Company has several lease contracts that include extension and termination options. These
options are negotiated by management to provide flexibility in managing the leased-asset portfolio
and align with the Company’s business needs. Management exercises significant judgement in
determining whether these extension and termination options are reasonably certain to be
exercised (see Note 4).
Set out below are the undiscounted potential future rental payments relating to periods following
the exercise date of extension and termination options that are not included in the lease term:
Within five More than

years five years Total
Extension options expected not to be
Termination options expected to be exercised
Extension options expected not to be

exercised
Termination options expected to be exercised
Note 22 - Employee Benefit
Description of the Retirement Plan
The Company has a separate and non-funded non-contributory defined benefit retirement plan
covering substantially all its officers and regular employees. Under this retirement plan, all covered
officers and employees are entitled to cash benefit after satisfying certain age and service
requirements.
The movement in the retirement benefit obligation recognized in the statement of financial position
are as follows:
2019 2018
Balance at the beginning of the year
Retirement benefit expenses
Contribution paid
Recognized in other comprehensive income
Balance at the end of the year
The movement in the defined benefit obligation over the year is as follows:
2019 2018
At January 1
Current service cost
Past service cost
Interest expense
Contribution Paid
Actuarial loss arising from experience adjustments
Actuarial gain arising from experience adjustments
Actuarial gain arising from demographic assumptions
At December 31
The movement in the plan asset recognized in the statement of financial position are as follows:
2019 2018
Return on plan asset
Benefit paid
Recognized in other comprehensive income
The movement in the plan asset over the year is as follows:
2019 2018
Interest income from plan asset
Contribution
Benefit paid
Re-measurement gain (loss)
The amount of defined benefit obligation, net recognized in the separate statements of financial
position are as follows:
2019 2018
Defined benefit obligation
Plan assets

The amount of retirement cost during the year is allocated to operating expenses (other income) are
as follows:
2019 2018
Current service cost
Past service cost
Interest cost, net

The amount of retirement cost during the year is allocated to other comprehensive income are as
follows:
2019 2018
Actuarial gain( loss)- DBO
Re-measurement loss (gain) - plan asset

The principal actuarial assumptions used were as follows:
2019 2018
Discount rate
Salary increase rate

If no actuarial,
The Company provides for retirement benefit to employees based on the minimum benefits
required under Republic Act No. 7641 Article 287 – Retirement Pay Law. The law requires a
retirement pay equivalent to at least fifteen (15) days salary based on the employee’s latest salary
rate for every year of service, cash equivalent of not more than five (5) days of service incentive
leave, one-twelfth of the 13th month pay and all other benefits that the employer and employee may
agree upon that should be included in the computation of the employee’s retirement pay. The only
obligation of the Company with respect to the retirement benefit scheme is to make the specified
contributions.
The contributions made to the scheme amounted to PhPxxx,xxxand PhPxxx,xxx in 2019 and 2018,
respectively.”
Note 23 - Income Tax
Income tax expense (benefit) for the years ended December 31, 2019 and 2018 consists of:
2019 2018
Current tax expense
Deferred taxes
Total income tax expense (benefit)
Reconciliation of the income tax expense (benefit) computed at the statutory tax rates to the income
tax shown in the Statements of Comprehensive Income:
2019 2018
Income tax at statutory rate
Add (deduct):
Tax effect on permanent differences
Excess representation and entertainment over
allowable
Interest expense deduction
Other non-deductible expenses
Interest income subject to final tax
Provision for advances to related party
Non-taxable income
Effective income tax
Add (deduct):
Tax effect on temporary differences
Provision for inventory obsolescence
Provision for impairment loss on trade and other
receivables
Retirement expense
Retirement paid
Accrued commission expense
Net operating loss carry-over (NOLCO) applied
Tax due
Reconciliation of income tax due based on MCIT:
2019 2018
Revenues
Cost of sales
Gross income
Other income
Gross income subject to MCIT
MCIT rate
Tax due - MCIT
Tax due - RCIT or MCIT, whichever is higher:
2019 2018
Tax due - RCIT (MCIT)
Prepaid MCIT
Income tax payment - previous quarters
Creditable withholding tax
Income tax payable (Prepaid income tax)
The components of the Company’s deferred tax assets are as follows:
2019 2018
NOLCO
Provision for retirement obligation
From unearned rental
Total
Statutory income tax rate
Deferred tax assets
The components of the Company’s deferred tax liabilities are as follows:
2019 2018
Accrued income
Statutory income tax rate
Deferred tax liability
For the year ended December 31, 2019, the Company is subject to MCIT equivalent to 2% of gross
income, as defined in the tax regulations. The amount of MCIT and the applicable years it is
deductible from RCIT is shown below:
Year Amount incurred Amount applied Amount Remaining Year

