Cruz, Janella Mari P.

Losa, Marinella

BSA -3A

Examination and Review of Financial Statements

HSBC Insurance Brokers (Philippines) Inc. was established in 2002 and is a wholly-
owned subsidiary of The Hongkong and Shanghai Banking Corporation Limited. It is licensed
and principally regulated by the Insurance Commission and the Securities and Exchange
Commission (SEC) of the Philippines. And as a wholly owned subsidiary of HSBC Philippines,
it is likewise subject to supervisory regulation of the Bangko Sentral ng Pilipinas.

The annual financial report of HSBC Insurance Brokers (Philippines) Inc. can be found
online and as we review its contents, they provided sufficient information stating that they are
in accordance with Philippine Financial Reporting Standards (PFRSs). HSBC Inc. provided
complete set of financial statements which is required by the PAS 1: Presentation of Financial
Statements that comprise a statement of financial position, a statement of profit or loss and
other comprehensive income, a statement of changes in equity and a statement of cash flows.
The information such as the name of the reporting entity, the reporting period, the presentation
currency, and the level of rounding used has been displayed prominently in the financial
statements.

The presentation of the statement of financial position of HSBC Insurance Brokers

(Philippines) Inc. is in compliance with the standards. There is a separation between the current
and non-current assets as wells as current and non-current liabilities. It used the proper line
items of financial position associated with proper notes. The headings, amounts, and totals were
presented and labelled in a clear and understandable manner. The amount of total assets is in
balance with the amount of total liabilities and equity.

The total comprehensive income was presented using the two statements; the income
statement and statement of comprehensive income. The corporation’s income statement was
presented in natural presentation or referred to as the nature of expense method. The expenses
which are of the same nature are grouped and presented as one item. In statement of
comprehensive income, the total amount of other comprehensive income (loss) was clearly
stated. The headings, amounts, subtotals, and totals were presented and labelled in a clear and
understandable manner in both financial statements.
 For corporation’s statement of changes in equity, the entity presented the
comprehensive income and has shown the movements in the components of shareholders’
equity. This financial statement is also clearly presented like the aforementioned financial
statements.

The statement of cash flows of the corporation has been properly classified its entity’s
activities from operating and financing activities. Information about the cash flows from
investing activities are not stated. The amount of cash in bank at December in the statement of
cash flows has the same amount in the cash in bank that can be found in the statement of
financial position. Therefore, the line items and its amounts are presented clearly and fairly.

The notes to financial statements of HSBC Insurance Brokers (Philippines) Inc. have all
the supporting information which is not presented but relevant in the financial statements. The
corporation provided sufficient and detailed analysis and explanation for fully understanding
all the financial statements of the entity.

After reviewing and reading the financial statements provide by entity, we therefore
conclude that the HSBC Insurance Brokers (Philippines) Inc. is in compliance with the
provisions of PAS 1: Presentation of Financial Statements. The features, structures, and contents
has been presented fairly and clearly in accordance with the standard.