FRIENDSHIPS CO.

Statement of Financial Position

As of December 31, 20x1
(amounts in Philippine Pesos)

Notes 20x1
ASSETS
Current assets
Cash and Cash Equivalent 4 4,240,975
Trade and other receivables 5 9,033,111
Inventories 6 22,117,615
Prepaid Supplies 890,239
Prepaid Income Tax 234,125
Held for Trading Securities 2,834,079
Total current assets 39,350,144
Non-current assets
Investment in equity instruments 987,234
Investment in associate 1,290,347
Property, plant and equipment 12,370,960
Deferred tax 1,092,387
Loans receivable 9,827,341
Unearned interest income -1,234,819
Total non-current assets 24,333,450
Total assets 63,683,594

LIABILITIES AND EQUITY

Current liabilities
Trade and other payables 10,302,733
Provision for warranty obligations 432,187
Loan payable 7,253,748
Income tax payable 721,346
Total current liabilities 8,407,281
Non-current liabilities
Deferred credits 712,788
Deferred tax 918,732
Total non-current liabilities 1,631,520
Total liabilities 20,341,534

Equity
Share capital 26,000,000
Retained earnings 17,342,060
Other components of equity
Total equity 43,342,060

Total liabilities and equity 63,683,594

 BEST FRIENDS CO.
Statement of Profit or Loss and Other Comprehensive Income
For the year ended December 31, 20x1
(amounts in Philippine Pesos)

Notes 20x1
Sales 22,800,000
Cost of sales 100,000
Gross profit 22,900,000.00
Other income
Distribution costs
Selling expense 800,000
Administrative expenses 100,000
Impairment of property, plant and equipment 720,000
Other expenses
Finance costs 560,000
Share of profit of associates
Profit before tax
Income tax expense
Profit for the year from continuing operations
Loss for the year from discontinued operations
PROFIT FOR THE YEAR
Other comprehensive income, after tax:
Items that will not be reclassified subsequently to profit or loss:
Gains on property revaluation
Share of other comprehensive income of associates
Remeasurements of defined benefit pension plans
Investments in equity instruments

Items that will be reclassified subsequently to profit or loss:

Exchange differences on translating foreign operations
Cash flow hedges

Other comprehensive income for the year, net of tax

TOTAL COMPREHENSIVE INCOME FOR THE YEAR
December 31, 20x1

December 31, 20x1 Cost of Sales 100,000

Inventory 100,000
To write down inventories at net realizable value
December 31, 20x1 Bad debts expense 50,000
Allowance for doubtful account 50,000
To record bad debt expense
December 31, 20x1 Loss on reclassification 200,000
Held for trading securities 200,000

To record the loss on reclassification

December 31, 20x1 Held for trading securities 180,000
Unrealized gain - P/L 180,000
To record the fair value changes

Cash flow hedges

Other comprehensive income for the year, after tax

TOTAL COMPREHENSIVE INFOME FOR THE YEAR
Total comprehensive income attributable to:
Owners of the parent
No-controlling interests
 BUDDIES CO.
Statement of Profit or Loss and Other Comprehensive Income
For the year ended December 31, 20x1
(amounts in Philippine Pesos)

Notes
Revenue
Other income
Change in inventory
Net purchases
Employee benefits expense
Depreciation and amortization expense

Impairment of property, plant and equipment

Other expenses
Finance costs
Share of profit of associates
Profit before tax
Income tax expense
Profit for the year from continuing operations
Loss for the year from discontinued operations
PROFIT FOR THE YEAR

Profit attributable to:

Owners of the parent
Non-controlling interests

Other comprehensive income, after tax

Items that will not be reclassified subsequently to profit or loss:
Gains on property revaluation
Share of other comprehensive income of associates - revaluation gain
Remeasurements of defined pension plans
Investment in equity instruments

Items that will be reclassified subsequently to profit or loss:

Exchange differences on translating foreign operations
 Date Accounts
e December 31,20x1 Investment in amortized cost
Gain on sale
To record the gain on sale of investment
December 31,20x1 Loss from change in FVLCS
20x1 Biological Assets
To record the change in FVLCS
December 31,20x1 Investment in associate
Share in Profit of Associate
To record the share in profit of associate
December 31,20x1 Dividend income
Investment in associate
To correct the entry on dividend income
December 31,20x1 Investment in Associate
Share in OCI of Associate - revaluation surplus
To record the share in associate's other comprehensive incom
 Dr. Cr.
150,000
150,000

300,000
300,000

300,000
300,000

90,000
90,000

36,000
36,000
rehensive incom