2019 2022
2018 2021
2017 2020
2016 2019

The component of the Company’s NOLCO, for which DTA were recognized, which can be claimed as
deduction for future taxable income are as follow:
Year Amount Remaining Year

incurred Amount incurred Amount applied expired balance expiration
2019 2022
2018 2021
2017 2020
2016 2019

Note 24 - Relevant Tax Regulations
Among the significant provisions of the National Internal Revenue Code (NIRC) that apply to the
Company are the following:
(a) Starting January 1, 2009 the RCIT tax of 30% is imposed on taxable income net of applicable
deductions;
(b) Minimum corporate income tax (MCIT) of 2% based on gross income, as defined under the
Tax Code, is required to be paid at the end of the year starting on the fourth year from the
date of registration with the Bureau of Internal Revenue (BIR) whenever the RCIT is lower
than the MCIT.
On October 19, 2007, the BIR issued RR No. 12-2007 which requires the quarterly
computation and payment of the MCIT beginning on the income tax return for the fiscal
quarter ending September 30, 2007. This RR amended certain provisions of RR No. 9-98
which specifically provides for the computation of the MCIT at end of each taxable year.
Thus, in the computation of the tax due for the taxable quarter, if the computed quarterly
MCIT is higher than the quarterly normal income tax, the tax due to be paid for such taxable
quarter at the time of filing the quarterly corporate income tax return shall be the MCIT
which is 2% of the gross income as of the end of the taxable quarter;
(a) Revenue Regulations No. 14-2001, states that the Net operating loss carryover (NOLCO) can
be claimed as deduction against gross income within three years after NOLCO is incurred;
(b) Section 34 of National Internal Revenue Code (NIRC), Deduction from Gross Income, states
that the amount of interest expense allowed as income tax deduction is reduced by an
amount equal to 33% of the interest income subjected to final tax.
(c) Effective July 2008, RA 9504 was approved giving corporate taxpayers an option to claim
itemized deduction or optional standard deduction (OSD) equivalent to 40% of gross profit.
Once the option to use OSD is made, it shall be irrevocable for the taxable year for which the
option was made; and
(c) On November 25, 2010, Revenue Regulations No. 15-2010, amending certain provision of
Revenue Regulations No. 21-2002, as Amended, Implementation Section 6 (H) of the Tax
Code of 1997, Authorizing the Commissioner of Internal Revenue to Prescribe Additional
Procedural and/or Documentary Requirements in Connection with the Preparation and
Submission of Financial Statements Accompanying the Tax Returns was published. The
regulation stated that in addition to the disclosures mandated under the PFRS, and such
other standards and/or conventions as may heretofore be adopted, the Notes to the
financial statements shall include information on taxes, duties and license fees paid or
accrued during the taxable year. The regulation enumerated the specific additional
disclosures which include Value-added taxes (VAT), Customs and Duties and Tariff fees,
Excise taxes, Documentary stamp tax (DST), Taxes and Licenses, Withholding taxes,
Deficiency taxes and assessments, tax cases, litigation and/or prosecution in courts or bodies
outside the BIR.
(d) Input VAT is the 12% indirect tax paid by the Company in the course of the Company’s trade
or business on local purchase of goods or services, including lease or use of property, from a
VAT-registered entity. For acquisition of capital goods over one million (PhP1,000,000)
pesos, the related input taxes are deferred and amortized over the useful life or 60 months,
whichever is shorter, commencing on the date of acquisition.
Output VAT pertains to the 12% tax due on the sale of merchandise and leases or exchange
of taxable goods or properties or services by the Company. If at the end of any taxable
month the output VAT exceeds the input VAT, the excess shall be paid by the Company. Any
outstanding balance is included under “Payable to government agencies” account in the
statement of financial position. If the input VAT exceeds the output VAT, the excess shall be
carried over to the succeeding month or months. Excess input VAT is included under
“Prepayments and other current assets” account in the statement of financial position. Input
VAT on capital goods may, at the option of the Company, be refunded or credited against
other internal revenue taxes, subject to certain tax laws.
Note 25 - Related Party Transactions
Parties are considered to be related if one has the ability, directly or indirectly, to control the other
party or exercise significant influence over the party in making financial and operating decisions.
Parties are also considered to be related if they are subject to common control. Related parties may
be individual or corporate entities.
Outstanding balances as of December 31, 2019 and 2018 are unsecured. There have been no
guarantees provided for any related party transactions. This assessment is undertaken at each
reporting date through examining the financial position and the amount and timing of future cash
flows of the related parties. Unless otherwise stated, the transactions were carried out on
commercial terms and conditions.
The Company’s related party transactions are non-interest bearing advances and demandable/with
one year term of repayment. As at December 31, 2019 and 2018, the balances of this related party
transactions are:

NAME OF RELATED PARTY : Planters Foundation, Inc. RELATIONSHIP: Trustee
Nature of Amount / Outstanding

Transaction Volume Balance Terms Conditions Mode of Payment
clean and Unsecured, Full
Advances to demandable impairment Cash

NAME OF RELATED PARTY : Planters Kaisaka Services Cooperative RELATIONSHIP: Common Control


Advances from demandable impairment Cash

NAME OF RELATED PARTY : Planters Foundation, Inc. RELATIONSHIP: Trustee

Advances to demandable impairment Cash

NAME OF RELATED PARTY : Planters Kaisaka Services Cooperative RELATIONSHIP: Common Control


Advances from demandable impairment Cash

Key Management Compensation
The compensation of key management personnel is included under “Salaries and wages and 13 th
month pay” in the Statement of Comprehensive Income of the Company are as follows:
2019 2018
Short-term employee benefits
Post-employee benefits

Short-term employee benefits include salaries and other non-monetary benefits. Post-employee
benefits include retirement benefits for their employees.
Or
Key management includes Board of Directors (executive and non-executive) and the Company’s
secretary. The Company did not give compensation to key management since they are also the
shareholders of the corporation.
Note 26 - Approval of Financial Statements
The financial statements as of and for the year ended December 31, 2019 were approved and
authorized for issuance by the Board of Directors (BOD) on _______________.
Note 27 - Supplementary Information Required Under Revenue Regulations 15-2010
On November 25, 2010, the Bureau of Internal Revenue (BIR) issued Revenue Regulation (RR) 15-
2010, which required certain information on taxes, duties and license fees paid or accrued during
the taxable year to be disclosed as part of the notes to financial statements. This supplemental
information, which is an addition to the disclosures mandated under PFRS, is presented as follows:
26.1 Value-Added Tax
The Company is registered under the VAT law. Detailed classification of input and output VAT
for 2019 are as follows:
Amount
Total output VAT
Total input VAT
Payment for three quarters
Prepaid input VAT/Output VAT payable
26.2 Taxes on Importation
In 2019, the Company did not import goods for business use. No customs duties and tariff
fees were accrued or paid during the year.
Or
In 2019, the Company paid customs duties and tariff fees amounting to PhPxxx,xxx for the
importation of inventories. This is included as component of purchases.
26.3 Excise Tax and Documentary Stamp Tax
The Company paid documentary stamp tax amounting to PhPxxx,xxx during 2019.
The amount of documentary stamp tax is included in taxes and licenses in the Statements of
Comprehensive Income under the Operating Expenses. (Note 17)
Or
In 2019, the Company has no transactions subject to excise and/or documentary stamp tax.
26.4 Withholding Taxes

The Company withheld the following taxes during the year:
Accrued Paid
Withholding tax on compensation
Expanded withholding tax
26.5 Taxes and Licenses
The details of taxes and licenses are as follows:
2019
Business permit
Community tax certificates
BIR annual permit
Percentage tax
Documentary stamp tax
Barangay permit

The amounts of taxes and licenses above are included in the Statements of Comprehensive
Income under the Operating Expenses. (Note 17)
26.6 Deficiency Tax Assessments and Tax Cases
There were no deficiency tax assessments, tax cases, litigations or prosecution in courts or
bodies outside the BIR as at December 31, 2019.
Note 28 - Supplementary Information Required by Revenue Regulation No. 19-2011
On December 9, 2011, the BIR issued RR 19-2011 which prescribes the new form that will be used
for income tax filing covering and starting with periods ending December 31, 2011 and onwards. This
recent RR requires schedules of taxable revenues and other non-operating income, costs of sales
and services, and itemized deductions, to be disclosed in the notes to financial statements.
The amounts of taxable revenues and income, and deductible costs and expenses presented below
are based on relevant tax regulations issued by the BIR, hence, may not be the same as the amounts
reflected in the 2019 Statement of Comprehensive Income.
(a) Taxable Revenues
The composition of the Company’s taxable revenues for the year ended December 31, 2019
subject to regular tax rate is presented as follows:
2019
Agricultural chemicals
Fertilizers

(b) Taxable Other Income
(c)
The composition of the Company’s taxable other income for the year ended December 31,
2019 subject to regular tax rate is presented as follows:
2019
Interest income not subject to final tax
Others

(d) Deductible Cost of Sales
Deductible cost of sales for the year ended December 31, 2019 under the regular tax rate
regime comprises the following:
2019
Inventory, beginning
Purchases
Disallowed input tax charged to cost of sales
Cost of goods available for sale
Inventory, ending
Cost of sales
(e) Itemized Deductions
The amount of itemized deductions for the year ended December 31, 2019 subject to regular
tax rate regime is as follows:
2019
Write off of trade and other receivables
Contracted services
Salaries and wages
Net operating loss carry over
Depreciation
Advertising and promotion
Taxes, fees and licenses
Other employee benefits
Retirement cost
Directors and other allowances
Communication, light and water
Travel, meeting and conferences
Repairs and maintenance
Representation and entertainment
Rental
Consultants and professional fees
SSS, PAG-IBIG and other contributions
Freight and storage
Insurance
Contributions and membership
Employee activities and trainings
Research and development
Bank charges
Miscellaneous

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TOP CORPORATION

TAGNIA, ORTEGA & PARTNERS, CPAs

LIABILITIES AND SHAREHOLDERS' EQUITY (CAPITAL DEFICIENCY)

Shareholders' equity (Capital deficiency)

See accompanying Notes to Financial Statements

Notes 2019 2018

See accompanying Notes to Financial Statements

At the beginning of January 1, 2018

At the beginning of January 1, 2019

See accompanying Notes to Financial Statements

Notes 2019 2018

Cash flows from operating activities

Cash flows from investing activities

See accompanying Notes to Financial Statements

Note 1 - Corporate Information

The Company’s primary purpose is to engage in trading, manufacturing (reformulation), importation

Status of Operations*Only if capital deficit (negative equity)

2.1 Basis of Preparation of Financial Statements

2.2 Adoption of New and Revised PFRS

Effective beginning on or after January 1, 2019

 PFRS 16, Leases

The effect of the adoption of PFRS 16 is discussed in Note 21.

 Amendments to PFRS 9, Prepayment Features with Negative Compensation

 Amendments to PAS 19, Plan Amendment, Curtailment or Settlement

Annual Improvements 2015-2017 Cycle

 Amendments to PFRS 3, Business Combinations

 Amendments to PFRS 11, Joint Arrangements

 Amendments to PAS 23, Borrowing Costs

Effective beginning on or after January 1, 2018

Annual Improvements to PFRSs 2012 - 2014 Cycle

 Amendment to PFRS 7, Financial Instruments: Disclosures, Servicing Contracts

PFRS 7 requires an entity to provide disclosures for any continuing involvement in a

 Amendment to PFRS 7, Applicability of the Amendments to PFRS 7 to Condensed Interim

 Amendment to PAS 34, Interim Financial Reporting, Disclosure of Information ‘Elsewhere

 Amendments to PFRS 2, Share-based Payment, Classification and Measurement of Share-

 PFRS 15, Revenue from Contracts with Customers

 PFRS 9, Financial Instruments

 Amendments to PAS 40, Investment Property, Transfers of Investment Property

 Philippine Interpretation IFRIC-22, Foreign Currency Transactions and Advance

Effective beginning on or after January 1, 2020

 PFRS 3, Definition of a Business

 PAS 1, Presentation of Financial Statements, and PAS 8, Accounting Policies, Changes in

 PFRS 17, Insurance Contracts

 A simplified approach (the premium allocation approach) mainly for short-duration

2.3 Financial Instruments

Determination of Fair Value

Fair Value Hierarchy

De-recognition of Financial Assets and Liabilities

 the rights to receive cash flows from the asset expired;

2.4 Advances to related parties

2.6 Prepayments and Other Current Assets

2.10 Other Non-Current Assets

2.11 Impairment of Non-financial Assets Other than Inventories

2.13 Advances from Related Parties

2.14 Other Non-Current Liabilities

2.15 Employee Benefits

Post-employment Defined Benefit Plan

*if there is no actuarial valuation during the year.

Other Long-term Employee Benefit Obligations

Profit-sharing and Bonus Plans

The Company’s lease liabilities are presented in Note 21.

Short-term leases and leases of low-value assets